ERP FAQs
Frequently Asked Questions About ERP
ERP is an acronym that stands for Enterprise Resource Planning. But what does that really mean? ERP is an information system designed to coordinate the resources, information and processes within an organisation. It is comprised of a common database that provides interfaces and information to every department within the business.
ERP software is designed to help companies manage their business operations, providing visibility across their entire business. Organisations use ERP software to streamline the complexity of business processes such as taking Orders, processing Sales, procuring and managing Stock, managing Customer and Supplier Accounts and compliance and financial Reporting.
Many companies adopt ERP for the first time when they realise their entry-level accounting software lacks core functionality, scalability and is not giving them the visibility they need. But ERP software systems help you manage much more than financials.
An ERP system like React Solutions is developed in a modular way, with applications covering such diverse areas as distribution logistics, account management, order management, e-commerce, sales management and inventory and warehouse management.
When it comes to change, pain is a great motivator. Maybe it is taking longer every month to reconcile your financials or you are increasingly basing forecasts on guesswork. You have no real idea how much stock you have on hand, so it is hard to be demand-driven.
Here are five common signs we see from companies ready to consider a new ERP software system:
1. Time spent looking for information has increased dramatically.
2. Working capital has increased. Too much money is tied up in inventory and inefficient processes.
3. Redundant, disconnected software programs. You need to reduce IT complexity and unify your various front- and back-end systems with a single database – and get to one version of the truth.
4. Customer experience is suffering. If you cannot deliver what customers want, as fast as they want, to the right locations, you could lose out to competitors. The right ERP system can provide visibility and agility to be more customer responsive and reduce errors.
5. Growth and expansion. If your current system cannot scale up, handle global needs, or support new business lines, it is time to consider a change.
Making the right choice may seem daunting. But it does not have to be. If you need help developing a list of requirements, find a vendor that knows your industry and market and has customers similar to your business. Once you have a list of requirements, you can then gather responses and start the comparison process.
To help you select the right ERP solutions for your business and business needs, React Solutions offers a preliminary assessment and modelled blueprint of your business based on evaluating your current and future strategic objectives, current business processes, IT maturity of your organisation, people and roles involved and your information needs.
The requirements are different for every business. A small business needs different functionality than a complex, multinational operation. Your industry may have specific compliance demands.
You then need to consider general IT issues such as ease of use, total cost of ownership, vendor stability, technology flexibility and ease of implementation. It is important to ask your proposed vendor these questions to ensure they address your unique requirements.
For many companies, moving their IT infrastructure and software to the cloud reduces the need for an in-house support structure and saves the cost of server hardware. Cloud-based ERP can be easier to scale functionality and users either up or down as required.
It can often make it easier to share information across regions or locations. However, for some companies, you might not be ready to cede security to a third party and prefer an on-site solution. We are one of the few software providers that offers flexibility for our customers and still provides on-site ERP solutions. We help you choose based on your unique organisational requirements.
The success depends on the goals you want to achieve. Many companies measure return on investment in terms of cost and time savings achieved when automating manual work and gaining visibility into potential bottlenecks.
Some look at the value of reduced risks and improved corporate governance. The potential ROI can be seen in a wide variety of departments and processes. Check out our Solutions page to explore the ROI of ERP for yourself.
Data can be imported into the React ERP System from any legacy system. Our Dedicated Data Engineers will map the data and transfer it directly into the new ERP System. This makes the transition from your old system to your New React ERP System seamless.
ERP software is great for big, small, and mid-sized companies. Many smaller organisations use basic software systems which frequently lack key functions that ERP software can offer. For example, they may not be fully integrated or robust, and they may be missing features such as CRM, production, warehouse management, and more.
A true ERP system can accommodate any sized company and offer a wide range of tools and features that can help them optimize business processes and meet their business and growth goals.