As small and medium businesses (SMBs) accelerate their growth, they quickly encounter many of the same challenges with which larger enterprises are grappling. Poor visibility into operations, slow or inefficient business processes, and an inability to move fast to respond to a changing business landscape are just some of their issues.

The answer that most larger businesses embrace to these challenges is an enterprise application suite that allows them to manage every aspect of their business in an integrated way. Just like larger businesses, SMBs need technology that scales as they grow, helps them to streamline their processes, and enables them to maintain process discipline—all without constraining their agility.

Yet enterprise resource planning (ERP) software has a reputation for being too expensive, complex and feature-dense for the average SMB. The traditional thinking is that applying ERP to a small business’s challenges is a bit like using a flamethrower to kill a mosquito or unleashing a tsunami to put out a candle—an expensive, risky solution that may harm the business more than it helps.

However, ERP has evolved over the years, and many of the preconceptions SMBs have about ERP have become misconceptions. Indeed, one global IDC study shows that 92% of SMBs (those it defined as leaders that are outperforming their peers) use or plan to use ERP software. Let’s bust some of the myths about why ERP isn’t a good fit for SMBs.

Let’s explore the myths behind ERP

Myth #1: Not only is it too expensive, but the costs are too unpredictable

As the ‘e’ in the acronym implies, the first ERP software suites were complex, monolithic solutions designed for larger enterprises. They’d need substantial budgets for hardware, software licences, consulting and integration to implement an ERP suite. The complexity of the deployment meant that the costs weren’t always predictable. So many SMBs still think ERP is still just too expensive for them.

Reality: Today, SMBs can choose from a range of ERP solutions that are designed to be affordable for smaller organisations. They can opt for a software-as-a-service or hosted solution that enables them to pay a predictable monthly fee for their software. Total cost of ownership is kept low since ERP solutions for SMBs are designed to be low maintenance. Plus, today’s modular architectures mean ERP can scale and grow to meet an SMB’s evolving needs.

Myth #2: ERP takes years to implement

Many SMBs still think of ERP as a project that will take years to reach fruition, causing disruption to their business for 18 months or two years as they implement the software. ERP is associated with complex business reengineering exercises as well as extensive customisation and integration efforts. But is this still the case?

Reality: ERP best practices for companies of all sizes have come a long way over the past 10 years. And SMBs, especially, can benefit from ready-to-run cloud ERP built on the latest industry best practices. Proven tools and methodologies bring predictability to the scope and timeframe for an ERP deployment. It’s today possible to deploy an ERP solution in months or for simpler cases, even within weeks.

Myth #3: The path to ROI is long and uncertain

In a challenging environment, most SMBs are looking for quick wins when it comes to cutting costs, increasing productivity and driving revenue growth. Many perceive an ERP solution as an option that will take years to deliver return on investment (ROI), soaking up human and financial resources until they can finally go live with their platform.

¸éąđ˛šąôžąłŮ˛â:ĚýThe modular nature and flexibility of a modern ERP system means that it doesn’t need to be rolled out in a single, big-bang implementation. Companies can introduce ERP modules in a phased approach, using the features and functionality that address their most pressing pain points. They can expand the deployment over time, effectively using ROI from the earlier phases to pay for the later ones.

Myth #4: ERP is too complex for SMBs

ERP software packs in a lot of functionality, so many SMBs are concerned that it could add more complexity to their processes. Many also wonder whether the software will be too difficult for their end-users to use, especially if they’re implementing ERP after using Excel or simpler finance packages for many years.

¸éąđ˛šąôžąłŮ˛â:ĚýEase of use of ERP software has improved in leaps and bounds, with a slick user experience that will be familiar to anyone who has used a mobile app or cloud productivity tool before. While there are many features and modules available, the deployment can be tailored to the business’s needs. ERP makes life simpler because it eliminates redundant processes, breaks down data and business siloes, and reduces the need to work across multiple tools, systems and manual processes.

ERP is not just for big business

ERP can help businesses of all sizes to streamline processes, remove duplication of effort and enable the frictionless flow of accurate information across their operations. It’s an essential tool for any business aiming to achieve greater efficiency to increase operating margins, while leveraging improved insight to grow revenues. Today’s solutions enable SMBs to unlock the power of ERP, so they can compete with larger companies on a more even footing.

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When organisations are considering a new solution it’s usually because of the challenges they are facing with their existing system.

First, address the challenges within the organisation and how the chosen solution will overcome these.

The planning stage is critical as no-one wants to find out too late that there are issues in the business that the new system cannot address.

During the planning stage, speak to all key stakeholders in the business about their needs.

Once these have been mapped, researching solutions and comparing functionality will determine the best fit for the organisation – now and in the future.

The average lifespan for an ERP solution that is not updated regularly is about ten years, which is why it is important try and keep your system up-to-date.

51ˇçÁ÷usually releases a new major version of  every two years, along with patches that include innovations and meet the requirements of new regulations.

