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

March 9, 2022 – Enterprise Resource Planning (ERP) as a strategy for growing your service-based businesses.

The traditional way of operating a service-based business often results in a complex entity. For example, processes such as scheduling, time management, managing stock, and accounts each create their own data streams and data stores. The data may not flow freely from one division to another. In addition, each process usually requires a lot of manual steps.

Consequently, when the company starts to expand, the inefficiency caused by separate data stores and manual operations can reduce profitability.  As a result, the slowest performing division can hinder your business’s rate of growth.

One solution that allows service-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.

By implementing Enterprise Resource Planning (ERP) software, you can bring this transformation about over time. Your business will no longer be a conglomerate of individual, separate business units. That is to say, you will be able to run your business on a single, centralised software platform.

How does ERP increase efficiency?

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

The business becomes efficient, cost effective, and competitive. And, consequently, you will greatly improve your customer’s experience.

Can ERP really do all this for your business?

Yes!

Here at MCS we have been focusing 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 already implemented ERP software in service-based businesses that offer maintenance and repair services and solutions to their customers.

These companies experienced difficulties analysing and monitoring engineer schedules, stock movement, and profit and loss of specific jobs; invoicing engineers for time spent on jobs; and manually checking of the status of each stage of a job using spreadsheets.

With an ERP Solution each stage of a service job has real-time visibility and flexibility for rescheduling, stock adjustments, and a clear view of its current status. The status of a scheduled call, parts required, and labour costs can be viewed in real time, thus ensuring the capacity to maintain efficiency for each project.

Here are some key features of Service Jobs and the benefit of an ERP Solution

1. Billing and invoicing. Service jobs can be broken down into different stages which can be invoiced individually or together.
2. Work Request Management/Scheduling. Each stage can commence and finish at different dates to allow you to schedule multiple jobs, and with advance notice.
3. Inventory management. Jobs can include service charges as well stock items i.e., replacement parts.
4. Stock Control. Purchase orders can be generated any time to ensure stock levels are maintained.
5. Budgeting. All costs and revenues can be assigned in advance and monitored throughout the delivery of each job.
6. Real-Time Cost Visibility. Once you create a budget for a job, you can closely monitor costs with real-time visibility as the job progresses.
7. KPIs. Service jobs include statistical reporting to allow you to track your businesses progress.

Written by Sarah O’Connell

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.