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Why Growing Companies Need ERP Software
/in Blog, ERP Software /by Chris HigginsGrowing companies need Enterprise Resource Planning (ERP) software. Put another way, if your business is growing, you may need to upgrade your legacy ERP software. While software alone won’t make your business grow, executing a growth plan without the right software will be a bigger challenge than it needs to be.
What’s New in ERP?
ERP is not new. You could even argue that it’s middle aged. The core of ERP, which was created to help run big factories and logistical operations, came into existence in the early 1970s. ERP’s origins lead some to consider the software to be a “heavy iron” technology, suited to global giants and industrial processes. There is still some truth to this, but we are now into a new generation of agile, powerful cloud-based ERP solutions.
Cloud ERP, as exemplified by Acumatica, makes it possible to deploy sophisticated business management solutions without installing software or buying any hardware. It’s available over the Web, via a browser. Acumatica is an extensible system. It can do basic ERP workloads like accounting and financial management, orders and invoicing and so forth. However, from there, you can add a significant portfolio of modules. These include software for warehouse management, field service, Customer Resource Management (CRM), HR, industry-specific applications and on and on.
Grow Revenue with ERP
Used the right way, ERP can facilitate revenue growth. This happens when you take advantage of sales management tools and functionality like quote-to-order and product configuration. With these capabilities, you can engage more closely with customers, responding to their needs quickly and closing more deals. The order fulfillment and subsequent customer support features in cloud ERP keep the customer relationship on a solid footing—leading to more repeat business and client references. This is possible without ERP, but it will be a lot more work.
Save and Invest for Growth
Modern cloud ERP drives savings across the business, including Operating Expense (OpEx) and Capital Expense (CapEx). You can use the proceeds of these savings to invest in strategies that promote growth, e.g. marketing campaigns, new hires and so forth. In terms of OpEx, cloud ERP enables people to work more productively, using automated workflows to speed up business processes. The connected nature of the extended Acumatica system reduces manual process steps and re-keying of data into the solution.
The ERP toolset provides for improved scheduling of production operations and field service. With data analytics and visual dashboards, the ERP solution can help managers anticipate problems and react before they become expensive to solve. Advanced inventory management features give you the ability to conserve cash and cut down on costly mistakes like stocking merchandise for so long that it expires.
Protect Your Business, So It Can Grow
The last few years have demonstrated conclusively that a cyberattack is a costly distraction that then results in a huge remediation expense. A serious data breach, for instance, will probably put a damper on your growth plans for a good six months or more. ERP software does not guarantee security, however, modern cloud ERP solutions offer a number of security advantages compared to legacy systems. For instance, the system runs in a highly secure data center. The cloud architecture also makes possible a level of redundancy that protects you from outages resulting from attacks.
2020 promises to be a year of growth. ERP can be part of your success story. If you want to learn more about how cloud ERP can help your business grow in the coming year, let’s talk.
Additional ERP Resources
7 Important Qualities of Cloud ERP
Position Your Business for Growth in 2020 With Cloud ERP
7 Benefits of CRM Software (That’s Integrated with ERP)
Recommendations for Selecting a Distribution ERP Solution
/in Blog, Distribution Industry, ERP Software /by Chris HigginsWhat is the right ERP solution for your distribution business? Acumatica Cloud ERP has created an in-depth checklist to help you understand your options. Their hope, of course, is that you choose Acumatica, but the reality is they’ve done everyone a service by publishing the checklist. You could work through it and conclude that a different solution is right for your particular distribution business—especially as the industry undergoes a period of digital transformation.
The checklist is also a good reflection of the way we work with clients in discovering the best solution for their distribution businesses. It’s methodical and allows for the prioritization of needs. With ERP selection, it should never be a simple matter of feature-to-feature comparison. The best practice is to weight features by relevance to your business.
Overview of the Distribution ERP Selection Checklist
The checklist contains five categories of comparison for distribution ERP solutions:
Using the Checklist to Select a Distribution ERP Solution
Depending on your business, you may emphasize some of the five categories more than others. Productivity, for example, is often overlooked, but it shouldn’t be. The checklist forces you to take a hard look at issues like how intuitive the interface is for users. If it’s not easy to learn, people might find ways to work around it, defeating the whole purpose of the solution. Other productivity factors include having a single database, multi-currency capabilities, wikis and so forth.
