The enterprise resource planning (ERP) solutions of today are more advanced from the versions offered less than 10 years ago. As consumer-driven technology has changed the business landscape with mobility and social media, ERPs have evolved to improve functionality, usability, and integration. This has been necessary for ERPs to remain the foundation of a successful operation.
Distributors reviewing the viability of their current ERP need to be aware of technology upgrades, and the competitive edge they offer. Cloud computing, and SaaS (Software as a Service) have granted ERP access to small and mid-sized distributors. Has your ERP evolved with the times or is it time for an ERP Upgrade?
Why Upgrade Your ERP System?
Research has shown that only a handful of businesses have the more advanced ERPs, while a surprisingly high number of businesses have less than adequate systems in place. This number represents a huge opportunity for distributors to become more competitive through technology alone.
That is why savvy distributors are reviewing their ERP systems. Some questions to ask:
- Can staff efficiently respond to customers’ demands?
- Can you support the fulfillment of customer orders as quickly and/or at prices that are competitive?
- Do you have up to date reports?
- Do you struggle to meet demand with multiple locations?
Upgrading your ERP solution can help you handle all of these issues with ease. The price of ignoring these signs can leave your business in a precarious situation.
The Upgrade Path
There are three available paths to consider when making the decision to upgrade your current ERP:
1. Modify the existing system. This extends the life of previous technology investments and causes minimal disruption.
2. Adding to the existing system. This creates a two-tier system that can preserve the cost benefits of common platforms, while allowing for cost-efficient customization.
3. Total replacement of the existing system. Sometimes the best option is starting from scratch. This is often the case after a period of growth where the current system no longer meets the needs of the business. It makes more sense to replace the system, which is no longer as painful as it used to be. With technological advances, like cloud technology and phased data migration make the transition is easier.
Modernizing Doesn’t Have to be Costly
You may have thought that the cost of modernizing your current ERP solution would be out of reach. Try calculating the ROI with the MITS calculator, one of the analytic solutions we provide to our clients.
Making the choice to upgrade your ERP can be a little unnerving. We understand that implementing a new software solution can seem like a difficult task. But we have 30 years of experience helping companies like yours implement ERP solutions successfully.