What Is Enterprise Resource Planning (ERP)?

Enterprise Resource Planning (ERP) software systems are a combination of core business processes using an integrated database management system.  ERP systems track a variety of business resources such as finance and inventory management. As ERP software links system processes together, it leads to more accurate data and business efficiency.

Benefits of ERP Systems for Companies

Although ERP solutions streamline and manage business processes better, the ultimate goal of using an ERP system is business growth. With an efficient ERP system, a company can upgrade outdated software, enabling firms to strategize better business decisions for their future needs.

Precise Business Reporting

When you accumulate data from different departments, ERP systems have detailed reporting tools that will aid the company in daily operational tasks. When business processes are streamlined, everyone in the company will gain access to the same real-time reporting data. With concurrent and updated information in the ERP software, the company can collaborate simultaneously. The company’s secure data will be stored in the same database of the ERP system to streamline information from a single source.

Customer Service Made Efficiently

Using Enterprise Resource Planning software, first contact personnel – such as sales or logistics – can access customer information easily to provide better customer service for their clients. This efficient customer service advantage results in precise order accuracy, faster response times, and on-time deliveries.

Easily Manage Inventory and Costs

With an ERP system in place, the organisation’s inventory is updated automatically and synced with the system, making cataloging fuss-free and effortless. Real-time updated inventory assists the procurement process with vendors, companies will not have a surplus or shortage caused by too much or too little inventory.

This allows the company to have a balanced and accurate inventory without the overhead costs or lost business while concentrating on important areas such as customer service.

Effective Supply Chain Management

An ERP system enables effective supply chain management through robust demand forecasting and a balanced inventory system. This software solution is also able to reduce production bottlenecks and allow for stock transparency throughout the business.

Better Cash Flow and Savings

Using a combination of inventory and financial modules, a company can plan its finances easily. ERP software can integrate business processes like accounting and sales tools to enable better invoicing and financial collection methods for improved cash flow management.

Stronger Data Management and Cloud Security

A company would not need any additional software as all ERP modules work together to prevent a company from installing dangerous malware from suspicious sites. The ERP system also has dedicated security modules installed to prevent data breaches and hackers.

Improved Business Processes

In the long run, an entire ERP system will bring convenience to the company, automating various tasks, enabling smart workflows, and eventually gaining efficiency in daily business operations.

The Limitation of ERP Systems

ERP Systems are a Premium Product

The costs of an ERP system may be expensive due to the third-party software add-ins, implementation costs, maintenance, and continuous training. However, the benefits of regulating inventory costs and cash flow through daily businesses far outweigh the costs and will bring larger savings and enhanced business capability in the long run.

Onsite Vs. Cloud ERP Systems

The difference between an onsite ERP system and a cloud ERP system is the location where data is stored. Onsite ERP systems are stored on the company’s server and managed by the organisation’s own IT staff. Cloud ERP solutions are primarily a service that is managed centrally in an internet cloud where the Cloud ERP software is virtually accessed through a website browser or ERP mobile app.

Costs of Running Onsite Vs. Cloud ERP Systems

Onsite ERP systems are generally more costly as everything is managed in-house. There are running costs associated with owning hardware such as servers, software, and having dedicated IT staff to run its maintenance and daily operations.

Cloud ERP systems on the other hand are typically more cost-effective to run because the company only needs to select the modules it needs and run them through its intranet or secured internet. The cloud ERP software provider hosts and maintains all of the IT infrastructure, security, and continuity of the business.

The difference in ERP System IT Infrastructure

Onsite ERP systems can be fully customised, these customisations are tailored to the company’s hardware and company’s IT capabilities. However, they are not easy to install, upgrade or update. The constant inability to update causes most onsite ERP systems to become outdated quickly, in fact, two to three-thirds of mid-sized companies are running outdated versions of their ERP software. However, housing an onsite ERP system means they are fully customizable and more secure with the trust of the company’s own IT staff without any third-party interference on the premises.

