Does Your Business Need an ERP System?
Top 4 signs that indicate your business needs an ERP system.

Does Your Business Need an ERP System?

Top 4 signs that indicate your business needs an ERP system.

"Do I really need an ERP system?"

"Does my business need an ERP system?"

"How do I know if my business needs an ERP system?"

"Should I get an ERP system for my business?"

These are some of the common questions that business owners will usually ask whenever the topic of ERP system is being brought up. So, how does one know exactly if his or her business needs an ERP system? Before we get started on the top 4 signs that indicate your business needs an ERP system, first let us briefly go through what is an ERP system.

The Enterprise Resource Planning system, also known as ERP system, in short, is a business management system that helps simplify daily business processes through automation and integration. Hectic and time-consuming tasks that need to be done manually can be automated with the help of an ERP system, thus improving the productivity and efficiency of businesses. Human Resource Management (HRM), Supply Chain Management (SCM), Customer Relationship Management (CRM), Accounting and even, Key Performance Index (KPI) tracking can also be fully integrated into a single platform through ERP system

Read more about what is an ERP system? 

4 Ways to Know If You Need an ERP System

Discussion at work

1.       You constantly feel as though you need more employees

As your business grows, it is common to have an increase in the number of employees. However, if your employee headcount is increasing at a faster rate than your business growth, then there might be a problem! If you constantly feel as though the only way to grow your business is to hire more employees, then it’s a sign that shows your business' productivity is lagging behind. Without having to hire more employees, which will only increase your costs, implementing an ERP system can help improve the productivity of your business through automation of manual tasks and workflow.

Working stationary and files

2.       You often do not know what is happening with your business

As business owners, it is important to know the ins and outs of your own businesses. If issues were to occur, business owners should be alerted in real-time so that appropriate actions can be taken to solve them. However, if you are constantly having a hard time finding out what is actually going on with your business, then implementing an ERP system will be a wise choice as it provides businesses full visibility and traceability.

Work desk

3.       You always have excess inventory on hand

Having an excess inventory can be detrimental to a business in the long term if the issue is left unsolved. Excess inventory ties up cash. If your inventory constantly has more raw materials, work in progress (WIP) goods, or excess finished goods, then it is a sign that your business lack the ability to control and track inventory effectively. ERP system helps to ensure business owners are able to better manage their inventories through real-time reporting on inventory levels, automated replenishment actions, and quantity and price limits settings.

4.       Your customer satisfaction is reducing

The longevity of a business highly depends on customer satisfaction. If your customer satisfaction is not improving over time, or even worse, reducing, then you might have a serious problem here! Some of the causes of this problem might be late deliveries, order errors and poor customer supports. Through ERP system implementation, all these can be addressed accordingly. With the CRM system in ERP, businesses will be able to serve and engage their customers more effectively.


If you are experiencing all these signs that show your business needs an ERP system, then now is the time to reach out to us! With our team of expert ERP system consultants, we will provide you the guidance you need on acquiring your first ERP system!

What Is Enterprise Resource Planning (ERP)?
ERP, a business management system that promotes automation and integration.