The DME industry is changing at an alarming rate, and if you’re not ahead of the game, you could fall behind. If you’re finding that you’re having trouble managing your business, having trouble identifying your profit centers, and suspect you are wasting time and money, consider switching to an ERP software system.
Here are five signs you need an ERP System:
How many different software programs does your business run on? If you’re like most DME businesses, you have different software systems running accounting, sales, inventory, billing, delivery and compliance documentation. These different systems mean that you’re adding minutes – sometimes hours – to every single order. When margins were healthy, that was fine, but now that margins are tight, every minute counts. Worse, your software systems probably don’t talk to each other, so you’re adding even more minutes with double entry. Time is money, and multiple software systems are a time suck.
To run a business in a competitive, tight-margin market like DME, you need complete and instant access to critical business information. What is your average sales margin? What are your most profitable products? What are your accounts receivable? How many claims remain under-worked every month? You need this information at your fingertips to remain competitive in this market, and you can’t access this information unless you have a single ERP platform that spans billing, sales, inventory, accounting and delivery.
Often the biggest sign that you need ERP software is that your accounting department is lagging. When employees rely on paper-based delivery documentation and spend hours every week manually entering them into different inventory and billing systems, you need to consider how much time is being wasted on tasks that could easily be taken over with ERP software. Along the same lines, if financial reports are delayed and take hours of preparation, an ERP solution will make a significant impact. With all financials in a single database, your billing, accounting and inventory staff don’t have to spend time cross-posting information and reconciling data manually. This will free up your accounting staff, making them more productive.
DME businesses are complex, but at their core is inventory. Without the right products in the right warehouse, in the right trucks, and with the right customers, you simply can’t run your business. Separate sales, inventory and billing data systems make it virtually impossible to know your inventory status in real-time. This leads to breakdowns in communication when customers are promised items that are out of stock, or delivery drivers are sent out with incorrect items. With an ERP system, staff in every department has real-time access to inventory data. Products can be seamlessly counted, loaded, sold, rented and ordered from a single database. Even better, you can quickly see the margins for every item.
Every software system that your business uses requires someone who understands it and can train employees how to use it. As your business grows across multiple software systems, you need a larger support staff to bug-fix, train on and administer all those software systems. Patchwork software systems require a team of administrators and trainers, and yet they still underperform. ERP systems require less oversight, because it is a single company providing your software business-wide, and you can quickly and easily deploy training, support and new features company-wide.
To learn more about Bonafide’s cloud-based ERP is the best solution for growing DME businesses, contact us to schedule a demo.