On a regular basis, companies contact us seeking advice on how to be an ERP success story and avoid being part of the ERP failure rate. Many enquire about the ERP systems we have analysed and reported on.
The infographic below presents facts and stats on the selection, implementation and usage of ERP systems. These are the trends we’ve seen from our interactions with businesses from a variety of industries and client projects.
Many companies try to stay within budget by minimising the ‘hard’ costs such as software licensing fees; however, project mismanagement, botched negotiations, and poor user experience are more likely to cause budgets to skyrocket since costs associated with blunders are unforseeable and unpredictable.
Keeping your budget in check is possible with proper preplanning. Starting by conducting an internal review will reveal exactly what your company needs and not just what’s available on the market, monitoring the entire process will help keep the project on track and within budget, and reviewing the fine print of the contract with the services provider will ensure your company gets what it needs.
Lesson learned: become a knowledgeable software buyer to understand where you should invest money and where you shouldn’t. Focus on what is relevant to your business instead of spending money on bells and whistles that you don’t need.
The most challenging aspect of integrating an ERP system into your business is managing the changes and expectations associated with the new system. Change management is not part of the service provider’s responsibilities, so you’ll need to find a way to support individuals and teams throughout the process. Ignoring this aspect of an ERP implementation will only create bumps further down the road and can result in implementation failure.
Appointing a project champion or a team of champions will help minimise disruptions and manage expectations associated with the new system. The project champion need not to be an IT professional, but an employee who is skilled in project management and people management and who knows your business model and processes well. Often an outside perspective from a specialised software advisory firm such as Monpellier can help provide clarity on situations and pre-empt flare-ups before they happen.
Lesson learned: ERP implementation is as much an internal project as an external one. Empower a project champion or champions who will manage all aspects of the project, manage the relationship with the external services provider, and handle the changes and expectations the new system will bring.
When it comes to a major software system such as an ERP that affects the entire organisation, you can’t just go for the latest trendy gadgets or features. Emerging technologies offer big promises of success and positive transformation, but unless your company has an unlimited budget or particularly unique problems, it’s typically best to stick to what’s tried, tested, and true.
Understanding your business and what it needs to succeed will help you identify which features are required from an ERP system vs. what might just be nice to have. For instance, if you need maximum scalability because you’re growing fast, a cloud-based solution might be a viable, cost-effective solution. However, if you need maximum flexibility because you have some very unique business processes, an on-premise solution is typically easier to adapt to your needs.
Lesson learned: don’t invest in new technology before you assess it and understand the impact it will have on your company. Businesses can be successful via a regular ERP system with optimised processes and can be highly efficient and competitive without being early adopters of the latest technology.
Although the implementation statistics and details discussed above may imply that there is a lot of room for error when selecting and implementing an ERP system, there are many steps you can take to increase your chance of success. These include identifying what your company needs from an ERP system and how you hope to benefit from it, as well as monitoring the process closely from start to finish. Throughout the process, assistance from impartial advisors like Monpellier’s experts can help keep your project on the path to success.
For more information regarding ERP implementation, or if you just want to see if there is an alternative ERP out there that would suit your business processes more, you can either contact us here, or give us a call on 0191 500 8150 to speak to a Business Software Expert.
With the ability to streamline processes and access data in real-time, companies can stay on top of their competition. In addition, today’s data analysis technology allows companies to forsee future events and plan accordingly. These tools, which include both enterprise resource planning (ERP) software and customer relationship management (CRM) software, give companies the power to control their success in today’s market. While similar at first glance, ERP and CRM platforms are distinctively different. Understanding each platform is critical to your system’s success.
First and foremost, ERP software is designed to make a company’s processes more effective and efficient. By better managing all the key functions of a company – accounting, warehouse, stock and supply chain – ERP software allows the company to focus on what really matters: the data.
With integrated ERP software, employees can update the platform with important information available in real-time to all departments within the company. This integrated technology gives companies a heads-up when problems occur. If there is a problem in the supply chain, the ERP software will capture the issue and make it available to all areas affected, such as the warehouse. ERP not only provides all departments with updated information, it also gives companies a clear and accurate picture of their standings at any given moment.
CRM software fulfils the customer side of the system. Customer relationship management systems focus on just that: customers. This software manages customer information and captures all relevant details for the company. This information is used across the board, from sales reps to managers to accounting personnel. A quality CRM system should capture every interaction the company has with the customer. By properly managing customer information, companies can build their customer relationships to increase customer loyalty and ultimately, revenue.
Not all CRMs are the same, however. Nearly all CRM programs consist of different modules – such as marketing, sales and service – all used by different departments of an organisation.
ERP and CRM systems both manage important information for your company. While both software systems manage different information, their integration is critical. The benefits of ERP and CRM integration are many, including ensuring an optimal return on your investment in both platforms. The information captured by both platforms helps employees make better decisions. For example, a sales rep could not make an effective sale without leveraging both ERP and CRM. Without CRM, the rep may miss out on information crucial to that client’s sale. Without ERP, the sale has the possibility of not being communicated to accounting, production, and/or warehouse departments, creating a mess that could result in unmet client expectations.
Ultimately, integration between ERP and CRM ensures that your customers’ expectations – and your company goals – are met. This integration guarantees that all departments in your company are working together. The sales rep can communicate with the accounting, supply and warehouse departments before making the sale. If there are any problems, the sales rep will be notified ahead of time. This gives sales reps the ability to close deals with all necessary information and maintain a good name for your company. Without ERP and CRM integration, your company stands the risk of being lost in communication.
If you’re looking to streamline business processes and boost productivity, consider integrating your ERP system and CRM software system. Doing so will help remove data silos in your organisation and optimise operations to enhance efficiency.
Let’s take a look at the three benefits of merging your ERP and CRM software.
Exactly how well does your business know its customers? One of the biggest advantages of CRM and ERP integration is that it provides a complete view of your customers. From sales and support to finance and accounting; these systems provide complete visibility on your customer’s buying habits, order history and general needs.
Not only does this provide you with a better insight into your customer base, it can help you build lasting relationships and determine where their is potential for future growth. Consistent data gives you better analytics and reporting, so you can track changes in your customers preferences, profitability, and loyalty.
When your sales team are in the middle of a crucial touchpoint throughout a customer’s journey, having on-the-go access to all customer inventory and orders alongside product and pricing information will assist in closing deals more efficiently – they must have up-to-date data during the interaction, not afterwards.
ERP systems such as Pegasus and Sage enables a sales team to view a customer’s credit limit, current balance, a list of outstanding invoices and previous orders placed; meaning they will have the full history of the customer’s purchasing patterns.
With effective integration, employees from various departments will also find it easier to collaborate, for streamlined information keeps everyone in your business on the same page.
Managers can keep a track of all the critical business operations in real time, which will aid them to make more informed business decisions.
Without a fully integrated system, employees run the risk of becoming less efficient, meaning your customers will pay the price.
For example – when a customer contacts you requesting an order status update, your customer service staff should not have to trawl through different systems to access that information or inquire with other employees, for this could result in a negative customer experience and therefore a loss in business.
A fully integrated CRM and ERP solution will provide employees with access to important information in real-time. With the push of a button, they can retrieve information on stock levels, customer financials, order history, returns, payments, pricing and more.
Although both ERP and CRM systems hold account and contact information, it is done for different purposes – CRM is focused on support/sales and prospects; whereas ERP is focused on stock, warehouse, shipping and billing, etc.
The ERP and CRM integration removes the tedious necessity of duplicating data entry by providing identical rules for each system. For instance, any alterations made in the ERP database will reflect in the CRM system and vice versa. The same principle also applies for the addition or removal of custom fields, new entries or changes to the database.
Once a CRM proposal has generated into an order in the ERP software, having to switch systems and re-enter the data multiple times is neither time-sensitive nor practical.
With ERP and CRM integration, businesses can turn proposal generation (created in the CRM) into actual orders (executed and tracked at the ERP level) using just one system; reducing time consumption for data management and increasing company efficiency. Furthermore, a sales team would have enhanced visibility regarding order status updates for customers and easy access to make necessary changes if needed.
Also, while quoting for a prospect/customer in CRM, a sales representative can quote the most accurate pricing by using the integrated ERP solution to retrieve the updated pricing information. Any promotional or discount pricing will be available in the CRM as well.
Statistics indicate that businesses spend a yearly average of £1028 on training per employee and 31.5 hours a year training employees – that’s a substantial amount of expenditure and lost time.
With a single, unified platform for both CRM and ERP, there is no need of maintaining two separate systems resulting in reduced IT costs. Likewise, if the integration is carried out effectively, the amount of support and training goes down, for training sessions would only be required for the combined system instead of the individual systems.
Staff might be sceptical to embrace more than one piece of software; especially if it requires extensive training. Learning to use both ERP and CRM at the same time can be a challenge, resulting in poor adoption rates post-implementation.
The combination of these two programs makes it easier for employees to gather and analyse data – they can familiarise themselves with a singular piece of software and spend time learning all of its features.
To see how you can truly benefit from CRM and ERP integration, we can help. Give us a call on 0191 500 8150, or contact us here and we can come and see what your current business processes are, and how we can deliver a solution to streamline your business.
It is, therefore, no surprise that manufacturers require incredibly efficient organisation of all their daily business processes. Solo coordinators often fail at the task of keeping up, and whole committees rarely do any better. Enter enterprise resource planning (ERP).
If you’re looking for a way to up any aspect of your company’s game, there’s a good chance this versatile, understandably popular software is your ticket.
According to statistics, manufacturing stock rose 0.4% to a record high of £81.5 million last year, and stocks were up in 9 of 21 industries, representing 58% of total manufacturing stock. Meanwhile, unfilled orders were up 3.5% to £92.8 million last year – the fourth consecutive yearly gain.
To keep unfilled orders down and stock levels at a healthy turnover rate, more and more manufacturing companies are using ERP and taking advantage of its many benefits. It’s no wonder that the global ERP software market is expected to reach £41.69 billion by 2020.
Perhaps the most significant benefit that a solution involving manufacturing ERP functions offers is automation. Process automation speeds up overall production and drastically reduces errors. When your company transitions from manual manufacturing to automated, you rely less on humans, and the process becomes more straightforward and accurate, which in turn improves customer experience and boosts your profits.
As manufacturers grow, operations grow more and more complex. Custom manufacturing ERP software provides real-time information you can use. Imagine the level of productivity you could achieve by letting ERP guide users through complex processes. Eliminating data re-entry, and improving production, order completion, and delivery are just a few of the perks. Modern ERP systems also offer integration capabilities, making it easy to centralise information so all employees who need access to data can get it from one place and update each other as needed.
Thanks to the automated, streamlined processes they make possible, manufacturing ERP features for SMEs help manufacturers reduce operational costs. Additionally, ERP implementation in the manufacturing industry is known to increase worker productivity, in turn minimising labour costs. The ability to efficiently track stock levels and integrate it with production planning eliminates excess stock and storage costs. Also, lower error rates curtail your losses even more.
Knowledge is power, which means observing fault in a product facilitates the production of higher quality items. An effective ERP solution can be incorporated with a quality control module which helps manufacturers standardise their products. Manufacturing ERP modules also help to detect those areas where quality issues are occurring in the first place and identify appropriate measures for putting an end to them. Better products mean higher sales and genuine customer loyalty.
Manufacturing ERP functions offer you the opportunity to seize control of your stock, precisely plan out and streamline production schedules, and coordinate distribution channels. Thank your ERP-conducted system for consistently on-time product delivery – a critical performance metric for any manufacturer. Think of it as yoga for your company: enhanced flexibility goes a long way.
An ERP system is all about effective communication.
Manufacturing ERP features for SMEs allow firms to share important production-related data with internal employees as well as external stakeholders like suppliers, distributors, or even end-customers. This improved ability to communicate and collaborate allows department heads to maintain, sustain, and strengthen key business relationships.
A comprehensive ERP solution provides thorough visibility (and therefore insights) into every department, rendering it easy for your company to make it quick, and informed decisions on the spot. Access to key performance metrics such as overall sales, or sales margin, helps you optimise day-to-day operations and stay close to your goals whenever called for.
When you put the pieces all together (which is precisely what manufacturing ERP functions do), it becomes clear very fast that the combination of accurate production planning, increased stock control, streamlined processes, and coordination of distribution has a significant positive impact on delivery times. Punctual delivery is integral to maintaining your customers’ happiness, which in turn makes them want to leave glowing reviews.
