an image of a small business team during an erp implementation

How Small And Medium Businesses Can Tell It’s Time For ERP Implementation

It can be difficult For small and medium businesses to identify when it’s the right time to abandon

It can be difficult For small and medium businesses to identify when it’s the right time to abandon internal systems, or implement if none exist, in favor of a complete ERP solution. Shedding siloed data structures and cobbled solutions that end up costing more in time and resources than they are worth can bring small and medium businesses into a new era of action.

ERP systems are the ideal solution, allowing small and medium businesses to compete with larger enterprises thanks to the more efficient use of company resources, more intelligent data, and improved analytics of day-to-day operations. Up to this point, small and medium businesses may have been able to operate on home-grown systems or just on-the-fly approaches to operations. However, these attempts to run a successful enterprise can only last so long. Eventually, serious hurdles will emerge and lead to setbacks. If left unaddressed, these setbacks can grow into more debilitating issues. Here are some indicators small and medium businesses can use in identifying that the time is right for an ERP implementation.

Inventory Issues

If your business is having trouble tracking inventory, red flags should be raised. Inventory control is a huge component of ERP as well as a defining characteristic of a successful business. When inventory can’t be accurately managed, sales orders fail to be fulfilled. As a result, customers lose faith and business drops off. When managing inventory levels turn into a guessing game, ERP implementation is the solution.

an image of a warehouse worker using a handheld scanner

Inventory Control Is A Key Component Of Operating A Successful Enterprise Of Any Size.

Inaccurate Forecasting

Is your business throwing darts at a board when it comes to forecasting sales figures into the near and distant future? If this is the case with your small or medium business, you need better intelligence. ERP systems provide exceptional business intelligence and data maintenance components that give you more accurate sales forecasting. This way, you’re better equipped to prepare for the future expansion of your operations.


3D illustration of a pushpin pinned in front of the text long term, Business vision or financial investment duration concept, horizontal image

Accurate Sales Forecasts Will Ensure Your Business Is Prepared To Meet The Challenges Of Growth.

Poor Analysis And Reporting

Reporting and business analysis are a must for any business looking to stay afloat for the long-term. ERP capabilities in these sectors provide business owners with a better understanding of market performance, trends, and customer preferences. Reports providing key metrics allow you and your teams to adapt to changes in the market. Being agile and able to develop new strategies through the insights ERP provides will ensure your business stands the best chances in a dynamic industry.

An image of an employee reviewing reports on a mobile tablet.

Insightful Data And Accurate Reporting Will Provide Your Business The Insights Needed To Identify Operational Shortcomings And How To Resolve Them.

Siloed Data Systems

When your departments are separated from data because they are operating within their own siloed systems, your business loses out on performance potential. Moving your operations to a unified online system will ensure all your employees are on the same page, with access to relevant data to deliver the best service to your customers. Information is a cornerstone of operations from the factory floor to the c-suite, no matter what size of business you operate. This improved visibility will allow employees to see exactly how they contribute to the business’ overall strategy and trajectory. Engage your employees and improve productivity by communicating strategy, setting measurable goals, and supporting your growth from the inside out using the unified data systems ERP solutions provide.

An image of a group of executives meeting to discuss figures and data.

Keeping Employees At Every Level Connected To Data Ensures A Complete Understanding Of Roles, Strategy, And Trajectory.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.

Sean Balogh

About Sean Balogh

A marketing professional working hard to deliver relevant and engaging content to audiences in education, technology, and manufacturing.