Top 10 Reasons Why Start-ups Need ERP Software
Here’s a discussion about ‘Top 10 Reasons Why Start-ups Need ERP Software’
Entrepreneurs these days are very optimistic due to which they often try to handle their Finances, Sales Orders, Operational and Sales data on their own. There is not even an iota of doubt that these start-ups are transforming our society and our economy like never before. Start-ups and entrepreneurs are crafting a value system based on merit and hard work and that’s exemplary. However as the Start-up grows, so does the amount of data that needs to be monitored on a daily basis.
An Enterprise Resource Planning (ERP) Software is the perfect solution you need to manage your start-up business. An ERP Software is beautifully designed to amplify your performance by tracking operations, managing CRM, PMS, HRM, POS etc.
ERP Systems allow entrepreneurs to collect information from all the departments of the company in a single database. It is often interpreted that ERPs are only for top-notch medium to large scale companies because they are the only one which can afford well-experienced and pocket digger business-management personnel. However in reality it is the SMEs and start-ups which are in greater need of ERP software to operate their business better and in a more cost-effective manner.
Consider the following points as detailed below:-
1. Real Time information for your business
Without an ERP System, your approach towards growth could sound enigmatic. An ERP Software helps you make information-driven decisions for your day to day processes. Sales and Marketing personnel can be kept well informed of their monthly targets. Instant Production Reports can also enable you to make smart use of your limited resources. SMEs & startups who opt for an ERP System may find that it frees up resources for new customer acquisitions and product development.
2. Ready For Your Future Expansion
An ERP System is meant to expand simultaneously with your business. Expansion of an SME or a Start-up often creates a profuse amount of data and processes thereby creating operational glitches for their non-automated legacy systems. In a business world with cut-throat competition, these glitches can cost you a fortune.
3. Power of Analytics
With an efficient ERP Software analyzing complex Business Intelligence (BI) doesn’t have to be rocket science. An ERP system gives you a clear understanding of the desired data points, an ability to effectively locate and target growth opportunities, a willingness to make business decisions on a timely basis, and a commitment to constant improvement.
4. Best Practice Procedures
Typical legacy accounting systems require a lot of time processing manual procedures such as executing quotes, orders, sales implementation procedures, and invoicing. Whereas ERP Systems automatically process transactions and generate audit trails and financial reports that can simplify period-end closings. The flag anomalies so you can investigate quickly, and they simplify duplicate journal entries and other activities which made financial closings so complex and time consuming earlier with typical legacy accounting systems.
5. Your Customer Retention
Customers like accurate delivery dates and ERP Systems can help you provide your customers with improved inventory and shop floor visibility. In addition, the increased visibility and accuracy will help you improve your DIFOT (delivery in full on time) rate, which helps keep your customers happy. ERP Software provides organizations with better customer management, including satisfaction tracking and transparency.
6. Forecast for Future
A Proactive ERP System enables you to predict your demand fluctuations on a real-time basis. Automated management can easily assist you in allocating your company resources with commitment management; essentially, via ERP software. You can envisage your capital requirements in the future based on shop load and can get forewarnings of future economic downturns.
7. Automates Order to Cash Process
ERP Systems calculate and collect costs so you always have an accurate picture of your product cost and margins. By helping you to plan production more effectively, your operational efficiency will improve as you reduce setups and teardowns or unnecessary downtime. The uniformity of operational data that an ERP System store will help ensure that your records are more accurate, which will increase process accuracy across the board.
8. For your Better Communication
An ERP Software is a database entity, in which all transactions are recorded, processed, monitored, and reported. This unified vision will encourage an increased inter-departmental co-operation and careful co-ordination; this ensures much better communication and a significantly shorter response time. Improved communication allows users to focus their efforts on negotiating with suppliers and raise the quality and provide useful information such as negotiation, performance graphs for suppliers, etc. Also, relations with suppliers are improved in terms of visibility and communication; service providers can learn about future applications, providing increased efficiency and the ability to offer lower prices for firm orders.
9. Dynamic Reporting
An ERP Suite offers you a unified system of reporting to generate and analyze real-time data coming from different departments. With an effective ERP System, entrepreneurs can have a hawk-eye view of the company’s performance and statistics. An entrepreneur can generate reports like Target vs. Achievement Reports, Quotation vs. Order Report, AMC Due / Pending Report, Neglected Customer Report from anywhere around the world on their tablets and mobiles.
10. Reduced Lead Times and increased throughput
An ERP system brings together all the activities of the entity, since the processes “cross” more functional areas, which constrains the entity to emerge from the classical patterns of functional applications, such data are integrated into a single system. Better scheduling and accurate records ensure that your schedules focus on priorities, leading to shorter lead times. Since you won’t have as many orders waiting for tooling or parts, your throughput will increase.