On the contrary, most cloud Enterprise Resource Planning systems are easily purchased and enhanced by the ERP software provider to ensure a company has continuity – as most new versions and upgrades are constantly updated over time. Cloud ERP systems might not be as modular or customised as onsite ERP systems, but their applications are always the most advanced, latest versions of the software.

Although onsite ERP systems (depending on their configurations) are able to work offline, cloud ERP systems are also a lot faster as they are designed to work on high network loads. Be cautious of cloud ERP vendor security, be sure to look for a reputable ERP provider to keep the company data safe.

Varying Speeds of Deployment

The deployment of both onsite and cloud ERP software is almost the same. However, onsite ERP solutions require hardware and software installation that will take longer than cloud ERP software which can be installed via a simple, fuss-free installation.

Types of ERP Software Systems and Modules

At MSC Consulting, we offer several Enterprise Resource Planning (ERP solutions) for your Singaporean business:

Microsoft Dynamics NAV

Microsoft Dynamics NAV is a dedicated Enterprise Resource Planning software application from Microsoft, the product is part of the Microsoft Dynamics family. Microsoft Dynamics NAV is suitable to deploy onsite or in the cloud. This ERP system is designed for small to medium-sized businesses.

Microsoft Dynamics NAV includes the following modules:

• Financial Management and Accounting
• Supply Chain, Manufacturing, and Operations
• Sales and Service
• Project Management
• Flexible Deployment
• Business Intelligence and Reporting
• Support for International Currencies
• Manufacturing Management – Extended
• Customer Relationship Management
• Human Resource Management
• Project and Resource Management

Interested in Microsoft Dynamics NAV ERP System for your Singaporean company? Click here for a demo.

Microsoft Dynamics 365 Business Central for Business

Microsoft Dynamics 365 Business Central is part of the Microsoft Dynamics ERP solutions family and has both Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) capabilities. Microsoft Dynamics 365 Business Central is a business management Enterprise Resource Planning system for small and medium businesses that streamlines business processes and effectively manages a company’s business processes.

Microsoft Dynamics 365 Business Central includes the following modules:

• Microsoft Office 365
• Microsoft Dynamics ERP
• Microsoft Power BI
• Financial Management
• Artificial Intelligence
• Customer Relationship Management
• E-Services
• Project Management
• Supply Chain Management
• Warehouse Management and Inventory
• Increased Financial Visibility (Financial Management)
• Other Features (Analytics Reports, Job Management, and Reporting, Etc.)
• Premium Functionality (Extra Features: Service Order Management and Manufacturing)

Interested in Microsoft Dynamics 365 Business Central ERP Solutions for your Singaporean company? Click here for a demo.

Sage X3

Sage X3 Enterprise Resource Planning modules integrate all of the company’s business processes and information together in one single ERP software system and database. Sage X3 is affordable and suitable for medium-sized companies in various industries.

Sage X3 features modules such as:

• Accounting and Finance Management
• Manufacturing Management
• Purchasing
• Sales Management
• Inventory Management
• Customer Service
• Role-Based Workplace
• Document Management and Microsoft Office Collaboration
• Reporting and Business Analytics
• Workflow Automation and Alerts

Interested in the Sage X3 ERP System for your Singaporean company? Click here for a demo.

Sage 300

With a Sage 300 All-In-One Enterprise Resource Planning system, one can manage multiple locations, regions, languages, and currencies through various entities easily. Sage 300 ERP solutions are suitable for small to medium enterprises. Sage 300 has powerful support for accounting, sales, service, purchasing, and inventory management tasks.

Sage 300 includes the following modules:

• Finance Management
• Sales Operation and Project Management
• Purchasing Management
• Business Intelligence and Analytics
• Optional products and other applications (POS systems, Mobile Sales/Inventory, Process Manufacturing, Etc.)