Many SME manufacturers ask themselves if they really need the features an ERP offers. Integrating an ERP is a major investment for any manufacturer, so many small and medium-sized businesses feel they might be too small to take the leap. But, the fact of the matter is, in order to compete against larger companies, small businesses need to outdo their competition. Small and mid-sized manufacturers who use the right ERP can actually operate like enterprise-scale businesses, leveraging the power of the software to streamline their processes, increase their productivity and throughput, and reduce costs.
At a base level, an ERP can integrate all the core processes you need to run your manufacturing business into one seamless system: engineering, purchasing, production, inventory management, human resource management, customer relations management, accounting, sales and more.
Imagine having easy access to truly useful, real-time information about how your business is functioning, the status of individual jobs, and an accurate forecast for your margins. Manufacturers who have installed an ERP built for the manufacturing industry, have not only been able to increase their sales, but they also have higher customer satisfaction rates too.
Still, it can be difficult for many SMEs to outline the specific benefits an ERP system will deliver to help accomplish their goals. Here are just a few benefits of getting the most out of manufacturing ERP functions:
You can ask yourself a couple of simple questions to see if an ERP would help you:
If your goal is to save time, achieve quicker response times when dealing with customer queries, boost your ability to plan ahead, reduce waste, and best of all, reduce stress, then it may be time to work those manufacturing ERP functions into your strategy.
Interested in finding out more? You can get in contact with us here, or call us on 0191 500 8150 to speak to a Business Software Consultant.
This is because an ERP project cuts across each area of the business, impacting functional areas from finance, accounting and supply chain, to shop floor, production, inventory, quality management, shipping and more. Manufacturers and distributors have already gone through lean initiatives, cutting away excess and thereby are operating with lean staff.
While it’s tempting to consider these initiatives as pure ‘technology or projects’, that perspective is not effective and often results in an implementation that fails to meet expectations. IT may lead the project and certainly has a major role, but ERP projects touch almost every area of the business. The new system will naturally bring some change to how business is done, so it’s important that business process owners are heavily involved.
Thus, when a project team is considering an ERP selection project, it’s imperative that the selection process is based on a solid foundation of industry expertise, vendor research and intimate knowledge of the business, all aligned with the goal of improved business performance.
At its most fundamental, establishing strategic software decision drivers during a selection project involves matching the future state of requirements a business must achieve to drive business process transformation against the system features a technology solution offers.
Monpellier’s ERP consultant team has guided organisations on this very approach. This set of software decision drivers will vary for every organisation dependent on what is the best match for the specific functional areas of the business.
Manufacturers and distributors should take into consideration the following software decision drivers when entering an ERP project:
When the focus is business process improvement, and not solely technology, the project team has a better chance of conducting an effective technology evaluation that is designed to meet future state needs. That’s the power of a strategic approach to software decision drivers.
In a perfect world, once you implement ERP software, you don’t have to worry about your centralised business system again. The realist is that an ERP system needs upgrading like any other piece of software. Chances are good that you aren’t driving the same car you did 5 years ago and I highly doubt that you are even using the same smartphone you had 2 years ago. The fact is that technology is not just changing, it’s constantly improving.
That means software built even a few years ago starts to age and new versions are needed to take advantage of the incredible new opportunities today. For instance, ERP systems are moving towards mobile solutions to augment the core package. That wasn’t possible even 3 years ago.
Whether you are investigating the benefits of ERP software for the first time of have a system in place, it is best to plan for periodic upgrades in software. Just like you schedule tune-ups for your car, tune-ups are also good for ERP software.
The thing about upgrades is, while they bring a host of improvements, fixes and new features, it can take time before employees using the system are totally familiar with what’s new. There can also be slight downtime to the system while the ERP upgrade commits to your system. That’s why its extraordinarily important that you have a plan in place for updates.
Generally, creating a plan for downtime – how to minimise it – and training on new features is essential. It doesn’t have to be elaborate, but communicating the expected changes and how it will impact day-to-day operations needs is key. All that could be rolled up into a simple company-wide email or phased in with specialised support from your ERP implementation partner.
Upgrades are also like spring cleaning for your data. Before installing the upgrade, you should perform a backup of the existing data. You might also sort out old data, archive old records, and optimise the configuration of the database server to get the best performance from your system.
All of this preparation is important to keep your ERP software running smoothly and at optimal speed. Once your upgrade is complete, you have an ERP system that works even better than it did before.
Also, ERP system security improvements are generally parts of updates. You don’t need me telling you how many data breaches have happened, you can flip on the news and you’ll likely hear about a new cyber attack. ERP systems house an incredible amount of data that powers your company. Not everybody can afford to recover from the pain of lapses in security and upgrading your ERP system is one of the tools you have control over.
It all comes down to driving to work in a Model-T car and using a rotary-dial phone which is inefficient in this modern era, and so is using old software.
For more information about ERP upgrades, or if you just simply want to see what solutions are out there, that might fit your business processes better, you can contact us here, or give us a call on 0191 500 8150 and speak to a Business Software Consultant.
Is your business ready for the data revolution?
According to some commentators, we are in the throes of the fourth industrial revolution. Technology has changed the way we think about the world and affects every interaction, from ordering a pizza to watching a movie to chatting with our friends.
From a business perspective, it is no different. The outward signs are obvious enough to see, with changes in communication and dynamics, an increase in flexible and remote working practices and so on. But perhaps the biggest game-changer concerns data.
Quite simply, we are now producing volumes of data that would have been inconceivable just a few years ago. Today’s data comes from a variety of sources: every web search, mouse click and purchase; every like, share and retweet on social media. It all creates its very own data stream and the business that makes the best use of the insights that are hidden in all that data will be the one that gets an edge over the competition.
Given that it is such a new discipline, our full understanding of just how much we can do with big data is still developing every day. What is clear, though, is that the biggest and most successful organisations in the world are devoting ever more budget into developing their data analytics capacity. Those who fail to capitalise on the opportunity are at risk of being left behind.
It is worth taking a step back and looking at some everyday applications of big data. Here is a perfect example – you might sometimes feel as if you are living in some Orwellian dystopia with Big Brother looking over your shoulder as you search the net for, let’s say a flight to Amsterdam, then log on to Facebook to be bombarded by banner ads offering you bargain rates for that exact flight.
There it is, big data in action. Machine processes watch our every move and try to predict what we are likely to do next, and this capacity will grow beyond our wildest dreams over the coming years. It might sound sinister, but all it is trying to do is help us do what we want to do as easily as possible.
Other examples abound – while you sit reading this article, Siri is there on your wrist, quietly keeping an eye on your health and exercise, and your LinkedIn profile is busy looking for a great next step in your career.
From a business perspective, there have already been some major transformations in the finance sector that have been brought about by big data, including enhanced customer service levels and streamlined back office functions. Increasingly, we are seeing data-driven technology behind every innovative business practice.
Businesses have many driving factors in deciding whether to implement a new ERP (Enterprise Resource Planning) system, often sharing the same wish lists and requirements with other organisations.
Streamlining business processes, increasing revenue and driving forward growth against market competitors are key targets to attain.
So, what are the benefits of implementing an ERP system? In this post, we’re going to look at the rewards of bringing an Enterprise Resource Planning solution to your business.
One of the top requirements for many organisations implementing a new ERP system is bringing together multiple parts of the business into a unified solution. Sales, accounting, production, and customer service are tied together to allow free-flowing communication and information, resulting in a streamlined and efficient process.
Secondly, if not a defining requirement for many, is increasing the company revenue. ERP systems are best-in-class when it comes to helping you minimise costs within your organisation. They are also staggeringly intelligent when it comes to helping you identify and capitalise on opportunities you may have not previously been aware of. CRM modules can help your sales team keep track of all your customer data, including sales history and eligibility for cross-selling.
A key benefit of implementing an ERP solution not widely expressed is the increase in employee engagement and morale. It’s a difficult metric to measure, but many report seeing a boost in morale after an ERP system implementation. Manual processes become automated, freeing up time for other tasks, information is delivered quicker and tasks become easier to execute.
Many businesses are still comprised of several legacy systems and processes that have left the current structuring inefficient and incredibly expensive. An ERP solution replaces and eradicates these problems. That’s not to say that bringing in an ERP solution will fix all niggles in your organisation, but it’s important to remember that it can help bridge the gap between restructured processes and your desired business outcomes.
Companies that hold a significant amount of product often find themselves with problems such as not having the capacity for their stock levels, or an excess due to the inability to accurately predict product demand. An ERP system can analyse demand from your customer base and accurately predict future consumption, so you will know exactly how much to allocate to your warehouse and at what time, inadvertently minimising waste and reducing associated warehousing costs.
Monpellier are experts in ERP software solutions including Microsoft, Sage and Pegasus and we can advise on a range of popular products that could be right for your business needs. If you are thinking about the benefits of an ERP solution and what it could provide to your business, then contact us today – we’ll talk you through the options and help you implement a system that’s right for your business.
You can either contact us here, or give us a call on 0191 500 8150 to speak to a Business Software Consultant.
According to a survey conducted by Oxford Economics, 64% of SMEs are leveraging technology to outperform their peers; everything from social media, mobile-friendly software, cloud computing and big data.
Indeed many businesses that use enterprise resource planning (ERP) applications are transforming their business to stay ahead of competition with improved visibility, efficient operation, and the ability to capture vast amounts of data – data on things like sales, production, and inventory management.
The challenge remains to find a way to analyse this data more efficiently to gain actionable insight and outperform the competition. That’s where applications like Microsoft, Sage and Pegasus comes in. In order to make sense of business data, SMEs are taking advantage of reporting and advanced in-memory analytics that ERP systems have to offer; increasing visibility and enabling fast and accurate analysis. What’s more is that they are doing this faster, easier and with more accuracy.
SMEs now have the option to leverage business information into valuable insight through an ERP solution. Every business hopes to receive some turnaround on their ERP investment. The name of the game is to make more money and trump your competitors, but in an era where just about everyone has an ERP system, standing out against the competition can be tough. If you’re looking to gain a competitive advantage in your respective industry, the right ERP software can help.
Despite the fact that many ERP solutions cover a lot of the same core functions, there are some differences to take note of that differ from industry to industry. It is crucial for your newly implemented ERP software to be industry specific to ensure that you are getting the most bang for your buck. If you were in the business of manufacturing, you would never tell a professional service firm how to do business. The same goes for ERP systems.
Just because everyone else is working from the cloud doesn’t mean that it’s best for your business, and vice versa. Picking the right ERP software has everything to do with picking the right partner so that your organisation has the constant support and training that you need to be sure your needs are met.
While it may be tempting to go ahead and customise every aspect of your new system, first consider these system customisations are really going to make a difference in how you do business. Customising little things that don’t give you an advantage isn’t as necessary as using your customisations to fit areas that do. That being said, don’t be completely stingy with customisations either.
There is great value to be found in customising ERP. If your business has come up with a unique process that allows you to outshine your competitors, that is when you should customise your ERP to fit your model. Thoughtfully differentiating between the two will save you a great deal of time and money in the long run.
The use of real time analytics can be a great advantage for businesses using ERP software. This automated software enhances preventative maintenance and detects potential failure before the problem arises. Something that competitors without advanced ERP systems will continue to struggle with.
Your ERP’s predictive capabilities can allow users to pinpoint the location of potential errors so that you can eliminate the problem right off the bat. Thanks to many ERP collaborations, err can be essentially eliminated thanks to smart technology. Don’t get set behind by silly errors and mistakes, and use ERP to keep you ahead of the competition.
ERP systems like Microsoft, Sage and Pegasus have highly advanced manufacturing and planning modules that support the entire range of products from beginning to end. Execution modules give decision makers full access to data collection options and quality measures, while the scheduling module provides easy to read visuals of master schedules so that your planners can make accurate ‘what-if’ scenarios accordingly.
Meeting demand and rerouting potentially conflicting schedules only enhances conflict and error prevention, helping you to focus on the bigger picture. In a world where good and bad reviews can make or break a company via the internet in just a click of a button, it’s important to make sure that your ERP software works for you and not against you. Standing out against your competitors can be easy with ERP.
Gaining an advantage over your competition is as easy as finding the right ERP software and implementing it in a way that serves you best. For more information on how Sage and Pegasus could be the next best step to help your company gain a competitive advantage, either contact us here, or call 0191 500 8150 to speak to a Business Software Consultant.
