While you can’t control the outside forces disrupting your business, you can adapt your business to increase your own resilience.
The World Economic Forum says the magnitude of this unprecedented crisis has yet to be fully realized or manifested. Some of the impacts on businesses around the globe include supply shortages, increased prices, fulfillment delays, and reputational damage to brands.
Management by Exception
Modern ERP systems allow you to easily establish a set of business rules to monitor, be alerted when those rules are broken or deviate from specified acceptable norms, and enforce actions to bring activities back into acceptable ranges. Some examples and benefits include
- Budget: A Predefined budget is implemented for activities. If there is any deviation from the same, the concerned authorities can enquire reasons for the same and approve/disapprove instantly. This ensures projects, purchases, are completed within budgets.
- Authorisation: Set up predefined limits in terms of sales order, purchase order, service order authorisations. So authorizations are no longer required when it is well within the limits. Approvals only required for amounts above the specified limit. This makes the approval process extremely fast.
- Pending Items Review: Set alerts & notification for review of pending orders, payments, indents beyond a certain no. of days. This will ensure delay is avoided and approvals are timely.
- Deviations: When there are any major deviations e.g. change in consumption pattern, prices, price variance etc. alerts and notifications are sent to concerned authorities who can take immediate precautions or remedial measures.
Supply Chain Disruptions
Visibility into the operations of your business can make a big difference in results. Some research has shown that ERP software assists in providing a standardised view of business processes. ERP software has also been proven to improve information flow throughout the company, and can enhance collaboration with suppliers. Some examples include
- One issue can easily snowball into a catastrophe during a global pandemic or a similar “black swan” event. ERP software solutions are often used to provide visibility throughout the entire supply chain. This reduces the chances of widespread shutdown, as business owners can quickly find the point of disruption and compensate for it.
- A delay in one segment of the supply chain can easily cause delays down the line. An ERP software condenses and simplifies process monitoring and management, which allows for detailed order tracking. This helps you keep track of your delivery schedules, inventory, Bill of Materials (BOM), and more.
- Inventory management throughout the supply chain has always been a complex logistical undertaking. An ERP solution can include a comprehensive inventory tracking system. This will keep up-to-date information on available stocks of raw material and end products.
- ERP software can help you maintain an updated pre-approved supplier list that can be activated at any time. This allows your business to quickly switch suppliers when needed. Revision control will be critical, and can help businesses switch out materials for other alternatives when needed.
- Most importantly, ERP software generates insightful reports that allow you to analyse your successes and failures. These help you to look back on any segment of your supply chain, and make improvements to prevent large-scale disruption.
In the dynamic, often challenging landscape of the trading industry, leveraging advanced tools like ERP systems can make a substantial difference in your profitability. As competition intensifies and the market continues to evolve, the question isn’t whether you can afford to implement an ERP system, but whether you can afford not to.
About ACEteK – SAP Business One ERP System Partner
We’re an SAP Partner, with a long standing track record of successful SAP Business One ERP System Software projects, delivered on time and on budget. The ACEteK team has established its reputation, and differentiated itself from its competitors, by offering all its clients expert knowledge and advice, combined with a friendly, personal and attentive service.
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