The “frictionless innovation” of ERP (enterprise resource planning) is a game changer for small businesses competing with global behemoths like Amazon. Now that cloud computing brings ERP to everyone, which software is right for you?
Like the colour revolutions that swept through the Baltic states in the 2000s, cloud computing has had a democratising effect on enterprise software. No longer strapped down to expensive servers in your own data centre, high-end ERPs (enterprise resource planning), CRMs (customer relationship management) and marketing tools can be bought on monthly subscription, on demand, and used within your browser.
ERP software companies are pitching cloud ERP to smaller businesses that have created a solid product or server and are looking for a technology platform to support their growth.
With all this powerful software on tap, CFOs need to work out which is best.
The ERP buyer’s shortlist
Dr John Kapeleris, COO of supplements manufacturer ATP Science, went shopping with a shortlist of criteria. At the time, ATP Science was using Xero with a third-party inventory application, DEAR Inventory, to create wellbeing and sports nutrition products for the Australian and international markets.
However, the manufacturer – desperate to ramp up production – couldn’t obtain accurate costings of manufactured goods, and had to use a spreadsheet for material resource planning.
ATP Science’s first requirement was an integrated system that could handle finance, inventory, production planning, MRP (materials resources planning), dispatch and logistics. Inventory was a key function.
The ERP needed to provide key metrics through a dashboard so Kapeleris could maintain accurate inventory levels. The ERP also had to show manufacturing costs and profitability not just for the whole company, but individual work centres.
“We wanted to see how manufacturing is performing in terms of overheads and direct costs, gauging the efficiency of the warehouse and logistics team, and monitor in-full and on-time delivery of product to customers,” Kapeleris says. Further, the ERP had to include a CRM and customer service module so the company could respond to customer needs and requests.
ATP Science selected MYOB Advanced to replace Xero and DEAR Inventory, which satisfied all the required criteria.
In hindsight, Kapeleris says: “We didn’t ask whether the system was fully operational. The manufacturing component was still being integrated into MYOB Advanced and there were a number of teething problems. Also, we needed to be more detailed during the documentation of our existing business processes. We could [have] better aligned them with the system design and subsequently to the way that MYOB Advanced operates.”
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source http://news.statii.co.uk/the-erp-buyers-shortlist-which-software-is-right-for-you/
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