How Companies in Singapore Have Benefitted from ERP Solutions
Enterprise Resource Planning (ERP) is used by companies, especially large enterprises, to help in the management and integration of the various parts of the business. This makes it easier for management to keep track of every department in the organization, while at the same time help employees that rely on other departments to easily get the information they seek. ERP solutions integrate various computer systems including planning, sales, marketing, inventory, procurement, accounting, human resources, risk management, compliance, and so much more, depending on the structure of the organization.
Singapore is the financial hub in the Asia Pacific region and is also one of the most advanced economies in the world. The economy is primarily driven by the export of electronics and machinery, tourism, and financial services. It also has the world’s busiest cargo seaport. For these sectors to perform as well as they are doing, the systems need to be efficient.
Accurate record keeping
All businesses rely on data for every decision made. Inaccurate information would naturally result in wrong and poor choices that could prove detrimental to the company. ERP software will automatically detect errors and inconsistencies in the data.
The business intelligence tools and real-time analytics are designed to analyze the information, and look out for irregularities in the database. For a company to plan on marketing strategies, it needs to know if it has the funds and how much can be set aside for marketing. An ERP solution ensures that all the information available in the other systems is captured and integrated to be easily and readily available to concerned parties.
Reduction in operational costs
Time is of the essence in all businesses. For example, a marketing campaign needs to be done at the right time if the right outcome is to be achieved. The ERP software merges processes across the various departments in order to save costs. This way, the marketing department can anticipate, for example, any problems from the accounting or procurement department. Delays can prove costly for a business. For instance, if the procurement department has not bought the items needed for marketing or packaging, the delays could prove costly.
Ease in sharing information and communication
Since various departments in an organization rely on one another, the information sharing process across the chain needs to be seamless. The ERP software allows the employees of the different departments to communicate and to share relevant information easily. This doesn’t just keep everyone involved updated on the steps taken by the rest of the departments, but it also boosts productivity in every stage a product goes through before it reaches the consumer.
For example, in a manufacturing plant in Singapore, those in production need to have an inventory of the raw materials. This way, they can relate the available raw materials against the anticipated output. If there is a shortage, they will immediately raise the alarm so that the products are procured to avoid time wastage. Likewise, the employees in the warehouse need to keep the production department posted on the products in storage to prevent shortages or consumer disappointment.
Remote access to company information
It has become paramount for employees and those in management positions of companies to access information at any time and from anywhere. This is because there are times when decisions need to be made even when one is out of the country or even on vacation. ERP solutions ensure all the systems are integrated and available to those who have access to the information wherever they are. Cloud-based ERP software helps companies to maintain their momentum and productivity even when core members of staff are away from the company at some time.
Protection of data
When the cloud software system was first introduced, many companies were worried about the safety of their database. However, over time, it became evident that data was safe, and more companies came on board with the use of cloud as part of their operations. ERP solutions are equipped with firewalls, ransomware prevention, and restriction controls to ensure the data is kept safe and only available to authorized personnel. Any attempts by anyone prohibited from accessing information will immediately be detected, concerned parties alerted, and insights on how to proceed after such unorthodox attempts by unknown sources to access company data.
Although it is great to have employees who work with minimal supervision, it is still vital for management and business owners to keep track of how the various departments are functioning. It is easy to identify an ailing organization early through close monitoring of the productivity of the various departments.
When employees know their productivity is easily measured by the performance of the department, and that it is done at any time, they will ensure they are always at their best. This means all the information is inputted at promptly, and follow-ups done by the concerned departments as required. At a glance, management can see and evaluate what is happening in the sales, accounting, human resource, procurement, and shipping departments.
Standardized business procedures
Without a standardized system, it is easy for one to overlook particular steps that are sometimes considered unnecessary in the business structure. Unfortunately, without a specified format, what is deemed necessary is relative. To avoid having a broken system, ERP solutions are designed and can be customized to suit the needs of the company. For example, once products are sold, the system automatically removes the number of items from the inventory. The accounting department verifies and confirms payment, and the same information is passed to the shipping department.
ERP solutions vary, depending on the size and type of business. Most are scalable, and can be adjusted to include the changes a company undergoes as it grows. Startups may find the cost of ERP prohibitive, and possibly an unnecessary cost to incur when the business is just starting. However, many startups fail within three years due to poor planning and the absence of financial management systems. Having a system that keeps track of all the accounting, sales, and inventory will help business owners to start making radical yet timely decisions that could save the business
For more information on ERP, do visit https://en.wikipedia.org/wiki/Enterprise_resource_planning