Now is the time to switch to ERP to stay ahead

When starting up, business functions are neatly compartmentalised, with software systems, with software systems that are not always linked. Most electrical and electronics businesses start with an accounting package that covers the basics, such as purchase orders, quotes and bill payments. However, as a business grows, the need also grows to find a software or develop a system where all parts of the business talk to each other and data is presented on a single dashboard.

ERP software works for businesses of any size

No matter the size of a business today, ERP software works. ERP incorporates accounting, invoicing, banking, and financial reporting functions just like any good accounting software package. However, an ERP software solution also includes order management and supply chain functionality, inventory, warehouse management, as well as e-commerce and customer service management functionality.

A recent survey we conducted revealed that 85% of electrical and electronics businesses that hold stock felt technology is vital to the efficient running of their business, while 80% agreed that automating business processes helps them stay competitive. This is where streamlining IT systems and migrating to a single ERP (enterprise resource planning) solution can be fundamental to growth.

With so many in the sector still using some level of manual processes and disparate systems to run their businesses, they are missing out on the benefits that come from centralising systems into one ERP, such as Profit4.  Profit4 is a business and stock management software that enables users in wholesale, merchant, tockiest and distributor businesses to gain complete visibility of business processes and data, while streamlining operations to reduce cost. 

Anderson Electricals, a family-run and owned spare parts wholesale, distribution and service business, took the initiative to adopt an ERP software and reported: “With Profit4, it’ll connect all areas of our business and make it more fool proof. …. Nothing will get missed because we can create workspaces to give us visibility and because there’s less human involvement of writing notes on scraps of paper!”

Distributors switching from accounting to business software

Fifty-seven percent of our survey respondents cited the main reason to use a single software system was reducing administration time, followed by 40% claiming improved accuracy of information and 37% stating improved efficiencies by removing duplication of work across different departments.

Smaller firms especially must work smarter and harder to compete with larger, more established businesses. In fact, even micro businesses, selling specialist components, can profit from digitising all processes in one ERP software. Business owners and management suddenly gain immediate oversight of all functions and can easily jump from one business process task to another, in the same system. A single view of a business leads to better profitability, increased productivity and accurate data for planning purposes. It also enables wholesalers to extract data much more easily, and analyse and manipulate the data to assist with reporting. Critical business elements like regulatory compliance and risk management, as well as financial reporting, can also be handled with ease.

Growing businesses benefit from having ERP software from the outset

As electrical and electronics businesses expand, so too will their use of the ERP software’s capabilities. Those starting out with a small business accounting system rather than EREP don’t get this medium to long term scaling.

Data and stats of a customer journey, sales, warehouse efficiencies, stock control and team performance provide the ability to spot trends, understand best performances, but also areas for improvement.

For electrical wholesalers and distributors, taking control of stock and warehouse operations has a knock-on effect for customer service, reputation, team morale and ultimately the bottom line. 

Touchstone Lighting, for example, stocks over 2,000 different lighting control gear products and uses OGL Computer’s ERP software to gain data and information needed in an instant, so they never need to tell a customer that they will call them back – especially when those customers themselves have their own customers waiting at their trade counter. Instead, the ERP solution helps Touchstone fulfil its customers’ needs without any wait as it does “99% of the things we need it to do”.

Moving from standard accounting systems to self-serve ERP platforms

Switching from a standard accounting system to full ERP software is not as daunting as it may appear. A good ERP software provider, with an accessible support team, will always be available to help, from data transfer to training new staff. 

Anderson Electricals explains that “The Profit4 team behind the scenes are great. Right from the start we were looked after as best we could, from the training, to support at go-live and the ongoing support. OGL has a great bunch of people who value our business. I can’t fault what they do and how they do it.”

Introducing ERP software to a business lifecycle can immediately improve customer relationships, offer insightful data and oversight, and help more informed decision making. As Anderson Electricals puts it, “Profit4 gives us the flexibility to move in times of uncertainty.”

For those still wary about investing in ERP software, or worried about the costs, the recent £520 million Help to Grow scheme announcement from the UK Treasury may change that. 130,000 small UK businesses are expected to be eligible to claim up to £5,000 each to secure a discount on productivity-enhancing software - what better time to start thinking about switching?