From better inventory management and productivity, to improving quality and lead times, companies with manufacturing operations are constantly looking for ways to improve efficiency. However, this requires coordination across the entire enterprise from the back office to production.
Without achieving synchronisation across all operations, manufacturers cannot effectively manage fluctuations in demand, increasing competition, and supply chain issues.
Although many manufacturing companies already have multiple software installed to manage their operations, relying on several vendors for different processes can become extremely costly.
Fortunately, there is an alternative that allows all processes to be operated through a single, streamlined solution that listens to your business’ unique needs. With this in mind, here are six ways enterprise resource planning (ERP) software can revolutionise your manufacturing process.
There are two sides to inventory management – materials and product inventory.
Materials management is the processes that go into ensuring an organisation has the appropriate materials to complete the manufacturing process; whereas product inventory includes the products that are produced through the manufacturing process and how they’re transported to customers.
However, if these two equations aren’t synchronised, difficulties might arise with having the appropriate materials at the right time and product levels being incorrect or insufficient to satisfy orders.
By implementing ERP software, processes such as billing of materials, tracking materials and inventory management can be updated automatically – for smaller manufacturers, these are most likely updated manually through spreadsheets; which are prone to human error.
Introducing an ERP system can help reduce these human errors and automate inventory requirements so that materials always arrive when needed, instead of taking up space your business can’t spare.
When data is tracked manually and historically, it;s difficult to tell what levels of inventory are necessary from one term to another. The business can make an educated guess based on previous data, but this doesn’t account for current changes in the market.
With an estimation about customer trends, it doesn’t account for deviations in customer history, for example, if one of your business’ top clients, goes out of business and you’re working on an estimated guess, the results will be costly.
With a manufacturing ERP system, it will alert your business to these significant changes in customer demand, both from previous data and real-time. This makes it much easier for accurate future customer demands.
Refining human resource operations with training and attendance tracking can also have a positive impact on your business operations. By integrating human resource management and your ERP system, your business can automate many of the paper-based admin tasks facing your HR department.
This will allow HR to focus on the development of your business workforce, which results in a huge win for saving time and optimising human resources.
A good human resource management system can be crucial to maintaining a lean workforce who, on a daily basis, respond to many challenges. Your business will be rewarded with employees who are more committed, inventive and productive.
ERP can optimise business processes and drastically improve response times. This will improve virtual communication across the supply chain and internal communication between unrelated departments. This can have a positive impact on collaborating across your business.
With these close collaborations with partners, it means that specific challenges are met in a timely fashion.
With a quick response to change, it can ultimately improve your customer relationships. This is just one of the ways ERP software can impact as a continuous business improvement tool. By finding important information with satisfaction, your business will be more prompt in leveraging development opportunities.
If a process is definable and repeatable, then chances are it’s better off automated.
ERP systems such as Pegasus Opera and Sage 200c integrate quality control and manufacturing management – purchase invoices matched against goods, job profits can be assessed and stock control managed all from one place; creating a streamlined, cost-effective manufacturing solution.
The time saved through automation can then be reinvested into your business for the other projects that are more pressing.
Businesses that still try to run their manufacturing by using manual processes are more likely to have higher labour costs. The same can be said, however, for some lean manufacturers too. Even in a lean environment, these indirect labour costs can be a potential problem.
A great ERP system can help businesses improve these processes and efficiencies so less labour time is required to complete the same amount of work. Additionally, an ERP can automate manual processes, which frees up more labour hours that can be reinvested into higher-return activities.
In the past, ERP software was a system many manufacturers wanted to make their everyday processes more efficient.
To stay competitive, however, manufacturers need to now invest time and money into ERP software to optimise inventories, be aware of customer demands, automate processes and more. It’s only with these capabilities that a manufacturer can streamline processes and stay in the competition.
As you can see from above, an ERP solution can help your manufacturing operation in a variety of ways, but what about the bottom line? When weighing the pros and cons of a comprehensive ERP implementation, it helps to look at the many ways ERP can save you money.
The following list provides a handful of cost saving benefits of an ERP for manufacturers.
Inventory is the key to your company and likely your largest asset, so knowing its accurate levels is imperative. Inventory translates to money, and if you’re relying on disparate systems or manual methods to track the receipt of raw goods, the issuance of ingredients to batch tickets, and the shipment of finished goods, it’s easy for these numbers to lose accuracy.
It’s not uncommon for manufacturers to experience inventory deviations upwards of 20% due to inaccurate data entry in their warehouse inventory practices. This is a humbling realisation when preparing year-end financials for upper management.
An ERP, integrated with a barcode scanning solution, automatically tracks inventory balances, serial numbers, lots and product line information. Inventory data is stored, collected and disseminated through one centralised database within the ERP solution creating accurate inventory levels and reducing deviations. All balances are updated in real-time, allowing you up-to-the-minute, on-screen access to your crucial inventory data.
Customers are the company’s lifeblood, demanding superior products, timely access to inventory, dependable delivery and accurate paperwork. ERP software provides manufacturing functionalities that include various bills of material, quality control, formulation testing and recording, material requirements planning, inventory management and more.
Your ERP can also help you move CRM functionality out of spreadsheets and email programs and into the vital flow of information between the sales department, support representatives, and the rest of the company. With CRM functionality, you can analyse, manage and synchronise sales, marketing and customer care activities across all points of contact, giving teams the tools needed to find new customers, close sales faster, and build lasting, more profitable relationships across all channels. Finally, ERP software records and stores accurate, comprehensive customer data that can be delivered in real-time throughout the purchasing process and on-going relationships.
The result? You’ll close sales faster, prospect more efficiently, and create superior customer satisfaction. This will help your cash flow stay moving in the right direction.
The question isn’t if there will be regulatory change, but when. Rather than allowing these changes to throw your processes into turmoil, having an ERP system that’s attuned to the needs of your industry can help you save money and stay in compliance.
First, you can lean on the industry experts of your ERP provider in helping you implement the changes necessary to understand and comply with changing regulations. Of course, you’d be wise to go with an ERP provider who understands your industry needs and compliance obligations.
ERP software solutions providers are many, the key is finding a provider that designs, develops and sells to manufacturers and know the industry well. Monpellier can save you money by providing the experience and insight of experts who understand your specific needs, from regulatory compliance to formulation management and beyond.
Contact us today and let us help your company determine how an ERP solution can save you money. Call us on 0191 500 8150 to speak to one of our friendly Business Software Consultants.
Where such fields face demands and challenges with regard to business management, transactions can be made simpler with the use of ERP in the construction industry.
Effective development of construction projects rely a great deal on strategic resource management and planning. Research proves that 30% of the unsuccessful projects have solely ended in disaster due to inadequacy in the aforementioned criteria.
Construction ERP software helps managers to devise comprehensive plans for successful civil engineering of projects from the onset of project work till the outcome, and during the entire construction lifecycle.
Here are eight key benefits of ERP in the construction industry:
When running an organisation, there are many forces simultaneously at play, which are required to be utilised in various work streams from time to time. Having a standardised work platform which combines these processes into a single storage system ensures that data is easily managed, thereby increasing the overall efficiency of the system.
The benefits of ERP in the construction industry include dynamic analysis of financial and operational data, which provides executives with more accurate and precisely calculated information in real-time. By using this data effectively, companies can track simultaneous operations and report and manage deficiencies across departments in a more effective manner.
Improper planning within the framework of an architectural firm has led to the substandard completion of projects and the downfall of many reputed global organisations. Enterprises incur heavy losses in the form of labour costs and loss of clientele due to untimely completion of targets. Delay in the delivery of projects due to a lack of planning also reflects poorly on the goodwill of an organisation.
An accurate analysis of raw materials required, effective utilisation of manpower, architectural design and contract management is essential for proper channelling of resources. Construction ERP software can be used to make allowance for collateral expenditure and financial budgeting of the assignment. This helps avoid unnecessary downtime and contractual complications with the client, throughout the duration of the project.
Latest service providers have started to come up with industry-oriented solutions where construction ERP software has started to become more project-oriented due to the demand for a system that can handle numerous tenders at the same time.
Larger construction companies handle more than one client at any given time, because of which exchange of information within the organisation can become quite tedious and confusing.
Having to manage and compile data for multiple assignments in the form on individual Excel spreadsheets or PowerPoint presentations becomes cumbersome for executives to process.
At the same time, using different software solutions for multiple operations leads to an ineffective exchange of information among departments of the same organisation. An ERP solution manages to kill both birds with a single stone.
A centralised system helps increase efficiency by providing an overall view of the scenario prior to making decisions. Whenever employees are required to correlate information from different sources, an ERP solution assists in extracting data and providing relevant criteria that need compliance prior to closing a query.
For example, when deciding on a purchase order for a specific raw material, the budget report is handed over to the project manager, based on which the project manager refers to the engineering team and formulates the design of construction. Based on this design, the purchasing manager creates the purchase order which is finally screened by the accounting department prior to being passed.
The interdepartmental transfer and correlation of these reports, combined with back and forth changes as well as real-time monitoring of the entire process would be nearly impossible without having an efficient ERP solution in place.
More construction companies work on a contractual basis with their clients. Prior to acquiring the tender for a project, these firms are required to bid for the project with their cost estimations.
Since different clients have different priorities, the most suitable bid is chosen based on the design submitted, the reputation of the company and most importantly, the cost feasibility to the customer.
A majority of construction projects continue to develop over a span of a couple of years. Therefore, planning expenses for such projects must be carried out keeping in mind the overhead liabilities that may be incurred in the future.
An ERP can be used to determine an accurate estimation, so that the actual cost does not deviate much from the projected cost of the undertaking.
An all-encompassing ERP solution divides business processes into various modules. With the industry becoming more and more aware of ways to improve stability, risk management, cost effectiveness and other operational facets, construction enterprises have had to encounter restrictions at every step of the way.
This had led to the bifurcation of construction ERP software into diversified modules such as architectural designing, contract management, project phasing, inventory management, marketing and HR management and accounting and financial management. This not only helps in better handling of the processes, but also organises regulatory compliance of the system.
For better management of operations, it is necessary for effective communication channels to exist between employees. An ERP solution being equipped with in-built chat forums and other communication capabilities to provide the perfect platform for executives to communicate internally, irrespective of the location of where work is being carried out.
The end goal of any construction enterprise is to deliver quality work and acquire as many reliable clients as possible. Without the existence of construction ERP software, contractors would have a hard time implementing marketing strategies to effectively handle customers, projects and outsourced employees.
In order to consistently increase market productivity, it is crucial that long-term strategies are installed in place and executed from time to time.
Every business must assess the information collated after careful scrutiny of the market demands and possibilities of growth. It is important to have a thorough understanding of the magnitude of positive outcomes with the use of ERP in the construction industry, in comparison to the hindrances that can appear as major blocks in the path to success without the ease of project planning and data management.
ERP is the on-stop software solution for all your business demands if you’re looking to make an imprint in the world of construction in today’s competitive times.
Sound interesting? If you would like to see which ERP package would suit your business needs and processes, get in contact with us, or call 0191 500 8150 to speak to one of our friendly Business Software Consultants.
A fairly harmless expression by itself, but if you stop for a moment to consider, it highlights a vital point, not so much a flaw but definitely a shortcoming.
Emerging technologies like Artificial Intelligence, conversational bots, Digital Twins, Blockchain and Machine Learning are practically redefining the way businesses are getting more structured, accurate, definite and efficient, eliminating more scopes of uncertainty and mitigating risks of errors. Besides, the use of spreadsheets, instead of an enterprise-level resource planning software, underlines a major drawback in management as it highlights the lack of foresightedness that is required to equip the organisation to battle challenges that inevitably come with gradual expression over time.
When it comes to spreadsheets, Microsoft Excel is inarguably the most popular one. Numbers don’t lie: over 750 million people are using it worldwide to record, track and calculate. And not for no reason. It is easy to use, flexible and largely reduces dependency on the IT department, especially for storing, calculating, tracking and accessing data. Think about a world without Excel. It seems impossible. That’s because Excel has enabled the masses to make sense of the numbers.
However, while spreadsheets might be phenomenal for personal productivity tracking and arguably for small businesses, they are not designed to manage enterprises. Expanding enterprises eventually arrive at a juncture where they, albeit begrudgingly, have to admit that their dependence on Excel is not serving their business purpose adequately. There are limitations on Excel, and nobody should be doing anything 100% in Excel.