When researching a new solution, it’s important to ask questions about the product roadmap to ensure it is future proof.

How to choose the perfect ERP solution

Once a number of suitable solutions have been identified, find out more about how they work and how easy they are to use.

It’s also advisable to read customer testimonials. Download case studies and see how the solutions work in real life.

How to select an ERP implementation partner

When you’ve identified a solution that could work for the business, speak to experienced deployment partners.

Probably the most important decision to make when rolling out a new business management system, is who to choose as the implementation partner.

Culture fit is key. Find an organisation that shares similar values and that the business can work with into the future.

An implementation partner must be trusted and have the right skills to deliver the project. If something doesn’t feel right, it often isn’t.

Many growing businesses have never implemented a true ERP system before and they will rely on their chosen partner to lead them along the right path.

That’s why it’s key to work with somebody who has the right experience. Make sure that the chosen partner has extensive knowledge of your business and your industry.

Work with an experienced ERP vendor

Once the system is live, support is critical for any business that wants to maximise its investment in an ERP solution and avoid downtime.

Potential vendors must advise how long they take to respond to enquiries and close support calls. Speak to their customers and read customer testimonials. Customer retention rates are also revealing.

How to avoid ERP project failure

An ERP system implementation is rarely straightforward because no two businesses function the same on an operational level, nor do they have the same end-user requirements.

However, a powerful end-to-end solution, offering leading edge functionality coupled with scalability from generic to very complex business solutions, such as  can help businesses to innovate, grow and boost profits.

Projects usually fail when there’s conflict and a misalignment of goals and expectations.

Working with an experienced partner that has the right team with the right experience and, coupled with a proven implementation methodology, will help to avoid that.

It’s important to remember that each ERP project is different. There are no set timelines or schedules for these types of deployments, and a go-live date can rarely be set in stone prior to project commencement. Today, even the most successful businesses are facing significant challenges.

That is why we nurture partnering relationships with clients, which in turn instils a long-term, sustainable framework for building trust that translates into bottom line results.

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COVID-19 has placed greater demand on warehousing and distribution than ever before

To maximise profitability, supply chains need to be as efficient as possible. However, the COVID-19 pandemic has posed significant challenges for supply chains, exposing vulnerabilities and magnifying problems that already existed in the supply chain.

In the aftermath of this disruption businesses need to find ways to make their supply chains more resilient, collaborative, and networked with customers, suppliers, and other stakeholders.

Optimised MRP

Warehousing and distribution are integral parts of the supply chain management system. In both manufacturing and buy-to-sell businesses, Material Requirements Planning (MRP) enables companies to plan material requirements for a manufacturing or procurement process based on the evaluation of existing inventory, demand and changing planning parameters such as lead time determination, make or buy decisions, and holiday planning.

“Storing excessive materials or goods ties down capital and limits the ability to react to changing conditions,” says Heinrich de Leeuw, Managing Director, Seidor South Africa. “With 51ˇçÁ÷Business One MRP we enable businesses to calculate requirements based on existing inventory, sales orders, purchase orders, production orders, forecasts, and more. We implement MRP in a way that provides structure, but is still flexible, creating that vital balance between supply and demand.”

Benefits of WMS (warehouse management system)

51ˇçÁ÷Business One, coupled with advanced WMS, also enables companies to drive efficiency in the supply chain with optimised warehouse management. “The WMS transforms logistics processes into operations that drive productivity and profitability in the supply-chain,” says De Leeuw. “It supports multiple warehouses and operators, processing high volumes of transactions. Whether it’s simple inventory transaction processes, or customer focused inventory allocation strategies, the WMS manages batch attributes, and complete backward and forward traceability.”

Inventory management made simple with 51ˇçÁ÷Business One:

1. Scan Goods at the Warehouse on Arrival and Departure

Scanners connected to the internet scan items within the inventory and get detailed information about its movement. That information is displayed across every system connected to 51ˇçÁ÷Business One within the business.

2. Integrate Accounting, Warehouse, and Production Management

Even using disparate solutions which manage separate departments in the business, 51ˇçÁ÷Business One can connect each one seamlessly, so that data is syncronised in one easily accessible dashboard. This is ideal for businesses that require in-depth insight to every single process, from financial, accounting, and production data.

3. Use the Dashboard and Forecasting

Whether wanting to see a portion of data or the whole picture of the business, warehouse, or distribution centre, 51ˇçÁ÷Business One allows for the search and filtering of data. With General Overview in the web client, sales, inventory, gross profit, open sales, and more can be seen.

4. Automate Sales Order Entries

51ˇçÁ÷Business One could automate the entire order process, linking sales orders and inventory data in real-time. Any device, can easily be used to check if orders can be fulfilled and that enough inventory remains. When an order is received, the system scans the items within the warehouse. Once the order has been packaged and shipped, the data is registered with 51ˇçÁ÷Business One, making inventory management less time-consuming and more accurate.

