What is the best practice for ERP systems?
Enterprise resource planning (ERP) software solutions, whether cloud-based or on-premises, enhance business operations, but unsuccessful ERP implementation can lead to failure. Learn the best practices to implement an Enterprise Resource Planning system in your business.
ERP is a form of business software that is designed to record and manage business data. Using ERP systems, businesses are able to streamline processes across all departments, improving productivity throughout.
Successful ERP implementation
As ERP systems have developed, they’ve grown to include functionalities for manufacturing, procurement, human resources…and many others. The success of the system rollout depends on partnering with a reputable supplier and ensuring effective implementation of the ERP software. Here are some techniques to ensure your business benefits from ERP.
– Assess all business processes
Before even considering an ERP system it’s important to get a thorough grounding in all processes of an organisation. During this evaluation, it’s also vital that you determine the priority processes and outline long-term goals.
Part of the assessment will include the review of all existing data to ensure accuracy, before transferring it onto the ERP system. Data is often stored across a variety of platforms, so it’ll take time to update any outdated details, edit inaccuracies, and remove any unnecessary information. Once this complete list is ready, it can be migrated across to the ERP.
– Team cohesion
In every organisation, there are those that embrace transformation, while others feel more comfortable in routine and tradition. When it comes to implementing an ERP system, you’ll need to determine a way to get everyone on the same page. By providing the necessary motivation and assuaging any concerns early on, your ERP system is more likely to succeed.
Investing in training
Part of team cohesion is the reliance on training. ERP systems are only as effective as the people using them, so investing in training will result in a more productive system and boost profits.
– Proper installation
The application developer will install the ERP software, as well as building the infrastructure. However, this provides you with a great opportunity to decide which operations you want to automate, and which business processes you’ll keep manual.
– Establish Key Performance Indicators (KPIs)
You’re going to need to assess the performance of your ERP system by first establishing KPIs. Once the ERP system has been successfully implemented, the KPIs will help you quantify the impact of the software, how it can be adapted, and what benefit you will get in terms of ROI (return on investment).
Test the ERP system
As part of the KPI assessment, you’ll perform a system test with end-users trying out all the system capabilities.
How to improve the ERP system
Once you’ve implemented an ERP system, you’ll want to ensure best practice by constantly improving where you can. Here are a few tips on how to continue optimising ERP.
– Ongoing employee training
As employees enter a business, they’re often not fully versed in how a system works. They may understand basic operations, but don’t know why they work as they do. Make sure every new employee gets a solid grounding in the ERP system.
– Consolidate with ERP systems
With ERP systems constantly updating functionalities, it’s likely that the system will continue to meet your growing needs. Check with the provider what new features are on offer, and how they could work with you.
Key issues in ERP implementation
We’ve given you some technical insight into ERP system best practices, but there are also some ERP system mistakes that you might want to avoid.
- Choosing the wrong ERP software: There are many ERP solutions on the market, tailored to a number of different industries. You’ll need to partner with an experienced provider who can offer an ERP system for your unique needs.
- Budgeting errors: You must account for the financial costs associated with ERP systems so that you’re not overwhelmed.
- Assign a manager: Ensure there is a clear line of communication between an appointed individual in your operation, and the ERP provider. This way, any system changes or operational queries can be easily communicated.
How does an ERP system enforce best practices for an organisation?
Once effectively implemented, the end result of the ERP system is the best practice for any organisation. By streamlining operations, collating and storing all data centrally, the ERP system will ensure best practice across various operations, including:
- Finance, accounting and eCommerce
- Point of sale (POS)
- Human resources
- Production management
- Customer relationship management
- Business intelligence
- Warehouse management
- Inventory and supply chain management
By partnering with a reputable ERP system provider, you’ll be implementing a software solution customised for your needs. They should offer sufficient support, as well as comprehensive training for all staff.