In a previous post we discussed the question of why an ERP system might be needed in the first place.
However, sometimes some form of ERP is already in place, and one might wonder whether it is sufficient. Switching systems may seem laborious, expensive, and unnecessary—but on the other hand, the current system may have reached certain limitations.
Inventory Management or ERP?
If the current system is more of an inventory management application rather than a full-fledged ERP, those limitations can be encountered more quickly. For example, some accounting systems include a basic inventory module, which can be a good starting point—but it might not take you all the way perille.
The basic necessities likely work: inventory levels increase with purchases and decrease with sales, and you can reconcile them during stocktakes. But what about slightly more complex scenarios that a company faces as it grows and expands?
Below are a few questions and situations to consider:
- Is it easy to connect an e-commerce store to the current ERP? And can it be any e-commerce platform, or is it limited to one specific vendor’s model? How laborious would such an integration be?
- Are there traceability requirements or expiration dates for products and materials? And can the current system handle this? This feature is usually called lot or serial number tracking.
- Do customers return products, and does the system have mechanisms and processes for that?
- Is there manufacturing or subcontracting involved with the products? If the inventory software doesn’t understand a function like "picking for production," it can be difficult to maintain accurate inventory balances for purchased items. The same applies if items are consumed in repair and maintenance rather than being sold—and if those functions are not supported by the system.
- Are warehouses distributed? For example, stock might be in installers’ vans, at subcontractors awaiting use, or consigned to customers. Does the system understand and track all this?
- Or the reverse of the previous point: are there potential customers or business opportunities that can't be pursued because managing the above issues would become too complicated? Could modern IT remove such a bottleneck?
Minimalist or Comprehensive System?
If you’re using a broader system instead of just inventory management (a true ERP), the above issues are more likely to be covered to some degree. But as operations expand, new questions emerge:
- Do the sold products have warranties? Can the warehouse, for example, tell from a returned device’s serial number whether that specific unit is still under warranty? Can this be determined quickly, even while the customer is impatiently waiting at the counter?
- Are there repair or maintenance services for the products? Does the current system support tracking them? And is this connected in any way to returns or complaints from customers? Can the work done and spare parts used in repairs be easily recorded, tracked, and billed?
- Are regular maintenance tasks performed on sold devices or systems at customer sites? Can these locations and their service history be tracked and inspection schedules planned? If there’s a dedicated system for these tasks, are plans automatically and seamlessly generated from sales (ERP)?
- Would it make sense to offer maintenance and support as a monthly subscription, and can the current ERP bill such ongoing services? Possibly in a way where completed maintenance and repairs can be easily included in the invoices?
- Can customers submit fault reports or service requests online—whether for physical devices or services? And is this yet another separate application that constantly needs to be synchronized?
- Is subcontracting used in the operations that, for one reason or another, doesn’t quite fit within the concepts of the current ERP? So that at least part of the transactions must be handled outside the ERP via emails, Excel sheets, etc.
These are just a few examples of situations where a modern ERP system can go much further than older-generation counterparts. Warranties, repairs, maintenance, subscription-based services, online customer support, and many other features are often missing from traditional ERPs.
Yet these functions are needed—and they are ultimately connected to the same customers, products, materials, and operations that are managed with ERPs. If separate systems are used, there’s often duplication of data entry and maintenance across several platforms. And if that double-entry is forgotten in a rush, things can stall due to missing critical data. Or expensive integrations have to be built—which then become a hassle during updates or changes. Sound familiar?
Odoo includes a vast number of modules that can handle very diverse tasks—including all those listed above and much more—all while using a single, unified database where applications can instantly "see" each other's data. Book a time to talk, and we can walk through how to take control of these aspects with a tailored project.
