Stop Wasting Time on Integrating Multiple Software Programs
Don’t Waste Your Time Integrating Different Warehouse Software Programs Together
Running a business requires coordinating the work of several different departments. Fortunately, there are many software programs available that can help you manage, measure, and control these activities to help achieve maximum effectiveness and efficiency. There are different ways of doing this, however. If you choose the wrong way, it could result in low productivity from your IT staff and may not provide you with the best results.
Some of the business management programs available on the market may only be designed to support one function, such as; Customer Relationship Management, Inventory Control, Manufacturing, Shipping, etc. One path you could take would be to buy separate programs for each function and try to get all of the different programs to work together (fingers crossed). However, this will most likely result in a lot of problems that will leave you stuck with a lot of customizing, and software that doesn’t integrate. The different programs may use inconsistent data base formats, have problems synchronizing the data on a timely basis, utilize different user interfaces, and require many different individual software upgrades during the useful life of the programs. When updating one program, the software upgrade may break an interface that you previously created to communicate data to one of the other programs. Although great IT personnel can eventually resolve these problems, it will take up a lot of their time and leave less time for them to work on other activities that could be useful for your business.
There are significant efficiency advantages to be gained when a company chooses a fully-integrated ERP (Enterprise Resource Planning) solution. First, the issues of inconsistent data bases won’t exist because the system will use a common data base for all modules that was designed in from the start by the ERP vendor. Your team won’t have to worry about writing interfaces that convert a data item from one format to another. You also won’t need to worry about performance issues or whether all the data is in sync. Since all the functional modules use a common data base, synchronization will happen in real time, automatically. Other advantages will accrue because an integrated ERP system will have a common user interface between modules. This provides a company with significant training and employee productivity benefits. The specific transactions will differ for different departments but the look and feel to the user will remain the same. If you transfer an employee from one department to another, they won’t have to be trained to use a completely new IT system and they can be up and running in a timely manner.
When you first start out...
you may be tempted for financial reasons to only acquire one software program to get started with your most critical functionality and use manual processes for everything else. However, as you grow, you will end up paying more when you are start adding in additional programs to automate additional functions. If you compare just the acquisition and maintenance costs of paying for several different non-integrated programs to an acquisition of a fully integrated ERP program that can provide the all the functionality, the fully integrated ERP program will likely come out less expensive.
If you do want to start out small and really need to keep your initial costs low by only utilizing one module, perhaps there is a better way. You can ask your vendor to install an ERP system but only enable the functionality on the one module that you need and disable the ones you don’t immediately need. In return for this reduced functionality, you can ask them to quote you with a discounted price. This may provide you with a low cost entry to get started but also provide you with room for growth. As you need additional functionality, you can ask the vendor to turn it on access to it. But it won’t require that you write software to interface to the new functionality because that was built-in to the original design of the system and adding in the new functions can occur almost immediately.
The Kechie ERP system from My Office Apps was designed to provide an integrated ERP system yet also provide a cost effective growth strategy as described above. To learn more about how Kechie can help you and eliminate the extra effort you IT staff would require to glue together different software programs, schedule a demo or contact us by phone at (714) 486-1487.
What Viewpoint Did Your ERP System Originate From?
What Viewpoint Did Your ERP System Originate From?
If you had a very experienced finance manager, would you want them to head your production department? Or would you rather have someone with deep experience in production and inventory control do that job? The same questions should be raised with the ERP (Enterprise Resource Planning) software that you choose.
Like many software systems, ERP software is developed in stages with an initial release that provides a specific function. Later releases will add additional modules that add more functions, support other functional areas and broaden the scope of the software. Eventually, after many additional releases, all of these modules will be put together and called a complete ERP solution.
The problem is, most of the ERP software on the market was not started with the intention of creating inventory management software in the form of a full ERP solution. They started with accounting. This bias may be an optimal one for the first module developed, but it definitely does not work well in the long run for ERP creation. Other functions can be very much different!
When an accounting software tries to expand to provide functions for different departments, or even other industries, it does not go smoothly. It lacks support for specific aspects of inventory control, specifically item class and location tracking, because it is trying to get use the software in ways that were not originally intended. You can’t use oranges to make lemonade. You can try, but everyone will notice the difference.
ERP developers make attempts to get around this, however. They try to integrate completely different software with their own hoping that it will be “good enough” for the common warehouse manager. The issue with this is that it almost always fails. The largest ERP providers that you are familiar with (yes them) may not highlight this to their customers until the customer has signed up for a very expensive deal. The providers then add on these “integrations” hoping the customers won’t notice that the base software was originally created with an intended purpose different from the inventory management function that was the customer’s primary requirement.
