The ROI of Cloud ERP Implementation
The ROI of Cloud ERP Implementation
ROI is the key determiner in deciding which investments give the greatest return. In other words, ROI is a comparison of the expected benefit of a particular investment measured in monetary units, compared to the cost of that investment in the same monetary units.
The lack of efficiency and the great limitations of spreadsheets, basic accounting software, and even paper make running a business at optimum performance a little difficult. Without a proper ERP solution, businesses are struggling to get a greater ROI.
The ROI Benefits of the Various Aspects of ERP Are Greater Than You Might Think
The reduction of costs for IT is massive. There’s an anonymous technology company using a cloud-based ERP software that saved more than $100,000 in hardware and software purchases and avoided hiring at least three full time employees for its IT department.
Cloud ERP allowed companies to replace outdated accounting packages like QuickBooks, which, while inexpensive to purchase, were costly in maintenance, integration, and manual data entry.
There’s A More-Than Noticeable Increase in Productivity.
Sales and marketing teams are better able to serve customers. If you have a sales call and want to update the customer database, you don’t have to write a note and remember to do it when you get back to the office; that is very inefficient. You actually can just make the direct changes right then and there, adding notes within the ERP for everyone to see!
Moving from paper, spreadsheets, and accounting packages to cloud ERP solutions helps companies speed up collections, reduce the quote to cash time, and increase the accuracy of their billing. Monthly or yearly financial close has been simplified as well, due to financial consolidation and the ability to more easily access and manage financial data.
Decreasing inventory levels through better inventory planning reduces costs. Inventory management systems improve the tracking for movements. This is not only an important factor, invoice accuracy can reduce collection cycles, which in turn improves cash flow.
The Statistics of ROI for Cloud-Based ERP Solutions
Even though cloud ERP only represents 2 to7 percent of the total ERP market at present, the revenues it generates are expected to double by 2015 compared to 2010. Nucleus calculated the ROI achieved by using cloud ERP, and noticed most companies reported a higher than 150% ROI. One client of Netsuite’s said, “There is information about the customer and what they ordered. They can see history without tracking people down and see a complete picture of sales, ordering, and fulfillment. That has made us 20 to 30 percent more profitable.” Can you imagine how much this benefits customer service? The answer, according to this company, is 20 to 30 percent more profit.
Conclusion
The ROI for a cloud-based ERP system heavily outweighs what a cluster of non-integrated, lacking software offers. Not to mention, the returns are far better on a cloud-base than an on-premise ERP software. With the right ERP system, businesses are able to properly track and measure all of the various benefits of a proper ERP system to see their returns grow continually.
Will Inventory Management Software Really Help My Company?
What is inventory management software?
Inventory management software consists of business applications that track, manage and organize product sales, material purchases and other production processes. The software is used to track products and parts as they are transported from a vendor to a warehouse, between warehouses, and finally to a retail location or directly to a customer.
Why your business is being held back, drastically.
Growing companies can have a hard time keeping track of their inventory data accurately. When things are moving in and out really fast, simple lists and excel spreadsheets just don’t keep up. When someone has to manually enter everything into Excel, it leaves a lot of room for human errors. It also lacks real-time data so what you see on your Excel sheet may not actually match what you actually have in person. This is especially true when you have multiple people touching your inventory, but can only have one person update the sheet at a time. Another common problem is that using Excel to track large quantities is not only difficult, but it also increases the likelihood of the program crashing as your data grows exponentially larger.
Without accurate data, your views into your business are skewed—and you could end up making costly business decisions.
The statistics show that around 45% of American consumers shop throughout multiple channels within the market. As consumer data becomes more challenging and harder to test and analyze, it becomes harder to track manually. With the right inventory management software, however, it becomes much easier to sync the data between your sales and fulfillment.
An inventory management software must be adaptable.
