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.
3 Ways to Streamline Your Supply Chain Processes
3 Ways the Right Software Can Streamline Your Supply Chain Processes
Supply chain management can be a very complex task due to the volatile nature of the many factors you may need to deal with. This probably will never change so you need to learn how to adapt and quickly react to changing environments. Thirty-two percent of organizations claim that processing end customer demand along with coping with unexpected supply issues account for some of the biggest risks in the supply chain! However, the right ERP (Enterprise Resource Planning) solution can greatly relieve some of the burden and lower the risks. To accomplish this, an effective ERP solution must have the characteristics described below to properly streamline your supply chain management.
Real-Time Data
Real-time data provides early notice of issues and helps companies react faster to issues in the supply chain process. Companies with real-time visibility into their supply chains benefit from:
- Daily planning: Allows companies to adjust their workflow and meet deadlines and better cater to buyers’ demands.
- Demand management insights: Allow companies to find trends before they interrupt or affect the bottom line. Companies can better analyze customer demands and position inventory to distribution channels which are closer to the points of utilization and reduce order lead-times.
Wouldn’t your organization like to know how to prevent late shipments, rush orders, or unexpected time constraints and be able to do something about it? Real-time data can make all the difference and improve the agility of your company’s supply chain process.
In-Depth Inventory Management & Tracking
Automation is an important tool when it comes to streamlining your business. But you can’t automate without having a good way to manage and track your inventory. Manual tracking has a lot of downfalls. It is subject to human error, it is very time consuming, and ends up costing more money in the long run. Barcode tracking is far superior to manual inventory counts because it’s easy to use, faster, and not prone to errors that can cause inventory to be either over or under counted. When barcode data is tied into an ERP solution, the ERP system is able to provide the products’ locations and statuses with just a few mouse clicks. This helps you make optimal decisions and provide better visibility on where to store products and optimize usage of the limited storage space you may have. This, in turn, saves money and helps to streamline the supply chain process.
Utilizing Assets
While it is always important to hold enough inventory to provide your customers with good lead times, having too much inventory represents underutilized assets and can increase both waste and your inventory carrying costs.
Underutilized assets mean inefficiency and poor return on investment. A better understanding of how your inventory assets are used will allow you to increase ROI and efficiency. Companies tend to have to deal with many different relationships with vendors, customers, suppliers, and carriers to maintain the optimal delivery management. One strategy to handle this is to outsource your delivery process. By having another company deliver your merchandise from your distribution warehouses to your customer’s store or location, you may be able to achieve better results. The delivery company’s economies of scale and greater experience will provide more efficiencies and cost savings than doing it yourself.
The Bottom Line
Utilizing the right software will help you streamline your supply chain processes. From asset and inventory management to making informed decisions, the supply chain processes can be greatly improved through a proper ERP solution. It’s important that you are able to make informed decisions about your inventory and your company needs to know the status of its inventory in real-time. Data that can be seamlessly integrated from sales to inventory management can make the entire supply chain process run more efficiently on all levels of the organization. To be able to utilize a fully-integrated, all-in-one ERP solution for supply chain management, you need to go with Kechie ERP – the next generation of cloud ERP solutions.
See how Kechie can help you - we'll send over some information and answer all of your questions.
Don’t Overbuy When Selecting an ERP System
Don’t Overbuy When Selecting an ERP System
Would you buy your teenager a $250,000 Ferrari to drive to school? Of course not! But some small and medium sized businesses (SMBs) consider using the very large ERP systems that are best used by multi-billion dollar global corporations. Don’t get me wrong; these large ERP systems are packed with features and can support all sorts of complex business processes that the very largest of corporations need to have. But there are serious disadvantages with these systems for those that just want something that can give immediate help in providing visibility and control to their business.
Here are some reasons why an ERP system designed for small and medium sized businesses may be a better choice.
