What is Cloud ERP for Product-centric Enterprises?
Innovation is the key to business success. The faster you adopt newer technologies, the sooner you are able to reach your business goals.
Enterprise resource planning (ERP) software offers such improvements. It is an all-in-one business management system that allows product-centric organizations to collect and interpret real-time business data related to manufacturing, selling or distribution of products and make operations efficient and effective.
Traditional ERP systems are designed with functionalities to handle complex business processes and workflows while fulfilling the changing market requirements. However, these systems are often too rigid to keep up with the rising customer demands for new products and evolving business activities to fulfil them. This has made cloud ERP software the preferred deployment choice for product-centric companies of all sizes.
Cloud ERP for product-centric enterprises offers the flexibility and scalability needed to match the pace of innovation. They are embedded with a plethora of amazing capabilities. With that in mind, let’s explore the advantages of using these systems to enable progress in business operations and drive growth. Cloud ERP suites:
What are the Core Capabilities of a Product-centric ERP?
Unexpected customer behaviors, disrupted operations, and limited resources - Covid-19 pandemic has tested the capabilities of ERP software to combat the challenges and potentially reshaped the way businesses were managed.
Centering the new business environment, collecting data to connect with resources and improve collaboration is necessary to run frictionless operations and enhance the ability to meet the market demands. Product-centric companies would need specific ERP functionalities to fulfil them and build tomorrow's growth. According to Gartner, the core capabilities of product-centric ERP suites include operational and financial management. They predicted that “By 2023, 60% of product-centric enterprises will utilize standardized ERP capabilities on a composable ERP platform.”
Role of Operational ERP in Business Management
Today’s enterprises need integrated solutions to automate their essential operational functions. And operational ERP provides a trove of data insights to help organizations manage inventory, supply chain, and manufacturing-related functionality.
Inventory management
Manufacturing and selling or distribution businesses require keeping track of the quantity of raw material or products that occupy their warehouses. This module streamlines inventories to provide information related to product status and purchases.
The inventory management tool enables companies to categorize and organize their inventory by recording product movements and synchronizing it with warehouse data. This helps companies to optimize their inventory, which reduces shortages as well as wastages, thereby cuts down the cost of delivery.
Supply chain management
This capability of ERP software enables manufacturers and distributors better manage their product flows from production units to end-users and vice-versa. Data collected from these operations help organizations to foresee future issues related to inventory or work time availability, thus enabling them to make necessary adjustments for smoother executions.
Informed supply chain handling enables optimizing all its aspects, which decreases the operating costs while supporting investing in innovative products.
Manufacturing or production management
ERP software that comes embedded with production management capability helps businesses make more efficient demand forecasting related to production planning and control, materials sourcing, and quality evaluation. This module also streamlines and automates all manufacturing-related processes, which increases their speed and accuracy.
Product-centric businesses need modern ERP software that comes with built-in material requirement planning features to capture, manage, and utilize enterprise-wide quality information through centralized data storage and run end-to-end production processes, from planning to execution, without any hurdle.
Why is Financial Management Function Important for Business?
Accurately managing financial data is one of the important aspects of any business because it allows management to remain up-to-date about the current financial state of their organization.
ERP systems with financial management capabilities ensure that all information collected is accurate and could be used to analyzes and forecasts outcomes. It streamlines financial accounting processes to increase accuracy while reducing overhead costs. Additionally, when the financial management process is automated, it prevents human errors in accounts and helps locate issues that would have otherwise been missed.
The most basic capabilities of the financial management software suite include:
Financial accounting
Involves recording, summarizing, and reporting financial transactions within an organization. It encompasses creating financial statements like balance sheets, income statements, and cash flow statements. It aims to provide stakeholders with accurate and transparent financial information, aiding in decision-making, analysis, and regulatory compliance.
Accounts payable
The accounts payable feature lets users manage the funds that the company owes to the vendors and other creditors, and when it is due so that they are never late in paying. This provides sufficient data insights on payables for businesses to take control of the cash flows.
Accounts receivable
The accounts receivable feature keeps track of customer payments and allows managing invoices and cash. This eases and speeds up the payment process, which produces happier, returning customers.
Ledger management
The general ledger includes the record of all financial transactions. It enables businesses to view the entries through a centralized dashboard and keep track of assets, income, expenses, liabilities, and capital accounts. It also helps in generating financial statements needed for evaluating the financial health of any business.
Financial reporting
Analytics provide real-time insights into financial data that is critical for efficiently managing funds. This includes information related to when and where revenue is being generated or not being generated. The completeness of vision helps businesses make data-driven financial predictions.
Further, the ERP system creates all financial reports in graphical formats that let organizations quickly understand the financial health of their company at any given point in time.
Finding ERP Software with Right Capabilities
Features enabled ERP systems for product-centric enterprises to drive continuous improvements across the business and empower them to sustain market turbulences while ensuring that they remain agile and competitive.
Whenever you plan to expand your business or wish to make your operations work faster — connect with us! Focus Softnet is a trusted ERP vendor in UAE. We develop the exact business management solution you need.