It has been reiterated that the fundamental requirements of a business changes as the company grows. It’s obvious. However, businesses don’t do it. They continue to use spreadsheets, increasing complexities of business operations which can impact tasks as vital as revenue recognition.
This is how:
Thus, most back office personnel managing departments like HR, Finance, Marketing and IT struggle to track the progress of each process, clear backlogs and identify opportunities leading to a mammoth bottleneck for the decision making. The challenges of errors in data entry are a grave concern as well. Additionally, in a competitive environment of today, businesses are relying on data analytics to arrive at accurate insightful decisions which is practically non-existent in spreadsheets, thereby hampering business growth.
Why spreadsheet users are so intensely attached to their files is quite understandable. After having spent weeks, maybe even months to prepare and keep them updated, it is not easy to consider not using them anymore. That’s why, the first response to a proposal to use an enterprise resource planning software or ERP, is often, “what’s wrong with spreadsheets?”
It is important to understand that enterprise software doesn’t entirely do away with spreadsheets. Instead, it actually helps to ensure that the data has been carefully entered and updated, managed well, made more secure, maintained consistently and rendered accessible across the organisation. ERP ensures that the spreadsheets of yesterday can successfully be converted into databases for tomorrow.
Executives can still export data into spreadsheets when they want to take a quick look at information or run ad-hoc analyses. Alternately, they can use the software’s built-in business analytics and reporting features to generate the same information in half the time.
Besides reducing data entry errors, ERP also helps to eliminate repetitive data entry between users, which is a real possibility in Excel. If no one recognises these errors, there may be a risk of the company making less than favourable decisions, based on conclusions drawn from inaccurate information.
ERP helps to resolve collaboration challenges. Since all users draw data from a centralised source, chances of confusion are less. Moreover, computing protocols prevent the possibility for users to duplicate efforts or confuse updates to product information.
It improves visibility and communication between departments, divisions and suppliers, which in turn, can integrate various business processes and reduce time to market, thereby improving return on investment.
ERP solutions can not only benefit those who are implementing it for the first time, but also can be beneficial for those organisations that are updating and adding incremental operations like HR management or CRM. In fact, some ERP softwares have built-in HR or CRM modules that can be activated or used only when a company grows and reaches a certain level and the need for enhanced coordination and collaboration becomes prominent.
Digital transformation is only effective when it is seamless and company-wide and such ERP solutions ensure that this seamlessness can be achieved by enabling capabilities to be added when the time is right. Back office has always played an instrumental role in aiding the front office achieve business goals.
It’s only now that ERP is integrating the two and encouraging digitally-transformed businesses to focus on the front-office and the customer experience by ensuring that back-office tasks are being conducted smoothly with enhanced efficiency and heightened accuracy.
Making the move from spreadsheets to ERP is not as much about technology as it is about strategising for future growth. And as businesses grow they need to assess the need for fewer systems. If spreadsheets are still holding your business back, now is the right time to consider implementing new age ERP software. It can be the major component of a sustainable, scalable IT strategy that evolves with your business and strengthens the foundation for future growth.
Ready to take the next step? Get in touch with us today to set up a meeting so we can help you help yourself. Call us on 0191 500 8150 to speak to one of our friendly Business Software Consultants.
If yours is like most firms, you’ve spent plenty of time deciding on the best solution; now it’s time to choose the right partner. Because choosing the right partner is as important as choosing the right software, here are some important recommendations,
It’s crucial that the partner you choose has not only knowledge but a depth of experience working with firms in your industry. They need now only to know the software and how it functions, but they need to understand your specific challenges, business processes, regulations and anything else unique to your industry and they way you operate.
Be specific when you interview a partner – ask specifically about your sub-industry (e.g. not financial services, but wealth management). Different approaches and processes are involved, so ask about their team’s experience in your field and always ask for and check client references.
Bigger is better, right? Not necessarily. You might assume that bigger companies have the most experience and reliability. But be aware that size comes with its pros and cons. Larger companies often have more bureaucracy, and often it takes longer to get anything done. A simple request can slow down the whole process while they pursue everyone’s approval. Look for a partner that is large enough to support your needs, but small enough to be efficient.
Larger companies often have standardised solutions and don’t allow for thinking outside the box. You may be pressured to do things their way or be charged extra for a customised solution. Look for a partner that embraces your vision and thinks creatively to give you the exact solution you want.
Larger companies often have less leeway when determining cost. A nimble partner can work with you on meeting your budget, and they can make strategic decisions about their people and their clients. Look for a partner that is focused on doing what’s right for you and within your budget and for whom your success is a priority.
A large organisation might offer you more than you need and charge you for it. Does you project really need a consulting director, a project manager, a consultant and a development resource? Maybe, but perhaps you have qualified people internally who can fill one or more of those roles? Look out for hidden, unnecessary costs.
If you’re no a ‘big’ client (often well into the millions of pounds), you are going to share resources with other clients, and you may not be a priority. Look for a partner that focuses on working with firms of your size – and solutions required by firms of your size. Look for a partner that treats you like you are their biggest client, even if you aren’t.
You may sometimes have been forced to work with someone you didn’t see eye-to-eye with or even someone you didn’t particularly like or respect. But don’t choose someone like that as a technology partner. You can minimise stress and possible complications if you work well together as a team.
You’ll want your culture and business approach to align with those of your partner. If not, you risk the success of your entire project. Look for a partner that plays well with your team and insist on meeting with those who will work on your project. Don’t assume you know the implementation team because you’ve met the sales team. The sales team will not be working on your project.
Remember, the choice of partner can make the difference between success and failure of your software replacement or upgrade. Know what to look for and choose a partner for success.
Identical to implementing any new software, one of the biggest hesitations for those considering an ERP solution is the disruption caused during the planning and implementation stage. The reality is, like almost any business improvement, it’s impossible to make a change without investing some time and effort into its success.
If you don’t tell the designer what you want, don’t work with the contractor throughout the process to provide input and address small changes along the way, and don’t test the new appliances or smart devices until long after everyone has packed up and left, the end result is likely to be a disappointment.
Although ERP solutions can produce some of the largest benefits, they can also be more painful than other software projects. With many moving pieces and the risk of impacting current and future operations, ERP implementations are more often complex and robustly managed.
If not managed correctly, parts or all of the implementation can fail. According to a recent study by analytics firm Gartner, almost 75% of all ERP projects will fail in some way. There are several reasons why:
Often, we are invited in by companies going through a failing ERP implementation. One or more factors mentioned above are the reason for that. Strong project management and sound functional and technical expertise are critical, but above all having the right mindset is the key. There are two important mindsets to achieve success.
Let’s say you are planning to take a holiday to an amazing destination like Hawaii. You most likely will pack for the nice warm weather, bring sunscreen, a bathing suit etc. If you are a diligent planner, you will also plan for the journey and include snacks or something to occupy your time in the airport.
What if the flight is significantly delayed due to bad weather? If you packed an extra pair of clothes in the carry-on, or included battery backups, you’d be much better off than most of the other passengers. If you thought even further ahead and secured travel insurance, that would put you in an even better position.
An ERP implementation is obviously much more complex than planning a holiday. Moreover, the stakes are much higher. Given this, why do we focus almost exclusively on the destination (the end goal) and not prepare for the journey itself? With so many variables and even the most well-thought-out procedures, we know that things will not go exactly as planned and, like bad weather or mechanical issues impacting a flight, we should be prepared to address the issues that arise.
With many years experience, we have seen that ERP implementation teams (including ERP partners) focus too much on the end goals and not enough on the journey. With some success criteria such as a budget, defined timeline, KPIs, specifics of what needs to be built or implemented, etc., the journey begins and project plans and milestones are laid down. How many times does the original goal – due to situation, budget, timeline, scope, resources, or something else, change during a project execution?
In our experience the goal invariably changes. Due to various reasons, we deviate from the original goal. And that is where things start going south. Out of necessity, you must communicate the change and re-plan the project. Then the project change/risk-related problems start. This is an issue only because everyone was focused on the goals and not the journey.
ERP systems are designed as bottom – up systems, thereby bringing transparency to the organisation. That means if all the transactions, such as purchase orders, sales orders, production orders, invoices etc. are entered correctly, then your top numbers will match and every report will be accurate. ERP systems will not work properly, nor bring the greatest benefits and improvements, if employees are not motivated to use the new system or, sometimes worse, not trained properly to use it.
This is why it is critical for your ERP implementation team to go above and beyond to ensure all users are empowered not only once the implementation is complete, but also during the implementation journey.
It is critical for the ERP implementation team to assess how they can make their users’ lives easier not just as part of the implementation, but also during the journey itself.
Pain is temporary, profits are permanent.
Remember when considering an ERP solution, or starting an implementation, that adopting these two mindsets will help you. your company and your users as well. The more deliberate the journey, the more exciting the destination is.
If you’re ready to choose the right partner to deliver you not only the best implementation, but the best journey as well, contact us here, or call us on 0191 500 8150 and speak to a Business Software Consultant to see if we’re a good fit for your business.
Coupled with the startling statistics about how frequently ERP projects fail (for instance, in 2017, 66% of organisations received less that 50% of the measurable benefits they anticipated), many people wonder why companies still use enterprise resource planning software to run their businesses. Despite these concerns, the worldwide ERP market grew 3.8% last year, signalling that the software still holds an important place in business strategies. Here are some of the reasons why businesses still use ERP systems:
Sure, ERP implementations are known for being costly, lengthy and likely to fail, but that doesn’t mean businesses should blame the software for these problems. There are myriad reasons for why ERP implementations fail, many of which can be boiled down to either a lack of initial preparedness or miscommunication between vendors and buyers.
When properly installed, however, ERP software provides users with numerous benefits, including complete centralisation of all data and processes, streamlined cross-department operations and useful business analytics and insights. Top-rated ERP software is more robust and customisable than a portfolio of best-of-breed solutions. Unlike other software, when used correctly ERP can power huge enterprises with multiple locations, increasing profits and lowering costs across the enterprise.
For massive enterprises with dispersed offices and hundreds of employees, centralisation is key. Since ERP software can power every aspect of a business – including financials, human resources, product development and distribution – these solutions are needed to keep end-to-end operations running smoothly. While best-of-breed solutions are great for smaller businesses, large companies can’t risk less than stellar integrations or the complexity of handling a variety of disparate tools to run the business. For these companies, ERP software is the only solution.
In a large corporation, even the smallest of changes can take weeks – even months – to go into effect. For companies that have relied on a certain ERP systems for years, changing to a new software can present up-front costs, potentially serious risks and a time-consuming, complicated transition process.
For many businesses, the costs of changing to a new system outweigh the costs of maintaining an existing system. For this reason, many companies still use on-premise ERP software despite the major shift toward cloud solutions. The difficulty in retiring outdated legacy systems remain a major reason why traditional ERP systems will never be completely phased out.
Compared to other software segments, ERP has been relatively slow to adopt new technologies. While mobile, social and cloud trends are standard in most solutions, ERP vendors are still figuring out how to best incorporate these elements into their solutions. While innovation in the ERP space has been slow, it is also steady. With each passing year, companies are finding that ERP solutions are embracing these trends. For instance, Microsoft, Sage and Pegasus are quick to jump onto trends, and integrating said changes into their ERP software solutions.
Another major innovation has been the creation of ERP solutions for mid-market companies. ERP vendors leverage cloud technologies to produce ERP solutions that are more flexible and wallet friendly than previous iterations. By reducing costs and taking advantage of the cloud’s anytime, anywhere accessibility, these vendors make it easier for midsize companies to utilise ERP systems. In coming years, we will likely see more vendors competing in the midmarket ERP space, and therefore more companies who are able to use the new wave of mobile and cloud friendly enterprise resource planning systems.
Unfortunately, many ERP selection teams get pulled into a variety of directions, finding it difficult to apply the needed resources for effective ERP selection. This scenario occurs frequently, especially within mid-market manufacturing and distribution companies who lack a dedicated IT department.
Whether a company has outgrown its legacy system, is burdened with an unstable technical environment or is looking to better handle expansion into new markets or regions, the effectiveness of ERP selection has everything to do with the success of the eventual implementation.
We’ve found that establishing a cross-functional selection team is important, as is gaining internal consensus and participation from all parties. Another important aspect of effective ERP selection is taking a hard look at the current state of business processes, as well as the desired future and state. This means that teams must take their time and get a full sense of how the new ERP implementation can improve the way a business operates. Before vendor demos, organisations must focus on where they want to be, as well as developing a clear sense of where they currently are.
