Few businesses are immune to some form of seasonality. Things can get stressful quickly when the revenue stream stops flowing.In the past, business owners just had to tough it out until the end of the off season, or else find another equally profitable product to offset their main offering. For many people, these options aren’t even viable. Luckily, there’s now an option to overcome seasonal slumps: cloud ERP.
What Is Cloud ERP?
Cloud ERP software does a lot of things. On a basic level, it integrates all departments and branches of your organization onto one platform—accessible anywhere with an Internet connection. It helps automate some tasks; and it can collect real-time data from almost every quantifiable aspect of your company.
Quickly Scale Up or Down
This is probably the most evident way cloud ERP software can be extremely useful to businesses trying to lessen season slumps. Cloud ERP allows users to seamlessly scale up or down—as it’s provided as a cloud software service. Customers pay a subscription fee, but don’t need to worry about expenses for hardware or an IT department. Cloud ERP also typically lets companies decide exactly what features are needed, and only pay for those. This is extremely beneficial to businesses that know they’re approaching a slow time of the year and want to cut back on some expenses.
Use Data to Identify Patterns in Sales Volume
Most retailers know that they’re going to see increased sales during the holiday season. However, it’s not impossible to completely miss trends in sales volume during other parts of the year. Maybe there are certain weeks every year in which you do abnormally low or high numbers of sales. It’s valuable to have that data because it can help you possibly understand what’s driving that trend. And if you can identify causal factors that in turn can allow you to develop an action plan to alleviate, or capitalize on, the situation. On a more micro level, there might be certain times of day, or days of the month, in which you’re consistently busier than other times—even if it’s by a slight margin. It’s worthwhile to identify those patterns. Cloud ERP can help you do it.
Identify Product Trends
You can get even more specific than the previous example. Depending on your industry, there might even be particular products that sell abnormally well, or poorly, during certain parts of the year. Again, identifying these trends, which can be accomplished through the implementation of cloud ERP software, can be an invaluable resource. Consider this: Your company is in a slow part of the year, when sales volume as a whole is typically about 25 percent lower than a normally busy time. However, with the implementation of cloud ERP software, you see that one of your smaller products consistently sells a twice its typical volume during this period. You then might be able to identify a greater industry, or cultural, trend that’s causing this correlation. Finding these connections will allow your organization to capitalize more fully on its products.
Make Managerial Decisions Based on Hard Evidence
In the past, businesses have struggled to make accurate decisions for issues that have multiple factors. Cloud ERP takes a lot of the guesswork out of managerial decision-making because it’s able to quantify the minutia of a whole organization. The level of data collected by cloud ERP software allows for an unprecedented degree of insight into company trends.
Seasonal slumps will always be a struggle for businesses. However, by implementing cloud ERP software, you can take proactive steps toward mitigating their effects.