Kechie ERP, by My Office Apps, is a little different. Unlike other ERP systems, this software was developed from the start to support production and inventory control. It was created and developed with all of this in mind, by a team that has decades of experience creating and working with ERP software before off-the-shelf ERP software existed. Additional support for finance was added later on, but it was originally designed in a way to enhance and support the production and inventory control functions. Kechie, for example, has strong MRP functionality that is often lacking in other ERP implementations because it’s actually built-in from the beginning with the intended purpose of providing a strong solution for this area.
If your biggest management concern is getting better control of your production and inventory control activities within your company, don’t choose an accounting software to manage your inventory. Kechie may be a better solution, because unlike the most known brands on the market today, it was designed from the very beginning to solve these problems. To learn more about our production and inventory control modules and how Kechie can help you, schedule a demo or call us at (714) 486-1487.
Why You Should Change to a Cloud ERP System Immediately
Why You Should Change to a Cloud ERP System Immediately
Are you worried you may not be collecting and interpreting data on your company’s resources quickly enough? Computer programs can make data processing faster, but creating and setting one up on your own can be both complicated and inefficient. We call this process Enterprise Resource Planning (or ERP), and My Office Apps is here to make the process quick, and rarely said of ERP software, simple.
There are a lot of expenses involved in setting up an ERP system on your own. The software and servers are expensive by themselves, and on top of that you need to pay for a subscription to the software and hire an IT team to manage it and fix the inevitable errors. And finally, you need to train your operators to use the system, from the hidden commands to the convoluted data reports.
The good news is that My Office Apps’ solution, Kechie ERP, has improved the process, and it is now; affordable, comfortable, and quickly establishes an ERP system for your company. Our ERP system can be employed immediately, allowing you to access essential data in order to manage your business better, increasing revenue and profits.
Why Cloud ERP?
The first advantage of cloud ERP is that it employs a cloud-based system that is accessible over a secured internet connection. The software itself runs on a remote server platform that you can access 24/7 with any internet-capable device, including your office's personal computer, a tablet, or even your smartphone. By using this type of system, you eliminate the headaches of software installation, software updates, server maintenance, data backups, and other labor-intensive tasks. The software is always available for you to use without any extra effort on your part.
Easy To Use ERP Interface
The second advantage of cloud ERP is that its user interface is logical, consistent, and intuitive, so that your employees can pick it up easily. With our software, you won’t need to train your employees to memorize an uncountable number of hidden commands; instead, they will have access to an easy-to-use graphical user interface that will allow them access data with a mouse, touchscreen, or even a barcode scanner.
Schedule a demo, and we will show you how quick and easy it is for you to get your company on a capable ERP system and have the benefits that improved operational information availability can bring to you.
Control Production Activities with the Kechie Production Module
Tame Out-of-Control Production Activities with the Kechie Production Module
Manufacturing finished goods from raw materials can be a challenging process. The key to running your business more efficiently is to limit errors while saving time and money. It is imperative to have the right software to help automate this process for you.
The Kechie Production Module is the perfect software solution for even the most complex of production environments. This module has several great features that allow you to schedule, prioritize, track, and report on job status. What’s even more impressive is that the module allows you to view and control your production in real-time on a 24/7 basis from anywhere in the world with an internet connection. This provides you with the flexibility to oversee your project easily, even if you are not physically on the factory floor. Here are some of the key features within the Kechie production module.
Complete Item Master and BOM Management
You cannot manufacture finished goods without a Bill-of-Materials (BOM). Kechie’s version is both easy to use and flexible. It can support complex BOMs (hierarchical) and product bundles. Individual components are associated with Purchased, Manufactured, and Tools (PMT) codes. You can quickly edit BOMs while the production module documents each movement. An audit trail will log who changed the BOM and when. BOM management works with your inventory control module to show how many units are in stock, along with the costs of each component selected. Kechie offers Last-In, First-Out (LIFO), or First-In, First-Out (FIFO) costing methods.
Job Creation
With a BOM in place, a job to manufacture a certain number of pieces can be created. A new job can be assigned a start date, a planned completion date, and the destination warehouse. Also, each job is assigned a job number which can include a prefix. Users can use that prefix to note the manufacturing line used, month built, or any other code that might be useful. A job may require a special temporary deviation or substitution from the standard BOM, and Kechie also provides this capability. Jobs can be classified as either inside or outside jobs. The latter is used for those situations where an outside contractor performs the job. Once the job is created, the production module will display key information about the jobs. Jobs are assigned a status in New, Waiting, Ready-to-Pick, All Picked, and Completed. Completed jobs will have their product put into finished goods. And if there is any leftover material, it can be scrapped or put back into the raw material inventory.