- The most obvious one is cost. Installing a large ERP system can cost hundreds of thousands or even millions of dollars. There isn’t only initial acquisition cost; you also need to consider monthly software maintenance fees, consulting fees, the cost of your own IT team to keep the system running smoothly, and even the cost of the floor space, electricity, and cooling if you decide to go for an on-premise installation.
- Another disadvantage is complexity. Many installations of large ERP systems can take years. This is due to all the extra features and configuration options that an SMB may not even need. Many companies will put together implementation teams and draw employees from their normal assignments for extended periods of time to work with outside consultants who can help them figure out how to map their existing business processes into the structures already programmed in to the large ERP system.
- As a small and medium sized company, you may not be able to have the flexibility working with a large system vendor than you would working with someone with a product optimized for your sized business. Many companies end up having to change their existing business processes to fit the large ERP system. Rather than doing that, some smaller ERP vendors will customize the software to how you want to run your business. So you won’t need to change your business processes.
- Employee training and productivity may also be better with a less complex system. Modern, next-generation cloud-based systems offer intuitive interfaces so that new employees can learn how to use the system in minimal time. Some of the very large ERP systems will not be as easy to use. This may be due to the fact that they have so many complex features (which you won’t be using) and many of them were developed years ago when intuitive interfaces were not as high a priority for software developers.
- For an SMB, maintenance is always a concern. They won’t have a large on-site IT staff that keep the system happy. For most SMB’s, we recommend going with cloud-based systems. In these situations, the vendor will take care of activities such as data backups, applying software updates, supplying floor space for the server, and all the utilities. Since the cloud vendor will be doing this for multiple customers, they will achieve an economy of scale and charge you much less than if you were doing these activities on your own.
- Typical installation times for SMB companies selecting a right-sized system are more often measured in weeks, instead of several months or even years. This is primarily due to the reduced complexity. If you need to pull employees out of their normal duties to finish the installation, the sooner you can get them back to their regular work, the better off you will be.
There is one other caution we suggest when selecting an ERP system. Although we are recommending that an SMB should not choose a system meant for multi-billion dollar corporations, we also would not recommend going too far and choosing a system that has no or limited growth capability. One should look for systems that are scalable and can grow along with your business. Perhaps these systems won’t be a good choice if your business gets all the way to the billion dollar level, but they should allow support business growth of 10X-100X so you would not have to switch to another system in only a few short years.
If you want to learn more about how an ERP system optimized for SMBs can improve your business, My Office Apps has business specialists available who can help you evaluate your business and uncover improvement opportunities. Most of our team have been using ERP systems for many years under all sorts of different situations. Our expertise within the SMB market, can provide insight into choosing the best ERP solution to help you streamline your business operations.
How Advanced ERP Software can Control Inventory & Production
Control Inventory and Production Activities With Advanced ERP Software
Here are five things to consider when selecting software to improve manufacturing.
In a manufacturing environment companies are always looking to increase efficiencies, reduce waste, shorten lead times, reduce inventories, and reduce costs. This can sometimes be difficult to do without having negative impacts on product quality, employee morale, and lost sales due to inventory stock-outs. Advanced Enterprise Resource Planning (ERP) systems can help with this and the right one can make a huge difference in your operations.
For some, complex on-premise ERP systems were more bother than they were worth. Early systems required installing a special computer server in your facility to run the software. They also required a significant IT support staff to apply software updates, make backup copies of your data, set up new users, and answer questions. They could also be complex, hard-to-use, inflexible, and hard to adapt to changing business conditions. In addition, their expense could be considerable: not only initial software acquisition costs, but also vendor maintenance fees, power and cooling utility bills, and support staff salaries.
Fortunately, a new breed of modern cloud-based ERP systems is now available. These systems are easy-to-use, lower in cost, and provide the real-time data a company needs to run their business. By running remotely on the cloud, one can achieve several advantages. First, you will be able to access real-time data on your business operations 24/7 from anywhere there is internet access. Data safety is guaranteed by the cloud provider, and even if there is a power failure or Internet disruption, you will not lose any data in the system.
