Categories
ERP and other software blogs

Proficient way of choosing ERP software for Best results.

This Book I came across on the Amazon Book store, regarding ERP by Giancarlo Jimenez inspired me to put it in point form ,the steps and requirements for choosing ERP software for Best results.

This is not a technical article, nor a detailed exposition. For details I recommend you to buy the book on Amazon. (Put the keyword ERP Guide and select 2 nd book)

.Know your why? why do you want ERP software. One of the key reason could be working hard, but at the end of the day, not able to generate sufficient cash flow from the business which can be taken by the owner home as a reward for his/her efforts and risk.

.By using this software will I be able to automate processes which I have shortlisted as important and recurring.

Is the software able to accommodate the growth in my business transactions and is scalable.
Is the software able to give financial statements, and other accounting information in a timely manner.
Can we perform basic MIS like the creditors/debtors ageing list. The inventory quantity , it,s ageing list ( for what duration the product lying in stores), valuation and others.

These Benefits must be there for ERP software. i.).save time ii).Receiving data with useful information on time iii.)The reports generated should be transparent iv) Increase in productivity.
The points mentioned in the book for check list are as follows.
i.)Processes. ii).customization iii.)Industry specific requirements iv.)Platform. cloud or on premise v.)cost vi) tax code for India GST, TDs, and others. vii.) The export and import of files , emailing capability. For each point ask what we need and what the ERP has.

. The ERP software are Basically of 3 types which are either based on internet cloud or on premise).

i.)The Biggest players which have many features and are suitable for any industry. ii.) Industry specific for example ERP software suitable for FMCG. Retailers, shops, Manufacturers of durable goods. iii) Specifically designed for SME,s .

From the above points check out the comparison table of the various ERP software available in the market. (In the book an International ERP software vendors comparison table has been given)

.one can Increase the return on the ERP investment by doing the following.
i.)Clarify on why you wanted the ERP in first place. ii)The second thing is ask your team if there are limitations to the ERP and if there are, address them. iii.) The third thing is to share with your team the goals and what reports you expect to see in the ERP. Also set deadlines. iv)Finally, you need to request your team to learn how to use the ERP, and show you the information you need, by an agreed upon date.

The Author states that it is possible to give accurate information regularly and in the shortest period if one is diligent and does the work on schedule. for example reconciling Bank statements is easiest if done immediately after the week end, otherwise the purpose of the expenditure may be forgotten. The other things one must do are use ERP for recording all the possible transactions, rather than on different software, Register your sales on daily basis, pay only once in a week to all the suppliers, setting regular meetings for analyzing all the important accounts.
lastly ERP is only the first step towards organizing and controlling your company, along with receiving up to date, on time financial reports.

It is a necessary step, but not a sufficient one. You need proper systems and processes put in place to assure you that the information presented to you is accurate and represents your company’s reality.
For further details or question regarding selection and implementation of ERP software please contact me at connect@rahulmadhiwalla.website and cell. 8655843886. Please do read  Blogpost on ERP and why it is important on this Blog.

 

PS: If someone is interested in the Free and Paid Video Finance course by “Giancarlo Jimenez”the Author of the book mentioned above then please visit  The finance course link

cropped-RAHUL-MADHIWALLA-PHOTO.jpg
Rahul Madhiwalla photo
Categories
ERP and other software blogs internet based products

Don,t get foxed in the world of business. Read How.

I was doing Electrical and lighting business.The sales were good, because our marketing was efficient, and we had a good Brand. But as you must have heard the Story of Emperor,s new clothes, my situation was similar. Everything looked rosy from outside, but it was not so. I was not focusing on profits and even less on the cash flow my business was generating, because I did not have a good ERP (Enterprise Resources and Planning) system, and the things went from not so good to worse. The company went into a huge loss, and even the new funds which I had brought in later was not enough. If at that time I had given importance to tracking and monitoring the business, using a good ERP software, I would have immediately realised that not everything is smooth sailing and would have immediately anticipated the severe cash flow problems my business will face in the future.The present picture would have been totally different, though we are now taking corrective steps and bouncing back.

Categories
internet based products

ERP ( Enterprises Resources planning) 3 key benefits explained in a nutshell.

ERP ( Enterprise resource planning) is a software which integrates the Accounting, Human resources Planning, and productive assets utilisation in one unique complete seamless integrated business system.

ERP systems help improve productivity and profitability in many ways but the 3 key areas are as mentioned bellow. Examples of application are shared which may be simplified to elaborate on the concept and in reality may be more complex.

1.They reduce mundane,repetitive activities.

For example when an Enquiry is received from the customer. It is stored in the Erp system. Later the quotation is prepared from the system. Now the customer places order. It can be stored easily as it will automatically pick up the items from the quotation we have sent. Later the proforma invoice, sales invoice can all be prepared without repeating the items, but by simply picking up the entries from quotation sent to the customer earlier. There are many such methods by which the time and effort involved in preparation of the document is reduced.

2.The data is centralised which helps in making better decision.

Often the production module is integrated with the purchase systems, sales systems. If the sales order is received from the customer.Then the data of the item in the sales order, can be easily transferred to the purchase department, which then places purchase orders to vendors. i.e the procurement is simplified. Later when the company receives the materials from the vendor, it,s easy to check and also convey to the product department for unfinished material and sales team for finished goods. This in turn helps the sales team to invoice the customers for the inventory i.e is ready and required by the customer as the information is available in real time on the same ERP platform.

3.Best practices for business can be adopted with ease.

Earlier only large companies could afford ERP systems. Now due to advances in technology, the availability of the cloud platform, and software as service model (SAAS), the cost barrier is reduced and the benefits of ERP can be availed by a larger section of companies. The ERP system helps in developing best practices like the Purchase order sent by the company is properly authorised and viewed by Purchase officer, accounts department, owner management and so on. In absence of a robust ERP system such level of co-ordination is not easily possible in the time frames which business systems permit.

There are many more aspects to it, which we will touch upon in future articles. If you wish to know how a cloud based ERP system, with many functions of CRM (Customer Relationship Management) can benefit you, then please do email us rmadhiwalla@gmail.com, or tinkle at 8655843886.