Enterprise resource planning or ERP is used by companies who want to manage important business activities in one streamlined interface or system. ERP systems can be installed locally (on a hard drive or server) or, ERP systems can be built in the cloud.
Why small companies need ERP systems too
While many believe that the primary users of ERP systems are large companies or corporations like Coca-Cola, Mars, or Tyson Foods, today, many small businesses rely on ERP systems as well. In fact, in today’s rapidly changing environment, coupled with food supply chain challenges, it is perhaps even more imperative for a smaller business to utilize an ERP system because of fixed costs.
Fixed costs, such as office and warehouse space, must be paid regardless of the volume sold. Therefore, operational efficiency is critical to small businesses and a good ERP will help increase the capacity to produce more without immediately increasing fixed costs or causing employee burnout, which is especially common in the food industry due to fluctuating supply and demand.
Enterprise resource planning or ERP is used by companies who want to manage important business activities in one streamlined interface or system. ERP systems can be installed locally (on a hard drive or server) or, ERP systems can be built in the cloud.
“On December 1, 1913, Henry Ford installs the first moving assembly line for the mass production of an entire automobile. His innovation reduced the time it took to build a car from more than 12 hours to one hour and 33 minutes.” – Source – History.com
Are you a student looking for the answer to this test question?
We’re told the “right” answer is “Accounting, Finance, Logistics, and Production” and these departments tend to use ERP systems the most. Good luck! Follow us on Facebook, Twitter, or LinkedIn to learn more about ERP and stay in touch!
“Mass production is craftsmanship with the drudgery taken out of it.” – Henry Ford
Henry Ford knew that the key to business growth was not in making employees work make twice as hard or twice as long. Instead, he realized that increased production was ultimately about reducing the steps needed to accomplish the same thing. But he did not simply aim to take any step away—he strived to take away the tedious things that could be done easier by another process. Likewise, this is the premise of ERP. By managing all of your operations in one tidy and convenient location such as the Acumatica cloud, you will effectively be removing many unnecessary steps. Improved systems, powered by a robust ERP system, will free up your staff to think out-of-the-box, give better customer service, and take on more when sales increase.
While there is some time and expense in setting up any new ERP system, the payoffs can be substantial.
If you are a person who understands the importance of building capacity with a team of experts, contact us today.
Our team not only consists of SimplyFood Software but also Acumatica. SimplyFood is a Gold-Certified Acumatica Partner.
The average SimplyFood customer is a small business that wants to move off of entry-level or older legacy software and go to a secure, cloud-based solution.
SimplyFood software is powered by Acumatica and built in the cloud.
