Why ERP is Necessary for Growing Businesses

Why ERP is Necessary for Growing Businesses

ERP (Enterprise Resource Planning) software has been the foundation of businesses for decades. However, many are under the misconception that unless you are a large, enterprise-sized company, an ERP is not necessary. Contrary to this assumption, there are many reasons why a small, but growing companies need an ERP to effectively run their business.

Reason 1: Operational Efficiency

An ERP can help improve a company’s operational efficiency. Businesses with a small workforce and just a few defined processes may find it is easy to keep things organized. However, once a company starts to grow its employees, products, and/or processes, keeping everything in order, structured, and efficient becomes much more difficult. Implementing an ERP solution can help streamline processes, facilitate communication between organizational departments, and automate as many processes as possible. Today’s ERP solutions integrate processes and data from all parts of your organization so that real-time data, for every department, is housed in one central location, allowing everyone to share appropriate information as needed, thereby reducing overall operating expenses and providing the foundation to scale for growth.

Reason 2: Consistency and Accuracy

Another major advantage of implementing an ERP solution is that it helps maintain information in a consistent and accurate manner. Especially in organizations where different departments are not properly integrated, information is inconsistent and sometimes inaccurate.

Think about all the different software systems a growing company uses for the various departments: accounting, human resources, fulfillment, sales, marketing, etc. As a new department takes shape, they often create their own process for recording keeping, metric tracking, etc. And while it may work for a while, once the company reaches a critical size, keeping track of company-wide data, which is collected and stored in disparate systems across multiple departments, could cause a myriad of problems.

An ERP system can reduce errors and increase data accuracy, allowing for more strategic decision-making. The current generation of ERP systems have become more agile and less rigidly structured than older business solutions, so organizational components can operate cohesively. This will allow your business to become more fluid and adaptable to your ever-changing business size, and industry environment.

Reason 3: Ability to Grow

A strategic choice for a growing company is a cloud-based ERP. There are numerous advantages of going with a cloud-based ERP solution, not the least of which is the ability to adjust and adapt as the company evolves. With a cloud-based ERP, investing in the upfront cost of buying a server and other hardware is not necessary. A cloud-based solution allows for quick growth and flexible options, if growth is stalled, or company storage needs vary throughout the year.  

There is the old adage “Dress for the job you want, not the job you have.” This same philosophy can be applied here: invest in the ERP for the company you want, not the company you are today.

For more information on other advantages of using an ERP regardless of company size, what to consider when making the decision to purchase an ERP, please visit our resource library.

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