Real-time data gives you much better visibility into your company’s operations.
Not only that, but you can access it from any web browser in any computer or even your smartphone. Many common functions including automatic updates, data backups, and security are handled automatically by the vendor so you don’t have to worry about them. There are no initial software acquisition or computer hardware costs and the monthly access fees are priced at a very cost competitive level.
So not only are the costs low, but the benefits with the right system can be considerable. Properly design cloud-based ERP systems can be set up very easily, and you can get it running in a matter of days. They use modern graphic interfaces that are intuitive and don’t need complex secret command sequences to get the data you want. Because the interface is easy to use, new employees can be easily trained and productively start using the system very quickly.
Besides being cost-effective and easy-to-use, perhaps more importantly they can provide you with real-time access to critical information to help you manage your business, and help reduce some of the hidden costs you may have when this information is not available. Examples of how inadequate availability of needed information can result in the following:
- Not enough inventory available, causing delayed order fulfillment that results in lost sales
- Too much or wrong types of inventory that can’t be sold, leading to waste and scrap costs
- Poor customer service, creating dissatisfied customers
- Pricing which is either too high or too low, causing either lost sales or lost profits
- Slow collection of invoices, causing potential cash flow problems
- Low machine utilization on a manufacturing line
- Inefficient scheduling of production machine maintenance activities that can cause machines to be down when they are most needed for production
- Poor scheduling of jobs that cause excessive wait times, inventory sitting in place for a long time, and longer customer lead times
- In a multi-warehouse situation, scheduling unnecessary production of an order to create inventory that is already sitting in a different warehouse
- Excessive manual work to count inventory and imprecise counts because you do not have a bar coding capability available to track the inventory
If you decide that an upgrade of your manufacturing systems are needed, what should you look for? Here are some tips to help you determine this.
The Cloud
First, a cloud-based implementation is the best approach today for all but the largest organizations. The objective should be to focus your resources on the unique activities that make you a successful business rather the ancillary functions that can be performed elsewhere. Companies shouldn’t have to worry about installing hardware, applying software updates, making daily backup copies of your data, apply security patches, and paying utility bills for electricity and cooling if those functions can be performed by specialty cloud providers who can do these things on a massive scale and much more efficiently.
User-friendly
Second, you should make sure the solution is easy-to-use by the actual employees who will be using it. The interface should be intuitive so they can figure out how to do something without trying to decipher a 1,000-page manual. It should not use complex command sequences that are hard to remember. They should be able to access any piece of data they need with at most two or three clicks.
The system should be easy to set up so you can achieve productive use very quickly. It should have the capability to import data from your old system or manual records via an Excel spreadsheet. It should also have the capability to export data to either a PDF file or Excel spreadsheet, or just show the data on the screen—so you can use it to either do further data analysis or communicate invoices, packing lists, and other information to your partner customers and vendors.
Full Integration
Another important feature is having a system that contains full integration with other modules that support other functions in your business. Some companies will have separate system that support different areas like sales, finance, manufacturing, purchasing, etc., and then they must write interfaces that allow one system talk to the others. In some extreme cases, there is no software to exchange the information so the data needs to be transferred manually.
Some companies will even need to have a data clerk manually enter in the same information multiple times because two different systems need to have it. Not only this is highly inefficient, but it can potentially lead to more errors if the information is not consistent. Having a seamless connection between different modules will not only eliminate these errors and reduce employee workload, but it will speed up operations because the data communication will happen instantaneously.
Customization
Another important attribute is the ease of customization to allow the software to adapt to your business. Modern systems are designed with a flexible architecture that can allow changes to be easily made to adapt to the particular needs of your business. Other, older systems are not so easy to change and ultimately forces the user to adapt their business to how the software operates rather than the other way around.