5. Integrate Warehouse Solutions to the Courier or Freight Service

By integrating applications for the chosen courier or freight service, most of the delivery process can be automated, giving up-to-date tracking information, and ensuring packages reach the customer.

6. Ensuring Appropriate Stock Levels

51ˇçÁ÷Business One can assist with purchase planning, so that reminders can be set  to reorder a product when necessary. Detailed reports also highlight what is needed and when, which ensures sufficient time to order and receive the product before running out of stock.

The warehouse management system offers improved functionality to help manage detailed warehouse data, track and record stock movements, and execute production orders, inventory and management. Where necessary, 51ˇçÁ÷Business One could be configured to easily integrate into suppliers’ third-party systems.

“The software monitors every change and consistently updates costs and quantity. It eliminates the need for manual inspection and reduces accounting errors. It also enables users to roll out warehouse mobility; employees can use smartphones or tablets to access 51ˇçÁ÷Business One from anywhere. It is easy to extend capabilities to mobile salespeople so that they can prepare quotations and capture order on their devices, and proof of delivery is paperless.”

De Leeuw says that Seidor Africa recently won a proof of business case to develop an IoT-based stock management system. This solution is in the pipeline and is seen as a key milestone for Seidor Africa in the journey towards the intelligent enterprise.

Looking to the future, warehousing will have to manage unpredictable demand. Using a combination of material handling technologies and software solutions, they can more easily handle peaks and drops in order demand, so that managers can forecast and schedule all resource needs, making business more resilient.

“Warehouse automation has been gaining traction for years,” says De Leeuw. “COVID has sped up its adoption. As warehouses cope with adjusting inventory counts, making space for work in process, and speeding up order delivery, more businesses will turn to automated storage and retrieval systems to help improve their efficiencies.”

The post Creating a Productive, Responsive Supply Chain appeared first on 51ˇçÁ÷Africa News Center.

Although the full impact of COVID-19 on supply chains remains unknown, what we do know is that the economic and financial ramifications will be felt across global supply chains. There is no doubt that the ongoing digital transformation of industries will be accelerated as a result of the current crisis.

According to a report by Deloitte, “Covid-19: Managing supply chain risk and disruption”, some companies are better prepared than others to mitigate the impact of the pandemic and respond to this event, but others are scrambling. “These companies are overly reliant on a single geography or a single supplier for key products.

“They don’t have enough visibility across the extended supply network to see their risks. They don’t have the systems to understand their inventory status, to project stock-outs of direct materials and optimise production, or to project stock-outs of finished goods to optimise customer allocation, and they don’t have flexible logistics networks to ensure the flow of goods in a profitable manner.”

Right now, supply chain leaders would be wise to quickly change how they do things if they want to overcome the challenges that arise from lack of visibility, collaboration, and coordination. The need for more automation and information is an opportunity for manufacturers. In the wake of COVID-19, companies still need human workers to manage the supply chain, but they also need to evolve their businesses into digitally intelligent organisations that are equipped to drive efficiencies throughout their business processes.

Looking to the future, ABI Research forecasts the supply chain impact of COVID-19 will spur manufacturer’s spend on enterprise resource planning (ERP) to reach $14 billion in 2024. While many ERP platforms include modules for inventory control and supply chain management, in light of the outbreak, many manufacturers will also turn to specialist providers.

It’s a journey that begins with an extensive due diligence process as these organisations need to understand their risk exposure, including the operations of their supplier’s suppliers too.

To help our customers discover what it means to be a digitally intelligent organisation and drive efficiencies throughout your business processes, Seidor Africa, which represents 51ˇçÁ÷Business One in South Africa, can enable companies to build a more productive and data-led business.

It’s an opportunity that offers several key benefits:

1. Business will gain access to the real-time, reliable business information it requires to align components such as stock levels (in-stock and “on order”) with customer orders (current & back-order) and accurate delivery schedules.
2. Moving from a reactive, back-capture methodology to continuous manufacturing process where material consumption, stage updates and quality control data is entered real-time on the production floor will aid accurate stock management, replenishment, and efficient order fulfilment. Continuous manufacturing and the electronic tracking thereof are also key to identify any potential inefficiencies in certain production lines or phases of production.
3. Providing sales reps with the ability to view pricing, stock availability and place orders in real time from their mobile or tablet while in the field or with a customer, through 51ˇçÁ÷B1 Mobile Sales application integrated to 51ˇçÁ÷Business One. Having these orders added to the manufacturing and subsequent delivery cycle automatically, will provide an invaluable advantage for businesses in the supply chain industry.

Although COVID-19 illustrates how many companies are vulnerable to global shocks through their supply chain relationships, technologies such as 51ˇçÁ÷Business One are available to improve visibility across the end-to-end supply chain and support greater supply chain agility and resiliency.

Digital supply networks like these are being built and designed to anticipate disruptions and reconfigure themselves appropriately to lessen the impact of events. They will enable the digital supply networks of the future, regardless of industry sector.

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