ERP : Catalyst for the growth of mid-sized companies
At Nexus, we believe that there are key signs that indicate you have outgrown your current technology and should seriously consider a technological overhaul.
If you realize that your company might be in this situation, rest assured because we know of a solution that can address your challenges and become a catalyst for the growth of your SME. Enter ERP, a business management software that enables an organization to use an integrated system of applications to manage and integrate finances, supply chain, operations, reporting, manufacturing, and human resources activities.
How can an ERP can propel the operational efficiency of a company stuck in a growth plateau? Let us explain it here:
1. Capacity to Increase Sales and Margin
Through better visibility and real-time cost tracking, an ERP helps manage expenses more effectively, identify inefficiencies, and reduce unnecessary costs. This can contribute to improving gross margins and even increasing sales.
An ERP aids in optimizing inventory management by forecasting supply needs and adjusting inventory levels based on demand. This prevents stockouts and excess inventory, thereby reducing associated costs.
By providing data and analytical tools, an ERP facilitates sales, production, and human resources planning. This allows the company to anticipate challenges related to growth and make informed decisions to support sustainable growth.
2. Harmonization of Your Systems
By centralizing all company data in a single database, an ERP avoids issues of data duplication and inconsistency. Employees can access the most recent and accurate data at any time, facilitating decision-making and improving productivity.
An ERP integrates various applications and systems used in the company, eliminating the need to manage multiple disparate systems and facilitating information sharing between departments. System integration reduces siloed work issues and promotes collaboration and communication within the company.
Thanks to system integration and centralized data, an ERP allows real-time updates. For example, if a customer's address needs to be changed, it can be updated once in the ERP system, and this change will automatically apply to all other relevant systems and processes.
3. Addressing Software Instability and Security Challenges
ERP systems can help companies comply with data security and privacy regulations. By integrating compliance requirements into ERP processes and features, you can ensure that your company complies with current regulations and avoids potential sanctions.
ERP vendors regularly update their systems to fix vulnerabilities and improve performance. Unlike manual updates, these automated updates ensure that your system is always up-to-date and protected against recent threats.
Many modern ERPs are cloud-based, meaning that data is stored and managed in secure data centers. Cloud providers generally offer advanced security measures such as data encryption, firewalls, and continuous monitoring. Additionally, cloud solutions often include data backup and recovery services, reducing associated costs.
An ERP centralizes company data and allows the implementation of granular access controls. This means you can set specific permissions for each user, limiting access to sensitive information and reducing the risk of data leaks or unauthorized access.
4. Enabling a Data-Driven Vision
Modern ERP systems come equipped with integrated analytics features, allowing users to access accurate and up-to-date information on company performance. This facilitates decision-making and enables managers to focus on the strategic aspects of business management rather than spending time requesting and analyzing reports.
ERP systems offer customizable reporting features, allowing the creation of reports tailored to the specific needs of the company. Managers can quickly access the information they need to make informed decisions.
ERPs typically provide dashboards and key performance indicators that allow real-time monitoring of company performance. This gives managers a clear view of the company's situation and facilitates quick and informed decision-making.
By automating analysis and reporting processes, an ERP saves time and reduces costs associated with these tasks. Managers no longer need to constantly request reports or spend time analyzing data, allowing them to focus on managing the business and improving overall performance.
5. Increasing Productivity Through Automation
By automating processes and reducing repetitive work, an ERP can help accelerate workflows and improve overall business efficiency. This can contribute to faster growth and better business performance.
By reducing administrative work and allowing employees to focus on more meaningful and challenging tasks, an ERP can improve employee satisfaction and motivation. This can lead to increased employee retention and better overall company performance.
A modern ERP typically offers an intuitive and user-friendly interface for both employees and customers. By providing a better user experience, you can enhance your company's reputation and foster customer and employee loyalty.
6. Scalability and Scaling Capability
ERP systems are designed to evolve with your business, supporting a greater number of users, transactions, and business processes. They can help manage your business's growth by providing a robust and scalable infrastructure that can adapt to changes and future challenges.
Modern ERPs are generally designed to easily integrate with other systems and applications, allowing the creation of a coherent and unified technological ecosystem. This makes it easy to add new features and ensures interoperability between different systems used by your company.
ERPs typically offer simplified maintenance and updates, ensuring that your system is always up-to-date and operating optimally. This can reduce costs and efforts associated with managing and maintaining your technological stack.
7. Reducing Shadow IT and Associated Expenses
An ERP centralizes and standardizes tools and processes used throughout the entire company, reducing the need for employees to resort to unapproved solutions. Employees have a common set of tools and processes, facilitating collaboration and communication.
Implementing an ERP allows better control over access to data and applications, thus reducing the risks associated with Shadow IT. By using an approved and secure system, the company can minimize data security threats and ensure that sensitive information is protected.
Modern ERP systems often offer customizable features to adapt to the specific needs of the company and its employees. By providing tools tailored to employee needs, the company can reduce the temptation to use unapproved solutions and minimize the risks associated with Shadow IT.
But where to start?
If implementing an ERP seems to meet your business needs, feel free to contact our team of experts for a free consultation.