Component Pick Function
Before a job can start, a manufacturer must collect all the required raw materials and make them available for production. This function is called Picking. Kechie’s production module can pick, track, and automatically adjust the inventory levels, avoiding over or under allocation issues. Also, Kechie’s built-in barcode reading capability is fully integrated and can make picking a fast process.
Job Release and Build
Once all the raw materials have been collected, the job can be released, and the build started. Any special instructions or issues that arose during the job can be noted in a data field associated with the job. When the job finishes, the job will show the Completed status. Completed jobs will remain in the system database. So if there is any question later on about what happened during the build, a user can go back to the record and find out.
The Kechie production module shares many of the same interface commands as our other modules. For example, when running a report that provides a list of jobs, one can filter the report to only show certain jobs or jobs for specific part numbers. Because of its logical and intuitive user interface, users in the factory can learn the software quickly, and they will want to use it as much as possible. Diligent traceability of all your production activities will create a more efficient process and allow your factory to be more effective.
To learn more about our Production module and how Kechie can help you, schedule a demo or contact us by phone at (714) 486-1487.
Use Kechie to Improve Your Customer Service
Use Kechie ERP to Improve Your Customer Service
One of the most important determinants of business success is the level of customer service that you can provide. Great customer service will establish long term win-win partnerships and differentiate yourself from your competition. My Office Apps (MOA) is a firm believer in building lasting relationships and sharing experiences, which is why refer to our ‘Clients’ as ‘Partners’. We continue to strive for improvements and introducing new features to the Kechie offerings.
MOA would like to offer the Best-in-Class Customer Service Experience to allow our Partners the ability to nurture their customer relationships. As the business continues to grow and often with limited resources, managing customer relationships can be a difficult and daunting task. MOA’s new Customer Service Module is available 24/7, so our partners can provide excellent service to their customers. MOA’s Customer Service Portal seamlessly integrates into our Partner’s website. It will provide access to our Partners and their customers to open support tickets and follow up on other questions.
Your customer will have the ability communicate through the portal and even the capability to upload attachments with pertinent information. A ticket is generated with a case number for your customer as reference and transmitted to the Kechie ERP system Customer Service Module. From this module your Support Team will have real-time access to follow up with appropriate actions depending upon your own Service Level structure. Tickets can be as simple as answering a customer’s question or issuing an RMA. All RMA’s can be authorized and generated within the Kechie ERP system. Further, you and your customer will have access to view the status of the ticket 24/7.
One feature of the Kechie Customer Service module is that it provides an efficient way of tracking the level and quality of service that our Partners are providing. Each customer service request can be put into one of eight status classifications including Open, Closed, Approved, Cancelled, Complete, In Progress, Rejected, and Waiting. The reporting capability within the Kechie ERP system can help filter the requests by the status or any other searchable field which will help manage the requests and analyze various benchmarks including response time, number of open requests, etc.
We know the Customer Service Module is a great addition for our Partners and their customers. To see a demonstration and learn more, click here to schedule a demo so we can show you the great features of this new module.
10 Important Factors When Comparing ERP Systems
10 Important Factors to Look for When Comparing ERP Systems
Many companies will try and get by with a very basic internal management system when they first start out. When their businesses begin to grow, however, they will end up with a bunch of patch-worked systems that may not work very well together. This can make both system maintenance and daily operations a little difficult to keep up with.
It doesn't have to be this disorganized, there is a better answer. An ERP system. Here are a few ERP system factors that you should look for to make the switch over.
1. It Should Work with Company Goals
The biggest thing you should consider when choosing an ERP database is will it work with your company's goals and objectives. The objectives are different for every company but here are a few things for you to consider.
Can you double your business with the resources that you have? Can you eliminate redundancies so that each task will only need to be performed once and multiple tasks can be blended together? Lastly, is it possible to bring your product to the market faster?
2. Functional Requirements
The needs of your business will determine the features that are the most important to you. Pay attention to all of the daily functions your company processes on a regular business day and make a list.
But don't get that list lost in mountains of paperwork. You need to actually review it. Make sure you do this even if your current process is using an outside system like a spreadsheet or whiteboard.
3. Budget and Resources
Don't pay extra for features that aren’t needed. The most expensive option is often five times the cost of the least. Some companies do need the advanced functionality that comes with the higher priced option, but don’t automatically assume that you need to have it.
