How ERP Financing Can Help the ROI of Your Fashion Business
The right ERP system and tools can lead to exponential gains while also mitigating the operational issues that hold many fashion businesses back. So, if you are looking for a fresh new way to improve your cash flow, reduce costs and increase profitability of your fashion business, it’s time to think about investing in a financial program to finance all or part of your ERP software.
However, what can you do if you’re having a hard time coming up with the money to invest in one? Well, the best part about these programs is that they can be tailored to meet all your needs—including software cost, timeframe for repayment and more.
What Return Can You Expect from Investing in An ERP System?
Enterprise Resource Planning systems (ERP) are one of the more significant investments that an organization will make. However, it will pay off in the long run. Of course, it can be hard to put a tangible figure on the returns an ERP system brings, but below are some of the percentages industry experts say you can expect to get back from investing in an ERP:
- 19% decrease in operational costs
- 19% decrease in inventory costs
- 15% decrease in admin costs
Other ways an ERP can pay dividends include:
- Controlling the flow of data and managing inventory so that you can keep up with demand.
- Allowing you to manage your company more accurately, so managers can make better decisions regarding aspects such as staffing levels and inventory management.
- Streamlining communication between departments or teams that are involved with projects from start to finish—whether they’re local or in remote locations.
- Cutting manual operations also leads to needing less staff, and you can save costs that way.
When Does an ERP System Pay for Itself?
An ERP system can pay for itself in as little as six months, but it may take longer depending on your industry and the size of your company. For example, companies that sell products or services to other businesses (B2B) are more likely to see a quick return than those that operate retail outlets where most purchases are made by consumers (B2C).
The best way to determine how quickly an ERP system will pay for itself is to calculate the cost of your current manual processes and compare it to the total cost of implementing and running an ERP.
Bear in mind, if you can save money on labor, inventory or materials, or if you can reduce the time it takes to complete a process, then the system will quickly pay for itself.
This brings us back to the importance of financing your system. In the end, an ERP system is one of the most effective ways to grow and expand your fashion business —if you’re willing to invest in one today.
The Microsoft Total Solution Financing Program
The benefits ERP systems bring to companies can’t be denied. Yet, one of the things that hold many companies back from getting one is the upfront expense.
However, you can finance a purchase of an ERP solution as effortlessly as other common purchases like home repairs, cars or a new boat. And by doing so, you decrease your business’s debt exposure over the long-term to maintain a better Balance Sheet.
Luckily, Microsoft offers financing for ERP systems through its Microsoft Total Solution Financing Program.
Microsoft’s Financing Program allows you to:
- Finance one or more parts of your enterprise solution for better scalability
- Take advantage of competitive interest rates and flexible repayment terms
- Utilize one resource for all your business solution needs
- Spread your payments over extended periods
- Save financial resources to amp up your cash flow
- Balance cash outflows with project results
ERP System Examples and Why Your Business Needs it
Any organization in need of managing time-devouring daily activities in a single easy-to-use place can benefit from an ERP system. That includes anything from small businesses to large fashion enterprises.
Here are a few examples of fashion businesses that would benefit from using a system such as N41’s Apparel ERP:
- A clothing designer whose business is growing but can’t keep up with orders and shipping details
- An e-commerce store looking to improve order processing, inventory management and other operations for increased revenue
- An online retailer who needs better support for customer service, including order tracking, returns, and more
- A clothing manufacturer who wants to track costs of materials by product, customize reports for different departments within the company
- A wholesaler who wants to manage and monitor supplier performance for increased efficiency
- A jewelry company that needs manage inventory and track down sales orders while still enjoying the seamless integration of third-party billing software apps.
Use One Resource for All Your Solution Needs
One of the strong benefits that the Microsoft Total Solution Financing Program brings is that you can use one resource for all your solution needs. Unlike traditional financing that requires you to choose a single vendor, Microsoft offers flexible payment plans and options from leading technology providers, including N41, to help you get the right tools.
Additionally, their plan allows companies to spread payments over an extended period—up to 60 months if you want. This structure makes it easier to get the technology your business needs for a better bottom line without overextending your finances.
Balance Project Results with Cash Outflows
The Microsoft Total Solution Financing Program is designed to help you balance project results with cash outflows by allowing businesses to spread payments and make smaller monthly/quarterly commitments. With this program in place, your business can get started quickly for a low initial payment and reassurance that you’ll always have enough money on hand for regular operations each month.
What Type of Payment Options are Available?
As part of their financing program solution, Microsoft’s Financing Desk Managers will work with you to come up with a financing plan where you can innovate on terms you set, thereby allowing you to design payment structures that meet your business requirements.
Below is a summary of the payment structures the Microsoft Total Solution Financing Program provides:
- Standardized: Provides even payments by the month, quarter or semi-annually.
- Ramped: Payments start small, so they match closely to deployment and migration of your projects.
- Deferred: For a pre-agreed term, there are no initial payments.
- Customized: Aligns solutions with cash flow, budget and deployment.
- Flexible: Includes adding new seats and adjusting subscription amounts as business requirements change.
ERP Finance and its Benefits
ERP finance tools are essential for fashion businesses to get an ERP system. By using these tools, you can ensure that your business will benefit from the solution and be able to manage inventory efficiently. Other ERP functionality you’ll get includes the following:
- Real-time visibility into your business with interactive dashboards and reports that can be customized to meet the needs of different departments within your company. Here, you’ll not only see what’s happening now but also where there are opportunities for improving processes and making more informed decisions faster.
- Greater collaboration between teams working on customer service, manufacturing, design and other vital areas of your business.
- Reduced inventory waste and improved customer satisfaction because of being able to ship products faster and reducing the time it takes for customers to get the items they want.
- Access to real-time data that can help you make strategic decisions about pricing, production, and marketing.
Get Started with ERP Software Financing Today
N41 is a leading provider of ERP finance solutions for the fashion industry and count fashion companies Lush, Pistola, Jovani and Easel among our happy 160+ customers. You can learn how N41’s ERP Software can help your apparel business save money and time while growing your business by scheduling a demo today.
We are also a Microsoft Certified Partner and work with them to offer ERP finance solutions to fit any budget. So, if you’re interested in learning more about how Microsoft’s Total Solution Financing Program and N41 can help take your fashion business to the next level, contact us today at (213) 738‐1010.
Our representatives will be happy to answer any of your questions and help you get started on the path to success!
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