Slow Business? It’s the Best Time to Implement ERP Software – Here’s Why
When business is slow, the first thing that comes to mind is, less work pressure and as a business owner, you may not be inclined to purchase new business software. However, things are different when your business is slow because that’s the time when you have the opportunity to implement a new ERP solution. Confused? Here are 6 reasons why you should opt for an ERP application development company right when your business is slow.
#1 Slower Work
This sounds obvious because some of the employees have lesser workloads. Getting the right people on the team for choosing the right ERP software is as crucial as choosing the right technology. When the staff has lesser things to worry about, they can focus on selecting the right ERP application development for the business.
#2 Evaluating the Work Process
One of the most crucial aspects of using ERP software for your business is the automation of the manual process. However, it’s tough to identify these processes sometime and it takes a lot of time. When you already have multiple projects to worry about, it’s more difficult to find out the time and evaluate what can be done to make the work process much more efficient. There is no perfect business. Thus, when you have a slow business, take advantage of the downtime to find out where you can improve to grow your business.
#3 Consider Your Organization’s Priorities
What are the priorities of your organization? This is one of the most important questions that you should ask as a business owner while determining the ERP software services. There are a lot of ERP application development solutions in the market, but not all of them are right for your business. Understand what’s important for your business and what is needed for the ERP system to address.
#4 Prepare for the Better Times
Yes, your business is running slow now, but it’s not going to stay slow forever. Once you figure out what and how to change to grow your business, not only you shall have a roadmap for the future, but you shall also make an informed decision on the type of ERP system you want. Why? Because that’s the best time when you can do multiple trials and errors.
For instance, if you want to bring a change in the work process, you have the time to do competitor research and explore new ideas. What are the strengths of your competitors? What is the best ERP application development company in the market? What are your competitors using to ensure an efficient workflow? You can research all of these when you have a lesser workload.
#5 Leverage Opportunities
When business is slow, organizations tend to reduce the marketing budget. However, this is not all the time to stop being in touch with your present and potential customers. A lot of ERP solutions offer sales and marketing tools as a part of their core services. When you implement an ERP system during a slow business, it helps in increasing the sales and marketing efforts while contributing to an overall strategy to pick up the pace of your business.
Factors to Consider While Calculating the ROI of ERP Software
Now that you’re aware of the reasons to install an ERP software when your business is going slow, here are some factors to consider while calculating the ROI of an ERP software installation.
Firstly, calculate the full cost of ownership:
- License Fees
- Implementation Costs
- Consulting Fees
- Hardware Costs (if it’s applicable)
Also, you should include the cost of maintaining the software. This includes the IT personnel and support as well.
Next, consider the following:
Inventory Planning:
Whether there is too much inventory on hand or too little, the ERP application development will help in determining the optimal amount to maintain so that you don’t have to face stockouts and reduce the warehouse overhead. This will save a lot of money in the long run.
Operational Costs:
When an ERP is installed, automation takes over and business processes become more efficient, reducing shortages and interruptions, material costs, and labor costs. This will help in improving the bottom line.
Higher Production:
ERP software creates a streamlined process, reduces redundancy through data visibility, and enhances data consistency with much more simplified access throughout the departments of the organization.
What are the Intangible Benefits of ERP implementation?
In simple terms, intangible benefits are gains that are difficult to measure. The intangible benefits include:
- Added efficiency & automation
- Error reduction
- Improved customer service
- Better information & reporting
- Faster & accurate accounting practices
The Tangible Benefits of ERP Software Implementation
- Optimized inventory level
- Lesser purchasing costs
- Reducing the days outstanding in accounts receivable
What Else to Consider?
Tangible and intangible benefits are not just the only factors to consider. There must be scope for change management for the success of ERP software implementation and ROI. While planning an ERP project, ensure that everyone, right from the C-suite to the end-user, has a voice. The ERP application development requires time, effort, and cooperation of everyone. As a business owner, you have to be aware of the areas in your business that needs the highest improvement.
A lot of organizations would stick to the slow business instead of investing in an efficient ERP system. However, the reality is, that the demand goes through cycles. Making the best use of the slow times and implementing ERP software to increase efficiency will make sure that when the sales pick up, you’ll be ready for success.
