HOW ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE CAN INCREASE PROFITABILITY FOR YOUR PRODUCT-BASED BUSINESS

May 5, 2022 – Enterprise Resource Planning (ERP) as a Strategy for Product-Based Business Growth

Product-based businesses produce, sell, and stock a vast array of products across multiple locations. The traditional way of operating a product-based business often results in great complexity. Processes such as stock levels, stock location, suppliers, and pricing each create their own data streams and data stores. However, data may not flow freely from one division to another. In addition, there are usually a lot of manual steps involved in each process.

Therefore, when the company starts to expand, the inefficiency caused by separate data stores and manual ways of operating can reduce profitability. Therefore, the slowest performing division hinders your business’s rate of growth.

One solution that allows product-based businesses to emerge from this traditional way of operating is to integrate processes onto one single software platform that allows the free flow of data and clear data communication between divisions. This transformation can be brought about over time with the introduction of Enterprise Resource Planning (ERP) software. The successful outcome is that your business is run on a single, centralised software platform and is no longer a conglomerate of individual, separate business units.

In short, the efficiency increase that ERP brings about is because

• It interconnects all stock levels and stock locations,
• Information and data flow seamlessly within and between divisions, and
• You can monitor instantaneously, giving personnel flexibility for you to make timely dynamic changes.

As a result, your business will become efficient, cost effective, and competitive. And, consequently, you will have greatly improved your customer’s customer experience.

Can ERP Really Do All This for Your Business?

Yes! At MCS we focus on developing customised ERP InTegrated Solutions to meet the needs of all types of businesses. The implementation of an ERP system is a project that takes place in precise steps. Each step involves close collaboration between key stakeholders in your company and the ERP provider. For our MCS customers, the first step on the road to this solution is a Business Process Review (BPR).

MCS has customised ERP software to suit a range of businesses – from those that carry stock levels of hundreds of units to businesses with thousands of units across multiple locations. These companies experienced difficulties as they grew, including analysis and monitoring of stock levels, stock movement, pricing, profit and loss analysis, and having to manually check business status using manual spreadsheets. However, with an ERP Solution, each aspect of the business has real-time visibility and flexibility for ordering, stock adjustments, and a clear view of its current status.

Key Features of an ERP Solution

1. Purchase Orders. A clear and concise view of the purchasing system and up-to-date information on pricing
2. Inventory Management. A clear and concise view of the stock system and up-to-date information on levels and locations
3. Stock Control. You can generate purchase orders any time to maintain stock levels.
4. Budgeting. All costs and revenues can be assigned in advance and monitored throughout
5. Real-time Cost Visibility. Once you create a budget, you can monitor costs closely using real-time visibility
6. KPIs. Statistical reporting allows for tracking all divisions as businesses progress

To find out more about how your business can become more efficient and profitable with a tailored ERP solution call us now @ 01 4507846. Alternatively drop us an email here and we will gladly discuss any concerns you may have regarding implementing major changes to your current processes.

Check out our case studies for detailed examples of how companies have benefited from integrated technology solutions such as ERP software.