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9 Costly Mistakes Made by Skincare Store Owners When Selecting an ERP (and How to Avoid Them)
The skincare industry is continuously growing, yet selecting the right Enterprise Resource Planning (ERP) system can be a difficult and costly mistake. Many skincare store owners fail to effectively invest in the right system that meets their business needs, resulting in major losses and wasted time. This article outlines the nine common mistakes store owners make when selecting an ERP system so they can optimize their ERP selection.
What is an ERP?
An ERP system is a software application that helps businesses manage their operations, plan, analyze and implement strategies, and handle daily activities. It connects all departments and processes of the business, allowing it to interact and share information between one another. It is the backbone of any business, as it helps make data-driven decisions, streamline operations, keep track of costs, and manage expansions.
Measurement of Successful ERP Selection
When selecting the right ERP for a skincare store, it is important to understand the core objectives that need to be met and how performance should be measured to ensure success. The success of an ERP selection should be evaluated by the following criteria:
- Cost – Investing in an optimised ERP should provide a good return on investment
- Flexibility – the ERP should be able to adjust to the changing needs of the business
- Maintenance and support – This will be important to ensure ongoing success
- Integration – The ERP should be able to integrate with other systems effectively
- Accessibility – The system should be accessible from anywhere and at any time
- Capabilities – The features and capabilities that come with the ERP system should be able to meet current and future business needs
5 Common Mistakes and Solutions in ERP Selection
When selecting an ERP system, store owners often make the following five mistakes, resulting in undue costs and time wastage.
- Mistake: Not considering scalability – Many store owners fail to consider the scalability of the system they are investing in. If the store grows over time, it will require a system that is capable of adjusting to the changes.
Solution: It is important to select a system that is highly scalable, meaning that it can be customized and adjusted as the business grows. - Mistake: Not assessing the level of user-friendliness – Store owners often underestimate the importance of user-friendliness in their ERP selection; if the system is difficult to use, it will be a hassle to administer and manage.
Solution: A successful ERP system should be user-friendly and intuitive, making it easy to set up, manage, and report. It should be able to provide visual displays of data, intuitive drag-and-drop administration tools, and simplifed user rights management. - Mistake: Not following industry best-practices – Store owners may not be aware of the industry best-practices when it comes to selecting an ERP system, leading them to invest in an inadequate system.
Solution: Before selecting a system, research the different ERP options available in the marketplace and look into industry best practices. This will help you to understand what is important in an ERP and make sure you select the one that is best for your business. - Mistake: Not factoring in downtime and technical support – If the ERP system experiences downtime or other technical issues, you could potentially lose valuable time and resources.
Solution: Ensure that the system you invest in has a good track record of being reliable and secure and has good technical support available in case of any issues. - Mistake: Not knowing the exact requirements – Store owners tend to overestimate their needs, or underestimate them entirely; either way, this can result in an inefficient system selection.
Solution: Analyze your current operations, identify your exact requirements and objectives, and select the ERP system that meets those exact needs.
Summarized Table of the Mistakes and Solutions
| Mistake | Solution |
|---|---|
| Not considering scalability | Choose an ERP system that is highly scalable. |
| Not assessing the level of user-friendliness | Look for an ERP system that is user-friendly and intuitive. |
| Not following industry best-practices | Research the different ERP options available in the marketplace and look into industry best practices. |
| Not factoring in downtime and technical support | Choose an ERP system with a good track record of being reliable and secure, and good technical support available. |
| Not knowing the exact requirements | Analyze your operations, identify your exact requirements and objectives, and select the ERP system that meets those exact needs. |
Conclusion
Selecting the right ERP system is vital to the success of the skincare business. Store owners should take the time to understand the costs, flexibility, maintenance and support, integration, accessibility, and capabilities of the system before investing. By avoiding the five common mistakes outlined in this article, store owners can optimize their ERP selection.
