1. Data Redundancy
By using an ERP system like Microsoft Dynamics Ax you say bye to any redundant or contradictory data. One system maintains all data across the company and eliminates the chances of duplicates.
2. Inventory Inaccuracy
A major problem faced by companies handling inventory on paper or on separate software solutions which are not integrated with manufacturing and sales. ERP systems have proven to provide accurate inventory numbers which in turn help many folds in making sales and marketing a product.
3. Insufficient Reporting
A pain that is rarely addressed in a perfect manner without using an ERP. Insufficient reporting is related to the lack of complete reporting with cross department data and also real time visibility into the status of all processes from quote to cash for decision makers.
4. Manual Paper Processes
Believe it or not companies still handle paper which is a problem in itself. Large to medium corporations that do have electronic systems in place for manufacturing, inventory management and sales still have to use paper to run through processes of finance, human resource management and budgeting. So why use paper and different solutions when the answer to all pains of a company are in ERP solution.
5. Organizational Scalability Issues
When it comes to implementing an ERP decision makers often ask the question as to why they need it if they have functioned well without it. This is right for companies that do not foresee growth and expect to stay static but growth can have effects on the business that require everything to be scaled up in proportion to growth, this is where an ERP system can support your company well and be a back bone behind the growth rather than being a back pain.
6. Low Customer Retention
ERP has proven to have positive effects on customer retention. Well connected and aware departments are able to react faster to the customers needs and make timely and accurate decisions.
7. Maintaining Separate Systems
If a company is not using an ERP then they will likely be using accounting applications, spreedsheets, desktop applications, home grown applications and disparate applications. All of these systems increase the chances of contradictory data because they are hard to maintain and update and have an overall larger cost for doing so.
Lastly, the benefits of using an ERP outrun the effort that is needed to implement and adopt it. Companies that have adopted ERP systems have witnessed reduced operating costs, reduction in administrative cost, improvement in on time delivery and improvement in inventory turnout. So If you are still questioning whether your company really does need an ERP system feel free to contact me on Linkedin or tweet to me and I will try to help you or get you connected with one of our experts at Mazikglobal.