At Monpellier, we believe that ERP selection is a great way to drive real business process improvements and develop a clearer vision of future company goals. In general, we find the following guidelines useful for ERP teams:
We also strongly believe that businesses should focus on ERP vendors who tailor their systems to a vertical industry. In particular, manufacturers and distributors are wise to team up with an ERP vendor that has proven success in the company’s specific industry. For example, if your company is an aerospace supplier, you should seek out ERP vendors that address that specific industry, and learn more about success stories within the aerospace supplier field.
Distributors are also wise to seek out ERP systems that are tailor-made to their specific requirements. In general, companies should be sure that any potential ERP vendors address critical industry requirements including regulatory mandates, customer requirements and other key considerations.
For an effective ERP selection process, your vendor should also demonstrate a presence in the industry by providing you with recent references and a product direction statement that explains how the vendor plans to be an industry leader. There is no reason to force-fit an ERP solution into an industry for which it was not designed. Instead, take the time to assess which ERP systems have the features and functions that address your industry’s specific manufacturing challenges.
Many companies find it useful to shortlist the ERP software systems that most easily accommodate distinctive processes. Similarly, you should look for a flexible solution that fits with your existing systems. You may find it useful to talk to other suppliers, customers and ERP professionals that specialise in your specific industry. Get opinions and feedback on ERP software and how it works with businesses of similar size and requirements.
The most successful ERP evaluations and selections occur when a manufacturer or distributor is fully engaged in the process. In these effective ERP selection processes, the team puts the focus on transforming their business processes and achieving sustained business performance improvements. Effective ERP selections happen when the team takes the time at the outset to determine who within the organisation will participate, locates appropriate vendor and external resources and builds a solid plan.
Yet evaluation and selection is only one part of the ERP journey. We encourage the entire ERP selection team to see their project as more than implementing an ERP system. Instead, the project becomes an opportunity to implement business process improvements.
Want more information on ERP software, or want to discover how we can help you help your business? Get in contact with us here, or call us on 0191 500 8150 to speak to one of our friendly Business Software Consultants.
Although unpredictable, this has always been an accepted part of the business.
However, the damaging losses caused by too much safety stock, and subsequent stock obsolescence, could be better contained with strategic management of inventory. This is made possible by new technology.
Excess and obsolete inventory is costing the typical distributor 25% total stock value a year. These are unsustainable odds. The longer stock is on the warehouse floor it is likely to depreciate in value through damage, wear and tear, and expected obsolescence. It is also taking up space that could be used for more profitable product prospects.
While a retailer’s electronic point of sale (EPOS) data is beyond the remit of a wholesaler, both parties share a mutual goal: better profit margins. Cultivating better relationships and information sharing will lead to greater insight and more informed decision-making for both retailers and wholesalers. With enterprise resource planning (ERP) software, the wholesaler has access to data that is valuable currency for retailers. Similarly, retailers communicating changes in demand – rather than making predictions based on order history – have obvious benefits to the wholesaler’s management of safety stock.
Better knowledge of supply and demand is ultimately facilitated by a wholesaler ERP. The system has the capacity to analyse and process large quantities of data, not just across time periods, but in different sections of the outlet hierarchy (eg. pubs vs hotels), and in different sections of the product hierarchy (eg. wines vs spirits). If a retailer has a hunch that a new product isn’t causing the predicted excitation and returns, wholesalers can contribute to knowledge by evaluating its performance in other outlets and contexts.
In turn, building up a detailed sales picture of each outlet and the performance of its lines can assist the wholesaler in the management of their own inventory, leading to less stock lingering in darkened recesses of the warehouse. By strategising with the retailer, the wholesaler can more accurately plan what products will be needed, in what amount, and when they will be required. Identifying changes in demand before they are visible in the order flow avoids a multitude of problems. With reduced quantities or product lines, the complexity and cost of inventory management is also minimised.
Fostering good relations with retailers via insights and data is one thing, but ultimately retail buyers should have a strategic criteria for purchasing – many do not. Why should the wholesaler suffer the effects of the customers’ poor planning on its own bottom line?
Moving to systems that add value to decision-making and reduce the amount of money tied up in inventory is key to generating profits. Using a wide range of variables, ERP software can pinpoint information that allows the wholesaler to see trends and spending patterns. They can then analyse this, and in conjunction with their customers, use it to plan for the future. In addition to this, operational data harvested from sales and marketing teams can be used to make faster, more strategic decisions that directly benefit their business.
For those retailers that do not have a buying strategy, who they buy from is just as important as what they are buying. During a push to streamline or ‘right-size’ their number of suppliers, wholesalers need to ensure that below par customer service doesn’t stand in the way of their making the final cut.
Wholesalers should evaluate what they are offering their customers in terms of product knowledge, operational insights and industry best practices. With the help of the ERP, sales reps can make suggestions and recommendations based on information immediately available via the system. Not only will this improve customer service standards, but it will lead to a reciprocal relationship where the retailers look to the wholesaler for strategic planning help.
Technology can assist in strategic planning and minimising risk when it comes to inventory overstock. Live customer information gives reps an up to date picture of their customer’s account and can help to avoid – even reduce – bad debts.
The ERP can ensure that customers not only get the correct prices for high demand products, including discounts and promotions, but it can also flag up additional inventory that has overstayed its welcome on the warehouse floor. The sales reps are then empowered to pitch the overstock to the retailer for a keen rate. Sales reps can also be given the ability to change prices, within predefined limits, allowing them leverage to close each sale.
Whilst creating orders, sales staff can also view profit indicators for both the overall order, and for each product within an order. This helps avoid loss-making orders, and drive sales reps to suggest high-margin products, helping with overall profitability
They now have unprecedented capacity to transfer and process large quantities of data. They can use this to leverage better relationships with retailers, amend sloppy strategies that are bad for the wholesaler’s business, and form the basis of exemplary customer service. Importantly, rather than being caught up in the doldrums of daily operations, technology can set businesses free to pursue their strategic goals.
So, whether you feel like ERP would be right for your business or not, you do need to realise if your business actually needs an ERP system. Many organisations who are not using a fully integrated ERP system question whether the investment of time and money required to implement a new system is warranted. That’s a completely understandable point of view. You may be trading quite successfully to date using your old software system, however what benefits are you missing out on that you may not have been aware of?
Check out the list below for the four tell-tale signs that your business needs to implement or invest in a new system.
Take some time to think about how your staff are currently recording, tracking and processing information on a daily basis. Are your staff members logging into multiple systems causing a lack of efficiency? Are your accounting staff using one particular system for finance, and sales using another to enter sales orders? Are your employees in your warehouse using a totally different system to track shipping?
When businesses manage many business functions separately, many issues can arise. Some of these include errors in data, duplication of records, an overall lack of visibility into the business as a whole, and most importantly, a lack of communication between the different areas of the business.
Nobody wants to run an isolated business with each department functioning separate from the other. Collaboration between departments can be an extremely important factor for any business. ERP software is the key tool that will enable you to integrate your systems so that every department in your organisation relies on a single database. With one source of information that contains consistent, accurate, real-time data, an ERP solution will increase efficiency and productivity, help your staff make more informed decisions in less time and drives transparent communications instantly across all areas of your business.
If you find you are relying largely on gut-feel and instinct to run your business then delays in decision-making, errors and poor customer service are probably common place. The race towards faster, smarter business decision-making is won by organisations who can make immediate,preemptive responses to daily business demands. It’s all about information finding you so you don’t have to go looking for it. It’s about using the right tools to turn data into a meaningful resource enabling you to preempt, maximise and control every situation as or before it arises. If you’re finding out about issues after they have happened, then your system could be failing you and your business.
The way you run your business is often what makes you… you! It is not unreasonable therefore to assume your software system should enable you to maintain (and we believe enhance) your competitive advantage.
Unfortunately, some systems are too rigid to do what you want them to do. Customisation or configuration of an ERP system was historically deemed to be a negative with businesses pushed into taking out of the box ERP solutions and moulding their business processes to fit. It was a case of…
“You can have any colour you want as long as its black” – Henry Ford
Whilst certain legacy ERP systems still operate in this fashion, systems like Sage and Pegasus were created to ensure the unique business processes that allow companies to stand out from the competition could be accommodated in their system. The really clever trick is that the configuration capabilities within Sage and Pegasus actually enable businesses to customise certain elements of the software themselves.
Why is this a good thing?
It means you don’t have to rely on your ERP provider to make all of the changes you require, which is obviously a faster and cheaper solution for today’s modern business.
You may be trying very hard to run your business as efficiently as possible but could be struggling to bring disparate systems seamlessly together. Or you might be questioning your system’s capability to handle future growth potential or its ability to embrace new technologies such as mobile, e-commerce, business intelligence etc. Indeed, if your system is quite old it may be starting to creak making it slow and cumbersome for your staff to use therefore negatively impacting customer service levels. Technology moves fast, and the loss of efficient processes is a hidden cost of time and money that nobody wants. It redirects resources into maintenance instead of allowing you to focus that money and energy on solving real problems.
As software systems continue to develop and modernise, today’s businesses have become unrecognisable from those of ten or twenty years ago. While traditional ERP applications have served us well, their built-in limitations, aging capabilities and difficulties linking to third party applications have often seen them unable to evolve with changing business requirements. So be careful not to hold onto old technology which you might find, to your cost, can’t begin to keep up with today’s modern and flexible systems.
Want to discuss integration of a new ERP into your business? That’s what we’re here for! Either contact us here, or give us a call on 0191 500 8150 to speak to a Business Software Consultant.
Every business wants to get ahead of the competition and increasingly looks to innovative ways of achieving effective solutions that cut costs but retain a smooth-running, efficient organisation.
ERP is a software solution comprised of a variety of modules that link departmental data and information together with real time updates. Businesses can choose the modules most relevant to their needs and add more as they develop and expand further.
ERP enables its users to join up multiple areas of the business into one program and allows managers to have access to an overall database that covers client information, orders, invoices and figures. The users, who will require high quality training on the system, can update changes and then implement them in real time. Information is accurately stored and will not get lost across other applications or spreadsheets.
With industries constantly examining ways to cut costs but maintain efficiency, ERP can bring significant cost benefits to all sectors. Using ERP means that managers can make considerable reductions in costs relating to inventory and administrative mistakes. With information available to be exchanged across all levels, communications between all departments is made much easier. As each department is able to access a central database, the cost associated with multiple data centres is diminished, with both time and money saved.
Operating costs can also be reduced using an ERP solution. The program works to merge all aspects of the business into one central system, allowing businesses to improve their processes and cut down on waste or unprofitable areas. By increasing organisational efficiency, ERP not only helps decrease operating costs but can also reduce control and inventory costs as well as costs incurred in help desk support and marketing.
ERP can help managers as a strategic planning resource, allowing them to pinpoint their target market and define exactly what their aims and objectives are. In terms of day-to-day activities, the software gives quick and easy access for managers to get the information required for better decision-making.
With finance at the heart of every organisation, managers need to keep a close watch on how the financial department is operating. ERP gives management comprehensive visibility into the department’s performance, so the functioning of accounts can be viewed with full integration of business analytics. By keeping on top of the financial situation there are opportunities to boost organisation profitability and to improve financial controls and risk management.
The creation of a single system allows management to drill down to see how efficient and productive individual employees are, using precise, accurate data from each department. As a result, organisational performance together with staff efficiency can be increased.
When ERP is rolled out across an organisation, and provided it is implemented correctly, it has the ability to transform the operational, financial and human resources aspect of any business.
As you can gather from the above, companies at the forefront of innovation are looking to implement ERP to reduce internal costs, improve processes and increase efficiency across the organisation.
So, if you still need some persuasion that now might be the time you need to implement an ERP system, we’ve compiled 15 of the most common benefits of an ERP system that companies have reported after implementation.
It’s true that ERP software requires a major investment, but there’s also an even bigger cost in not making the investment. While some businesses choose to stick to the tried and true methods of the past, others seek technology solutions. Companies cannot afford to put off an ERP implementation while their competition invests in ERP and starts reaping the many benefits we’ll touch on below.
An ERP solution eliminates repetitive processes and make it easier and more efficient for companies to collect data, no matter what department they’re working in.
