Part 3: Competitive Advantages of a Single ERP Platform
Management at small and midsize manufacturing companies are cautious and risk adverse when it comes to employing new technology and changing to a new process. But reliance on QuickBooks and other stand-alone solutions perpetuates the creation of information siloes. The result is little to no visibility into what’s really happening on the shop floor and across the business.
I understand the hesitancy management feels but I also understand the desire on the part of management to sustain growth, scale, and streamline processes which is where ERP comes in. It’s a logical next step.
In this four-part blog series, we’re talking about the eight considerations managers need to embrace before moving from QuickBooks to manufacturing ERP, specifically for accounting and financials. Part 1 described the growth and business needs that trigger a move from QuickBooks to ERP for accounting and financials. Part 2 looked at ERP benefits and value of the cloud. In this Part 3, we’re looking at the competitive advantages delivered by a single ERP platform.
Part 4 of the series will focus on ERP analytics/reporting and finance control.
Read our Guide to ERP Accounting and Financials: Grow Your Manufacturing Business Beyond QuickBooks.
Putting Your Business on a Single ERP Platform
Small and midsize manufacturers ready to move from QuickBooks to a single ERP platform often have siloed departments; business functions, and databases that don’t integrate with each other. It’s a common scenario I’ve seen throughout my career. The accounting department runs on QuickBooks with manually entered handwritten sales orders coming from the sales team. The purchasing staff manually enters inventory data into their own database before being able to create purchase orders. The warehouse staff is tracking inventory on their own spreadsheets.
This is where having a single ERP platform brings efficiencies and boosts productivity. It unites multiple systems into one database, removes the opportunity for errors from manual data entry, and delivers real-time reporting and analysis. Management gains visibility across the enterprise with information shared from each department. ERP standardizes and automates key business practices and manages company resources on a single platform.
Enterprises reap benefits with a single ERP platform in accounting and financial management, such as:
- Improved financial management
- Accelerated financial closes
- Flexibility to respond to market changes
- Means to anticipate trends
- Improved cash flow and profitability
- Streamlined management of financial master data
- Aligned tasks across the company
- Automated process transactions
- Streamlined invoicing
- Automatically updated purchased transactions, receipts of goods and accounts payable
- Access to real-time order history
Read our blog post 6 Warning Signs Your Manufacturing Business Needs an ERP System.
The Competitive Advantages of ERP Accounting and Financials
Moving from QuickBooks to ERP accounting and financials on a single platform unites business processes, from accounting and sales, to purchasing, CRM, inventory management, and manufacturing and distribution operations. It promotes visibility into all operations, with access to up-to-the minute intelligence and real-time reporting. Organizations can choose the appropriate inventory valuation method, customize reports, and transact in multiple currencies. ERP delivers flexibility, visibility and forecasting – options QuickBooks was never intended to produce.
ERP for accounting and financials alone can give your business a competitive advantage by enabling:
- Robust and connected business processes
- Ability to adapt to market and business model changes
- Anticipation of business trends
- Easy access to comprehensive data to improve decision-making and productivity
Read our Guide to ERP Accounting and Financials: Grow Your Manufacturing Business Beyond QuickBooks.
Customer Story
OptioProERP recently joined forces with a U.S.-based marine products enterprise looking to move beyond QuickBooks. The company serves OEMs and direct consumers in the boating industry.
As the company’s business model has expanded with new revenue streams, it needed better shipping tracking, order management, and e-commerce options, including a customer portal and credit card order processing. Its global supply chain demanded a move away from fragmented spreadsheets and QuickBooks accounting software.
We’re a global operation with lots of moving parts to track and manage. We need full real-time visibility and a platform for growth. OptiProERP’s all-in-one system in the cloud and quick implementation will allow us to focus on growing our business.
– the owner and CEO.
Up Next
The final blog in our four-part series focuses on ERP analytics/reporting and finance control.
About the Author
Allan has more than 35 years of hands-on manufacturing operations and IT systems experience. Having served as the Vice President of IT with Husky Injection Molding Systems (a leading manufacturer of injection molding equipment), the President of Euroserve Ltd., (a manufacturer of construction fasteners) and the Manager of Materials and Logistics during his time with Engel North America, Allan understands the challenges that must be overcome to run a successful manufacturing operation.
A seasoned IT advisor and business process consultant, Allan has guided many hundreds of SMEs on how to select and successfully implement ERP software applications. Notably, he was the Vice President of Business Solutions with IT solutions provider Gibraltar Solutions Inc., and the CEO of ERP provider Jeeves North America.
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