Planning, controlling, monitoring – ERP systems are becoming increasingly important in the course of digitalisation in medium-sized companies. ERP solutions are at the heart of the digital transformation in the company and have an impact on all business processes. At the same time, ERP transformation projects present companies with numerous challenges.
ERP – what does that even mean? Behind the acronym is “Enterprise Resource Planning”, which can be translated as “operational resource planning”. ERP stands for software that is used in companies to digitalise all relevant business processes from A to Z and thus to manage and control the multitude of business transactions. Be it in logistics, sales or purchasing. Here, the right preselection, the professional system check and the correct configuration are decisive for the success and profitability of the ERP systems.
Not all ERP is the same
What they can do, what they cost: there are big differences in ERP systems. ERP systems consist of various modules which, if configured correctly, are tailored to all important company and industry-specific requirements. As with all tools, the same applies here: The market is large and the right choice is of central importance. After all, what is the point of the ERP system if, for example, only 20 per cent of it is used in the company? The system should cover the whole spectrum of what the company needs, but also not be “more powerful” than necessary to avoid unnecessarily high costs. In addition, the chosen package should also be used to its full extent and fit seamlessly into the internal processes and structures. That is why THE MAK`ED TEAM starts with a thorough analysis of the initial situation and the framework conditions during the ERP system check. In order to create a holistic infrastructure and a homogeneous IT landscape in which the ERP system functions smoothly and efficiently with all ancillary systems, it is important to tighten up the overview between the systems and processes. Which system interacts with which process? How can the system best be brought into which process? Which system is necessary? Which system is sufficient? Or how does the company get the systems into purchasing?
Here, a precise definition and a thorough procedure are the be-all and end-all in order to implement the catalogue of requirements in a customised and sector-specific manner.
Once implemented, ERP systems bring companies many advantages:
- Process optimisation: An ERP system leads to process optimisation. Various functions are integrated, many work processes are automated and thus become more efficient. This increases productivity and reduces errors at the same time.
- Resource management: With the use of an ERP system, the company gains the greatest possible transparency in the relevant business processes and transactions – this facilitates control and management. The company’s resources, such as stocks or employees, are always visible, which considerably improves and facilitates administration and planning. Staff planning can be optimised and materials management made more efficient. In the end, this noticeably saves costs and helps to identify bottlenecks at an early stage and to take targeted countermeasures.
- Transparency: An ERP system provides decision-makers in the company with real-time end data from all departments. This transparency provides an up-to-date and comprehensive overview and makes it easier to plan, control and monitor business processes in a focused manner.
- Customer satisfaction: With an ERP system, orders can be processed more efficiently. Supply chain management, customer service and on-time delivery are improved. Delivery times are shortened and customers are served faster and better. This increases customer satisfaction and intensifies customer loyalty.
- Compliance: Through improved control options, active integration into the ICS (internal control system as part of risk management) and comprehensive transparency on the basis of ERP systems, overall compliance in the company is improved and risks are minimised.
- Scalability: Companies change, grow or expand. ERP systems are scalable and can be flexibly adapted to these changes. In this way, they can meet the new requirements and support companies in their growth.
There are numerous challenges in dealing with ERP systems. They range from the integration of the ERP system into the existing processes and the total cost of ownership to data conversion and migration. Long implementation phases can cost the company a lot of time and money and also have a negative impact on business development. The success of an ERP transformation project stands and falls with the right selection and efficient implementation. THE MAK`ED TEAM supports medium-sized companies in their ERP transformation in an independent, professional and focused manner. There is no question that ERP systems are powerful – always when they are correctly selected, configured and implemented and fully meet the company’s catalogue of requirements. Not only today, but also tomorrow.
