What are business crisis examples?

With the development of the company and dynamically changing business environment, there are more and more problems and obstacles to the proper functioning of the company or its dynamic development. Below you will find a list of issues that you may have encountered. If you agree with some of them, then it may be time to implement a good ERP system.

Which of the following events occur in your business?

You may not know it yet, but your company is in a state of crisis?

 

Increasing stock levels (stocks) – logistic company:

 

1) Increasing distribution costs

2) Delays in delivery dates

3) Increasing inventory level (and cost)

4) Increasing cost and time of import / export

5) Reducing the free space and its ever-increasing use

6) Increased warehouse hours

7) Increasing costs of delivery

8) Inventory turnover is becoming weaker – large amount of overdue inventory


Increasing material costs, increasingly expensive shopping:

 

1) Worse terms and conditions of delivery

2) Increasing purchase costs

3) Increasing cost of storage

4) Degradation of service obligations

5) Poor selection and lack of supplier control


Growing labor costs and rising production costs – production company:

 

1) Reduce production efficiency

2) Increasing general production costs

3) Increasing cost of materials

4) Deterioration of production quality

5) Increasing availability of raw materials

6) Shorten the lifetime of tools

7) Increasing number of production errors

8) Increasing Overtime Employees

9) Reduced productivity of machines and production lines

10) More and more difficult scheduling of production


Falling customer service quality and decreasing sales – sales company:

 

1) Decreasing order fulfillment and increasing number of deliveries with delays

2) Decreased accuracy of sales forecasts

3) An increasingly inferior pricing and promotion strategy

4) Declining realization of delivery according to customer expectations

5) Falling sales / sales effectiveness

6) Increasing order handling time – customers have to wait longer

7) Increasing quantity and cost of activities needed to fulfill orders (telephones, emails, meetings …)

8) The availability of products for sale


Increased accounting control – financial company:

 

1) Increasing time (delay) and cost of data consolidation

2) Loss of control (or lack of) receivables and liabilities

3) Staff productivity drop – lots of work, little effect

4) Poor decision-making, due to poor data quality (lots of errors)

5) Long closing of accounting periods and reporting

6) Increasing number of employees in accounting

7) Decrease in receivables – customers are paying more and more delays

 

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ERP knowledge base:

 


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Download interesting presentation about ERP:


ERP Guide – part 1ERP Guide - part 1 ERP Guide – part 2ERP Guide - part 2

 

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