Functionality is a critical area for evaluation. Even if you totally love a distribution ERP solution, if it doesn’t do what you want, the solution won’t work. Functional check-offs span features like support for multiple entities, financial management and quote-to-cash workflows. Sales order management and cost accounting are on the list, as are purchase order management and inventory management.
In terms of technology, the checklist encourages you to probe whether a cloud-based solution is “True Cloud,” meaning that it was designed natively for the cloud. This can make a difference in how well the solution works and how easy it is to change. Responsive design is also a significant requirement, given today’s mobile workforce and customers. Other technical issues of note include database export capabilities and the presence of a full relational database. This latter technical feature can be important for integration with other systems, audits and more. The value checklist items refer to financial aspects of the solution. Total Cost of Ownership (TCO) figures prominently into the value category, but so do non-monetary but value-oriented factors like scalability.
If you’re considering getting a new distribution ERP solution, we encourage you to work with the checklist. We can help you go through it, looking at how your business runs and how it competes to arrive at an informed, wise solution choice.
Additional Distribution Resources
Looking at 2020 Distribution Industry Trends with ERP in Mind
Benefits of ERP Software for Distribution Business Management
5 Reasons Distributors Need ERP Software
Position Your Business for Growth in 2020 With Cloud ERP
/in Blog, ERP Software /by Chris HigginsWill 2020 be a year of growth for your business? While it’s impossible to predict the future, one can still explore how new technology and practices can position your business for growth as we enter this new decade. Cloud ERP in particular, like Acumatica, can make a big difference in a company’s growth trajectory.
How Does Software Enable Growth?
Can software drive growth? No, on its own, software cannot do very much. However, when people, strategy and processes join forces with flexible, powerful cloud ERP solutions, the potential for growth can be startling.
What is cloud ERP? Briefly, solutions like Acumatica are browser-based versions of the classic Enterprise Resource Planning (ERP) applications. Yet, they go much further than legacy ERP. Acumatica, for example, offers add-on modules for manufacturing management, distribution businesses, field service, Customer Resource management (CRM) and more. It’s a complete business management solution, not just ERP. It’s cloud-based, so you don’t have to buy hardware or software licenses to use it.
Here are five ways cloud ERP, used in the right way, can facilitate revenue and earnings increases:
1. Save money and invest in your business
Cloud ERP saves you money on operating expenses (OpEx) by way of reduced IT overhead. You can cut capital expenses (CapEx) because you don’t have to tie up cash or take on debt for servers, storage and data center facilities. You can redeploy that capital, investing in new lines of business, marketing campaigns, money-making equipment and so forth.
2. Get closer to your customers and grow your accounts
With CRM and quote-to-order tools, you can grow your business by improving customer engagement. CRM gives you an overview of sales forecasts as well as the ability to dig deeply into the sales status of specific accounts. With CRM, you can also engage in meaningful marketing campaigns that turn prospects into customers and nurture existing customers so you’ll be top of mind when it’s time to buy. Learn more about integrating ERP and CRM.
3. Improve customer service
When you connect customer service, operations and sales using cloud ERP, you have the ability to deliver a consistent, high-quality customer experience. Customers who are well-cared-for tend to become repeat customers. Having a lower rate of customer churn makes it easier to increase revenue. You don’t have to replace customers who defected due to sub-optimal customer care.
4. Be more agile
Cloud hosting translates into flexibility of ERP solutions. Cloud ERP can add functional modules with relative ease. That way, if you want to make a move like adding 24-hour a day live customer support, you can add the software for the capability pretty much instantly. Similarly, if you want to extend your systems and integrate with those of other companies like suppliers or partners, the cloud Application Programming Interface (API) make as this a fairly straightforward, inexpensive and fast process. It’s certainly far simpler than using custom-coded connectors in legacy ERP solutions.
5. Get smarter by running analytics on your data
Your business data contains a wealth of potential insights that can help you grow your business. Modern cloud ERP makes this data available, with rich data visualization, analysis and reporting features.
Grow in 2020 and Beyond With Cloud ERP
Cloud ERP can help you start 2020 on a growth trajectory. You can get started now, working with us to understand your ERP requirements and formulate an effective implementation plan.