Prevent a Crisis Before It Happens With ERP Software

Posted by Jonathan Davies on 22 Mar


When you are running a business, it’s easy to let matters drift. Executives can leave everything to departmental heads, strategies can stay in place for far too long, and technology can stagnate. As long as the bottom line is still in the black, and customers keep coming back, change isn’t likely to happen.  


The problem is that while your firm is stagnating or declining, other firms are adopting cutting edge methods and technologies like ERP software. Even if you are in profit, there are warning signs that should prompt action to make sure that you don’t fall even further behind.

Work is Regularly Duplicated Leading to Confusion

Have you been at a meeting where departmental managers have discovered that their staff are essentially doing the same thing? Often, sales, HR, research and marketing teams can find themselves reinventing the wheel if they fail to communicate with each other effectively.

Duplication dents efficiency and leads to lower staff morale in the long-term. Vital financial warnings can be missed, and sales opportunities can fall by the wayside in the time wasted on jobs that should be done by somebody else. So it makes sense to install communication tools and procedures that allow for effective inter-departmental working.

Rising Customer Complaints

Customers should be right at the heart of any business, whether it is manufacturing plastic components for toasters or producing electricity. One key warning sign that changes are urgently required is when customer complaints begin to rise, and then spike.

In the early stages of a customer relations crisis, it can be hard to discern whether it is a temporary glitch or something more fundamental. Unless you have sophisticated Customer Relationship Management tools in place, it is hard to monitor how many customers are complaining about defective products, delivery times, missed deadlines or even price issues. With the right ERP software, problems can be detected, logged and resolved much quicker.

Inventory Issues Are Becoming Chronic

One sure sign that things aren’t right is when your inventory becomes chaotic and hard to manage. Manufacturers need to balance their inventory. Too much stock is wasteful, while too little risks causing supply problems for customers. When this balance goes wrong, the whole enterprise can start to collapse.

That’s why using the inventory management tools in ERP software is a good idea. They allow firms to match up their inventories and raw material purchases with demand, making the company leaner and more responsive to market conditions.

Key Initiatives Aren’t Taking Root

Maybe you’ve tried to change things already. You might have introduced a messaging system across your offices, sought to galvanise your marketing processes, or encouraged home working to save money – without any success.

When your ideas aren’t being turned into reality, it might not be the ideas that are wrong, but the tools to put them into practice. If you have effective management tools like ERP software, it is much easier to cascade initiatives and model them to ensure that they won’t be too disruptive.

If Your Bottom Line Starts to Sag, It’s Time For ERP Software

The major indicator of an impending crisis is whether profits are falling or rising. If there is no apparent cause, it might be because your firm is becoming more sluggish and inefficient compared to competitors, who have embraced more modern ways of working, including ERP software.

This software solution brings together all of the work processes in a business. It provides tools to manage inventories, customer relationships, HR tasks, compliance and communication between staff. In other words, ERP software allow managers to take control and act decisively, before a crisis emerges, which makes them a must for any forward thinking business.


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Topics: ERP Software

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