Interested in the Sage 300 ERP System for your Singaporean company? Click here for a demo.

Recommended ERP Best Practices

Purchasing Enterprise Resource Planning (ERP) software is a major step for any organisation as most employees will likely be involved in using, managing, and viewing the system. Businesses with ERP systems will boost work productivity when equipped with ERP use knowledge, communication, and collaboration.

1. Establish a Strong Project Team

The company’s project implementation team to install, manage and maintain ERP software is the most crucial part of the ERP solutions process. The project team must be knowledgeable enough about ERP software, IT solutions and equipped with both the business and technical knowledge of the company. The project team needs a representation of all key business processes involved in the ERP system.

The selected team should also have synced Key Performance Indicators (KPIs), goals, and requirements for the ERP system to fulfill for the benefit of the entire company.

2. Organise the Project Management Workflow

Implementation of the ERP system might take up to a year or more in larger companies. It is important to organise the project management workflow to keep all parties informed. When planning the development of the ERP system, it is important to gather feedback or review the system as a team to meet all business prerequisites. The team also needs to keep track of the goals, technicalities, and timeline of the ERP system implementation.

3. Ensure Data Migration Security

Security is a major concern when migrating information to an ERP system, the team must carefully plan while migrating data without any data loss or corruption. A huge consideration for data migration is whether to manually transfer data or to use tools to automate the process. MIgrating data manually might be time-consuming, but the company can use this opportunity to clear obsolete information in the process. On the other hand, automation is a less tedious and faster process, but all of the unfiltered data will be transferred and needs to be reviewed afterward.

4. Prepare the Company for the New ERP System

Employees who aren’t in the ERP system project team will probably not know or understand how the system works. It might be an extra task that the team is undertaking but it is important to conduct training for the new ERP system or prepare a training deck for those who are inexperienced using the system. Employees unfamiliar with the ERP system can refer to their material when they are having difficulties using or troubleshooting the software.

The organisation can also consider having a company-wide support department or an online forum to help fellow employees out when they come across any questions or issues. The project team should still monitor the ERP system after implementation for any future issues or problems.

6. Gathering Employee Feedback

Getting other employees to feedback during the implementation is crucial to revise the company’s business goals aligning with the ERP system. During the review, the project team can also gain insight into how the ERP system can benefit and suit employees from different departments.

Types of Businesses that Benefit Most from ERP Systems

Some industries can have an edge over their competitors when they use ERP solutions, these industries are:

• Manufacturing
• Distribution
• Professional Services
• Construction
• Industrial Services
• Service Business
• Healthcare

Which ERP System is Best for Your Organisation?

Consider the company’s needs and budgets when selecting an ERP system, some companies prefer cost-effective systems and faster implementation while others prioritize data security.

With a plethora of various modules to choose from, remember to align the company’s business goals together while applying ERP best practices for your organisation. To learn more about our modern ERP solutions, speak to a reputable vendor about your business requirements, goals, and needs today.

An essential part of the Microsoft Enterprise Resource Planning software portfolio is Microsoft Dynamics Navision. The system has been devised keeping in view the requirements of medium and small businesses normally in supply chain and light manufacturing domains.

Pros of using Microsoft Dynamics Navision:

1. With the help of integration to other systems, like MS Office, Sharepoint, Dynamics CRM, the system can easily be used for designing business processing and different forms of inputs, also works best when traditional paper documentation is needed, i.e., purchase order or sales order.
2. For advanced level solution like PSA, i.e., Professional Service Automation, the add on can be added on to the core EPR solution to get vertical ERP solution. This consists of timesheet management, cost accounting resource management as well as inventory control process.
3. For reducing training time and cost as well as better experience of the desktop user, overall feel and look of the Dynamic Navision can be edited.
4. For midmarket companies, the ERP solution is an advanced management system which is highly valued, whereas for smaller companies it is said to have extensive range of functions. However, it requires less time for installation and is of high value for end user.
5. For offering ERP solutions for vertical markets, there are certain add on in the system which come with spread deficient functionalities as well.
6. There are some unique service management features available in the system which are best for providing after sales services and fulfilling customer demands. The warranty information is in line with inventory and manufacturing systems whereas service management helps in tracking contracts either at the location of the consumers or at internal location for scheduling jobs well.

