ERP Scalability and Company Growth

July 10, 2018

 

“Does the ERP solution scale with business expansion?”

The answer will have a significant impact on how you research ERP and calculate ROI.

While the ERP selection process begins with identifying current needs, equal consideration must be given to how the company will grow months and years down the road. Why? Knowing how different ERP systems scale with growth determines if you will need to make additional investments to expand ERP functionality in the future.

If you are already researching ERP software solutions, you understand that core functionality is fairly consistent from one system to another: order entry, CRM, financial management, inventory control, warehouse management, purchasing, reporting, dashboards, etc. However, these ERP applications are organized into two separate offerings: à la carte systems and comprehensive solutions.

 

“À la carte or comprehensive ERP—what should I choose?”

Though à la carte may offer a lower initial investment, it’s important to remember that growth will demand expanded functionality which will incur additional costs and extend the ROI in order to obtain needed ERP applications. With an interconnected comprehensive solution, on the other hand, companies will already have access to a scalable solution that includes the needed applications even if they are not being used in the short term.

Keep in mind that ERP scalability is not the only ROI consideration. ERP technology covers a wide range of tools essential to distributor success: Amazon and e-commerce integrations, dashboard analytics, mobile app connectivity, Cloud deployment, etc. From expanding sales reach to reducing in-house server management costs, investment in these services have a direct impact on a company’s productivity. By carefully researching ERP software options with an eye focused on future scalability and functionality, companies can make smart investment decisions and avoid expensive surprises in the years to come.

With so much to consider, it is understandable to have questions. If you are looking for answers on applying ERP functionality to your business, please contact our team of experts. The experienced team at Distribution One is happy to be your resource as you research ERP distribution software.

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Highlighting distributor successes

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

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.”

Patlin Inc.

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

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.”

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.”

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.”

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.”

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.”

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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