The Importance of Scalability

November 29, 2016


When companies build an ERP software feature “wish list,” one of the most necessary attributes is often overlooked. If you’re currently evaluating ERP software, take a moment to ask yourself…

“How important is software scalability to me?”

This question can be answered in one of three ways:

  1. “It’s critically important.”
  2. “I haven’t given it much thought.”
  3. “What’s scalability?”

Even if you did not automatically reply with option number 1, we can help you with all responses.

What is Scalability?

Software scalability is the capability of a system to handle an increasing amount of work or its ability to accommodate growth. Scalability is a crucial quality in ERP software given the future growth generated by streamlined operational performance and maximized productivity.

Software scalability isn’t a characteristic on which companies initially focus because the need for scalability isn’t apparent on Day 1. Why? After go-live, the primary attention of a business is building software proficiency to streamline operations company-wide. Improved data access and accuracy drives a company’s ability to weed out wasteful spending, provide competitive pricing, generate increased orders, and turnover products more quickly.

While growth is inevitable, it hinges on the ERP software’s ability to handle the mounting volume of data and the requirements of added users. Successful scalability originates from interconnected applications. Solutions that employ separate CRMs, inventory systems, and those that rely on simple spreadsheets are at a distinct disadvantage as a business grows. If data cannot flow smoothly across departments, bottlenecks form which have direct impacts on productivity, inventory amounts, turnaround times, and profitability.

Of course, this brings us to the subject of adding new users. Having 100 or 1000 customers should have no bearing on the software’s ability to handle the flow of more data. When the need arises for additional users, the request should be quickly resolved by acquiring supplemental site licenses. It is important to note that not every user may need to have his/her own license. Because some users require limited software access for routine entry or reporting, you should ask the ERP provider if license-sharing is a possibility.

As you continue your ERP software research, consider evaluating Distribution One’s fully scalable ERP-ONE software. Our expert team has helped hundreds of companies successfully navigate the transition to our software solution. With so much riding on your ability to manage your company’s expansion, you can trust ERP-ONE to grow with you from Day 1 and beyond.

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Customers share their ROI achievements. Click each testimonial to read the full case study.

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Empire Bolt & Screw

“Out of the gate, our first cost savings occurred in accounting. What was previously a full-time job went down to just 2 hours a day. This change alone saved us $40,000 in year-over-year labor costs.”

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Patlin Inc.

“Distribution One has allowed us to deliver 30% more orders without having to increase our labor force.”

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The Nut Place

“ERP-ONE actually helps our business be more productive. We operate more efficiently because our software performs like a world-class product. And that’s not marketing hype. We trust in its reliability. It is one of the best decisions our company made.”

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Colorado Industrial Packaging

“ERP-ONE tracks product costs and sales margins for us… that benefit alone has added 4% to our bottom line after the first year of implementation and has more than paid for the cost of ERP-ONE.”

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A-Jax Fasteners and Tools

“Enhanced productivity, lower operational costs, higher service levels, and stronger customer relationships—it’s all been attained through our ability to provide continuous real-time data generated through the myriad of programs within ERP-ONE.”

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VLC Distribution

“Having spent 30 years on the operations side of distribution using SAP and AS400 software, I have not encountered a better system than ERP-ONE. The efficiencies and expandability has allowed us to improve our sales by $500,000 per employee in a year.”

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On Time Supply

“We had immediate visibility into which sales representatives were performing and which product lines were providing the best return for our business.”

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Cathy’s Concepts

“The ability to manage orders online has created greater efficiency in their business and has delivered more flexibility in modifying and tracking orders. Changes to an order instantly cascade all the way through the terminals and the processing stations cutting production time by at least 15%.”

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“I’m excited about the future. We processed hundreds of orders in the first week and project our webstore will be handling over 10,000 orders per year.”

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