INFORMATION MANAGERS MAY MISS WITHOUT AN ERP SYSTEM

In today’s highly competitive business environment, effective management of information within a business is vital to achieving sustainable growth. However, many businesses are missing out by not implementing ERP (Enterprise Resource Planning) to manage core operations. This can have serious consequences, causing managers to lose control of important information.

1. Fragmented and inconsistent financial data

The financial management feature of ERP allows businesses to track all financial activities such as accounting, cash flow management, and financial reporting. This feature helps automate accounting processes, minimize errors, and ensure that all financial data is stored centrally and synchronized.

A study by Aberdeen Group shows that businesses that do not use ERP can spend up to 30% more time processing financial data than businesses that do. This not only wastes time but also increases the risk of errors in financial reporting.

2. Poor inventory management

Inventory management in ERP allows businesses to track inventory status in real time, optimize inventory levels, and avoid shortages or surpluses. ERP systems also provide tools to manage inventory turnover and forecast demand. Conversely, without automated tracking systems, shortages or surpluses of goods become common, disrupting production and business processes.

3. Project management becomes complicated

For large projects, tracking and coordinating project progress, resources, and costs can become difficult without an ERP system. This leads to budget and time overruns, causing great damage to the business. Therefore, ERP helps businesses manage the entire supply chain from raw material sourcing, manufacturing, to product distribution. This feature helps optimize processes, reduce costs, and enhance coordination between departments in the supply chain.

A study by the Project Management Institute shows that 55% of large projects have management problems without ERP, leading to an average cost overrun of 27%.

Illustrating images. Source: epicor.com

4. Loss of control over customer relationships

The CRM (Customer Relationship Management) system is an indispensable part of ERP, helping to manage and track customer information. Without ERP, managers can lose control over customer relationship management, reducing the ability to care for customers and maintain long-term relationships, potentially losing 15% of annual revenue due to ineffective customer management (Gartner). Businesses can comprehensively manage customer information, from purchase history to feedback and after-sales care. This helps businesses maintain and develop relationships with customers, thereby increasing revenue and improving customer satisfaction.

5. Lack of coordination in the supply chain

ERP helps businesses manage the entire supply chain from raw material sourcing, manufacturing, to product distribution. This feature helps optimize processes, reduce costs, and enhance coordination between departments in the supply chain.

Another perspective is that without ERP, supply chain management becomes fragmented, making it impossible for departments in the business to coordinate effectively. The result is delayed progress, wasted resources, and increased operating costs. A report from Forrester Research shows that 72% of businesses have difficulty managing their supply chains without ERP. This leads to reduced production efficiency and increased costs of up to 15%.

6. Difficulty in reporting and analysis

ERP provides powerful reporting and analysis tools, helping managers have an overview and detailed view of the business situation. Enterprises that have not applied ERP have difficulty collecting and analyzing data, which is time-consuming and inaccurate, affecting strategic decision-making.

Not applying an ERP system can cause managers to lose control over many important aspects of the business, from finance, inventory, project management, customer relations, and the and the supply chain to reporting and analysis. This shows the importance of ERP in enhancing management efficiency and ensuring sustainable development for businesses. To maintain competitive advantage and optimize operations, businesses need to seriously consider implementing ERP in comprehensive management.

3S Software Co., Ltd.

To successfully upgrade a business, businesses need an experienced and trusted partner. 3S will be a partner accompanying businesses on their path of development, helping businesses become more comprehensive and increase productivity at lower costs. Along with compliance with the Epicor Signature Project Implementation Methodology, it will help businesses increase production efficiency and improve profits at a very reasonable cost. 3S believes that it will always bring the most satisfaction to customers.