If your criteria aren't as complex, why should you pay more for functions that you're not going to use? When shopping around for your system software not only should you look for one that is in your budget but one that will also adapt the best with your company.
4. Reporting
An ERP with built-in reporting will be crucial for your company if you want to stay on top of the latest trends and key performance indicators (KPI).
Good reports can let you know what's working and if you're not making the mark when it comes to sales. If you pay attention to it, you can alter your approach to fix the issue.
5. Use a Team that You Trust
When you're picking a system you will need to think about who on your team will be using it. Who will be good at making the necessary changes to the system when the time inevitably comes for it?
The answer to these questions will be a huge deciding factor for the success of your projects. It's because of this that you need to make sure the system you choose is easy to use.
It needs to have a functional user interface, but we'll get into that a little later.
6. Is it Complete
Research the different solutions that the software will offer. Is it possible that you will have to purchase a bunch of point solutions along with the ERP to get it to function the way you want?
The best business management functions should be performed with a simple, integrated end-to-end software system. These are affordable in the long run because it will save you money on development and interfacing.
7. Speed it Takes to Implement
Will you be purchasing your ERP from a reseller, or directly from the company that developed it?
Experts in the software tend to take less time implementing it. You have to do a little more research if you're buying it from a reseller. Check out reviews and see how they approach implementing and if their projects were delivered on time and on the right budget.
8. Accessibility
For companies who send out their employees out to the field to work, mobility will help you continue feeding information to them.
It's important to have the ability to access the CRM and the entire software from anywhere to have all of the data up-to-date. You need to be looking for a cloud-based solution when making your choice so your project can keep going anywhere at any time.
9. Hosting
You have to take a step back and not only see how big your company is, but also how strong your internet connection is. Do you have onsite IT support or is it outsourced?
These are the biggest things you need to consider when deciding to host on-site or in the cloud. What might work for one company might not for another.
10. How Good is the User Interface
The ERP database will be helping you manage all aspects of your business, so you're going to want it to be user-friendly.
A consistent user interface means that it will look and feel the same throughout the system in each module.
This means that you won't have to learn where everything is each time you use a different part of the software.
ERP System Examples for Your Company
These are a few ERP system examples that you should be looking for when choosing which one will be best for your company. It should be easy to use and go right along with the goals you set out to meet. Every company is different, which means that what might work for one company might not work for yours. Take your time to do your research and find what's best for you.
If you're ready to start looking for a system schedule a demo to see how we can fit into your company!
What is ERP and how can it help your business?
What Does ERP Stand For? What Can It Do for Businesses Today?
A business that handles supply chains, manufactures products, or distributes goods should be using Enterprise Resource Management (ERP) software.
From instant stock overview between global locations to real-time delivery reporting, ERP can boost the efficiency and productivity of any wholesale, manufacturing, or logistics business.
Many companies, however, still rely on outdated legacy systems, paper-based documents, and even incompatible software across departments.
ERP is a type of management software that allows a business to plan, process, and review operations.
But, what does ERP stand for, really? What does it do, and why is it vital for businesses to have it?
What Does ERP Stand For, and How Could It Benefit You?
ERP stands for more than just 'Enterprise Resource Management'. It stands for business efficiency, improved processes, and reduced stress levels!
Writing every benefit of ERP software for a business would produce a work larger than War and Peace.
Instead, we've distilled the key benefits of ERP into six key points that'll help you decide whether it's right for your business.
Improved Productivity in the Cloud
Cloud-based software can be accessed from any device, anywhere. This means a multi-site distribution operation can easily see the same information from one site as another, regardless of physical location.
Cloud software reduces documentation inconsistencies, as everyone works from the same system wherever they're based. You'll no longer struggle with mismatched documents and outdated versions: everything is within a central hub.
That also means it's easy to train staff, and they can take their knowledge wherever they move in the company. Everyone using the same resource planning software will reduce training requirements and improve efficiency.
Fully Scalable Software
Cloud-based ERP software is hugely beneficial to growing businesses. An ERP system is comprised of modules. This means you can choose to have whichever modules suit your business at that point in time, and add or change modules as the business adapts and grows.
ERP systems are scalable, allowing you to operate on a per-license basis instead of paying for individual licenses on every device. There are no wasted software costs: you only pay for what you need.
Cloud software brings one more significant benefit: minimal downtime. With software that's physically installed on devices, each one requires downtime whenever updates are required.
An ERP system based in the cloud means updates take minimal time and cause little disruption. Even big updates, such as the introduction of new modules, can be easily carried out.
Multi-Device and App Compatibility
An ERP system that operates from the cloud also widens the opportunity for multiple device use.