Enterprise resource planning software gives your users, and especially managers, the tools they need to create more accurate forecasts. Since the information within ERP is as accurate as possible, businesses can make realistic estimates and more effective forecasts.
Nobody wants to run a siloed business with each department functioning separate from the other. Collaboration between departments is a crucial and often unnecessary part of the business. With the data entered into ERP systems being centralised and consistent, there’s no reason why departments can’t work together. The software also touches on almost every aspect of a business, thus naturally encouraging collaborative, interdepartmental efforts.
Did you know structured ERP systems allow the addition of new users and functions to grow the initially implemented solution over time? When your business is ready to grow or needs more resources, enterprise resource planning software should be able to facilitate that growth.
No more issues with data spread across separate databases; all information will be housed in a single location. This means you can integrate platforms like your CRM software or EPOS with the ERP system, keeping data consistent, accurate and unique. Know your customer, their orders, and your inventory, all in one place.
With one source of accurate, real time information, ERP software reduces administrative and operations cost. It allows companies to proactively manage organisations, prevents disruptions and delays, breaks up information logjams and helps users make decisions more quickly. If you’ve chosen the right solution for your business, and the right vendor who meets your needs, you’re bound to see powerful ROI.
As companies grow, their operations become more and more complex. ERP software automates business operations cross-departmentally, providing accurate, real time information to everyone utilising the solution. ERP increases efficiency and productivity by helping users to navigate complex processes, preventing data re-entry, and improving functions such as production, order completion and delivery. Streamlined, efficient processes throughout.
An advantage of ERP solutions is having access to a centralised database from anywhere you work. Home, office, wherever, through cloud-based ERP software solution and application.
ERP software helps make reporting easier and more customisable. With improved reporting capabilities, your company can respond to complex data requests more easily. Users can also run their own reports without relying on help from IT, saving your users time to use towards other projects.
Save time and increase productivity levels. Sound too good to be true? It’s not with ERP software. By having redundant processes automated, users have more time to work on other pressing projects and tasks. They’ll also be able to work easier since the solution was designed for ease of use.
A benefit of ERP software which sometimes goes unnoticed is how it ties well into regulatory compliance within a number of different industries. Powerful ERP solutions will keep track of regulations within the industry and monitor changes in compliance.
Modern ERP software systems are robust, flexible and configurable. They are not a one-size-fits-all proposition but can be tailored to the unique needs of a business. ERP systems also can adapt to the ever-changing needs of a growing business, ensuring you won’t have to buy a new solution once your needs change or your business grows.
It’s easier to provide high-quality customer service using an enterprise solution, especially when you’re using one as well-equipped as some of the solutions out there, such as Pegasus or Sage. Sales and customer service people can interact with customers better and improve relationships with them through faster, more accurate access to customer’s information and history. You’ll also have access to marketing automation, ensuring your customers can be interacted with constantly.
Data security isn’t a worry when you have an enterprise resource planning solution in place. A new system will improve the accuracy, consistency, and security of data, all through built-in resources and firewalls. Restrictions to data can also be enhanced by managers of the solution, so you can make your own software as secure as you like.
Convinced? Ready to learn more or just to have questions? Contact us here today or call us on 0191 500 8150. Our Business Software Consultants are ready and willing to answer all your questions and help you get started on selecting the right solution for your business.
The purpose of the software is to assist businesses with managing daily activities such as manufacturing, project management and accounting just to name a few. There are many businesses that take on these types of responsibilities on a daily basis and either use ERP or could benefit from the software.
Whether you work in the healthcare industry, construction, or with an organisation, all businesses could use the help of a system that helps run a more efficient business. In today’s blog post, we will be discussing ERP software and how it helps to serve multiple industries.
One of the biggest reasons why manufacturing companies rely on this software is because it helps them to communicate information between different departments. Production, purchasing and accounting are some of the departments that need to be in communication with one another and are easily able to do that because of ERP software.
The software gives manufacturing companies effective communication tools between internal and external departments and suppliers. The software also enables distributors to keep their supply chain, inventory and cost under their own control, which makes them stronger competitors and their customers happier.
If enterprise resource planning is meant to assist businesses with their daily activities, the retail industry would be much different without the help of this software. Sales, payment, inventory management, shipping, tracking and marketing can all be controlled through the software.
Trying to handle the intricacies of managing a retail business comes with many details that cannot be forgotten and mistakes, both big and small, have the potential to become costly. It is important for retailers to consider their current needs and future plans for growth in regards to finding software that fits them perfectly.
Farming may not be the industry you think of when also thinking about ERP software, however it is a business that can benefit from the software. Growing crops on acres of land relies mostly on the weather, with the right temperature and enough rain, you can be successful.
Without it, you have nothing to provide customers. Where the software comes into play is that it provides an organisational solution for planning and tracking. Farmers are able to track information on specific parts of their land, which at a later date, helps to forecast earning potential.
In the healthcare industry, ERP can assist in many ways. It enables patients to be stored and transferred between different healthcare providers, so if the patient goes for a routine doctor’s visit, another hospital department or go to the emergency room, their records will be updated accordingly.
This completely eliminates having to manually write down patient information and storing them in filing cabinets. The software also helps the healthcare industry with managing its finances by keeping track of patient payments and the costs of supplies and services.
As you can see just from this short list, there are many different and diverse industries which are able to thrive with the help of enterprise resource planning software. Managing your business daily activities shouldn’t feel like a chore. Your business also deserves to function seamlessly without mistakes or flaws, which is why ERP is beneficial to any business and industry.
Questions that businesses ask themselves when purchasing a system range from, how much are we willing to pay? Will we require training? And even, the type of software that works best for the business. Another important factor to consider during the process of purchasing ERP software? Who will the consultant be? Finding a match can be an easy thing to do if you’ve done your research.
So, lets explore the features you should look for while searching for the perfect software consultant.
This one should be a given but searching for a consultant who knows the ins and outs of ERP software is a must. A consultant should be the expert, guiding whoever they work with through muddy waters and into a clear understanding on how the system works and the best system for your business needs.
Working with a consultant you want to know what services they perform, what they can do to help you plan maintenance and what the current scope of the enterprise resource planning software world is like. They should be aware of the current trends, but also know what is on the rise.
Working with an experienced company tends to be at the top of everyone’s list when searching for a company that implements software because it shows that they are trustworthy, experienced and highly sought after. Typically, businesses have websites or a portfolio that showcase their experience in the form of who they’ve worked for and how long they have been in the business of implementing software.
Consultants with experience should be able to provide references, have completed numerous implementations and prove themselves to be knowledgeable about the product and process. When searching for an experienced consultant, other things to consider are whether they have knowledge working with the business of your size and industry, which is our next feature to search for.
Enterprise resource planning systems tend to have specialised angles in an industry, so considering a consultant who is either in your industry of has industry specific knowledge is an important factor to keep in mind. For example, a manufacturing company has different needs, language and concerns than that of a retail store. You want to make sure that no matter the consultant you take on for ERP implementation, they are familiar with your specific needs and interests.
Once a system is put in place, that doesn’t mean the work is done. There is staff training to consider, as well as knowing that moving forward, software upgrades will have to be made. Does your consultant provide long term support? This is something to heavily consider, especially if you and your company are brand new to learning about enterprise resource planning.
Are you searching for a software consultant? This list is just a few of the things your business should consider when looking for the perfect match. You want someone who is knowledgeable about the software and your industry, as well a consultant with experience and knows of the current market.
Here at Monpellier, we could be that perfect match. To arrange an initial meeting to see how we can help you help yourselves, contact us here, or give us a call on 0191 500 8150 to get something in your diary!
Just about every business in any industry relies on repeat clients to keep business going, and that entails ensuring customers are satisfied with goods and level of service. But mid-sized distributors in particular may face some challenges that are unique to their business. Distributors are usually competing directly with much bigger companies that can get advantageous terms from suppliers and can get their hands on more resources.
As such, small to mid-sized distributors may find themselves charging higher prices and having less manpower compared to their competitors. Competing on price isn’t an option, so there are other ways that small to mid-sized distributors need to compete to attract new customers and keep them.
Since good customer service translates into good business sense, an ERP solution can give distributors the ability to attain higher quality interactions with both new and existing clients.
Here are some ways that ERP software can help improve overall customer service and inevitably increase sales.
Making sure that deliveries are on time is of paramount importance when it comes to customer satisfaction. An ERP system can help make sure that deliveries reach their destination when they’re supposed to. Distributors that make use of ERP solutions can provide distributors with on-time shipments just about every time because they eliminate inefficiencies.
In distribution companies, customer service representatives are the first people to deliver service to clients. It’s important that they’ve got the information needed to resolve any issues in a timely manner.
Having ERP software can help provide customer service reps with more power to offer pertinent details about a client’s whole experience with a company. These representatives can see all there is to know about a customer’s history, including payment methods, previous orders, and so on. This can help them provide customers with the answers they’re looking for, which ultimately enhances customer loyalty.
Customers can be better served by being offered the right value-added services at the right time. ERP solutions allows sales teams to be much more confident in the data they’ve got on customers because they can more closely rely on the information that’s stored in the system. With such information on hand, they can offer services such as special discounts that can boost sales.
These types of tools are essential to the success of small to mid-sized distributor companies. Monpellier offer customised ERP solutions such as Microsoft, Sage and Pegasus that can help improve customer service, make order processing more efficient and increase sales.
Now, you might be thinking ”does my company really need to implement a new ERP solution?”. Well, here are our top five reasons why you should:
ERP systems offer the chance to get the actual and real-time data about daily operations that help companies to plan their strategy professionally. An ERP is a wonderful system that not only saves on operational cost & administration cost, as we mentioned earlier, but very effectively systematises the operation. One thing that needs a special mention here is that with modern ERP, distributors deliver complete and on-time shipments 97% of the time, thus it has become a comfortable tool for distributors.
There is no doubt that any company would like to work on reducing the cost and time consumed in doing a particular job. And, ERP is one such system that consolidates all the information fed into its system across the multiple departments, thus acting as a safe storehouse.
The employees can use this wholesome information for various activities and expedite the process and make a faster decision that would be in the interest of the company. You wouldn’t want your staff to run here and there or call each and every colleague across different departments until they have found their exact piece of information, which could have been easily maintained in the system.
No company can just go on selling until and unless it has maintained the old customers and believes in adding the new ones. ERP, here too, acts as a guide that comes to the rescue of the company that wants to focus on the growth and customer service. Whether it is a simple query of a customer regarding the product availability or managing the inventory accurately, the ERP system has the entire information ready on what to do now or next. This is an impeccable way to move ahead in the competition.
A study came out in 2015 indicating that more organisations are going to go multi-site over the next few years. An increasing percentage of organisations are implementing an ERP system across multiple offices, warehouses and sites. Last year, 85% of companies implemented an ERP system at two or more locations.
A well-informed player is always confident and this applies to business too. A common system enables the decision maker to receive information and to gain a holistic view of the operations spread across various locations, thus having the ability to make better and quicker decisions.
ERP squashes the need for various other software, like CRM for different departments. So, it’s evidently better to have a centralised arrangement such as an ERP system that stores and updates the information in real-time and is helpful to each and every department for planning purposes.
With the constant flow of data being transcended into information for management, any aberration or issue can be quickly highlighted in real-time. Although most organisations begin their ERP initiatives with the expectation that they use the software as is, many are still making changes to the way the software was intended to be used.
Thus, companies planning to implement an ERP system for their day-to-day business should, first of all, undergo an evaluation to understand why and how they can use ERP at its best. The business should consider the technology and make a move in that direction so that they have a competitive edge over others. Using ERP can prove to be a healthy deal if used to its maximum.
For more information about implementing ERP systems, or if you think you are ready to take the plunge and would like to book a free consultation with us, contact us here, or call us on 0191 500 8150 to speak to a Business Software Consultant.
If not, this blog will explain a little about what to expect of this change in data regulation and how important having an ERP solution is in helping your business become fully compliant before the May 25th deadline.
The new regulation is a chance for you and your business to put into place steps to ensure clients and customer data is protected and that they have given full consent to being contacted by you in future communications.
GDPR is the biggest ever shake-up in how we collect and store the personal details of others in over 20 years.
The upcoming GDPR is not just an IT or software issue; it’s a wider legal responsibility that will affect everyone who collects and uses the personal data of others. GDPR may be the first time that businesses have had to think and evaluate the way in which their data is processed, and the truth is, there is no single piece of software that can manage this kind of compliance fully on its own. However, an ERP solution is ideal for tackling the upcoming GDPR, integrating your business systems and processes and encouraging a full circle of data sharing and availability.
