For business, ERP is a useful tool, but not universal. It should be implemented if:
You need to quickly get a consolidated report on the organization, and the existing software cannot cope with this. For example, several different programs are used that create reports in different formats, and you have to convert them into a single document. But ERP generates such reports automatically in a unified form.
The production process needs to be accelerated, but this cannot be done with the current level of planning, for example, due to the lack of a unified approach to planning the purchase of raw materials, production and sales.
It is necessary to establish interaction between philippines mobile database departments. Sometimes each department works with its own software, and this complicates data exchange. In ERP, all modules of the software package work with one database.
Financial operations need to be streamlined. Chaos appears where there are no interconnections in planning and forecasting. ERP assumes automatic debt control, forecast of financial flows, etc.
It is necessary to bring order to the warehouse so that logistics, production and trade do not work in isolation from each other. The system itself will combine the data, build a purchase queue and establish coordination between the warehouse and logistics so that there is no overstocking or, conversely, a shortage.
It is necessary to create a single database of clients, suppliers, employees. This should be done even where there is already software, because it is often used unsystematically.
Typical mistakes during implementation and methods for correcting them
Implementing ERP does not mean that the system will immediately start working and give the desired result. Due to the fact that employees do not always understand how to describe business processes, what can be automated and what the company wants to get, the implementation process is very difficult. Typical mistakes:
The company's business processes are only formally streamlined, but in reality there are no regulations that would clearly indicate what is performed and in what order, within what timeframes, and who is responsible for it. For example, some contracts are drawn up by the sales department, some by the accounting or financial department, and there is no clear distribution of authority between them. The system cannot work this way. Therefore, job descriptions must first be created that will be strictly followed (formally, they already exist in most companies, but only on paper). When business processes are structured, they can be automated.
The presence of old software is not taken into account. It is simply deleted or stopped using, as a result of which the data is either destroyed or the connection with previous periods is lost. Where possible, software and databases should be integrated with the new system.
Additional expenses are not included in the budget. Because of this, invoices are not paid on time, and the system implementation deadlines are violated. It is necessary to include an additional amount (at the level of 10-15%) in the budget from the very beginning, so that if the implementation cost increases, it would be possible to pay invoices on time.
Employees do not want to work with the system. Sabotage is usually associated with the fact that training has not been conducted. That is, the system is installed, but employees do not work in it because they do not understand it or do not want to learn independently. Sometimes the problem is associated with the fact that a strict deadline is set for training personnel, which causes rejection by the team. The manager needs to conduct explanatory work - to explain how the system will facilitate the routine, organize training without strict deadlines, with gradual implementation into practice.
Lack of a person responsible for the implementation of the system. In some cases, formally such an employee exists, but in reality he or she is either busy performing the main job responsibilities, or has been working for a short time and does not understand business processes well enough.