Are the Costs of ERP Workarounds Eroding Your Bottom Line?

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One of the sure-fire signs you’ve outgrown your enterprise resource planning (ERP) system is when your staff must develop manual workarounds to complete various tasks that the ERP system was intended to automate. Yet, you’re conflicted about what to do about it. "After all," you think to yourself, "in this economy, can we really stomach pouring money into a new system right now?"

That’s certainly a fair question, and you would be in good company asking it. A new ERP implementation is fraught with risk and is costly, especially on the front-end.

On the flip side, however, have you weighed the expense of NOT making the switch to an updated ERP system that eliminates the need for manual workarounds?

Consider these three examples of inefficient ERP workarounds – and how they’re eroding your bottom line.

 1. Re-keying transactions at various stages in order processing

The costs:

  • Delays in the order-to-ship-to-payment cycle, negatively impacting sales growth and cash flow.
  • Frustration for customer expecting quicker response and delivery, resulting in loss of future business and referrals, increasing new customer acquisition costs
  • Exponentially higher risk of data-entry errors, creating costly customer service issues that could have been avoided
  • Excessive time and personnel expense to perform tasks that could be automated at a fraction of the time and cost

 2. Manually consolidating performance data from multiple departments and business units and then formatting that data into useful, actionable reports

The costs:

  • Excessive time and personnel costs to gather reports from various departments and aggregate the data in timely manner.
  • Costs that result from lack of real-time, comprehensive visibility into company performance. Management laments, “Had we known about these trends two weeks ago, we wouldn't have been blind-sided. We would have responded differently!”

3. Having to physically check and manage inventory status

The costs:

  • Extra staff time and cost to manually process and track orders
  • Delays in receiving accurate inventory levels, negatively impacting management’s ability to replenish product at optimal levels, leading to shipping delays – or worse, lost sales.
  • Excessive inventory with floor-plan costs eating away profit
  • Sales reps unable to check inventory status without having to call the warehouse, requiring unnecessary staff expense to field the call and physically track down the requested product. This also impedes the sales reps' ability to get the order signed on the spot, which can result in lost sales.

Eliminate Workarounds, Preserve Profit with Microsoft Dynamics ERP

To explore whether a robust, yet cost-effective ERP solution, such as Microsoft Dynamics AX, would be a good fit for your company and create the operational efficiencies you need to reduce costs in the long-run, contact ERT Group at 954-825-0888.

Enterprise Resources Technology Group, Inc. (ERT Group) is a technology consulting firm that empowers companies to grow and succeed with business solutions that streamline processes, improve productivity, and squeeze more profit from operations. ERT Group is a Florida Microsoft Gold Certified Partner and a 2010 President’s Club member for Microsoft Dynamics – offering Microsoft Dynamics CRM and Microsoft Dynamics ERP.

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