4 Signs you need an ERP solution

Diane Harvey
Updated on

Table of Contents  – 4 Signs you need an ERP Solution

  • Introduction 
  • Do you manage your business with spreadsheets?
  • Are you struggling to manage stock/inventory levels?
  • Is future growth planned?
  • Have your employee numbers grown?
  • Conclusion


Do you have a small business? If so, you already know the pitfalls of running one.

Aligning inventories, controlling reports, decreasing your inventory shrinkage while avoiding high costs in your supply chain – these are most important factors to be successful in your organization. If you’re not on top of these factors yet, it might be time to step up and acquire enterprise resource planning (ERP) software.

In this article, we’ll discuss the 4 signs you need an ERP system for your business.

Do you manage your business with spreadsheets, this is one of the signs you need an ERP.

Do you manage your business with spreadsheets? This is a common practice and also one of the major signs you need an ERP solution.

Spreadsheets are great for simple data analysis and provide an efficient way to track the activities of an individual employee or even a department. They can also be used to compare financial results from one period to another, but they fall short when it comes to managing complex business processes like manufacturing and supply chain management.

If your company’s sales are increasing rapidly, you may find yourself scrambling at tax time as your spreadsheet becomes too advanced for its own good—or worse yet, crashes altogether!

Spreadsheets are not designed to scale as more data is added; this means that if your company grows rapidly over time (which it probably will), the complexity of your program will grow exponentially as well if you don’t upgrade its functionality accordingly.

Are you struggling to manage stock/inventory levels?

If you’re struggling to manage your stock and inventory levels this is definitely one of the major signs you need an ERP.

Inability to track inventory levels, difficulty accessing information about products and sales data, lack of visibility into product movement from one location/warehouse or stockroom to another, and not knowing whether they have enough on hand before running out again are all signs that there are holes in your management system.

ERPs get you up-to-date information about what’s happening in real time across all areas of your business and allow you to make informed decisions based on accurate data. With an ERP solution, you can quickly identify gaps in your current processes and streamline them so that you can focus on growing your business instead of worrying about keeping track of inventory levels.

Is future growth planned?

If you’re planning to expand your business, this is one of the major signs you need an ERP.

Why? Because a good ERP system allows you to plan for and manage growth effectively. When your company starts expanding, it becomes more complex and takes more time to manage. Good ERPs are designed with this in mind and can handle the increased complexity of your business as it grows.

An ERP solution will also allow you to scale up your operations by integrating data from other systems and automating processes that would otherwise take up valuable time. This means that as soon as you have extra capacity, you can use it right away instead of having to find new ways of getting work done.

Have your employee numbers grown?

Are you planning on hiring more people in the near future? If so, how much time do you spend managing employee data and performance assessments right now?

The more people you have, the more critical it is for everyone to access the same system for their job functions and pass data along the process.

For example, if a new employee joins your team and needs to be trained on his or her role, data from other employees in the company will need to be passed along so that training can be done efficiently.

The same goes for performance assessments: if an employee’s performance isn’t reaching its potential, there’s a good chance others in their department might not be performing as well as they could because they’re not getting feedback from their peers or superiors. This can lead to more mistakes being made by those employees in the future which means more time spent on training them again later on down the line!


We hope that this article has highlighted some of the signs you need an ERP and will help you make a more informed choice and also persuade you to consider what a system like that might offer in terms of benefits.

We realize that not every business has the resources or the time to invest in an ERP; however, if your business is at all interested in how software can accomplish important tasks, then an ERP is something you should at least look into.

Even if you don’t think your business is ready for an ERP, we believe that by understanding the benefits of ERP software, you can make better decisions about your company’s future.

Remember, there are no right answers in business—only those that work best for you and your employees.

If you have any questions about whether or not SAP Business One is right for your company, contact our team today!

We would love to chat with you about how our software can help manage all aspects of running a successful business.

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