How to make sure that you need an ERP for your business?
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The document discusses the necessity of Enterprise Resource Planning (ERP) software for businesses experiencing growth, emphasizing the need for improved efficiency, centralized information, and responsive decision-making. It outlines essential factors for considering ERP investment, including potential growth opportunities, the integration of information, and forming strategic partnerships with vendors. Ultimately, the text encourages businesses to evaluate their current systems and the benefits ERP investment may offer in sustaining growth and managing complexity.
How to make sure that you need an ERP for your business?
- 2. ERP has become more of a necessity for organizations worldwide. But does it really mean that without ERP a business cannot thrive? ERP software and implementation don't come in cheap, it a big investment, and more than capital it requires a lot of commitment for change. What factors really determine the need for an ERP investment for the company?
- 3. • If your current systems and processes sufficiently churning out results, then one might not feel the need for upgrading to a fancy Enterprise Resource Planning (ERP) software. • But does that really mean the current pace at which the systems are running, will be sufficient when the scope of work will grow? • When in garment industry we have a plethora of software solutions available to us, that are successful and customer focused but they still fail at times to scale at the pace the business is scaling.
- 4. Factors to be considered before buying ERP
- 5. 1. Business’ Potential Growth Opportunities The biggest driver that forces companies to turn to ERP is the growth in their operations. Business expansion, especially in today’s complex and fast-changing global environment puts an unbearable tension on the company’s traditional systems. Be it taking crucial decisions in hours, omnichannel expectations, continuously evolving processes, complex supply chain execution or drop shipping algorithms; traditional information management systems cannot do all of these seamlessly, and more so at the scale required. When the scale of business grows exponentially, processes change at a fast pace, and the customized but outdated solutions do not necessarily support the sustainable growth aspect of the business. If the business opportunities present the need for the business to upscale the operations and thus integrating and organizing information, one can invest into ERP software accordingly.
- 6. 2. The Need To Centralize Information • To strategically ensure a business’s survival, hiring professionals to manage various business functions is inevitable. • Fortunate businesses are blessed with experienced leaders who have been serving in the business for years, but in today’s globalized fast paced business environment, sustaining such leadership is not easy. • Highly qualified, but newcomers to a business, struggle with lack of information and answers that can enable them to solve business concerns effectively. • Hence, a system is needed that can answer their questions correctly and precisely but analytically. • ERP software will help businesses to integrate all the available information across all the operating functions in the company, into a single reliable source, thus enabling informed better decision making.
- 7. 3. The Need To Improve On The Speed And Efficiency Fashion industry thrives on speed, which turns out to be a major driver for ERP too. Reaction time to changing market and fashion trends these days is very low. Companies in our industry can live or die according to their capability to ensure on-time shipments, latest designs, and merchandising accuracy. With every customer requiring their own set of requirements and nuances, the whole system becomes extremely complex to handle especially at larger scales, where the numbers of customers are high. The next-generation ERP software available to the industry, offer a flexible, open architecture to align it to specific business needs while ensuring speed and efficiency in every aspect of the company.
- 8. 4. Forming Right Strategic Partnership • Investing in ERP can seem like a quick solution to one’s business woes, but it is far from that. • ERP investment is the just the first step towards the long process of ERP integration and follow up within the company processes. • Hence, before making the decision for selection of the right ERP package for the company, one should look forward to the strategic relationship the vendor is willing to create the company in the long term. • ERP implementation, execution and the training of ERP managers and users are some of the many aspects that need to be looked upon before making the decision to purchase any ERP software, irrespective of the brand value it carries.
- 9. • So, what will be your take for an ERP investment within your company? • Do your current systems of legacy software work cost effectively or do they need additional support every now and then? • We hope, the above information will help you in making an informed decision.
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