As an SME grows the nature of the business becomes increasingly complicated, particularly if manufacturing or distribution are involved.
In the early stages, most businesses manage with the back of an envelope or an Excel spreadsheet, but at some point, the realisation will dawn that some form of IT solution is required and in most cases, this will be a version of MRP (Material Requirements Planning) or maybe ERP (Enterprise Resources Planning).
Often the first step on this journey is to start using the Stock Management Function or an add-in to the Accounting Software being used.
This is a natural progression, as the integration with the accounts is straightforward and the learning curve is gentle.
However, once the business grows beyond a single location or the complexity of manufacturing or assembly increases a further step will be required – moving to a dedicated IT solution and this is where potential pitfalls start to manifest themselves.
Identifying what is required, both from the IT solution and the changes it will bring to the business is key to a successful implementation.
The suppliers and implementers of MPR solutions are experts in their field, but not in the business being affected, and this can make it hard for business leaders to be sure they are making the right choices and are developing a robust implementation plan.
It is important before starting to have a clear view of what the business needs, now and in the future; what data is available and will be needed; what skills the business has and what will be needed as well as a realistic assessment of the scope, scale and timeline to implement a solution.
A Business Advisor can be an excellent partner in the journey, helping to frame requirements, facilitate the selection process and develop and implement a launch plan.