Security
Yes, the data should be held in a secure fashion that prevents any external hackers from accessing or changing it. But the system should also have the capability of providing “need-to-know” access to individual users within your company so that information is not misused. For example, you certainly will want your sales team to access the sales and the customer relationship management (CRM) modules, but you may not want them to have access to the cost information for a product.
A good system will have the ability to program the access levels of each employee so that they can only read or change the information needed to perform their job function. Many systems will be able to program the access into one of three categories:
- Read/Write
- Read-Only
- No Access
Advanced Features and Future-Proofing
You should also look for a system that supports advanced capabilities including multi-warehouse support, bar coding, and electronic data interchange (EDI). Even if your company does not currently use these functions you should keep an eye on growth and select a system that will support you for many years as you grow.
Last But Not Least!
And finally, rigorous job scheduling capabilities in a production environment are critical. Many manufacturing processes consist of a number of steps, and each step may have a dependence upon completion of a previous step that may, for example, produce a needed sub-assembly. The ERP system much be able to understand this and not try to schedule a production activity before the needed input components are available.
So choosing the right ERP system for maximum benefit does take some thought. Not only should you think about how you currently run operations, but you should also think about how you might change operations for improved efficiency if a more powerful ERP software were available. Also think about growth to ensure that whatever software you choose is scalable and can support your company for many years to come. Although an ERP vendor can make implementation a little easier, you still don’t want to have to go through this process every year.
Keeping these tips in mind will help you make a successful selection and pave the way for smoother running operations in your business for many years to come.
This blog was written by My Office Apps’ very own Vice President of Marketing, Doug Finke. The original blog was published on: Machine Design.
9 Benefits of an Integrated ERP System
Benefits of an Integrated ERP (Enterprise Resource Planning) System
Many companies will get started with a very basic internal management system to track their business processes such as sales orders, invoices, inventory, etc. In fact, many companies will initially perform these tasks using an Excel spreadsheet because it is quick to implement and most people already know how to use it.
However, as companies grow they often start adding software to their management systems one at a time and end up with a patchwork of different unconnected programs that do not communicate with each other. These can be separate Excel spreadsheets or special purpose programs such as customer relationship management (CRM), inventory tracking or other auxiliary programs that are installed to help with specific activities. Each time a new unconnected program is added, a company will need to consider how they will communicate needed data from one module to another. This will usually be done manually, but other times they will need to purchase or create additional software to make sure this communication occurs.
Too many companies will just evolve into this situation as their company grows, instead of realizing that there can be a lot of drawbacks running a company with a patchwork of different, incompatible programs. These drawbacks can hurt a company in various ways.
With multiple systems, a company can end up in a situation where employees have to enter the same piece of data into multiple places because they depend upon different programs that don’t talk to each other. All extra data entry activities take time, reduce productivity, and increase the chance of error that a mistake was made when entering data into one of the programs.
Another problem with multi-systems or solutions is that they can get out of sync. Companies encounter situations where a prospect wants to order something, they check your inventory system and it says that inventory is available. But when the order comes in, they find out that the item was sold earlier and that the inventory system had not yet been updated when the previous order shipped.
Training can be an issue with any system. One of the problems with using separate systems is that the user interfaces can be different. Not only does it take time and effort for employees to learn different systems, but it can also be quite confusing. Employees may not remember which commands go with which system and start entering the wrong commands into a particular system and find it doesn’t work. Not only is this frustrating and causes employee dissatisfaction, but it can hurt your business because these errors will take extra time to fix, and will slow down your overall business operations.
The solution to these overbearing problems is to move to an integrated ERP (Enterprise Resource Planning) solution from a software vendor that offers different modules within the same overall program that automatically communicates the data to each other in real time. These programs will typically include customer relationship management (CRM), sales order entry, inventory, procurement, manufacturing, shipping, invoicing, finance, and other functions all within under the same roof. When specific events happen, like shipment of an order, the event is automatically communicated to the invoicing program in order to start the invoice, as well as the inventory program which will automatically adjust the stock level for the item that was just shipped.
