Enterprise resource planning (ERP) is still a very new phenomenon making its way through the business world. While it’s a little complex to get into all the specifics of an ERP system, at its core it’s a centralized management platform where business intelligence, interdepartmental data, business process tools, logistics, inventory management, procurement and other enterprise links come together. One of the challenges that multinational corporations (MNCs) have had over the years is trying to overcome the silo mentality, or what is otherwise known as department isolation where information and communication is departmentally restricted. But when ERP is successfully implemented in MNCs, much of the silo barriers are eliminated.
MNCs See Highly Improved Workflow
Whether a business has new sales meetings they have to arrange with field agents, or new projects they need their human resources or business development teams to start working on, a centralized workflow system is where MNCs can see a high ROI already in employee productivity. While the chain of command and team managers are still key for task delegation and information dissemination, employees are able to access it from their devices and access to the cloud. You also now have many old repetitive tasks such as having to copy data into multiple databases and creating manual records eliminated. An ERP system is able to copy collected data and automate certain records. You not only can free up employees with more automated data entry processes, but you can avoid unnecessary or troublesome duplicate entries that have to be cleaned out of your databases.
MNCs Are Able To Better Manage Their Accounts Payable
One area that’s still getting the kinks worked out in ERP platforms is being able to integrate accounts payable into it. What’s tricky is that many ERP systems are not yet programmed to handle older AP invoice processing and appropriately sort the data to where certain discrepancies and entries have trouble being resolved without human intervention. That’s because with all the layers that make up the AP process, it can cause bottlenecks in the overall ERP system. This is why new automated invoice processing software like Intacct accounts payable from Sage has become important for processing and resolving reports and data transmission to flow into the ERP system. Sometimes the AP data will need to work across multiple ERP systems for rapid deployment and to make sure various departments can make informed financial decisions based on the data available. The Intacct AP system has made strides in simplifying invoices and streamlining data flow for ERP systems.
Notable MNCs That Have Benefited From ERP Recently
LG Electronics once faced s major challenge of trying to get its human resources department in sync across its international office locations and manufacturing centers, but it was running into many overhead problems, compliance issues, and many other issues that affected management’s decision making. After they implemented an ERP system, they saw a lot more transparency in the reports that were now available across international barriers, a more centralized workflow, more defined hiring processes, and better training implementation. Likewise, Fuze Energy Drinks had issues with inventory filling and making procurement decisions. After implementing their ERP system, they then had more accurate inventory reports, accounts payable data available for real time access, and through cloud they were able to avoid spending extra on computer hardware.
As of now, an ERP system is still extremely expensive and takes time to connect all the information channels to get all the data flowing where it should. But where cloud computing and artificial intelligence can speed up the gathering of information and meet the customer’s needs with quick order fulfillment, companies can be assured a well functioning ERP system will take them a long way.