Understanding the ERP system’s essential functions & benefits is essential when operation managers prepare for demos of ERP systems. This knowledge assures that the selected ERP system meets the organization’s present and future needs, contributes to its growth, and improves performance.
Let’s focus on the five key ERP functions the operations manager should consider during demos. We will also review how these functions relate to the ERP’s core functions and implementation process.
1. Inventory Management
An essential function of the ERP system is Inventory management. Operation managers must carefully understand the use of ERP for effective stock-keeping. Appropriate control of inventories in ERP software solutions gives real-time stock status to avoid excessive or stock outs. Key aspects to look for include:
- Real-Time Tracking: It is crucial that the ERP system enables the tracking of stock levels in real-time and is updated when new materials are in or out of the warehouse. It is essential to consider the work-in-progress and sub-contracted job work for a complete picture of inventory levels.
- Reorder Alerts: The ERP software should enable automatic triggers for order placements in case of low inventory, ensuring a constant stock balance.
- Integration with Other Modules: Ensure the inventory management module is compatible with the ERP’s procurement and sales functions.
2. Production Planning and Scheduling
Manufacturing businesses value the performance of production planning and scheduling functions managed by ERP systems. During ERP software demos, operation managers should focus on the following features:
- Capacity Planning: The ERP system should allow the right capacity planning to be deployed and implemented so that the production schedule matches with the resources available.
- Work Orders Management: When selecting ERP software for the production process, ensure that it has features that automate workflow and allow easy order creation and tracking.
- Flexibility: The ERP solution should assist alterations in production schedules and fluctuations in demand schedules.
3. Supply Chain Management
Supply chain management is another essential function of ERP that operation managers need to analyze. This module integrated with an ERP software solution efficiently controls purchasing and delivery processes. Key features to watch for include:
- Vendor Management: The system should provide effective means for working with customer vendors, tracking their performance, and managing contracts.
- Logistics and Transportation: Ensure the ERP software supports the planning and management of logistics and transportation, defining efficient delivery times and cutting expenses.
- Supplier Collaboration: Search for elements facilitating collaboration to manage interactive communication across the supply chain.
4. Quality Control
Quality assurance is an important function of ERP that checks whether the developed products meet the standards and specifications. During ERP demos, operation managers should evaluate the following aspects:
- Inspection Management: The new ERP system should support managing quality checks, tracking their results, and managing non-conformances.
- Compliance: Check that the chosen ERP software meets the industrial norms and crucial organizational legalities your company requires.
- Traceability: ERP solutions should be selected based on their ability to provide omnidirectional tracking capability from the inputs to the output, which will increase accountability and product quality.
5. Reporting and Analytics
Two major functions of ERP systems include reporting and analytics, which are significant reports that give valuable information about organizational performance. Operation managers should focus on the following features during ERP demos:
- Customizable Dashboards: ERP with customizable operational dashboards that display real-time statistical data along with value-added key performance indicators are helpful at all the levels for strategic & timely decisions.
- Advanced Analytics: ERPs with business intelligence tools, particularly tools capable of data analysis, such as predictive analytics and data visualization, should be sought.
- Ease of Use: Ensure that the reporting and analytics tools are ‘user-friendly,’ one that allows any operation manager to access the data and generate reports without the help of an IT expert.
Choosing the Right ERP Vendor
Choosing a trusted ERP vendor is essential for a successful implementation when purchasing an ERP system. Check these tips to make an informed decision:
- Partner with an experienced ERP vendor with a reputation for delivering efficient future-ready solutions.
- Ensure the ERP provider provides extensive support throughout the implementation journey and after sales support.
- Ensure the ERP system provided by the vendor is scalable. As your business grows, the ERP system should be capable of handling more information.
As a trusted ERP vendor, SourcePro Infotech Pvt. Ltd. has earned a reputation in India, catering to businesses from various industries.
Conclusion
When reviewing ERP software demos, the operations manager of any organization must be aware of these fundamental ERP functions. Paying attention to inventory management, production plan and schedule, supply chain, quality, and report and analysis will assist the organization in finding the ERP system that suits them best. By partnering with experienced ERP vendors like SourcePro, operations managers can plan ERP implementation without a hitch.
Attention to core operational functions will help operation managers address issues that will improve operational functionality and achieve the buisness objectives. Select an ERP software system that fulfills not only an organization’s existing requirements but also has the potential to adapt to future developments and provide a competitive advantage to the company. For an elaborate understanding of the ERP software selection process, this blog may be a starting point for anyone researching ERP software.