ERP

• Components of an ERP System:
• Financial Management:

  • Manages the general ledger and all financial data
  • Tracks every transaction, including accounts payable (AP) and accounts receivable (AR)
  • Handles reconciliations and financial reporting
• Human Resource Management (HRM):

  • Keeps employee records with detailed information
  • Tracks available paid time off (PTO) and performance reviews
  • Teases workforce trends in various departments or demographics
• Supply Chain Management:

  • Oversees the flow of goods from supplies through manufacturing and into customers' hands
  • Ensures all materials are available and in the correct locations
  • Accurately schedules machinery and labor resources
• Customer Relationship Management (CRM):

  • Tracks all client communications
  • Assists with lead management
  • Enhances customer service and boosts sales
• Manufacturing:

  • Coordinates all steps to make products
  • Ensures production meets demand
  • Monitors the number of in-progress and finished items
• Inventory Management:

  • Shows current inventory levels down to the SKU level
  • Updates numbers in real time
  • Measures key inventory-related metrics
• Project Management:

  • Plans and tracks projects, including time and resources spent
  • Simplifies client billing
  • Encourages collaboration among staff members
• Ecommerce:

  • Manages online stores' back and front ends
  • Allows changes to the site's look and feel
  • Adds and updates product pages
• Marketing Automation:

  • Manages marketing efforts across all digital channels
  • Optimizes and personalizes messaging
  • Boosts leads, sales, and customer loyalty
• Procurement:

  • Manages raw materials or finished goods purchasing
  • Automates requests for quotes and purchase orders
  • Minimizes overbuying and underbuying when linked to demand planning
• Order Management:

  • Monitors and prioritizes customer orders
  • Tracks progress through delivery
  • Speeds up fulfillment and delivery times
• Warehouse Management:

  • Directs activities like receiving, picking, packing, and shipping
  • Saves time and cost in the warehouse
  • Identifies more efficient ways to execute tasks
• Workforce Management:

  • Keeps track of attendance and hours worked
  • Manages payroll
  • Records absenteeism and productivity by department, team, and individual employees
• Cost Savings:

  • Automates simple, repetitive tasks
  • Minimizes errors
  • Reduces the need to add employees at the same rate as business growth
• Workflow Visibility:

  • Allows employees to see the status of projects and performance of different business functions
• Reporting and Analytics:

  • Provides impressive reporting and analytics tools
  • Tracks KPIs and displays metrics or comparisons
• Centralized Data:

  • Accesses real-time data across the company
  • Uncovers impactful trends and provides extensive business insights
• Regulatory Compliance:

  • Helps companies stay safe and compliant with financial reporting standards and data security regulations
• Risk Management through Mobility:

  • Reduces risk with granular access control and defined approval workflows
  • Prevents mistakes that could lead to lost sales or fines
• Data Security:

  • Ensures critical, sensitive data is secure
• Increased Productivity:

  • Makes it easy to share information among teams
  • Gives employees access to real-time data on related business functions
• Scalability:

  • Scalable and flexible to meet company's needs today and in the future
  • Cloud systems adapt to operational changes and increased data demand
• Flexibility:

  • Allows administrators to build company-specific workflows and create automation reports
  • Enhances organization's innovation and creativity
• Customer Service and Partner Management:

  • Provides insights on suppliers, shipping carriers, and service providers
  • Enables convenient information exchange
• Forecasting:

  • Empowers organizations to quickly adjust plans based on real-time data and new insights
• ERP Implementation Challenges:

  1. Budget Considerations
  2. Employee Training
  3. Data Conversion and Migration Challenges
  4. Resistance to Change
  5. Dedicated IT Resources
  6. Doesn’t Solve Process and Policy Issues
• Budget Considerations
• Employee Training
• Data Conversion and Migration Challenges
• Resistance to Change
• Dedicated IT Resources
• Doesn't Solve Process and Policy Issues
• ERP Development Options:
• On-premises ERP:

  • Business runs the software on its servers
  • Responsible for security, maintenance, upgrades, and fixes
  • Requires in-house IT staffers with expertise
• Cloud-based ERP:

  • Runs on remote servers managed by a third party
  • Users access through a web browser
  • Provides greater flexibility and access to information and reports from anywhere with an internet connection
• Hybrid ERP:

  • Combines elements of on-premises and cloud deployments
  • One hybrid approach is two-tier ERP, where a corporation keeps its on-premises ERP at headquarters and employs cloud systems for subsidiaries or regional offices