ERP stands for Enterprise Resource Planning, and it is a type of software designed to help organisations manage their business processes. Enterprise Resource Planning is an essential tool for businesses today. ERP systems are an essential for organisational growth. It is predicted that ‘64% of companies are planning to implement ERP within the next three years’. This means that businesses can achieve and set new goals.
An ERP system enables companies to collect critical information about the how well the business is operating. It enables companies to collect and store data from multiple sources and provides a single platform to manage and integrate all their core business activities. Niche ERP systems such as IFS, NetSuite, Infor and Epicor can all be tailored to the specific needs of an organisation to help them operate in an efficient and timely fashion.
Why Is ERP Fundamental For Businesses?
ERP systems are used to automate and streamline business operations, giving companies the ability to manage their resources more effectively. Businesses that are implementing ERP systems are set to see an ‘increase of efficiency by 25%, support growth by 20%, and allow greater functionality by 20%’.
Processes such as; inventory/order management, financial management, human resources management, and customer relationship management can then be managed by a centralised system. This means that the businesses can work more effectively to produce a better product and service for their consumers.
The value of ERP for businesses:
ERP systems are an invaluable tool for organisations in the digital age. They can be the difference between a slow developing department and a fully operational organisation.
So… how will your company benefit from having an integrated ERP system?
Higher Productivity: An ERP system can help centralise and improve communication by, making easy to read dashboards, accurately creating data, streamline processes, and make business information more visible to managers and co-ordinators.
Deeper insights: An ERP system gives businesses the opportunity to gain knowledge from reliable analysis and get quicker answers/solutions to critical business queries. This means that when an organisation is challenged by capacity, growth or demand they are able to adapt strategically and come up with solutions using the insights readily available
Lower Operational Costs: Costs are lowered as processes become more streamlined. When you have a fully integrated system it reduces that amount of capacity needed to review the performances of each department on separate systems. Therefore, when a fully integrated system is operational, everything can be found on one platform.
Accelerating Reporting: Data becomes significantly easier to handle as an ERP provides your business with on-hand, easy to access, real time data and financial reporting. This can improve the agility of reports.
Lower Risk: Implementing an ERP system means that you can predict hazards and data threats within the business. Being able to predict potential hazards means that you can essentially save your organisation a lot of money and avoidable investments.
Simpler IT: Enabling anyone to learn the basics, an ERP system is easy to use. Its simplicity means that workflow and communication becomes easier between collaborators in the department.
Optimising Business Processes
An ERP system can be used across multiple business sizes and industries. The system is used to help modify business processes and make a positive impact on department progression…
Finance: ERP can offer you a thorough assessment of your company’s overall economic situation. It can provide detail on how much money is coming in and going out, as well identifying areas where you are spending excessive amounts of money or producing an uneven flow of income.
System recommendation: NetSuite
Commerce: An ERP system can help automate key business occupations such as order processing, production, logistics, and finances. Automating these processes means that you can free up your staffs time and have them focus on more important tasks.
System recommendation: Infor
Manufacturing: In manufacturing, ERP can help with activities such as inventory management, supply chain, maintenance, equipment performance tracking, quality assurance and purchasing. Having a centralised database means you can track the progression and functions of each department. This allows you to analyse and make important growth decisions when it comes to improving or implementing new processes.
System recommendation: Epicor
Supply Chain: If your business is still manually entering data and attempting to locate inventory in your warehouse, having an ERP system that can automate these tasks. This will save your business time and money. It will also provide you with dashboards, business information and even IoT technologies.
System Recommendation: IFS
Identifying Business Challenges
There are a few key indicators that can help you decide if you need an ERP system. Both SME’s (Small-Medium Enterprises) and Large Enterprises can qualify for an ERP system as there are no specific size requirement.
Reaching fully capacity: Relying on employees to manually process and manage data can hinder business output and progression. Introducing an ERP will allow employees to have more time to work on other activities.
Current systems won’t integrate to compliance data: System integration can be challenging as technology is constantly changing and upgrading. Some systems aren’t compatible with each other. Therefore, finding a system that can provide you with a streamlined solution can save you time, money and resources.
Struggling to meet customer expectations: Maintaining a competitive edge in the market is crucial to any business. Not meeting consumer demand can hinder your corporate image. Having an ERP can help you identify where you can advance your production levels to satisfy customer needs.
Here’s a few tips to keep in mind:
Start with a plan: Before implementing an ERP system, it’s important that you establish a timeline, budget, requirement, and a map of the different business processes to make sure it’s used in the most effective way possible.
Integrate with existing systems: It’s important that you can integrate the ERP with existing systems and applications, this will make data more accessible and allow different departments to work together seamlessly.
Employee buy-in: User training is essential for making sure that everyone can utilise the system properly. Providing employees with a comprehensive overview of the system and it’s features will ensure the system is used to its full potential.
Making A Successful ERP Project Team
ERP systems are complex. Therefore, businesses need the right people in place to ensure that the project runs smoothly and that it is implemented successfully.
A specialist team needs to...
Be knowledgeable about the ERP system and its functionality
Understand the principles and processes of the ERP system
Know how it can be used to improve business operations
Identify potential issues and resolve them as quickly as possible
Deliver projects on time and within budget
Provide valuable advice and support throughout the implementation process
Having the right specialist team in place for an ERP project is essential for the implementation to have long term success.
Employing The Correct Talent
Employing the right candidates can be a hard decision-making process. When new positions in the organisation arise, it is important to know whether you are looking for a permanent internal hire or an external contractor.
When hiring for new employees you must take into consideration whether you need a contractor or a permanent hire.
Permanent employees are long term support within the organisation. Investing in an in-house specialist and training them up can be more cost efficient for the organisation. It means that they have a greater understanding of the business they are working for. They can then adapt their expertise to specifically fit the purpose of each department. Their knowledge of processes will also be dedicated to the market that you as a business specialise in.
On the other hand, hiring a contractor for a project can be extremely beneficial to a business that doesn’t already have the in-house skillsets from an existing employee. Having a dedicated expert can speed up project timelines and increase the productivity.
Resourcing A Successful ERP Team
Here at IT Works Recruitment, our niche market focus consultants are designed to connect you with the best ERP professionals in the market. This means that finding the right person, with the right expertise, at the right time makes us recruitment specialists in the ERP market.
IFS Technical Specialist
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