Reasons that you need a new ERP System

Upgrading your old ERP system may appear unnecessary for a few companies, but sooner or later, if you, like most companies, plan to expand your business, a new ERP system will be needed. 

For your business, your Enterprise Resource Planning (ERP) system is important. These systems give a comprehensive overview of core business activities such as cash flow, orders and purchases, payroll, HR and more. More importantly, ERP systems make it possible for businesses to understand their finances and link supply chain with revenue. After many years of negligence, ERP systems are at the forefront of the strategic plans of the business organisation, realizing that their current system is old and costs more money than savings.

But organizations stuck on old, outdated legacy ERP systems often dealing with the pain of manual and inefficient processes for years before they finally make a change. However, good business sense suggests that earlier is better when determining the timing for a new ERP system.

Here are some reasons why you need a new ERP system for your business:

More Money Saved

Chances are you will spend a lot of money on inefficient business processes, poor customer support, stress and turnover for employees and the cost of broken legacy systems that is not so much to be quantified, but not hidden. You often need to spend money to save money. Of course, you spend money in a new system, but the total ownership cost and the cost for the long term can probably be much lower than you pay today. 

More functionalities

If your system restricts your operations and limits its functionality, this will prompt you to a new, up-to-date solution in good time. This is particularly true of companies that have grown rapidly and had thus outgrown their legacy systems. You might have customized your system many times to meet your changing needs; however, you will realize that a new system that satisfies all of those requirements will be easier to purchases than to constantly modify your existing one. 

More Scalable

Most organizations are struggling to find sources of growth and don’t need any additional headwinds to slow their progress. Even when the demand for your product or service is strong, the last thing you need is an operational framework that can’t deliver to that demand. Think about how a new ERP system – along with more efficient business processes and employees – would enable your organization to scale and grow faster.

More Productivity

Old legacy systems take many hours for tedious tasks, such as report generation, inventory levels monitoring, timesheet monitoring and orders processing. These processes reduce employee morale and open up to human mistakes. Even the best staff are bound to make a mistake after the umpteenth hour of entering the same data line into various forms. A modern ERP system provides new features that are probably missing from your older system. It is faster, more flexible and may even be available in the cloud. If you use integrated best practices, your organization can benefit from a significant increase in productivity without much effort. 

Maintain the Bottom Line

All comes down to dollars and cents in business. Financial leaders like to know how efficient your employees are. What is the reason? It usually means a reduction in costs and a possible decrease in the time and work required for completing jobs. Your organization can make cost-oriented decisions that best match budget and strategy when deciding to upgrade your ERP system or to maintain it in place. 


If you know that you are nearing the end of the life span of your current system, an ERP implementation will now increase your profitability, which will allow your organization to grow and mitigate risks. You will also have plenty of time to chose and deploy your organization's best ERP system. 

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