Inflation is driving up costs, potentially depressing your bottom line. The U.S. inflation rate in June of this year hit 9.1%, which was higher than experts had predicted and marked the highest rate since November, 1981. The decreased purchasing power of the currency is affecting everyone, including small to mid-sized firms (SMBs) that are already dealing with supply chain and labor shortages. Better expense and revenue management, as enabled by cloud enterprise resource planning (ERP) software, offer a solution for the problem of seemingly nonstop price increases. This article explores how cloud ERP can help protect your business against inflation.
Surviving Rising Inflation with Cloud ERP Software
Data related to operations, the marketplace and the broader economy can drive decisions that steer a business away from inflation-driven losses. Cloud ERP makes it much easier for you to gather and analyze data related to costs and the prices you charge to your customers. Inflation is two-sided, after all. Usually, you can raise your prices in an inflationary period, up to a point. You have to have the data to figure out what your customers will support, and what will drive them to competitors or substitute products.
Updating data manually becomes a thing of the past when you switch to cloud ERP software—data from every department automatically comes together in one easy-to-access location. Instead, data dissemination and collection are machine-driven, allowing small businesses to get a clear picture of their information. SMBs have the power of knowledge regarding inflationary pressures, allowing them to adjust prices as needed.
Operationally, cloud ERP provides visibility and access to information that allows for better cost management. For example, cloud ERP makes possible real-time inventory and order management that keeps earnings high despite rising prices:
- Making returns and exchanges easier for your customers
- Simple inventory management is possible because your data is readily accessible from the cloud
- Identify low-cost vendors, minimize freight expenses, and track costs
- Reduce write-offs on obsolete and expired inventory
Reduction in the effort and time required to manage orders and inventory manually is a direct benefit of the process automation capabilities in cloud ERP. Automating processes in the workplace allows employees to focus on other potentially more productive tasks and eliminates their need to manually search for information or forms, keep track of receivables, generate sales orders, email invoice notices, and much more.
Cloud ERP software can also facilitate cuts in IT spending, which will be welcome in a time of rising prices and wages. Cloud ERP solutions like Acumatica are not only cheaper than traditional systems, but they also eliminate the need to purchase expensive hardware. You also won’t have to maintain or constantly update the system; security is built into it. With cloud ERP software, SMBs are agile, work faster, and continue to grow—even during a crisis situation.
How to Choose the Best Cloud ERP Software
Although the advantages of adopting contemporary cloud ERP software are apparent, they only arrive when you choose the right solution. An SMB must invest in an excellent product from the start.
These are the three key features you should assess before making an ERP decision:
- Comprehensive Offering—Is the ERP solution capable of providing financial management capabilities alongside vertical-specific features such as sales, CRM, manufacturing, distribution, and so on in a single platform? Is it possible to integrate with critical third-party programs without any difficulties? A single, open, and flexible platform is necessary to increase efficiency and profitability.
- Deployment Flexibility—Businesses may modify how they implement their ERP solution when there are frequent internal alterations (e.g., regulatory requirements) and external changes (e.g., price inflation). ERP vendors looking to the future know that businesses need to make changes without consequences.
- Data Rights—Businesses that have installed an ERP solution usually think they own the data it collects. On the other hand, the EULA for many software vendors frequently confuses the issue by failing to define consumers’ data rights in their multi-page and complex SaaS end-user license agreement (EULA). While a business may have the right to use software where its data lives, that doesn’t necessarily mean it owns the information. Before putting your name on the dotted line, double-check that you fully understand and agree with the terms of the agreement.
Why Use Acumatica for Your Cloud Computing Needs?
There is no sign of inflation, supply chain woes, or The Great Resignment slowing down any time soon. Acumatica is a cloud-based business management software that allows SMBs to make strategic decisions, automate processes, and reduce costs. If you want your business to thrive in today’s market, you need to be a connected business. These components are essential for making that happen.
Acumatica is a comprehensive, connected cloud ERP software that allows companies to automate processes, improve efficiency, and save money. Contact us today to learn how we can help you protect your business against rising inflation.
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