Why to Implement ERP Software in my Organization?

Why to implement ERP Software

When we discuss about any ERP Software that can be implemented in any mid to large sized multi-locational manufacturing group or service industry, a very basic thing comes in mind- what will that ERP does? Why to implement ERP software in organization? Why to invest in ERP implementation? What will be the benefits to organization if implement ERP software?

The answer is very simple that ERP will take care of all the decided tasks efficiently.  It will help in taking strategic decision for future growth and plan.

Now the question comes in mind, since long I am running this business and all of my team members are very loyal to me. Then why I need such software that requires huge investment.  That money I can use in purchasing new machineries or raw material for boosting the production.

Yes, I think you are correct with your version. You are very lucky for having such a nice and loyal team, working for you. But still you should check these points too.  If all these requirements are getting fulfilled even without use of any such information handling automation mechanism, no need to implement. You should really proud on your loyalist.  I am going one step ahead, you are having  a highly dedicated team.

Based on my limited experience I can assure you, you should not invest in any such atomization. You sincerely do not require that at all. Just forget that idea and enjoy your business.

Before going ahead, try to know if really you require an ERP system

  • You are not getting clear picture of business
  • You are not getting on demand reports within timeframe
  • Your decisions are creating disturbance in the process
  • Not getting financial status in advance
  • Dead Inventory in stores
  • Dead Stock of Finish Goods
  • Dead stock of Raw Material
  • Heavy breakdowns in machines
  • Low production as compared to Standard defined production
  • High manufacturing cost
  • Less profit
  • Over staffing
  • Improper man power engagement
  • High maintenance cost
  • No proper analysis of Sales
  • Increasing sales expenses
  • No proper analysis of Purchase
  • High cost of procurement
  • No proper record of Pending sale orders
  • No proper record of debtors
  • No formal criteria to understand what to produce
  • No idea about how to control quality with low cost
  • No proper record of Pending Purchase Orders
  • No proper record of Creditors
  • No proper record of Market complaints
  • No proper record of quality tests
  • No record of what material is going out and why
  • No proper record what material has come inside
  • No proper record of statutory compliance
  • No proper record of rejection of incoming material
  • No proper record of waste generation in between the process which reduces the utilization of machines.
  • No information about Fixed and current assets
  • No information about conversion cost
  • No control on running expenses
  • Duplicacy of working means different department users are doing same task that another department user has already done.
  • No centralized information availability
  • Differences between same information collecting from different source

Decide, you need an ERP solution or without ERP atomization, doing good

If you are also facing above challenges then you must start thinking that time has come to think for some automation for managing the business. Human errors are common and cannot be controlled after a certain level but ignoring any important area due to ignorance may lead a high loss. There are so many integrated ERP Software or standalone applications are available in the market that may cater your requirements. So it will be a good idea to opt for some good ERP system according to your business domain and budget.

Investing in IT domain is an investment rather than expense. If selected some good ERP solution, the total investment done on it will be returned back in the form of savings and controlling.

So start thinking on selecting some good solution according to your need.

Thank you very much for sparing your precious time for reading - Why to implement ERP

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