Many companies chose Cloud ERP to overcome recession rather than living in a delusional world where terms like recession cease to exist. Let us bring you back to reality, according to BBC, recession in India is right around the corner. Maybe it’s true, maybe it’s not (It is hard to trust news outlets these days) but it doesn’t hurt to be prepared for the doomsday rather than scratching your head for a solution when it happens.The Indian government is taking various measures to revive the slowing economy. It has announced the biggest ever income tax reduction for corporates in India and more reforms are on the way.
Similarly, accepting that recession is a possibility will help you to start searching for timely solutions. One of the best solutions to make your organization recession-proof is through the implementation of ERP software.
Why do companies crumble during a recession?
There are many reasons for companies to crumble during the recession but we will focus on 3 major reasons.
Failure to Plan
Planning plays a crucial part in the organization’s future and wasting time by being a couch potato or sitting around doing nothing will do more harm than good. The key is to have multiple plans which can pull you out when you are stuck in quicksand. Implementation of ERP software in your organization will help you gain insight and it will help you to plan in advance.
Failure to Adapt
Nokia, the organization which was synonymous with mobile phones during 2000-2010, lost most of its revenue and shares, later Microsoft acquired it. The primary reason for its debacle was the unwillingness to accept change and thus provided ammunition for newbies like Apple to obliterate the mobile titan, Nokia. Upgrading to newer technology is difficult but the only way to survive in the present era is by embracing the latest trends in the market. After a very late realization, Nokia is back with a bang by incorporating the latest technology in their devices.
There is a very popular idiom: A chain is only strong as its weakest link. It means that your organization is only as strong as its weakest performing member/process. Identifying that employee/process and taking steps to improve them will help your organization to grow strong. It is difficult to recognize the weakness in your organization. Fortunately, you can easily detect that through ERP software.
How can Cloud ERP help you?
During the recession, most companies had let go of their experienced employees and saved money. That acted as an interim solution which helped them to cut losses but strapping a band-aid on your body and expecting it to heal a fracture is preposterous. You can’t sacrifice talent to save money.
Companies can instead focus on enhancing profit by improving their processes and taking faster business decisions. Cloud ERP can be an aid to the management by providing real-time operating data like customer-level profitability, ageing of the receivables, slow-moving /fast-moving inventory analysis, product-level profitability and many more.
Ever had a eureka moment while sleeping but didn't have the data to take critical business decisions? Cloud ERP gives you access to accurate information and reports 24/7. Thus, enabling you to think freely, act on time and increase your profitability by
• Improving inventory to sales ratio
• Decreasing working capital requirements
• Reducing the loss from inventory obsolescence and many more.
Cloud ERP software can help you stay profitable during the recession.
Although all these factors are beneficial to companies, entrepreneurs may feel that ERP implementation is time-consuming and is expensive. Check out TYASuite, a cloud-based ERP software which is affordable and can be implemented in any organization within days.