For example, you may want your office based staff to run the software on desktops, but your factory floor requires integrated tablets for stock monitoring. An ERP system in the cloud allows for multi-device access, so you can choose the best device to suit the situation and staff needs.
Field workers, such as delivery drivers, will also benefit from multi-device capabilities as they can keep in touch and provide real-time updates using a smartphone or tablet. Deliveries can be marked as complete as soon as the recipient signs receipt, with real-time updates showing on the ERP system.
A good ERP system will also integrate with other common software used in manufacturing and distribution companies, such as Shopify and Salesforce. This minimizes the reproduction of tasks, making every department more efficient.
Better Integration Across Departments
An all-inclusive ERP system allows for efficient communication between departments.
Instead of sharing spreadsheets between accounting and inventory management, both departments can view the relevant information within the ERP system. It's all in one place, and it is easy to share and access the most pertinent information.
Documentation can be standardized across departments, making all administration tasks faster and more efficient. Staff will know where to look for relevant information, saving time and improving productivity.
Integration across departments also allows for full, real-time visibility of operations. You can easily check stock inventory levels, factory supply problems, logistics charts, and even budget targets in one fell swoop.
Fast and Easy Reporting
Being able to gain a clear overview of the full ERP system at the management level also allows for fast, clear, real-time reporting. Whether a snapshot of a department's operations is required, or an in-depth analysis of non-conformities is needed, it's easy to generate reports.
Real-time reporting means data can be quickly analyzed and a business can respond more rapidly to anticipated errors. This will reduce non-conformance costs, improve client and supplier relationships, and boost customer retention.
Reports can be created to suit the audience they need to reach, too. A board level meeting will need detailed reports, while a senior management meeting may require less detail and a more visual representation of data.
Reduced Audit Time
Whether it's the accounts team, a new potential customer, or an ongoing supplier agreement, audits are a regular pain for most businesses.
Finding audit trails takes time in a traditional paper-based business. An ERP system, however, allows for easy access to relevant information for fast auditing.
Instead of taking up weeks of time prior to every audit, your accounts or quality management teams can provide complex audit trails within a day.
Improved Security
Different access levels in an ERP system allow you to control who can see, upload, and edit documents. This improves security, as only those with the highest clearance or on a need-to-know basis will be able to see sensitive documents.
Limiting access also improves staff productivity. People will know how to use their part of the ERP system, without spending time looking for information in other places. Everything they need for their job is accessible, without any unused files or folders to clutter up their processes.
Security is also improved with an ERP system as it will cut the risks associated with human error. Database fields will notify errors, unlike a spreadsheet. Change logs will show who altered what and when - so you can trace the source of errors
Book a Free Demo
The customizable nature of ERP software means it can be hard to visualize how it will specifically benefit your business. If you've never used integrated management software before, it can all sound quite confusing.
If you're still asking yourself, "What does ERP stand for?", don't worry. It's much easier to understand when you can see the software in action.
Book a free demonstration to find out just how ERP could benefit your business.
10 Inventory Management Strategies
10 Inventory Management Strategies to Transform Your Business
Most retail businesses nowadays have an online presence. As balance sheet assets go, inventory is often the largest item. Getting inventory levels right is a challenge. Ensuring that the right items are in the most convenient location can be a headache. Preventing shortages and keeping shipping costs down can also be a problem. Managers face the challenge of implementing effective inventory management strategies. This helps to increase sales, grow profits and give great customer service. Here are 10 inventory management strategies that will help you achieve this.
1. The Basics: Supply and Demand
Having the right quantities of stock at hand is vital. Supply and demand can help you determine what is the right amount to carry. Customer satisfaction is key. A customer who keeps getting “out of stock” messages is likely to vote with their feet and move to a competitor.
Constant awareness of what is in stock and what needs replenishing is a must. This reduces chances of running out of an item or having dead stock.
2. Efficient Use of Technology
An up-to-date, automated inventory management system is a necessity. The business team should have access to information they need to make decisions. Automation also allows for the system to place orders for certain items.
This reduces labor and storage costs by keeping stocks at optimal levels.
3. Supply Chain Monitoring
The inventory management system should watch suppliers, internal operations and order processing. Stocks should arrive on time, in the correct quantities and at the right location.
The company can spot and change inefficient suppliers. An efficient and effective supply chain has a direct effect on the cost of doing business. The system ensures that the right labor is at the right location and at the time required.
4. Use Tablets
Tablets have become a big part of doing business. They allow the team to communicate. Tablets are also more versatile in its functions.
