You have too many ideas and not enough time to do them.
Your processes are constantly delayed or postponed.
Interdepartmental interaction is compromised or malfunctioned.
What should take one day takes a week or longer.
You don’t know if you’ll ever finish or reach your goal.
If you’ve answered yes to any of these questions or had to ponder it for longer than five seconds, then you need an ERP system (or a better one).
Because all these questions revolve around the same problem: can your business become more efficient or not?
SPOILER ALERT: your business CAN become more efficient.
Look at companies like Toyota, a world reference in terms of efficiency. They apply Kaizan and Lean principles to realize millions – MILLIONS – of improvements every year. Those efficiency gains sometimes only apply to a fraction of second on a process.
But one fraction of second on a process you repeat hundreds of thousands of times every year will greatly improve your bottom line.
If one of the most efficient companies on the planet can become more and more productive every year, you can too.
And at the end of the day, this is what ERP software are about: efficiency and better margins.
MRP developed in the 1960’s from the need to manage demand and orders.
It did not take into account timing, but only the demand (need).
MRP II was developed in the 1970’s to supply both demand and time in the planning process.
ERP originated from these earlier MRP II systems to handle account management and financial applications.
This enabled businesses to manage their inventory, cash, and employee (or customer) resources.
Over the last fifty years, companies like JD Edwards, Baan, Oracle, IBM, PeopleSoft, Infor, Microsoft, and Sage (along with other companies that were consolidated together) evolved ERP into what it is today.
It continues to adjust to the market and the need of businesses.
What part of your business will benefit from an ERP?
If you are a Manufacturer (you don’t need to be in order to benefit from an ERP), what you produce and sell is the most vital aspect of your business.
Without it you wouldn’t have have a business.
So how do you increase your production, while also increasing your demand?
According to MMS Online, you do this by optimizing your processes, improving tracking, reducing errors and costs, boosting productivity, and centralizing your information while making better decisions.
The best ERP also fully integrate it with all of other modules so you have a full-scale automation sequence.
Production work orders outline the requirements, based on a Bill of Materials. As you already know I’m sure, a Bill of Materials (BOM) is an “extensive list of raw materials, components, and assemblies required to construct, manufacture, or repair a product or service.”
Having the ability to acquire goods or services, and agree to appropriate terms is vital to continued growth.
Matt Michell, Purchasing Manager at CO Building Systems, explains how an ERP software with forecasting capabilities allowed him to get better pricing and buying power.
It’s a competitive market and it’s key to have the ability to anticipate your needs to make larger purchase and save your company money in the long run.
Matt Mitchell’ situation will probably resonate with many purchasing managers out there:
“our business is way too competitive to buy on an as-needed basis”.
This is why you need a powerful analytical tool to drill down into what your material consumption over the past year, and break it down quarterly or monthly to make accurate predictions about your future needs.
Since everything in an ERP is tied up together, having visibility into your the jobs scheduled is also critical.
As we saw in the Production section, your ERP facilitates the scheduling and management of your production workflow environment.
It’ll manage and execute your predetermined schedule and then automatically update the list of items produced as well as your inventory levels.
This allows you to receive accurate labor or material projections since they are updated in real-time 24/7/365.
If you like to have control over every moving part of your company but hate the hassle that comes with it, then the scheduling portion of an ERP is perfect for you.
It lets you assign people, organizations, rooms, assets, and pieces of equipment as resources with the click of a button.
You can even constrain assignments and scheduling based on specific skill sets if you’d like.
Need to inform certain resources of an availability change?
How does automatically sound? You heard that right!
Auto Alerts will notify your entire company or specific departments of a change without you needing to worry or do a single thing.
If anything changes regarding the work order #5753843 for example, every person involved with that part of the project will be emailed. See below:
But scheduling and acquiring isn’t everything.
What about tracking?
The Time and Material module simplifies that for you.
Enter labor, equipment, and materials on a case-by-case basis and know that your pricing will reflect the current market.
Procurement doesn’t need to be a hassle or a dead weight.
An ERP software is all about efficiency and accuracy.
Select your parameters and let them run on their own.
By building customer relations, you decrease operating costs.
A buying customer today is a buyer tomorrow. You want to ensure you keep track of who your buyers are.
Automating your sales process is simple.
In fact, it’s so easy you could have it up and running just by implementing the following:
Opportunity management for forecasting
These tools shorten the sales cycle by granting your business access to pertinent customer data.
Work smarter, not harder.
Sales automation also allows supervisors to monitor how their sales teams are performing in real-time.
Bonus: By automating your campaign design management, email marketing, and lead assignment & management, you’ll increase marketing programs effectiveness AND capture vital customer, lead source, and demographic information that marries over with your sales cycle.
Automating sales orders is also a fun feature!
Load Management provides you with order statistics and gives you sales orders automatically and which trucks they’re assigned to.
You can display orders and create load sheets with these route designators.
There’s so much optimization at your fingertips with an ERP software!
Keep your technicians synced with workflow management, accurate costs projections, asset tracking, eliminate redundancy, enable mobile deployment with real-time data dispersion, and a single-point of entry for all departments, including accounting.
Setting and sticking with your go-live date is of utmost importance to 1) implementing your new ERP software, but 2) having a successful launch.
ERP implementations take on average 14.3 months according to a study by Panorama Consulting.
And nearly 75% of those implementations plans exceeded the initial go-live date.
What does that tell you about the implementation process?
It means there’s a lot of work involved, many moving parts, and sticking to your date is crucial.
Things come up that require you to put out the fires.
But we also know without an established—and realistic—launch date, you’re setting yourself up for more work, more costs, and the potential to never launch and reap the benefits.
There is nearly always a direct correlation between a company who sets pre-defined and realistic expectations and goals for their ERP implementation and reaching it.
An effective project plan will include not only detailed tasks & executions required to complete the implementation, but also supplemental dates, assignees, due dates, predecessors, completion percentages, and remarks sections.
Dates are important.
Plans to get there, with the right expectations, is even more important.
https://www.abiscorp.com/wp-content/uploads/2021/08/ERP-Software.jpg600800Derrick Schultehttp://www.abiscorp.com/wp-content/uploads/2022/12/ABIS-40-year-logo-FINAL-signature.pngDerrick Schulte2021-08-13 18:59:362022-01-18 15:37:22What is ERP? Everything You Need to Know in One Post.