Today’s enterprise resource planning (ERP) solutions have come a long way.
Modern ERP services use cloud computing, AI, and machine learning to deliver better automation, efficiency, and insights than ever before. This is great news for small and mid-size enterprises or SMEs. ERP systems are ever better at overcoming the biggest pain points for small businesses.
However, the more complex and intelligent these solutions become, the more daunting it can be to choose an ERP solution that’s a good fit.
In this article, we explore the most common business process pain points ERP systems can overcome, as well as how to go about finding the best ERP tools to suit your business goals.
What is ERP and what are the goals of ERP solutions?
ERP is an integrated software solution for managing all core business processes. These are likely to include finance, HR, supply chain, services, and other key processes related to the industry you operate in.
Why do you need one?
An ERP solution is designed to greatly improve efficiency in managing all these processes. With this improved efficiency comes better agility, speed, and productivity.
ERP systems provide accelerated reporting, deeper insights and, therefore, better decision making and lower risk. They also enable collaborative thinking across all departments by joining processes into one simpler system.
What are the pain points in business that can be solved using an ERP solution?
Here are just some of the most common small business owner pain points that can be overcome by adopting a good ERP system.
1. Unsatisfactory inventory management
If your inventory management process is not up to the task, it can cause a lot of headaches, like understocking or overstocking, inaccurate reporting, poor planning, and missed reordering. This, in turn, causes further problems, like customer dissatisfaction or cash flow issues.
An ERP system is intelligent enough to automatically spot inventory trends and forecast surges in demand. This means your inventory levels are optimized at all times. It also promises outstanding accuracy in inventory reporting and full integration with other departments.
2. Poor communication between departments
The smooth transition of information between departments is essential. Poor internal communication is a leading cause of customer dissatisfaction, as well as other performance issues such as lost or unfulfilled orders.
ERP systems will improve visibility within and across departments, provide real-time updates, and enable smooth communications between all departments.
3. Ineffective departmental systems and poor visibility
It is not uncommon for businesses to be using various software systems across different departments. Some may use spreadsheet systems or even pencil and paper records. Too frequently, this way of operating causes serious bottlenecks across the organization and a slow turnaround of services.
An ERP offers a modern, joined-up solution that will drastically improve workflow. An integrated solution helps management too, helping them make more efficient and effective decisions from a more accurate, balanced viewpoint. It helps gauge the profitability of various aspects of your organization and pinpoint weaknesses. All this gives you a competitive edge.
Even if you have other business pain points that are not on this list, talk to an independent ERP advisory service. They are likely to have a solution.
What are the elements that come together to create an effective ERP?
Your best chance of success in finding an effective ERP solution comes from using an independent ERP advisory service to help you select the right solution provider.
An independent ERP advisory service can offer the following benefits and services:
- Unbiased evaluation of possible solutions and providers
- Help in identifying and documenting your ERP requirements
- ERP contract vetting
- ERP project management during the implementation process
- Risk assessment
- Beginning to end support and advice.
1. Strong foundations that come from good communication
An effective ERP will always start with good communication. Your independent advisory service should seek clarity on your expectations and requirements. The goals of the ERP project must be mutually agreed and clear before any work begins.
A good ERP advisory service is likely to make a request for information (RFI) and other inquiries. Your response to these will guide the correct selection of an ERP solution, so provide as much information as possible.
2. Careful selection of the right ERP solution
Using your RFI responses and proof-of-concept (POC) demos, your ERP advisory service should create a shortlist of possible solutions and solution providers. These will be the best fit for your business, your industry, and the pain points you are seeking to overcome.
Solutions will be matched to many variables, including the solution providers’ expertise and experience in your industry, their methodology, and their success rate. Your own team’s level of experience and expertise will come into play too.
Together, you and your advisory service will use the short list to agree on which solution will offer you the best return on investment.
3. Meticulous project management
Once the right ERP project solution is selected and contracts are agreed upon, your ERP advisory service will continue to serve as project manager. It’ll ensure that key objectives are met, timelines are adhered to, and the project runs smoothly from start to finish.
To find out more about ERP, contact Affility Consulting.
As an independent business advisory service, we are best placed to assist your business in finding and managing solutions for ERP in Dubai.