Inventory management software is often bundled with tablets. The software is often in sync with the system in real time, especially when it is cloud-based. Users have access to data that affects their part of the business. This makes it possible to have seamless operations. These web-based interfaces are easy to implement and simple to use.
5. Data Analysis
Inventory management is no longer a simple clerical activity. Use both computerized and human analysts to process data to help in decision making.
This data affects forward-planning. Purchasing, storage space, transportation, labor costs – virtually the entire business is affected. These operations must be optimized if the business is to maintain and grow sales volumes.
6. Drop Shipping
Many online stores make good sales without having inventory of their own. Setting up the right systems and keeping a close watch on activity is key. Some inventory management systems have direct integrations with platforms like Shopify for drop shipping. This is a great way to introduce more movement in your inventory.
Drop shipping allows a business to have a bigger variety of items at the best locations. With diligent management, these stores are exposed to less risk.
7. Continuous Production, Order and Stock Safety Calculation
The larger the stock level a business has, the more important it is to always be aware of stock levels. The calculations should be done regularly and continuously, preferably on a daily basis.
A few hours can make a huge difference. Being able to react quickly improves efficiency and sales performance.
8. Dead or Slow-Moving Stock
Dead and slow stock is an expense any business tries to avoid. The business has already paid for the stock, and it occupies expensive storage space. There should be a strategy in place to deal with this eventuality should it arise. This could involve discounting the stock by having off-season sales, for example.
The business could also have sale-or-return deals with suppliers. In this way, some items are only kept in stock for specific periods.
Management should also look into the causes of stock being slow or dead. Come up with ways of dealing with it; a product may be obsolete. Remember, new products enter the market daily. Keep in touch with what the competition is up to. Constant improvement can help reduce the occurrence of dead or slow-moving stock items.
9. Optimizing Production and Storage Space
It is important for a business that space is not wasted. Space costs money and inefficient use of it can make a hole in a business’s finances. A slotted warehouse layout is a good example. Goods are placed closer to loading docks in order of priority. Staff should be able to locate items quickly and predictably. Such a system also helps in identifying slow or dead stock.
This, in turn, affects ordering and production schedules. Factory floors should also be laid out in such a way that problems are quickly identified and solved. Parts and spares should be within easy reach and at the right location.
10. Continuous Improvement
With a smoothly-running system in place, it is easy for management to get complacent. This should be avoided at all costs. Systems should be analyzed regularly and changes made as necessary, with minimal delays. Good relations and constant communication with suppliers should be maintained.
Internally, managers should be on good terms with employees. Motivation is key when dealing with people. This can be enhanced by establishing and maintaining a good working environment. Access to information is an important factor. Of course, different levels of access and control for your inventory should be established. Some staff may be allowed to change certain parts of the data, while others may only be able to see the data.
A good system should allow continuous monitoring and improvement. As the company grows, so does the amount of data it generates. This can easily spin out of control if it is not under constant monitoring and review.
Choose Strong Inventory Management Strategies
Modern business management requires effective inventory management strategies. Identifying and setting up such systems is a specialized task. These ERP systems automate business processes, from production or ordering to delivery.
They allow the business to plan for the future and make decisions in good time. All in all, the bottom line is to have happy, satisfied customers. As the old business saying goes, “The customer is always right!”. If you’d like to learn more about how to maximize your business potential, our blog will set you on the right path.
Beware of Add-On Charges When Selecting an ERP System
Beware of Add-On Charges When Selecting an ERP System
Cost is always an important factor when running your business, yet controlling it is not always the easiest thing to do. This is especially true when you decide to purchase something and find out that there are add-on charges that you had not initially accounted for.
Enterprise Resource Planning (ERP) systems are something no different from other things. In many cases there will be both upfront and recurring charges that increase your costs well beyond the standard usage charges quoted by the salesman. This article will describe some of those charges and we recommend that you investigate them thoroughly before finalizing your choice for a new ERP system.
Email and Telephone Support
ERP systems can be complicated and you will always have questions on various aspects of how the software operates. Almost all vendors will provide you with email and telephone support, but the costs for this could vary. Some vendors will include this in the basic charges for the software, while others may charge significantly for this. A common approach is a software support contract they may have different tiers depending upon the level service and the response time guarantee. Support that is available 24/7 will be more expensive than support that is only available 5 days/week during business hours. These charges can range to as high as 37.5% for the highest level of premium support. When negotiating your contract, it is very important to determine what level of support your company will require and ensure that the price for this is well understood.
