ERP System

When do you know that your business needs an ERP?


Although widely recognized and known, ERPs are still underutilized, even in today’s technology-driven world. It may be surprising to note that most businesses still perform a variety of functions manually. Lets take a look at some stats on why ERP is required perhaps today more than ever:



84% of small businesses still rely on at least one form of manual processing. 64% continue to use spreadsheets for payment operations, and 80% of firms still use paper checks.

ERP Blog Graphic 1

There are a number of reasons why businesses stick to their current operational setups, but the telltale signs of an operational structure that is bogged down can’t be avoided, and when they appear, they serve as cues for brands to take ERPs seriously.


Let’s have a quick look at some of the most common indications that your business may need an ERP:


1) Lack of Centralized Processes


Legacy systems work mostly in silos, and the lack of integration between them can become a pain point. Communication and transmission of data from one point to another becomes a blocker. With the systems disconnected from one another, more effort is required to access data and share them across teams.

Operations Bottleneck

ERPs can help connect the dots and integrate the system to centralize your processes, streamlining the workload and reducing the time & effort required to manage the business. 




2) Inconsistent Inventory Tracking


Troubles in tracking inventory can generally come in two forms: either you hold too many items or you hold too few. Both situations negatively impact the business since the former can lead to unnecessary expenses due to spoilage or neglect, while the latter presents opportunity costs and untimely deliveries.

Inaccurate Inventory

The problem can also be magnified by the mixture of online & offline stores; manually managing each store with an assortment of procedures and teams can raise the tendency for human error to occur.



3) Involving Too Much Manpower


One strategy businesses pursue once the workload becomes too tedious and difficult is to add more manpower. A common reason for this is that, instead of uprooting the legacy systems in exchange for ERPs, businesses prefer to acquire more manpower.

Too Much Manpower

But although ERPs can be seen as costly, and the training required to put them in place can take much time and effort, the long-term benefits far outweigh the initial costs. Adding more manpower may save a company’s resources and continue the status quo, but it doesn’t solve the bottlenecks in the company, it only serves to hide the problem.



4) Accommodative Dysfunction


Brands that scale quicker than expected often find themselves having to balance the expansion of the team vs. the adoption of technology. Smaller brands tend to be frugal, often out of necessity, and would attempt to get as much work done by as small a team as possible.

Difficulty Accommodating Growth

However, rapid scaling also means that brands have to shift their priorities: a greater number of customers and orders implies the need for a more efficient business process. In this case, integrating an ERP early on in the business can prepare the brand to transition smoothly when growth occurs.



5) Challenges of Delivering Customer Satisfaction


The smallest of business inefficiencies can compile into inconveniences that customers can end up being dissatisfied with. Inaccurate item stock reflections, late deliveries, or lack of support can all ruin a brand’s reputation. 

Having Trouble Satisfying Customers


With an ERP, you can tighten your organizational efficiency through a more connected and responsive execution of the supply chain. From data collection and processing to order & inventory management, ERPs allow systems to interact with one another, seamlessly combining and flowing processes from different teams together.


The aforementioned warning signs can be noticed very early on for as long as retailers don’t gloss over operational inefficiencies; ERPs can help solve these problems if they’re integrated before a brand finds it too difficult to change the way it’s been doing business.

But in the end, despite the tendency to resist change, the most telling sign that ERPs become necessary is if the overall customer experience is negatively impacted by the brand’s operational inefficiencies.


Looking to adopt an Omnichannel Strategy for your business? Try Omnirio out today!

Book a call with us and we’ll help automate your processes!


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