What is an ERP System and Why should I Care?
Volo Commerce CEO Paul ‘Dilge’ Dilger was in conversation with ChannelX Editor-in-chief, Chris Dawson, to outline why everyone running a business over £2m a year should get to know the concept and benefits of an ERP system.
ERP systems are often thought to be exclusive to large corporations with turnover in the hundreds of millions or even billions – however, simplifying the internal systems of a business with an ERP can be a huge benefit to small and medium eCommerce businesses as well.
Defining the Core: What is an ERP system?
At its heart, what is an ERP system but a centralized hub for your business data? For many growing companies, information is scattered across various spreadsheets and disconnected software. An Enterprise Resource Planning platform pulls these threads together, integrating finance, inventory, and customer relations into a single, cohesive environment that provides a “single version of the truth.”
Scaling Your Operations Effectively
As a business crosses the £2m threshold, the complexity of managing multichannel sales increases exponentially. Relying on manual data entry becomes a significant risk. By understanding what is an ERP system, business owners can identify how to automate mundane tasks, such as stock level updates and order processing, which reduces human error and frees up staff for high-value strategic work.
Long-term Benefits and Strategy
The strategic advantage of these systems lies in their reporting capabilities. When all departments feed into one database, leadership can generate accurate forecasts and track margins with precision. If you are still asking what is an ERP system in terms of ROI, consider the cost of lost sales due to overselling or the overhead of an inefficient warehouse; these are the exact problems that a well-implemented ERP is designed to solve.
Read the full ChannelX article for more information on what an ERP system is, and why you should care.
