ERPs are trendy. This is reflected in the latest data from the INE, which indicates this 57.4% of Spanish companies use this technology to manage all their operations from a single place. A clear example is retailers opening new stores in different geographical locations, or e-commerce companies that were previously purely digital players and see the physical store as an opportunity to expand their business strategies. As a company grows, it’s easy to lose information and end up in operational chaos if we continue to use isolated tools or connectors that don’t work.
The move to comprehensive management software is crucial due to the investment involved and the training time required. However, every company must carry out a comprehensive analysis of its situation and its future prospects before commissioning this type of technology, which is usually recommended for companies with an invoice volume between 1 and 5 million euros.
Carlos Liébana, founder of Factor Librea technology consulting company specializing in creating ERP for companies with many products assures: “When we think about creating a custom ERP, we have to think long-term. From the integration of online shops and marketplaces to billing and everything to do with warehouse management, we can bring it all together. But it all depends on the moment you are in. That’s why it’s important to rent a system that we can adapt and grow at the same pace as your business.” So, How do you know whether you should take the step towards ERP?
4 questions to ask yourself before investing in an ERP
- Do I have rapid and continuous growth? If the answer is yes, you can think about it, as accelerated growth requires more structured and centralized management of information and resources. On the other hand, companies that are in the early stages, such as a startup, must first wait until they become established and have solid financial performance. In this phase, simpler solutions such as a SaaS-like management system or departmental solutions are sufficient.
- Are the systems I use working for me? If you remain operational with the various applications you use, the change is not necessary. The problem arises when the company grows and the lack of integration between these platforms affects your efficiency or wastes too much of your team’s time. An ERP unifies and optimizes all information to avoid redundant tasks and errors that can cause economic costs.
- Do I have good analytics? The key to continued growth is making informed decisions, and data is essential for that. When a business struggles to get accurate reports in real time, an ERP acts as a central source of data and enables its use with reporting tools.
- Is my next step internationalization? At this point in the journey, an ERP system is the best option because, as a cloud service that brings everything together in one place, it makes it easier to manage operations in different markets, also taking into account variables such as currency exchange, languages, etc. Regulations. Local. The most important thing is that you are clear about your next steps, because implementing them in a confusing scenario could sabotage your strategy.
If you expect your company to need to professionalize, digitize and automate its operations, it is important that you conduct a thorough assessment of your needs and capabilities before commissioning an ERP system to find out whether you are actually in the right time . With suppliers like Spain’s Factor Libre, who have 15 years of experience implementing these systems, you can more easily make this important decision that could give your company competitive value. Brands such as Alain Afflelou, Scalpers and Farma Direct are already working with Factor Libre.
