The Importance of Scalability

November 29, 2016
3 min read

When companies build an ERP software feature “wish list,” one of the most necessary attributes is often overlooked. If you’re currently evaluating ERP software, take a moment to ask yourself…

“How important is software scalability to me?”

This question can be answered in one of three ways:

  1. “It’s critically important.”
  2. “I haven’t given it much thought.”
  3. “What’s scalability?”

Even if you did not automatically reply with option number 1, we can help you with all responses.

What is Scalability?

Software scalability is the capability of a system to handle an increasing amount of work or its ability to accommodate growth. Scalability is a crucial quality in ERP software given the future growth generated by streamlined operational performance and maximized productivity.

Software scalability isn’t a characteristic on which companies initially focus because the need for scalability isn’t apparent on Day 1. Why? After go-live, the primary attention of a business is building software proficiency to streamline operations company-wide. Improved data access and accuracy drives a company’s ability to weed out wasteful spending, provide competitive pricing, generate increased orders, and turnover products more quickly.

While growth is inevitable, it hinges on the ERP software’s ability to handle the mounting volume of data and the requirements of added users. Successful scalability originates from interconnected applications. Solutions that employ separate CRMs, inventory systems, and those that rely on simple spreadsheets are at a distinct disadvantage as a business grows. If data cannot flow smoothly across departments, bottlenecks form which have direct impacts on productivity, inventory amounts, turnaround times, and profitability.

Of course, this brings us to the subject of adding new users. Having 100 or 1000 customers should have no bearing on the software’s ability to handle the flow of more data. When the need arises for additional users, the request should be quickly resolved by acquiring supplemental site licenses. It is important to note that not every user may need to have his/her own license. Because some users require limited software access for routine entry or reporting, you should ask the ERP provider if license-sharing is a possibility.

As you continue your ERP software research, consider evaluating Distribution One’s fully scalable ERP-ONE software. Our expert team has helped hundreds of companies successfully navigate the transition to our software solution. With so much riding on your ability to manage your company’s expansion, you can trust ERP-ONE to grow with you from Day 1 and beyond.