We’ve previously discussed the importance of planning ahead for company growth, in order to achieve your strategic goals. When any business experiences growth, individual employee workload typically also increases. With wholesale and distribution companies, corporate growth, higher order volume and an increase in transactions go hand in hand with an increase in administrative work, data entry, and warehouse picking, packing and shipping requirements which often triggers chaos and panic as employees try to re-evaluate their responsibilities and keep up. When this growth becomes too much to handle for the current staff level, businesses start to look for ways to spread out the workload. Two of the most common options are:
- Hire an extra employee to take on some of the workloads
- Automate processes through an ERP or other software systems to decrease the pressure current employees face
Both of these options have pros and cons, and choosing between the two can be tough. If you decide to hire someone, your focus might be on growing the team, or you may be unsure of the software options available. Adding an additional employee not only results in higher salary costs but also presents training, management and longevity issues. If you choose to invest in an ERP software solution, you will see benefits in terms of long-term company growth and automation, but you will still face issues when it comes to IT maintenance and updates, costs and support. Either way, there are a number of additional factors that should be compared, including:
- Cost: evaluating both tangible and intangible costs (time, dollars spent etc.)
- Longevity: how long either option will endure
- The Future: where your company is headed, and which option better suits your long-term strategic goals
There is no right or wrong answer as to what option to choose, but it is advisable to objectively evaluate both in order to make the decision that will be the best for the company.
Download our Free Guide Comparing Purchasing Software vs. Hiring an Employee to learn more!