Implementing ERP Within a Company Also Comes With a Need For a Cultural Change

Recently there appears to be an increasedauditable accounting.
amount of interest in Enterprise Resource Planning- Reduce Operating Cost.
(ERP). Originally adopted by manufacturing- Facilitate day to day management.
organizations, its main focus was for the- Eliminate data silos by creating a single,
management and control of inventory. Since thencentralized repository of timely, accurate business
the functional scope of ERP solutions has grown,data.
and as a result so have the benefits and adoption- Enable more effective resource allocation and
by other industry verticals within the wholesalemanagement.
and distribution segment, including those withinWhilst these benefits mentioned are significant
small and medium enterprises (SMEs).they are only true benefits to a business if the
Typically organizations juggle several differentERP model is a good fit for the company. A
business applications to manage the intricacies ofparticularly good fit is for companies that need to
their business. But now businesses understandformalize their business processes and activates
that they need to stop wasting resourcesacross multiple departments. These companies
managing these multiple "silo" systems andare generally trying to deal with multiple versions
improve visibility for better decision making via aof the truth across the business due to their
single centralized seamless system.disparate systems. This prevents managers from
Most ERP solutions contain a range of modules tomaking good business decisions. An ERP solution
improve a variety of back-office functions,can help enforce good business processes and
including:consolidate the information to provide an accurate
- Financials & Accounting: includes functionalitycross departmental picture of the "state of the
such as general ledger, cash management,nation".
accounts payable and receivable, and fixed assetWhen considering an ERP solution it is advisable to
management.consider a single vendor solution that provides the
- Time & billing: includes features for billingflexibility and modularity of adopting the different
invoicing, time and expense management, andERP functional areas. Implementing ERP within a
Project/Job monitoring.company also comes with a need for a cultural
- Supply Chain Management: includes managementchange within the organization. A 'lets do it all
around Inventory and Order Fulfillment.now', otherwise known as a 'big bag' approach can
- Employee Management and Productivity: Humanbe a far too overwhelming transition and difficult
Resource Management, Employee Activityto manage. Just like any software implementation
Management and Administration.the solution will only be as good as the people
At a high-level some benefits that can bethat use it so user adoption is critical. When
expected from implementing an ERP systemevaluating ERP solutions it is just as important to
includes:consider the quality of professional services
- Improve decision making & strategicprovided by the vendor just as much as the core
planning.solution capabilities. The successful delivery and
- Improve productivity with greater visibility andadoption of an ERP into a company will enable the
more automated back-office processes.solution to perform to its full potential and provide
- Ensure accountability and compliance withgreat results.