How does ERP help in fighting global recession?

With the effects of economic meltdowns, everybody is looking for the safe shelter of their money. Most of the organizations look for cost savings to withstand the effects of the recession. Many organizations commit a mistake of going for a sharp cut on the ERP expenses when the clients are low in number. However, business owners should understand that the current economic meltdown is a part of the business cycle and there is boom after every recession. Rather than going for a sharp cut on the ERP software expenses, business owners should consider recession period as a time to make improvements on the ERP to increase returns on the investment in the long run. It is a wise strategy to use the bear phase to make the business ready for the bull phase.

Cutting down the expenses is not the only strategy during the times of economic recession for the organizations that are looking for the long-term growth. Organizations that have plans for long-term growth in the industry should thrive on two factors at a go during this lean period. Apart from cutting the costs down, they should focus on improving the performance and increasing employee productivity. Here is juncture where the helping hand of ERP pictures up.

Though investing in the new ERP software services during the times of recessions seems to be counterproductive, automated ERP implementation would help you achieve efficiencies that could never be achieved with the conventional practices.

ERP support in cost-cutting

Most of the issues in the organization can be solved with the combination of onsite and offsite support. Remote assistance will be solving most of the issues at a lower cost. Server maintenance can be an expensive affair for most of the organizations during the times of economic downtime. Outsourcing the server maintenance could help in cost-cutting and further negotiation can be made with the ERP supplier regarding the AMC charges and license fee.


Improve productivity

Business organizations generally don’t focus on the important things like enhancing the productivity of the employees during the business swing. The lean business period during the times of recession will make resources available. They can be effectively used to increase ROI on ERP software investment.

1. ERP optimization will help you to introduce new process as per current trend and future business requirements.

2. ERP software services implementation during the times of recession will help to remove data inconsistencies in the business database, i.e. remove duplication of the data.

3. Due to a low number of projects during the lean period, human resources of the company will have a lot of idle time. This time can be effectively used in enhancing the employee productivity of employee in the ERP skills. They can be trained for using advanced functionalities of ERP software which would help in generating good returns in the long run.

4. The idle time during the times of recession can be effectively used to train the vendors and suppliers on applications of ERP (required at times).

ERP implementation during the times of recession can get you the best bet in the market from ERP suppliers.

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