Details of where data has come from, how long it will be held for and how it has been or will be shared, are just some of the questions you must answer, and evidence should you be challenged. Relying on multiple systems to cross-check this type of information raises the risk of data breaches.
A pivotal aspect of the new GDPR regulation is consent. Does the recipient of your communications consent to being contacted by your organisation? After May 25th, if you do not obtain explicit consent, you will be breaking the law. The right to be forgotten comes into play when individuals contact an organisation and request personal data associated with their account to be deleted entirely. Tick boxes to agree or disagree will no longer be allowed. Instead, communications must stipulate in full English how someone’s data will be used. Furthermore, the business must be able to demonstrate, when challenged, how and when a contact gave full consent.
ERP systems work by providing a central point for customer data. Contact records, history, email correspondence and additional notes provide the audit trail required to evidence consent for compliance.
Panic is sure to have ensued when GDPR was first announced, with many wondering how they will tackle their data before the deadline. However, when the dust settled, many realised the great opportunity the regulation provides in re-evaluating their business strategies.
As your payroll team deals with processing lots of personal data, payroll will be one of the areas of your business that will likely require its existing processes to be revised significantly for the GDPR.
When it comes to GDPR and payroll, here are 10 things your payroll team needs to do now to prepare for the new legislation.
If you currently have your personnel and/or payroll data in lots of different locations, say perhaps across a number of different Excel spreadsheets, then you need to pull everything together into as few locations as possible. Ideally, having this data in one place will help your payroll team to oversee it properly.
By adopting relevant rules and standards such as ISO27001 – which is a specification for an information security management system – you can make the implementation of GDPR smoother for your business, while also meeting some of the legislation’s security requirements.
It’s a challenging proposition when it comes to people management, but to be GDPR compliant, you need to consider lots of different types of data. For example, how will you securely handle and store timesheets? And what about emails or text messages from employees who are asking for holiday leave?
There’s also the question of how you will securely store sick notes – and likely other data you need to consider. Determine what data you have and start to create new processes for how you will securely handle and store it.
Do you leave printed payslips on the desks of your employees? When the GDPR comes into force, you will have to make sure they are given to employees in a secure way.
One solution that businesses are turning to is the use of online payslips, where employees can securely access them – they need to put a password in, for example, before they can see them. If your business is still using printed payslips, it might be worth considering following the online lead.
There’s not long to go now until GDPR comes into force – but there’s still enough time to get prepared. The date that the new legislation begins isn’t going to change and your system needs to be compliant. To make that happen, create a GDPR readiness plan so you can determine where data is stored and what new processes are required to be compliant.
If for any reason you can’t be complaint by 25th of May 2018, you need to make sure you have a documented plan in place so you can demonstrate that you have been working towards compliance. You will be at a serious risk if that isn’t in place and you’re not working to turn the plan into reality.
To make sure your processes and systems are GDPR compliant, an audit by a suitably qualified individual is a highly recommended step. Remember, there’s the prospect of fines of up to 4% annual global turnover or 20 million euros, whichever is greater, if your business is found not to be compliant – and doesn’t have a demonstrable plan in place that you’re working towards.
According to the GDPR, you need to make sure that data protection is a key part of your firm’s process of designing and operating policies, processes, products and services.
Certain types of businesses will need to appoint a data protection office (DPO) – who could be someone contracted from outside your firm or an existing employee. Those business examples include public authorities , firms that regularly monitor individuals on a large scale, and companies whose core activities involve the processing of special categories of personal data on a large scale.
The DPO will help you to monitor internal compliance, while also informing your business on its data protection obligations, and they will advise where and when necessary.
Your employees need to know what personal data of theirs your payroll team and business holds. Meanwhile, you will have to respond to subject access requests (SARs) and requests for their personal data to be either rectified or erased.
You do not have the right to refuse excessive or unfounded personal data requests, however you will need to demonstrate how they are unfounded in your compliance documentation.
You need to let your employees know what information they are entitled to as per the GDPR’s requirement for transparency and this must be done in a way that’s clear. Remember, you can’t use your employees’ data for a different purpose without notifying them. And you might need to offer simple functionality that allows your employees to opt out of the different ways you use their data.
Take the GDPR as a chance to push forward as a fully customer-centric business that champions transparency and demonstrates the value of customer privacy.
An effective ERP solution will be the first step in providing a single view of truth when it comes to your customer data and how you use it.
If you’d like to know more about how an ERP system can help you become fully compliant before the GDPR comes into effect this May, then contact us on 0191 500 8150 to speak to a Business Software Consultant.
From the first point of contact, you can manage prospects, convert prospects to customers, manage the customer relationship, report on their profitability and increase your business potential with them, all from one solution.
By streamlining your marketing activity and sales cycle, Opera 3 gives you the power to manage progression from prospect to customer. It helps make sure you never miss an opportunity or lose sight of a customer, and gives the sales team vital access to all prospect and customer information, even when on the road.
Once a prospect becomes a customer, you can continue to log activities such as mailings, conversations, tasks and promotion. Opera 3 CRM integrates with Outlook, Excel and Word so that you can manage your communications.
Seamless integration with Supply Chain Management and Financials eliminates rekeying and ensures account information is always close at hand.
Opera3 CRM makes it easy for you to generate specific quotations for a customer or prospect. You can also create tailored mailshots using contacts filtered by criteria or pre-defined groups,for more intelligent marketing. It analyses opportunities by referral method, type and competitor.
Features of Pegasus Opera 3 CRM include:
The ability to win new customers and successfully manage existing ones is an essential part of the business growth. Opera 3 CRM is an integrated end-to-end solution which can help your business develop more profitability and increase customer satisfaction by promoting long-term relationships.
The sales cycle can be a long and complicated process and it’s easy to lose prospects in the sheer volume of activity your sales and marketing people are generating. With Opera 3 CRM you can capture prospect and contact information, identify the opportunity and closure profitability and increase your business potential with them, all from one complete solution. Opera 3 CRM will help to streamline your procedures and manage the progression from prospect to customer, quote to order, so that you will never lose sight of an opportunity of customer again.
The ability to track opportunities and accurately forecast against them is essential to business growth. Opera 3 CRM builds a full, clear picture of your sales pipeline and the value of those opportunities broken down by owner, contact, referral method, sales type and area.
Plus, the powerful reporting ability of Pegasus XRL allows you to report on all aspects of the sales cycle and analyse any other area of the business using Microsoft Excel.
Once a prospect becomes a customer, Opera 3 can convert the record into a Sales Ledger account so you can immediately invoice or convert quotes to orders in Sales Order Processing.
The cycle is completes with the ability to continue to log activity such as mailings, conversations, tasks and promotions to existing customers in order to manage these more effectively.
When your sales team is out on the road, it is essential to be able to manage CRM data on the move. With CRM Remote, users can download prospect and customer data onto their laptop; they can process, edit and amend contact details and histories, then synchronise the changes back to the central office via the Internet.
If the above isn’t enough to persuade you to utilise all the features of Pegasus Opera 3 CRM, then keep on reading to discover the key benefits that Opera 3 CRM can offer its users:
If you would like to discuss Pegasus Opera 3 CRM in more detail, or would like to book a free demo, get in contact with us here, or give us a call on 0191 500 8150 to have a chat with one of our Business Software Consultants.
Despite this, there are several supply chain challenges that are faced with these management systems due to growing complexities:
Unfortunately, supply chain management systems cannot do all that companies may hope for. Be realistic about what can be achieved and research into how an SCM could help your business.
Customers want their products immediately and at a good price, yet this is not always possible and puts companies under a great deal of pressure to provide customers with what they want. It is not always possible for companies to create both quick and renumerative methods due to the demands of the chain.
Due to these demands, companies are often forced to collaborate with countries in which products can be produced at a lower cost. Despite this, delivery times take even longer, therefore may not be beneficial at all.
Increasing the customer base can be a hard challenge to tackle in order to expand distribution both at home and abroad. There are a number of factors to take into consideration when doing so, including trading policies, fees, and government policies, therefore is not always easy to get to grips with.
Most of the time, companies are unsure about what stock they own and confusion can arise surrounding whether products have been lost due to their SCM system not being as reliable as expected. Money can be lost easily through these false expectations as there is often too much stock to keep track of which as a result is not being sold.
There are many benefits of ERP systems which can manage supply chain management systems, ERP systems can integrate key information and reduce the hard work for companies by keeping them up to date from start to finish. Companies are expected to monitor stock and market products as well as many other time-consuming jobs. An ERP system offers an easier way to cope with these demands so that companies can get back on track and focus their attention on far more important matters.
Increased technology means that any disruptions within the delivery process can be spotted right away and therefore can be passed onto a customer immediately to avoid disappointment. It may be worth finding technical advice from professionals in the know. Technology should develop quickly over time due to advancements that are already taking place.
In order to sustain market growth, companies can make contacts to cut corners and ensure that their products can be delivered on time to a high standard. Ensuring that companies have top contacts in global locations ensures that they are working to find efficiency for long-term solutions.
In Opera 3 Supply Chain Management, Purchase Orders, Invoices, Delivery Notes and Statements can be batch created as PDFs and emailed directly from within the system using Supply Chain Management.
Integrate sales, purchasing and stock with financial management to automate the delivery of customer orders with effective stock management. Respond to demand for products and pricing quickly and effectively to maintain customer loyalty and customer satisfaction, and you have the complete control required to manage the supply chain management aspects of your business.
Designed to simplify the way you manage the stock requirements of your business. Sporting various costing methods, it tracks your stock movements – even across multiple warehouses. Quarantine warehouses can be used to inspect goods prior to them being moved into stock and you can also apply different cost and selling prices for each warehouse, allowing you to arrange your stock holding how you like.
Stock takes are an important part of maintaining the accuracy of a stock control system. Knowing that your stock levels are accurate means that you can take sales orders from your customers, confident that your delivery dates will be met. It also means that your stock holding accurately reflects your requirements so your purchasing and manufacturing decisions are made based on your actual stock positions. This reduces the need to hold expensive excess stock, improving cash flow and potentially reducing insurance cover.
Generate sales documents, applies customers’ special price lists, discounts and credit limits. Also provides back to back order processing facilities when circumstances dictate, as well as part-progression of sales documents. Allocation and picking provides even greater control over the sales and delivery cycle.
Generates purchase documents through to supplier invoices, whilst the re-order facility assists in maintaining and controlling stock at their optimum levels. Multiple supplier documents can be optimised, creating one document for progression to a purchase order. Matching of key receipts and supplier invoices back to the purchase order provides tighter control over stock and financial management.
Provides fast and accurate manufacturing information including work in progress, assembly structure detail, where used or assembly cost reports and batch/serial item location from works orders. It features automatic work order generation from sales orders, batch works order progression and a comprehensive enquiry facility. Assembly structures can be simple or complex, including sub-assemblies and components such as raw materials, labour or description only. The kitting function allows further flexibility by enabling works orders to be raised and receive the build quantity of the finished assembly into stock in a single process.
Knowledge of the purchase price and the landed costs is critical in understanding the true value of your stock. You need to know the total cost to set the selling price in order to determine your profit margin.
If you create a Landed Cost Type you don’t have to enter a default Value or Percentage; these fields can be left empty. The values can therefore be entered for these Landed Cost Types when stock is received.
When creating a Landed Cost Type it is also possible to assign a Nominal Account Code. The Nominal Ledger will be updated with these landed costs when transactions are posted against stock items which have landed costs assigned to them.
Within Opera 3 Stock Control, if an item is subject to landed costs then it is possible to assign up to four Landed Cost Types to that stock record. The sum of these Landed Cost Types will be the additional costs incurred when buying this item from a supplier.
For stock records, the Average or Standard Landed Cost prices are displayed together with the Last Landed Cost Price. This information is also displayed on each warehouse, if warehouse pricing is in use. The Last Landed Cost Price is maintained by the system and updated when stock receipts are posted.
When a Purchase Receipt is entered the system displays the estimated landed costs. Both the unit cost and the estimated landed cost are used to calculate the total cost of that receipt. The value of the landed cost can be altered by overriding the values on each of the Landed Cost Types assigned to that stock record.
A new Landed Costs report is available that displays the landed costs recorded when stock receipts were posted into the system. A Landed Costs Settings report displays information about stock items that have Landed Cost Types assigned to them.
