5 Signs that your business needs ERP software

Posted On August Monday 30, 2021

ERP stands for Enterprise Resource Planning (ERP). Having said that, it is still not very clear what this tool is, which is why in this in-depth analysis, we want to explain to you what an ERP is and why your company, whether B2B or B2C, absolutely needs it.

Is it taking longer and longer to reconcile financial data at the end of the month? Your sales forecasts are based more on guesswork than solid numbers. Your business is having trouble keeping up with its order volume, and customer satisfaction is failing as a result. If this sounds familiar to your business, or close to it, then it’s time to consider an ERP system.

According to the Allied Market Research Report – Post COVID-19, the global ERP Market Size is estimated to grow from $44,737 million in 2020 and is projected to reach $86,303.00 million by 2027, at a CAGR of 9.8%.

What is an ERP?

For starters, Enterprise Resource Planning is a business process management software that manages and integrates a company’s financial processes, supply chains, operations, reporting, manufacturing, and human resources. Most companies have some form of financial and operating system, but most of the software available in the market cannot go beyond normal business processes or help future business growth. It is no longer enough to keep and manage company accounting alone. That is why ERP software is necessary to efficiently automate and integrate the processes that characterize the corporate world. Not only that, systems needs to keep up as business needs change and expand.

How do you know if you need to implement an ERP system?

The implementation of an ERP system is a crucial step for the business. Does your business face some of those above problems? Continue reading to discover the top five signs that your business is ERP ready.

Sign #1 Difficulty in accessing information about your own business

If someone asked you – how your profitability per product is, the answer would certainly be far from accurate. Without knowing exactly what the product’s cost and profitability are, the company loses money by concentrating efforts on unprofitable activities. With an ERP solution, employees can get a very broad view of operations at any time. Sellers, for example, may be able to see complete transaction history and improve their performance indicators.

For instance, The NetSuite ERP identifies the contribution margin and the profitability of each sale considering partners, cities, products, routes, etc. It also assists in managing payment terms to suppliers and customer receipts.

Sign #2 Variable cash flow

One month you are in red, the next you are in blue. The inflows and outflows of money happen without you realizing it, and the company’s profitability is an unknown yet to be unraveled. Cash flow errors are an alarming sign that the corporation’s health is in bad shape.

But, this can be easily resolved by adopting a management system with a robust financial management module. Management reports, up-to-date cash flow, revenue, and expense projections: all of this can be easily generated with the help of an ERP system, eliminating spreadsheets that do nothing to contribute to a strategic view of the business.

Sign #3 Bad customer satisfaction index

The first sale even happens, but then it seems that customers disappear, increasing the pressure on the team to capture more and more leads. Complaints are constant, and your customers never seem to be satisfied. This is common when you don’t have the proper technical support to delight and retain consumers!

To solve this issue, a tool that helps in managing the customer base, such as a NetSuite ERP equipped with a sales automation module, is essential. With this help, your sales team will be able to understand consumer behavior, extract valuable insights into each interaction, and thus develop more accurate sales approaches focused on the real needs of the target audience.

Sign #4 Difficulties in tracking sales

It is essential to track sales on a daily basis, but it can be a lot of work if you don’t have an integrated system to manage orders originating from the sales channels. Everything will need to be done manually, in addition to relying on the supervisor to send reports. With the implementation of ERP, you can view the company on a single screen and with a few clicks.

Sign #5 Various software for various management processes

Think carefully about how your employees record and process your business information. Do you use different programs to manage collections, payments, and customer orders? Are you handling these processes manually? Do your warehouse employees use a completely different solution to track shipment and receipt of goods? When you use several separate programs, managing your business can be one of the pressing problems. Without accurate accounting, inventory, sales, etc., it is extremely tough to get a picture of the state of your business.

In addition, the management of all its areas becomes a task that requires more effort and time. ERP software integrates all management processes into a single platform and database. By providing accurate data in real-time, it improves decision-making and the growth of your business.

NetSuite ERP: The most advanced tool in the market

Today it is wrongly thought, that there is no complete software capable of integrating all business processes. ERP technology is progressing more and more by improving collaboration, helping the company make data-driven decisions, and increasing business productivity. And there is already a solution.

NetSuite ERP, the world’s #1 cloud-based ERP solution available in the market. It streamlines mission-critical back-end processes from financials to billing, order-to-cash, end-to-end inventory management, production management, supply chain/distribution management, inbound/outbound logistics, and procure-to-pay.

It provides effective ERP software that can bring together all business processes and support business growth driven by lucid data management. Processes those are of vital importance for modern companies seek their way to expand into a hyper-competitive market. Here is the list of various NetSuite ERP modules, which Techcloudpro can customize according to business needs:

• Financial Management – Improve control over corporate assets, cash flow, and accounting.
• Supply Chain and Operations Management – Simplify purchasing, production, inventory, and sales order processing.
• CRM (Customer Relationship Management) – Provide better customer service by increasing cross-sell and upsell opportunities.
• Project Management – Manage project tracking and billing to deliver work on schedule and within budget.

In other words, by relying on ERP software, you will be able to guide your company towards growth thanks to a data-driven approach, with which it will be possible to have everything under control.