Process Challenges

5. An employee performing Non-Value Adding Activities

Are your employees performing routine mundane activities or are they performing value addition activities? If they are not able to perform value-adding activities such as identifying areas of cost reduction, building supplier relations, improving customer satisfaction? You will not be able to increase the profitability of the business or grow your business.

6. Not measuring Performance

Have you defined the KPIs for every business process? Do you measure the performance over a specific period? If not, then problem areas in business will go un-noticed and become visible only when the damage is done. Ensure proper KPIs & review mechanisms to overcome this situation and identify problem areas early on.

7. Not Focusing on Cost optimization

Are you continuously looking out for opportunities for cost optimization? E.g. identifying alternate cost-effective materials, increasing supplier base to improve negotiation or aggregating demands to perform bulk procurement, etc If, not, you are likely to face the risk of increasing operating cost which will impact profitability considerably.

8. Not Focusing on Customer Delight

Are you providing maximum value to your customers? Are your customers happy? Will they provide you with repeatorders? Companies that do not measure how satisfied their customers are or who do not make an effort to find new and innovative ways to delight their customers face a risk of not getting repeat orders or even losing existing customers.

How ERP helps to Plug the Leaks Improve Profitability?

ERP software integrates all important processes of an organization such as planning, production, purchasing, inventory, sales, marketing, finance, human resources and gathers real-time data into a centralized system from various departments, locations, business verticals.

Companies can leverage ERP software to define and implement business flow, to describe rules & guidelines as well as implement validations and checklists for almost every activity in the organization.

Let us now see how ERP is a great mechanism to define and roll-out strategies for implementing standard operation procedures, implementing financial discipline, implementing business discipline, and more to plug leaks, improve profitability, grow your business.