What exactly is an ERP System?
ERP stands for Enterprise Resource Planning. At its best, it’s completely integrated business-management software that an organization can use to collect, store, manage and interpret data from all their business activities.
ERP software creates a central spot for your organization to share data. One spot for data means all the departments can get to it easily. It also means there are not different versions of the same data. The best ERP systems have complete modules that track all business resources; cash on hand, accounts payable and accounts receivable, raw materials, production capacity, finished goods inventory and people. ERP software should also track business activities such as customer orders, purchase orders, work in process, and payroll. In summary, ERP facilitates information flow between all business functions and manages connections to outside stakeholders.
Tell-tale signs you need ERP software
There’s no single indicator that screams “You need ERP software now” or you need some cyber security consultant but there are a few common problems and frustrations we see that would indicate it’s time for your organization to consider ERP:
- It's taking longer and longer to reconcile financials at the end of the month.
- Your sales forecasts are based more on guesswork than solid figures.
- Your business is having trouble keeping up with its order volume.
- On time delivery % is declining and causing a decline in customer satisfaction.
- You have no idea how much inventory or if you have the right inventory for current and future sales
- You use several different independent pieces of software or spreadsheets that don't communicate with one another.
If the above sounds like business as usual at your company then you should explore how an ERP can help your business continue to thrive.
Featured ERP: Passport Business Solutions (PBS)
While the choices are wide and varied for the midsize business market, we have enough experience with small business ERP to recommend PBS is the perfect starter ERP for small manufacturers. With a short learning curve and implementation timeframe, businesses that are used to running on spreadsheets can now enjoy integrated, secure, information flow between department staff.
One of the things we really like about PBS ERP software is it allows an organization to start small and then quickly build on the success of the implementation. For example, you could implement their basic bundle and very quickly get a handle on inventory, product structure, customer orders and vendor purchase orders. A few months down the road, you could implement their Control Master Bundle and begin tracking work orders and job costing on the shop floor!
Centrend offers quality IT Support and is a certified partner of Passport Business Solutions and we’ve seen extremely impressive results it has helped companies achieve. On our Clients, you can read a short case study about one particular customer that realized a 35% reduction in inventory costs by stocking the right subcomponent and raw material products at the right time. At the same time, their on time delivery performance went from 75% to over 95% and continues to be in the 90’s to this day.
FAQ's
An ERP system is an integrated business management software that collects, stores, manages, and interprets data from all business activities in one central location. ERP system can improve efficiency, accuracy, and communication between different departments, as well as provide real-time data for informed decision-making.
Yes, by streamlining and integrating processes, an ERP system can improve on-time delivery performance by providing accurate information on order status, production progress, and potential delays.
An ERP system can improve inventory management by providing real-time data on inventory levels, tracking inventory movements, and identifying the right time to restock and prevent overstocking.
While the implementation of an ERP system may require an initial investment of time and money, it can greatly benefit a business in the long run by improving efficiency and overall operations. Furthermore, the implementation timeline can be shortened with the right ERP provider.
PBS is a recommended ERP solution for small manufacturers, with a short learning curve and implementation timeframe. It allows businesses to start small and easily build upon their success.