In the fast-paced world of business ownership, it’s vital for any forward-thinking entrepreneur to sustain revenue and long-term growth. One way to do this is by implementing an efficient enterprise resource planning (ERP) system, which is designed to help businesses conduct everyday tasks such as project management, accounting, and supply chain coordination. Since the invention of modern-day ERP technology, businesses have been able to streamline their processes and manage cash flow that serves as the lifeblood of any enterprise.
While most businesses have already employed some form of resource-planning tech, going beyond the basics and implementing a cloud-based ERP system may help take your venture to new heights through heightened operational and cost efficiency. From better collaboration to fewer technical demands, having ERP infrastructure on the cloud brings plenty of benefits that could innovate the way your business generates profit.
That being said, here’s what you should know about taking your ERP to the cloud and why it’s one of the best ways to boost your enterprise’s growth.
1. Lower Operating Costs Allow You to Optimize Spending
Cloud-based ERP systems operate under a Software as a Service (SaaS) model, which means that they run on web-based, “pay as you go” infrastructure rather than on-premises servers. Because you don’t have to manage the whole system in-house, your IT team will work with less technical requirements and only need to pay on a subscription basis. On a related note, digitizing operations via cloud migration allows you to do away with manual processes, thus reducing your carbon footprint as well as your miscellaneous spending for paper-based tasks (i.e., using hard copies for invoicing).
With your cloud vendor handling the management and maintenance of your ERP system, you can free up operational costs and have more leeway for other forms of spending such as product research and development (R&D), talent acquisition, and innovative marketing campaigns. Such expenses are instrumental in helping you improve your products and services, which would eventually lead to higher profits.
2. Better Inventory Tracking Helps You Prevents Excess Spending and Revenue Losses
Inventory management is one of the most crucial aspects of keeping a business afloat. With your revenue largely depending on the availability of goods and services, it’s safe to say that your stock is directly connected to your cash flow. When your inventory is improperly managed and inaccurately computed, you could risk excess spending on materials and holding costs. On top of that, delayed restocking may cause your business to lose customers as well as profits due to the unavailability of products.
Cloud-based platforms are ideal for inventory management because they are web-based, which means that your team can coordinate data any time, anywhere, and from virtually any device. More than that, a cloud-based system offers a centralized platform designed for better visibility on store databases, reducing instances of miscommunication and irreversible errors. So instead of disjointed communications due to data silos, your team can coordinate workload via a consolidated platform that offers transparency at every level.
With an ERP system that runs on a cloud architecture, your team would have a clear idea of matters such as stock status. If you run a shoe business, for example, a universal web-based platform can help your staff quickly search for a specific pair—along with variations of it in different colors and sizes. Ultimately, this allows you to restock in a timely manner and prevent loss of revenue due to customers who’ve lost interest.
3. Real-Time Analysis Helps You Stay on Top of Your Game
All enterprises need to invest in business intelligence in order to adequately navigate the field and determine ways to edge out the competition. With real-time analysis, your business can have a solid view of your company’s internal as well as external market performance. Financial reports, especially those driven by integral metrics like analytics, can make sense of large amounts of data and generate insights that might help you determine areas of improvement.
For example, ERP systems with analytics capabilities can give you an idea of your most in-demand products, possibly in relation to peak seasons. And as mentioned earlier, efficient ERP tools with this capability can send alerts when stocks are running low, prompting your staff to take the necessary steps.
4. Swift Implementation Enables You to Branch Out More Easily
One of the best things about cloud-based platforms is the speed of their implementation. With less demands on technical resources, scaling in line with business requirements is often done seamlessly. This level of scalability and agility allows your business to apply and test new add-ons, features and users with ease.
Essentially, quick implementation enables you to conduct staff training faster, paving the way for quicker and easier business expansion. So if you intend to branch out anytime soon, you may want to have one of your most mission-critical systems on the cloud to get things running as soon as possible.
5. Better Service Reliability Ensures Your Business Continuity
Downtimes are some of the most common reasons why businesses lose revenue. Emergency scenarios such as getting locked out of your systems prevents your business from running as usual, plus they lead to more vulnerabilities by the way of hackers taking advantage of compromised fortifications.
With a cloud-based ERP system, your team can take advantage of unbridled access as well as multiple security redundancies. Most trusted cloud vendors store data in geographically dispersed data centers, therefore giving your team the benefit of business continuity and preventing profit losses. By implementing tools that allow you to continually deliver unhampered services, you might even improve your brand image and broaden your client base.
An ERP Solution for an Ever-Changing Landscape
If your venture is due for an ERP upgrade, consider doing business with ANSI. With our strong industry reputation and years of experience, we continue to prove ourselves as one of the most trusted providers of cloud-based ERP solutions and other mission-critical business tools. And as a SAP Business One partner, we make sure to incorporate our top-of-the-line cloud and programming expertise to deliver an efficient system perfectly suited for your unique operational needs. Contact us today and let’s discuss ways that we can take organizational efficiency even further.