An ERP system or Enterprise Resource Planning system, is designed to speed up and streamline business processes for small to medium sized businesses. An ERP is a core software solution that covers everything from customer records to inventory management, work orders to financials.  More than just transaction processing, such a system provides a real time view across your business to forward plan and understand the opportunities you have for improvement.

Not all software packages are created equal and ERP doesn’t come cheap. This is evidenced most commonly in the bottom line of how much you are paying for the software, the implementation process, training your staff and transferring your data.. The initial outlay is definitely something that can make business owners second guess their decision about investing.  However, the long term financial benefits and the opportunities for business efficiency far outweigh the initial outlay. 

The real question you need to ask yourself however, should be, NOT how much will this cost me, but HOW MUCH will this save me?

Here are a few ways investing in your new ERP system is going to save your business money, and reduce your sleepless nights.

One System v Several systems

With one unified system – you are able to ensure that the data you are referring to is correct.  There is a single source of truth – no more data here, some in this system, a few excel spreadsheets over there and then trying to figure out which one is correct.  In addition to this, ERP systems are scalable and can grow with your business. Not having to start again with a new system as your business grows will save you money in both operational and staff costs.

Scalable Software = Dollar saving in the future

Better visibility

The best way to ensure your business ‘success, is to understand your numbers.  Profit, Loss, Overheads, Stock Levels, Job Cost – all these things need to be monitored. Investing in an ERP system will help you gain control of your data. You aren’t looking all over the place for these answers.  It will save you time.  Time = Money.

ERP systems give you the ability to create general as well as specific reports aimed at a range of audiences.  From general performance reports  with graphs to share with your staff to drill down reporting on specific data sets.  This  availability of extensive reporting allows you to have a clearer understanding of your financial position at any point in time.   You will also have a clearer view of things like your stock and inventory, giving you a way to monitor underuse and waste levels, and provide an opportunity to invest more wisely.

Less Waste = More Money in your pocket.

Reduced Complexity

One of the most important elements of a great ERP system, is the workflow elements.  Having a good workflow setup will create more streamline processes within your business. Having everything you need and nothing you don’t will save you in staff costs, and reduce human error across your entire business. Imagine the ability to increase your volume of business without the needing to add more people to handle it.

Automated processes = Less money on staff costs and fixing errors.

An integrated software system such as an ERP will change the way you do business.  It will help you get past your current growing pains and give you a clear view of where you are, to enable you to make plans that will see your business thrive in the future.   If you choose wisely, your ERP system will indeed help you save money and see it as an investment in the future of your organisation. Like any investment you evaluate the outlay against the return.  If the returns are there then the cost of inaction can far outweigh the cost of the system. If you would like to delve deeper into the real cost of an ERP, listen to our podcast here.

To learn more about how investing in an ERP system can help you and your business save money and move to the next level, give Thrive a call today.