Cons of Microsoft Dynamics Navision:

1. The life cycle of support services of Dynamic NAV is pretty limited. In case of overlapping functionality and advanced R&D, functions are absorbed in the Dynamic AX.
2. Despite of being user friendly and having easy to use, Microsoft has so far not developed consumer technologies. At the same time Enterprise 2.0 and business tools are pretty limited and access to mobile is restricted to just cross browser support.
3. TCO, i.e., Total cost of ownership of the advanced management system is higher when compared with the pack of business essential.
4. With the help of software customization, Dynamic NAV can very well be extended to get customized ERP solution, but it can increase the overall cost of ownership, maintenance cost, software upgradation cost and will become more time consuming as well.
5. There are number of third party add on available in the market for Microsoft NAV, but many come with overlapping facilities. Thus it becomes very time consuming to differentiate one add on from the other and evaluate the quality of the products.
6. There is an advanced feature for support of process manufacturing. Whereas for the purpose of using process based automation system for manufacturing can put entire ERP software in challenge.
7. Dynamic NAV doesn’t come with integrated business management system or automation tool. But using .NET it is possible to get yet another environment for development, such actions are very difficult to deal with.

Dynamic Microsoft Navision; Ideal solution for businesses:

Out of four main ERP solutions, Navision is one such business management system available in the market. Microsoft rebranded NAV in the year 2005 after doing some changes in the system, like Microsoft Business solutions, Navision Financials, Navision solutions and Navision Attain. ERP is the perfect business solution for all sizes of businesses, even for start-up and for those who have been operating since long. Certain key features of NAV are as follow:

• Phone sales
• Manufacturing
• Sales and marketing
• Point of sale
• Phone services
• HRM and payroll
• Supply chain and distribution management
• Analytics and business intelligence management
• Inventory management

Some features are explained in detail below:

Warehouse Management:

Since many Singapore consumers are moving towards online shopping with the number estimated to become 4.1 million in the year 2021, thus offering greater market for warehouse management systems. When Navision is used in collaboration with warehouse management, information regarding order time, inventory left over, delivery progress can easily be monitored. This will make it easier for businesses to keep track of inventory on hand or required. It will also help businesses to plan effectively and manage inventory management efficiently.

Business Analytics:

To track the performance of the business, analytics component as well as business intelligence system of NAV can help in better decision making for business. The available analytical tools by NAV are web based delivery, OLAP (Online Analytical Processing), graphic designer etc.

Financial Management Systems:

The core purpose of any business is to earn profit. Be it product selling or service provision, overall number of consumers and return on investment is what is calculated at the end of the day. Thus, since the start of the business it is important to have proper financial management system. With NAV financial management system, one is able to cash flows, account payables, analytical accountings, inventory management and general ledger.

Human Resource and Payroll:

For any business with higher number of employees, managing manual payroll is difficult. With NAV, all elements of human resources can be accommodated and managed effectively for small and large businesses. This will also increase the overall consumer satisfaction and ultimately productivity will also be enhanced.

Mobile Services:

In case of no mobile services, managing number of transactions manually can prove to be very costly for the organization. With NAV mobile feature, timely information can be accessed and managed using the mobile phone. Employees as well as management can track and make timely decisions due to synchronization of the systems.

Project Management:

In the absence of proper project management system, billing, budgeting and resource management system cannot be managed by any businesses. Even future projections, managing expenses and capacity planning can be effectively managed in case of efficient project management system.

For smooth working of the business operations, effective NAV ERP is the ultimate solution available for all sized businesses.

Contact us for a free demo today.