Extra Cost Add-On Modules
To attract prospective customer attention some ERP vendors will quote a basic package with minimal functionality at a low price, but then offer the additional add-on modules that are often necessary at an extra cost. In these situations it is possible for the cost of the add-on modules to exceed the initial cost quoted for the basic package. When selecting your ERP system it is important for you to fully identify not only what additional modules that you will need initially, but also the additional modules you may need sometime in the future. Once you have done this you need to make sure that you receive a full pricing quotation from your vendor to make sure you are not surprised with these additional costs after you have made your selection.
Many ERP systems have the capability of providing an interface to another vendor’s software package to provide functionality not included in the basic ERP system. This capability can be quite useful, but you should watch out for additional integration charges when it comes to utilizing it. Although some of these charges may be reasonable for a new integration that the ERP vendor had not previously supported, if it’s not, some ERP vendors will include this at no extra cost. These charges can add up, soyou should review the costs closely before finalizing on your ERP system selection.
Implementation and Customization Fees
Once you have selected your ERP system, it is not unusual to require some help from the vendor in order to make it operational in your business. Not only will this require transferring data bases of Customers, SKUs, Vendors, etc. into the vendors system, but it will also involve employee training and other activities before you go live. Vendors will typically offer these services at an extra cost, but it could get quite expensive. Getting a quotation for this may be a little complicated because unlike some of the other costs mentioned above, determining the amount of effort for implementation support can be hard to estimate, and may vary considerably for different companies in various industries. See if the vendor can provide you a reference from a customer who is most similar to you and find out what their cost was for having the vendors help with their implementation. Also, watch out for vendors who will pass you off to a third party for additional help if the implementation gets too complicated. You will need to include the estimated costs from that third party in your selection analysis.
Associated with implementation costs are customization fees. All ERP systems are created with certain assumptions of the processes that companies use to run their business. However, your own business may not fully match the layout and structure that was programmed into the default ERP system. At this point, you can either decide to change your own processes to match the way the ERP system is set up or else you can ask the vendor to customize certain aspects of their software to match your structure so you don’t have to change. Many vendors will agree to provide customizations in their software to make it easier for you, but none will do it for free. During the negotiations, we recommend you do your best to understand what software customizations may be required and how much they will cost. In some cases, you may not fully realize what customizations may be needed until you are in the middle of your implementation so even if you don’t think you need any, it is wise to at least get a budgetary estimate of customizations from the vendor based upon the amount of work, or to ask them to provide examples of customization costs on other customer projects.
Miscellaneous Odds and Ends
One useful function is to provide a sandbox that a customer can use for training and practice of their employees. This would include access to the ERP system using a practice data base. Once employees become comfortable using this sandbox data base they could then start using the ERP system with the real data base and start processing real transactions for your business. Some ERP vendors will charge extra for providing this while other vendors will include it at no charge. This is another factor which can increase your costs and should be evaluated carefully.
Finally, vendors may think up various up charges to cost you extra and improve their profitability. Does the vendor charge you for extra storage costs to hold all your data? Or perhaps they charge extra to back-up your data on a regular basis in case of a system crash? Some cloud vendors may offer backup data centers that can host your ERP system if the primary data center goes out. But they might charge you extra to keep this available.
The bottom line, is that determining the total cost of a new ERP system takes a lot of thought and some research. If you hear a sales pitch that just quotes a basic cost on a per month/per user basis, take it as a starting point, and just one element for calculating your total costs. A vendor with a high basic cost that provide many services and functions at no extra charge, may very well turn out to be a better option than one who quotes a low basic cost and then adds on many additional charges that will cost a lot more money.
Schedule a demo for more information, or give us a call at +1 (714) 486-1487 to learn more today!
Does an ERP System Save You Money?
How Exactly Does an ERP System Save You Money?
Do you ever have waste stock at the end of a season? Have your suppliers continuously let you down? Do you know exactly how many products you have in your inventory at any one time?
An ERP system covers everything in a distribution company from customer records to inventory and stock management. The clear at-a-glance overview for any part of the business at any time means you can have a real-time understanding of your business success and opportunities.
If you haven't installed an integrated enterprise resource planning system in your warehouses, for your drivers, or in your office headquarters, you're burning money that could be profitable.
Keep reading to find out exactly how ERP software will save your business money.
What Is an Enterprise Resource Planning System?
An enterprise planning resource (ERP) system is designed to smooth and speed up operations for small and medium sized businesses.
The software comes with a range of modular applications, each with unique benefits for different areas of the business. These applications talk to each other too, so that data is easily shared and interpreted across the business whenever required.