There are many benefits of an integrated ERP solution, including:
- Purchasing an ERP solution that is already integrated is much easier than purchasing various pieces of software and implementing your own solution to connect them together.
- As your business grows, the integrated ERP solution will be able to grow with your business with no additional changes. A business that uses multiple pieces of software may find that some of them will not scale and necessitate replacement of that portion and reintegrating the new software into the rest of the system.
- System access and data security is much easier to control with a single piece of integrated software. Logon ID’s and passwords only need to be added once and there will be less chance of error. Access to individual modules within the integrated software can be controlled with a single access page controlled by a system administrator who can select each user’s access rights on a module-by-module basis.
- System updates will be simpler because the update for all modules will occur at the same time. ERP solutions built from many different pieces may receive many different update packages that may need to be applied at different times. This also increases the risk of an update not being implemented and result in a security hole or a software bug not being fixed on a timely basis.
- The same piece of data does not have to be entered in multiple times. It is automatically communicated to the other modules and the accuracy is guaranteed.
- The information will be accurate in real time. You won’t have to worry about different modules getting out-of-sync and causing other errors.
- Employees using several different modules in the system will see a consistent user interface and won’t require much training to switch from one function to the next. Employees can get up-to-speed with the system a lot quicker and they will make fewer errors in using it.
- Not only will your employee’s productivity increase, but they will have less frustration and higher job satisfaction.
- Your customer satisfaction will increase because orders will be processed more quickly and accurately.
Even though it may seem to be a quick fix in the short term to build up an ERP system from many different software packages, over the long run it will require more work, increase potential for errors, and force your company to implement more frequent updates and upgrades to the various packages. Carefully consider these extra indirect costs when deciding upon a strategy for implementing the ERP function in your company.
If you want to learn more about how an integrated ERP system can improve your overall business, My Office Apps has business specialists available who can help you evaluate your business and uncover improvement opportunities. Most of our team have been using ERP systems for many years under all sorts of different situations. We have been in your shoes and we can leverage our experience to show how a reliable integrated ERP system can make a big difference in your operations.
Kechie ERP Won 2018 The Rising Star Award From Finances Online
Kechie ERP Won The 2018 Rising Star Award
Finances Online Directory Commends Kechie ERP as a Great User Experience for ERP Software
Kechie ERP provides the most innovative ERP technology by providing an all-in-one solution that manages and streamlines your operations. Kechie ERP helps streamline your business needs by automating and synchronizing your inventory management, procurement, sales order management, finance, manufacturing CRM, warehouse management, and much more.
Recently, Kechie ERP was reviewed by FinancesOnline and recognized for its outstanding features and benefits. With a 100% USER SATISFACTION rating, Kechie is at the top of its league, which was well-reflected by our inclusion in their top 15 ERP software systems list. Kechie won the 2018 Great User Experience award for online ERP software, which is granted to products that offer an especially good user experience. FinancesOnline evaluates how easy it is to start using the product and how well-designed its interface and features are to facilitate the work process.
FinancesOnline described Kechie by saying, “it provides you with a robust, functionality-rich business management platform that handles all your business needs, automating and synchronizing your critical processes to ensure that you and your company perform at the optimum level, deliver high-quality products and services, achieve and maintain customer satisfaction, and relentlessly drive business growth.”
Due to Kechie’s unique functionalities, our software was highlighted in their article tackling the benefits of ERP software. FinancesOnline’s experts described Kechie as having “customization as one of Kechie ERP’s major strengths.”
Kechie was also presented with the 2018 Rising Star Award.
This award is given to new SaaS products that recently became increasingly popular on the market, are currently getting very good traction with customers, and are viewed as a service that’s very efficient for solving problems users face now.
Finances Online concluded with, “Kechie ERP is simply built for your business.”
Read about the “Benefits of an Integrated ERP System” to learn more.