4 Ways Not Using ERP Platform Is Costing You Money

With the business world becoming more digitalised, companies are utilising the Internet, cloud-based infrastructures, custom software, and Internet of Things (IoT) devices to improve their functionality.  

One type of software that can help facilitate all of these is apps specially made for ERP. ERP Enterprise Resources Planning is commonly defined as an integrated means of managing and organising every single piece of information about the company’s resources and processes with the efficient use of databases, automation, and analysis engines.  

If your company is not yet making use of any type and form of ERP, you might actually be losing more than you could be earning. Here are four ways not using an ERP app can affect your company.   

1. You Are Spending Money You Could Have Been Saving

By keeping track of your company’s processes and transactions, enterprise resources planning solutions can not only flag expenses that are insignificant to your operations for the time being but can also eventually improve your financial state if said flags are dealt with properly.   

To balance production with demand and sales projections efficiently, your inventory should be monitored by ERP software. Without ERP, you could be producing more than the projected demand which may cost you overhead expenses or even losses, in addition to risking product quality or profitability if it stays longer in stock.  

2. You Are Sacrificing Efficiency by Wasting Time and Effort 

An ERP platform can provide your company with an integrated database that encourages collaboration among different departments or divisions. It will be easier for management and area heads to disseminate analysed data to their employers and avoid misunderstandings since everyone can have access to the source.  

Moreover, ERP enforces an efficient workflow by streamlining tasks and speeding up the transmission of important information.  

3. You Are Risking the Security of Your Company

Some companies not utilising ERP might still be using subpar management software for the sake of familiarity or worse, skimping.  

The problem in doing so lies in security – or compromising it. Most old software is prone to the exploitation of vulnerabilities, which can be mitigated with proper apps for enterprise resource planning. Singapore, along with other developed and developing countries, has   laws that implement and impose data protection. However, as technology improves, so do malicious parties, particularly in terms of breaching applications and software with outdated security measures.  

With an updated ERP app, your data will be protected by modern security features which offer a level of protection higher than an old software can provide.  

4. You Are Not Maximising Opportunities to Improve 

By doing a better job in resource planning and management, you are empowering your company to discover ways to improve. Potential losses in money, time, or effort, would be minimised or even eliminated. Additionally, having ERP promotes better customer service because it provides access to customer information that the company can use to serve them better. This is important for industries such as shipping and manufacturing.  

Furthermore, not using ERP software also means not optimising your resources. With today’s connectivity standards getting better and better, it would be a disadvantage not to use them to further improve communication between company branches, offices, or departments.  

Conclusion 

Taking everything into account, enterprise resource planning is a worthy investment. You must allocate a budget to successfully use this software in your company and dedicate time and effort to training your employees for it.  

In the end, everything will contribute to the betterment of your business because you stand to lose more every day you choose not to use an ERP platform.  

If you are looking for an enterprise resource planning company that can help you create, maintain, or customise one for your business, Frontline Mobile Pte. Ltd. can offer you this service. Our proficient ERP consultants, have assisted many clients, including Fortune 500 companies and will work with you right from the very start.  

We can also provide you with the best ERP system that fits your business needs to maximise operations efficiency. Let us work together toward your goal. Take the first step by reaching us here: https://www.frontline.com.sg/contact/.