The Stock Valuation report, Issues report and Record Sheet report now all display landed costs information, as do the Stock Views and Monitor Companies.
If you think that Opera 3 Supply Chain Management is the solution you’ve been looking for, or if you are after more information regarding accounting software and ERP systems, get in contact with us here, or call us on 0191 500 8150 to speak to one of our friendly Business Software Consultants.
Fully integrated into the Sales, Purchase and Nominal Ledgers, Cashbook and Payroll, Pegasus CIS conforms to the requirements and regulations of HMRC’s Construction Industry Scheme.
When you consider that the average construction project suffers 150% cost overruns and completes more than 175% late, there’s clearly a great need for software that can help you deliver projects on time and within budget – and transform your business.
Pegasus CIS recognises the complex business requirements of the construction sector, offering an unparalleled level of management control over contracts and subcontractors. It integrates with Opera 3, Opera II, Sage 50 and Sage 200.
Effective cash management can make a serious difference to the profit on a job. Pegasus CIS Job Costing captures all contract information across every stage of a job and makes it immediately available for analysis.
Each job can be divided into an unlimited number of Job Heads, each of which can be linked to nominal accounts for automated journals. Each Job Head will hold separate information on budgets, revenue and costs to date, allowing actual-to-budget variance analysis and reporting.
You can set up original and revised budgets, and budgets can be split across periods. You can also set up revenue budgets that can also be split across periods, allowing cashflow forecasting. All cost transactions are posted to a Job and a Job Head. Job Heads can represent cost categories such as labour or materials, each with an unlimited number of subheads.
If more detailed analysis on a job by job basis is required, you can make use of Job Phases (both for costs and sales) to represent the stages, variations or subsequent orders for a job. In addition, jobs can also be linked to a Project to give a further level of grouping and analysis.
This flexibility allows costs to be tailored in a way that best suits the analysis needs of your business.
A detailed audit file is held for all revenue transactions on a job, whether this is from direct invoices or from invoices generated via the payment applications and certification routines. You can also view and re-print any of the historic contract applications. If retention is held against an invoice or a contract, you can report on this and apply for the retention to be released on the correct date.
The system caters for:
A detailed audit file is held for all costs posted to each job. This information can be displayed per Job, Phase, or Job Head, which can be stored, filtered and grouped, giving instant on-screen analysis of all costs; this in turn can be linked to Microsoft Excel for further analysis.
The system caters for:
Costs are posted to a job as a detailed transaction with summary totals maintained at Job, Phase and Job Head levels. Flexible on-screen enquiries are available for all transactions.
Costs can be posted from the following sources:
Purchasing requirements for each contract can be controlled and monitored by raising purchase orders to a supplier. Purchase orders can be raised as a call-off against a pre-defined Bill of Requirements for a Job, from stock or generic material group, or as a free text descriptive item.
Purchase orders can also be raised to replenish stock, order external Plant or as a nominal posting for overhead expense. Purchase orders can require authorisation prior to being printed or emailed.
Purchase orders items can be sorted by criteria such as due date, supplier and job, making it easy to monitor what is outstanding against a job and when it is due to be delivered.
Purchase orders are updated as goods are received and invoiced, maintaining an accurate picture of committed costs against the job. The Purchase Invoice Register also allows you to allocate costs directly to the Nominal Ledger, as well as to jobs. Approved purchase invoices are posted seamlessly to the Purchase Ledger.
The system caters for:
The Contract Sales Ledger seamlessly links to the accounts Sales Ledger to access trading terms and to post sales invoices. Contract Sales maintains details of the current Applications (through valuation, application and certified values) as well as a history of all previous Applications.
For added flexibility, a Job can be set up in a particular currency and that currency will be used for all contract sales.
Each Payment Application controls current and cumulative Revenue Values, Retention and Main Contractor Discount. Applications can be classed as Interim, Final and Agreed Final Measure.
Cash received can be entered into batches and allocated to one or more Certificates. For Certificates, VAT can be taken into account at the time of a payment. For standard invoicing, VAT is recorded at the date of the invoice.
A complete audit trail of each Application and Payment is maintained, providing detailed aged debt analysis and reporting against jobs. Knowing when payments are due is critical to managing cashflow, whether these are from certificates, invoices or retentions that become due.
The system caters for:
The Subcontractors module can be used as an integral part of the cost-capturing functionality of the full Pegasus CIS solution. It can also be used as a standalone solution by contractors who only need to control their subcontractors more efficiently and ensure that they adhere to HMRC rules for the Construction Industry Scheme.
The Subcontractors Ledger combines the functionality of a Purchase Ledger with the regulatory requirements of HMRC Construction Industry Scheme. Pegasus CIS stores full information on the CIS-approved subcontractors, including details of their Unique Taxpayer Reference, National Insurance or Company Registration Numbers, Verification Status, and default Labour Rates to be used for Timesheet only subcontractors.
When engaging new subcontractors it is necessary to verify their tax status with HMRC to ascertain whether they are to be paid gross or net of tax, and of net, whether this is at the standard rate or higher rate. With Pegasus CIS, you can verify these subcontractors online with a simple click. Pegasus CIS will connect to the HMRC website and retrieve a subcontractor’s tax status and verification code quickly and easily. If you don’t intend to use the online service, this information can also be entered directly into the system.
Applications from subcontractors are processed in a register, so that incomplete applications can be included in management reports. Each application records current and cumulative values of net, gross, pre-VAT Contra, discounts and retentions, together with details of tax that is being retained against ‘Net’ paid subcontractors, Labour and material content is recorded separately, conforming to HMRC regulations.
A separate posting routine is provided for subcontractor invoices and timesheets. If the subcontractor issues timesheets for work carried out, these can be entered; the system holds details of labour rates for the subcontractor/job and applies these at the entry stage. This allows for rapid entry of timesheets, especially if these are split over a number of jobs.
Employees and their pay rates are entered in your Payroll solution and are accessible to Pegasus CIS so that timesheets can be processed. Timesheets are posted to the individual jobs and to the Payroll, so that payslips can be produced. These costs can be posted to the job as a net, gross or charge-out rate all with an optional overhead recovery percentage.
Linked to the Contract Purchasing module, Pegasus CIS Stock Control provides a powerful way to monitor stock levels and to allocate or issue stock to jobs. Stock movements are recorded in an audit trail, and costs are posted against each of the jobs. The stock system is multi-warehouse, multi-location and can be broken down into multiple categories and groups. You can assign multiple suppliers to a stock record, define alternative stock codes, maintain supplier price lists, and link Bill of Quantity call-offs to the Job record.
Pegasus CIS is a powerful, user-friendly data analysis tool, designed to retrieve information held anywhere in the system easily and quickly. List Views are provided throughout the system so that you can look at any data: your job costs, subcontractor payments, purchase order receipts, or any other area. This data can be stored, filtered, grouped and totalled to be displayed in the format you require.These Views can be linked to Microsoft Excel for further manipulation and saved for future use.
Pegasus XRL is one of the most powerful and flexible reporting tools you can find in the market today: it will transform the way you analyse your data.
Launched from within Excel, Pegasus XRL allows you to access directly the live data stored within Pegasus CIS. Any data stored in Pegasus CIS can be dynamically interrogated in Excel. This includes use of headers, details, subtotals and footer sections, so you can quickly apply Excel’s data manipulation techniques and diverse range of report styles, formats and printing options to your entire contract costing data.
Pegasus CIS has been specifically designed to give instant access to up-to-date information that allows you to manage your contracts. Knowing what is owed and when it is due and who needs to be paid when are critical issues. Pegasus CIS addresses these and many others as part of its effective management of your contracts.
For more information regarding Pegasus CIS, or to organise a free demo, contact us here, or give us a call on 0191 500 8150 to speak to one of our friendly Business Software Consultants.
Pegasus Opera 3 lets you take control of your business. Its enriched features allows you to get the full benefits of complex financial analysis on all your accounting requirements. From monthly profit and loss to KPIs, all in an instant. Your management reports can even be sent directly to Microsoft Excel for greater flexibility.
Financials are core to any business, whatever its size. With Opera 3, you can continually track your revenue when it is due. Equally important, it reminds you who you owe money to and when it has to be paid. You’ll find the visibility of your cash flow invaluable for your profit generation. What’s more, reports from the Financials can be output directly to MS Excel.
The Sales Ledger has built-in credit control facilities so that customer account information is all at your fingertips. And it makes revenue forecasting easy with the automatic calculation of average debtor days for both individual customers and your entire company.
You can email statements, copy invoices and debtors letters. You can view your sales information in a way that is meaningful to you, as Opera 3 offers Views that you can customise. And, of course, it caters for multi-currency and handles all your customer profiles and trading terms, as well as invoices, credit notes, receipts, refunds and adjustments.
The Retrospective Debtors report in the Sales Ledger produces a list of outstanding customer debts as at a date specified, aged according to the length of time the debt has been outstanding. For example, to rerun your Debtors report at 31 December 2017, you simply enter that date and the report calculates the debtors position at that time. The report can be printed and output to Excel.
With Opera 3, all your supplier transactions are thoroughly and securely managed from start to finish. Your cash flow is automated and improved with comprehensive cheque and BACs payment routines, email remittances (individual or batched) and the calculation of creditor days.
It gives you dynamic access to purchase information across multiple periods and you can view the information you need in the manner you choose.
The Integrated Purchase Invoice Register allows invoices and credit notes to be posted and remain in the register until they are authorised, giving you greater control over every document received.
Payment workflow is enhanced through BACs and cheque payment routines combined with email remittance. What’s more, with back-to-back processing to the Fixed Assets application, you can create an Asset record when posting an invoice to save rekeying information.
The Retrospective Creditors report in the Purchase Ledger produces a list of outstanding supplier debts as at a date specified, aged according to the length of time the debt has been outstanding. The report can be printed and output to Excel.
Nominal Ledger includes analysis of Account Type, Sub-Type, Cost Centre plus two further user-definable levels as standard, giving you access and in-depth analysis at transaction level for the past 9 years.
Get management information and reports from Financials, Supply Chain and Payroll & HR. You can apply budgets at all four analysis levels, for current or future periods and years, with full percentage variance analysis and reporting. You can even easily change your year start date and maintain your data integrity.
The Nominal Ledger offers the Open Period Accounting functionality. Transactions can easily be posted from other applications such as Sales, Purchase, Cashbook and Payroll into any open period of the last, current or next three financial years. Other applications post to the Nominal Ledger by either batch update or real-time transfer. Even mis-posted nominal journal entries can be reversed and rectified quickly and accurately.
With Cashbook you can post transactions directly from Financials, while the reconciliation function allows you to post unexpected entries, interrogate transactions and save incomplete reconciliations so you can finish them later.
With Opera 3 Costing, you can track job costs and revenues against budgets, and you can break down costs against a variety of categories including Labour, Contractor, Direct Expense, Stock and Interim Billing. Group jobs under contract headings or post against option phase, and stay easily in control. Any timesheets raised for work on jobs can easily be transferred into Payroll to update employee records.
Opera 3 handles unlimited currencies, exchange rates per transaction type and the calculation and recording of exchange rate fluctuations.
If you trade with the European Union there are complex VAT rules you have to comply with regarding the importing and exporting of goods. These rules can be hard to follow and failure to comply can result in financial penalties. To help you, these complex rules are automatically built into Opera 3 EC VAT to make it easier for you to trade in Europe.
You can define and maintain the information to produce the EC Sales List and Supplementary Declarations including country codes, modes of transport, terms of delivery, commodity codes and nature of transaction codes for Intrastat purposes. The EC Sales List can also generate an XML upload file for submission via the HMRC website.
If you are using foreign currency accounts, appropriate VAT rate codes for EC sales and purchases can also be set up. This application will then collect the information needed to produce the returns for trading with other EU member countries.
Keep track of your assets from the minute they become part of your company, right until you dispose of them. Opera 3 Fixed Assets will track their depreciation rates and maintain the correct net book value for them throughout their life cycle.
It caters for all types of assets, including Finance or Operating Lease and Hire Purchase or Lease Purchase assets. What’s more, the import routine makes it simple to import existing asset lists from a spreadsheet in bulk.
For more information regarding Pegasus Opera 3 Financials, or the Pegasus Opera 3 Suite as a whole, contact us here or call us on 0191 500 8150 to speak to one of our friendly Business Software Consultants.