4 Ways to Reduce ERP Software Expenses During a Recession

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There are very few industries that are not feeling at least uncomfortable, if not agonized, by the current global recession.  Many companies deal with the economic crunch by indiscriminately cutting costs, whether it is in IT, personnel, or other areas.  ERP software, which some see as a necessary evil rather than an actual asset, is often among the first casualties.

Nevertheless, it is possible to reduce ERP software expenses without crippling your organization, which would only make a bad situation worse. The last thing you want in a recession is to have a reduced workforce and a reduction in ERP functionality. You most likely put a lot of work into planning and making sure your ERP implementation was as efficient and effective as possible.  Uprooting that would cause chaos.

Since many companies have invested a tremendous amount of money into ERP licensing and implementation, they should work more diligently to get a bigger return on their investment, which will offset the high costs.  The following are a few ideas on how ERP managers can reduce cost and still get results:

1. Move to an online solution - Running and maintaining your own servers is expensive. Moving to a cloud solution is one way to cut costs.  For some ERP software packages, this would mean migrating your data to new software and other costly measures. With Microsoft Dynamics GP, however, you can choose a Microsoft partner to host your ERP software in a secure data center.  You would still have all of the features available to you with an on-premise solution and would maintain full integration with your current system.

2. Fix Those Lingering Issues - Every company has a few ERP kinks in their usage strategies, and they have inevitably developed workarounds rather than actually fixing the problems.  This usually means employees spend more time on tasks that should be simple.  Take an assessment of current usage and find out where problems exist.  Fixing them will boost productivity, which translates into more money.

3. Upgrade your ERP software - When business is slow due to the recession, upgrading may seem like the last thing you want to do, but because it will have less impact on your business, it may be the perfect time. Updated systems have new features designed to save you time (and money). Furthermore, when your company does get busy again, you will have a better, more profitable solution in place and ready for work.

4. Update your business processes and data - Along the same lines as the ERP system upgrade, utilizing the lean business period is a way to ultimately better your business practices during times when employees may be idling or performing mundane tasks.  This is a great time to optimize your ERP processes, clean out duplicate data, train your employees to be more efficient, and analyze the data you have undoubtedly amassed over the years.

A recession can be a frightening time for individuals and for organizations, but rather than sitting in your office chair and watching the numbers fall, you can take action.  By being proactive with ERP software assessment and expense management, you can greatly reduce the amount of unnecessary cost, while still preserving, and maybe even boosting, performance.

By ERP Software Blog Editors, Find a Local Microsoft Dynamics ERP Expert

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