Having an inventory management system that updates in real-time and has access to historical data can provide you with more useful information to make more accurate predictions about how much of a particular item you should stock. An accurate inventory management system will prevent having a bulk of items collecting dust on your shelves, having products that are in high demand on back order, and overall keeping your customers happy. This way you can optimize your inventory levels and replenish items as quickly as possible, so you have as little inventory as possible and your goods are constantly replenishing. Only the best inventory management software will be able to Integrate with other platforms to make management easy to use (Shopify and Salesforce).
So in short, inventory management software will not only optimize your company, it will help and grow with it, exponentially. Get a Free Demo now.
5 Tips That Wholesalers Can Use To Better Manage Their Warehouses
5 Tips That Wholesalers Can Use To Better Manage Their Warehouses
1. Offer special pricing for your overstocked inventory
Building savings campaigns for your overstocked inventory through daily, weekly, or monthly deals, lets you one-up your competition, and move your merchandise quickly and easily. Retailers will watch for these specials and will appreciate the added savings they receive when they deal with your company which means – yes, you guessed it – more orders!
2. Make ordering, delivery, and billing as seamless as possible
Automate your order management and product distribution processes as much as you can. This means less waiting for busy retailers who want a simple, streamlined process, putting your company near the top of their lists of wholesaling firms to bring their business to. It's important to utilize an inventory management software that can streamline the operations for you!
3. Give your sales reps what they need to succeed
Do your sales reps have all the information they need going into sales appointments? Forward-thinking wholesalers, manufacturers, and distributors are understanding that in order to make sales in this day and age, sales reps need to add value to their sales conversations, not just go through the motions of writing down a reorder. Using a capable CRM is the next best step to creating more sales, and maximizing the sales process.
4. Differentiate on customer service, not price
Wholesalers who can differentiate their brands by providing great customer service are seeing returns. Think about how you can create a modern, convenient experience for your customers. How can you fulfill orders more quickly and replace transactional activity with strategic value? The short answer, is increased customer service. By tracking what your clients are purchasing and how often they do it through a sales order management software, you can get an insight into making sure you are their go-to distributor.
5. Get your inventory under control
You can’t run a profitable wholesale distribution business if you don’t have a good handle on inventory management.
Tracking incoming/outgoing inventory, doing regular physical inventory counts, and implementing a great inventory management software, are all key in keeping your inventory in good standing.
Wholesalers can optimize their business by implementing these strategies within their warehouses today.
Is It Really Important To Choose The Right ERP Solution The First Time?
Is It Really Important to Choose the Right ERP Solution the First Time?
These statistics seem to say it is.
- 80% of customers are unhappy with their current ERP.
- 60% of ERP projects fail.
- 90% fail to deliver any measurable ROI.
- 95% of failure companies dedicate less than 10% of total budget to education/training/change
- 41% of enterprises fail to realize less than 50% of all benefits.
What can go wrong if you don’t?
The System implementation can take longer than expected. The Lack of training causes lack of confidence and efficiency. The system isn’t as easy to use as predicted, causing a loss in time and value. The system isn’t cloud-based, meaning sales people can’t work on-the-go. Companies fail to realize less than 50% of all benefits because of a lack of training and efficiency that over-complicated and expensive ERP systems.
Great ERP systems need to be able to prevent and avoid these problems at all costs.
The solution is to make sure the ERP you choose has: a good price, ease of use/customization, scalability, and is cloud-based/accessible everywhere.
Don’t miss out by getting a complicated ERP system that you will hate; get a sophisticated ERP system that’s easy to use, and the entire company will love.
Kechie ERP – The next generation of Cloud-based ERP solutions.
Kechie ERP is ready to go and easy to use. Get training along the way with built-in, specific training videos. It is the most customizable ERP system that adapts around your business, not the other way around. Not to mention, Kechie ERP is the most affordable ERP compared to the other top-named brands. With a 100% user satisfaction rate, Kechie continues to provide the very best for all businesses looking to increase their ROI’s, grow, and expand.
Try it for free now at no risk, and see how easy and essential it is to any growing company.
What have you got to gain? A complete revision on how efficiently and easily your teams can manage your company collaboratively without any of the downfalls.