Aligning ERP Requirement and Delivery

ERP helps in optimizing your business’ internal value chain. It is the solution to your problems of scalability and data flow within the organization. You have information at your finger-tips, real time. However, you might think that ERP solutions are at the very best an off-the-shelf product. How well can it help you and your business’ specific needs? This question brings us to think about the alignment of the requirements that a business has from ERP software and how the software can deliver and match up to expectations.

ERP can be customized according to the customer’s needs. However, most ERP vendors often advise against it. Present ERP systems have been built over a foundation of tried and tested methods and best practices. More often than not, problems that SMEs currently fear facing in ERP implementation have already been dealt with and addressed by the current breed of ERP software. This partially solves the worry of business process going topsy-turvy during an ERP software implementation. Standardization in this case can help address problems better than customization of the ERP software.

Flexibility over Standardization

There is however one thing that trumps standardization and that is flexibility. Even if you implement standardized ERP software you will need to constantly upgrade and update it. Technology is a dynamic variable and as such it demands continuous upgrades. You should ensure that every time there is a change in any business process, you update your ERP software too.

For example, your business must comply with certain financial regulations. You should check that your ERP accounting software is designed to ensure compliance with such regulations. Finance is the life blood of business, and there are major regulatory frameworks to adhere to when it comes to finance. Properly implemented ERP accounting software will help you make sure that there are no breaches.

Flexibility also means scalability

With the rise in ecommerce, SMEs are scaling globally. They deal with customers overseas and ship their products all over the world. Dealing with customers around the world means having your systems and business processes running 24/7. This can be achieved effectively only when you have holistic ERP software implemented. Scalability also means an increase in manpower within your business. Increased workforce calls for Human Capital Management, which is another area where ERP can help you perform effectively.

In short, ERP software can mean a world of difference to your business. You will need to identify your business’ specific requirements well and communicate them to your ERP vendor: so that they can provide to you a standardized yet flexible ERP solution that can help your business grow exponentially.

Easy Inventory Management with Enterprise Resource Planning

Can you imagine the situation of a business that gets more orders than the inventory that it has? Such a situation can arise due to poor production planning and inadequate inventory forecasting. The business will lose all the orders, thereby affecting its revenue. They could have avoided such situations if they had managed their inventory.

An Enterprise Resource Planning system is the solution for such problems. ERP is mainly used for automating the various back-office functions so that all the functions are integrated seamlessly. All the operations of the business that are crucial for the running of the business can be easily integrated and incorporated into the Enterprise Resource Planning system. From production planning to warehouse management, inventory management, order processing, purchases and financials, everything is covered under one umbrella.

Inventory management is very crucial for the successful running of the business. Only with a proper inventory management system can the businesses analyse the stock available and therefore determine the amount of stock to be replenished. It can help in defining strategies that can be useful for planning future growth.

Benefits of integrating Inventory management with ERP

Optimize inventory

The key benefit of automated inventory management is that it can optimize the inventory for meeting the ROI goals and product availability. Keeping a right mix and amount of inventory is quite important for improving the profitability of the business. The business can neither afford to under-stock nor can it over-stock. With all the reports and systems in place, the system would be able to analyse on fast-moving and slow-moving products so that appropriate measures can be taken.

Supply Chain

For companies that rely on supply chain partners for managing the inventory and shipments, an effective inventory system can be integrated with the supplier’s system. This will help the suppliers in analysing whether the stock is available in the warehouse or not.

Accurate Financial Statements

One of the significant components on a Balance Sheet is the inventory value. When the inventory is managed through an ERP, the chances of variation are minimized. This gives more accurate information on the financial statements, which can be useful for the shareholders.

Easier physical stock takes

Every company that deals with inventory has to go through annual physical stock takes. When the inventory management is automated, the physical stock take becomes much easier.

With a proper inventory management system, the movement of stock becomes real-time, giving an accurate picture of the stock position. Stock reconciliation also becomes easier.