Seven Ways an ERP System Will Save You Money
Installing ERP software doesn't come cheap. Even an off-the-peg solution will take time to transfer data and train your staff. The initial cost will often make business owners think twice about investing.
However, the long-term financial and efficiency benefits far outweigh the installation costs. Here are just a few of the ways ERP will save your business money consistently over time:
1. Clear Processes and Real-Time Working
Each department does things differently, and every new employee inherits legacy systems and documents that they will often change themselves over time.
Including everything on an ERP system standardizes your procedures and documents. No more time is wasted looking for the right contract or supplier details, and everything is focused on getting the job done as fast as possible.
Cloud working means your delivery drivers can operate from their mobile devices to provide real-time updates. Your satellite warehouses can see at an immediate glance if another warehouse has a stock item that it requires. A new member of staff can learn the software even while on-the-go in the field, without time wasted in an office.
ERP Cloud working means your processes are simple and fast to learn. Your staff can access the system anywhere in the world, at any time. There is no need to wait for human updates to order progress: it's all right there online for your staff to see.
2. Fast Updates With Minimal Downtime
Working in the Cloud means the software isn't separately installed on every device. Instead, the access to it is installed and the software sits on a remote server.
This means that any software updates result in minimal downtime. You won't need to recall every mobile device, or shut down office computers one by one, to install large updates. Instead, an update is done online once by the ERP provider, and it is ready whenever someone next logs in from any device.
3. Easy Reporting for Better Financial Management
ERP systems allow you to generate easy to understand visual reports that are geared towards a specific audience. You can, for example, provide general performance overviews with a series of graphs to show at your monthly management meetings.
Your financial reports to your company board, on the other hand, can be put together in detail and in a short time. The drill-down structure of ERP reporting means you can control who sees which data sets, so you're only presenting the most relevant information. This minimizes the time spent creating reports and also the time taken for those reading the information to understand them.
As well as at-a-glance real-time reporting, ERP software allows you to have a better understanding of your financial forecasts. You will be able to see where money is currently wasted or budgets are underused, and you can monitor stock demand to invest wisely on a more seasonal basis.
4. Reduced Admin Costs
Your business will undergo several audits every year. Each audit takes time to generate a paper trail, whether you're demonstrating your commitment to quality management or showing the tax man your annual figures.
The administration costs behind audit preparation are huge. An ERP system generates logs every time a record is altered. This means a clear audit trail can be created and exported in no time at all.
Integrated ERP also allows limited access to the relevant data for a job role. This saves time and improves confidentiality.
The use of ERP for record keeping and inventory management also reduces the margin for human error. Unlike a spreadsheet, which can be altered and saved over, the ERP software will recognize an invalid entry and flag the problem before it can be saved in the system.
5. Improved Stock Control
Knowing your seasonal stock demands will help you to reduce unnecessary storage space, minimize stock wastage, and improve your materials forecasting.
Warehouse inventory management is much easier with ERP, as real-time stock updates mean anyone can see the exact inventory status of every warehouse you have, anywhere in the world.
Easier warehouse management with a clear real-time stock overview for all warehouses anywhere in the world. Clear reporting for better stock forecasting reduces costs on warehouse space by allowing you to anticipate seasonal demand.
6. Better Supply Chain Management
Do you know when your supplier contracts are up for renewal? Can you tell how many times they have let you down with late deliveries?
Supplier problems cost your business time, money, and customers. An ERP program will help you to keep track of your service level agreements, identify regular problems, and improve supplier relationships.
You will be able to spot the common sticking points. For example, do you give your suppliers a long enough lead time to deliver, or do they often fall short due to your short timescales? Using data analysis like this will help you to speed up deliveries and minimize delays caused by common supply chain problems.
7. Customer Relationship Management
A 5% increase in customer retention has been shown to improve profitability by up to 75%.
Keeping your customer records in one place, including every phone call, email, and order means you can see the status of any customer at a glance. This will immediately improve customer service, as anyone speaking to a customer will be able to see a complete history and deliver a tailored response to queries.
Further customer service improvements in enterprise planning software can be seen through more targeted marketing opportunities. You will be able to send concise marketing messages that are relevant to more specific customer groups, using segmented data from the ERP software. This will reduce your overall marketing spend but improve the ROI.
See What ERP Software Can Do For You
An ERP system usually comes in a package, so it's not modular by nature. This means you can't pick and choose which elements you need based on your business requirements and processes. With the right ERP provider, it can be catered to the individual company on a modular basis, eliminating the packages, and extra software a company isn't looking for.
Contact MyOfficeApps today to find out more about enterprise planning software and how it will save your business money time and again.