How To Select And Implement An ERP System

ERP is a term that is widely used but may not be well understood. It means "Enterprise Resource Planning" and although it was originally intended for manufacturing companies, it now covers every product that can be used in a company.

When used effectively, ERP enables companies to break down traditional organizational silos and replace them with tightly integrated horizontal structures in which strategy, organizational structure, processes, and technology are closely linked. Distribution ERP methods can include finance, sales, production, personnel, payroll, and project costs.

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There is a lot of confusion between accounting systems and ERP. While accounting was limited to financial resources in the past, this has changed in recent years and it is now difficult to distinguish between accounting and ERP systems.

Determine the measure of success

Before starting any project, you need to know how to measure success in terms of saving money by streamlining operations, increasing sales, and increasing market share. Success measures serve as motivation for employees during implementation, help sustain projects and focus efforts on achieving important business goals.

Don't be ambiguous when defining requirements

The more ambiguous the requirements, the more room for interpretation of whether the supplier meets the requirements. You have to be precise to be able to compare apples to apples.

Manage reach, budget, and timing

Project management is a key factor in predicting the success of any project. Project management includes scope, budget, and time management. Instead of using a smack school, consider working with a structured methodology like the one published by the Institute for Project Management (PMI).