ERP or enterprise resource planning has become more of a necessity for organizations worldwide. But, does it really mean that without ERP a business cannot thrive?
ERP software and implementation don’t come in cheap. It’s a big investment. And more than capital it requires a lot of commitment for change.
This article talks about the various factors that can help you determine the need for an ERP investment for your company.
If the current systems and processes are sufficiently churning out results, then one might not feel the need for upgrading to a fancy Enterprise Resource Planning (ERP) software. But, does that really mean that the current pace will be sufficient when the scope of work grows? When talking about the garment industry, we have a plethora of software solutions available to us, that are successful and customer focused. But, they still fail at times to scale at the same pace the business is scaling.
So, let’s discuss in detail about the factors one needs to consider when planning to invest in an ERP software.
1. Business’ Potential Growth Opportunities
The biggest driver that forces companies to turn to ERP is the growth in their operations. Business expansion, especially in today’s complex and fast-changing global environment puts an unbearable tension on the company’s traditional systems.
Be it taking crucial decisions in hours, omnichannel expectations, continuously evolving processes, complex supply chain execution or drop shipping algorithms; traditional information management systems cannot do all of these seamlessly, and more so at the scale required.
When the scale of business grows exponentially, processes change at a fast pace. With that, the customized but, outdated solutions do not necessarily support the sustainable growth aspect of the business. If the opportunities present the need for the business to upscale the operations and thus, integrating and organizing information, one can invest into an ERP software accordingly.
2. The Need To Centralize Information
To strategically ensure a business’s survival, hiring professionals to manage various business functions is inevitable. Fortunate businesses are blessed with experienced leaders who have been serving in the business for years. But, in today’s globalized, fast-paced business environment, sustaining such leadership is not easy. Highly qualified, but newcomers to a business, struggle with lack of information and answers that can enable them to solve business concerns effectively. Hence, a system is needed that can answer their questions correctly and precisely but, analytically.
An ERP software helps businesses to integrate all the available information across all the operating functions in the company into a single reliable source, thus, enabling informed better decision making.
3. The Need To Improve On The Speed And Efficiency
Fashion industry thrives on speed, which turns out to be a major driver for an ERP too. Reaction time to changing market and fashion trends these days is very low. Companies in our industry can live or die according to their capability to ensure on-time shipments, latest designs, and merchandising accuracy. And with every customer requiring their own set of requirements and nuances, the whole system becomes extremely complex to handle, especially at larger scales, where the numbers of customers are high.
The next-generation ERP software available to the industry offers a flexible, open architecture to align it to specific business needs while ensuring speed and efficiency in every aspect of the company.
4. Forming Right Strategic Partnership
Investing in an ERP can seem like a quick solution to one’s business woes. But, it is far from that. ERP investment is just the first step towards the long process of ERP integration and follow-up within the company processes. Hence, before making the decision for selection of the right ERP package for the company, one should look forward to the strategic relationship the vendor is willing to create with the company, in the long term.
ERP implementation, execution and the training of ERP managers and users are some of the many aspects that need to be looked upon before making the decision to purchase any ERP software, irrespective of the brand value it carries.
So, what will be your take for an ERP investment within your company? Do your current systems of legacy software work cost effectively or do they need additional support every now and then?
We hope, the above information will help you in making an informed decision.