ERP Systems

Lose the Waste With Smart ERP Systems-Part 2

One can imagine all the uses when enterprise resource management systems become smart ERP. Human resources knows better how to forecast personnel needs based on, say, projected manufacturing demands. Accounts payable knows when heavier payroll periods are coming, and also they automatically know exactly when materials orders are placed and the smart ERP system schedules payments, even automating those payments, based on policies of 30 days, 45 days, etc.

One of the most important benefits of smart ERP systems is that they yield real-time data. Using smart ERP application software, managers may look at, say, production. If production is ahead of schedule, management may decide to re-allocate resources to keep all people and manufacturing lines at capacity. Conversely, if production is behind schedule, management will know that from real-time data and will determine how to allocate more resources to catch up with production goals.

One of the less-discussed aspects of smart ERP systems is, when used well, employee satisfaction. Department managers who at any given moment have as much access to information as their bosses, when it comes to measuring their department's performance, are empowered managers. Few people are pleased when after a week or a month is complete, some executive looks at reports, then calls a meeting and then tells the department manager how they could have been more efficient with brilliant 20/20 vision. With real-time data, however, the executive is able to evaluate data immediately, consult with the department head and together, they can make decisions that they agree will improve performance and therefore, results. The department manager can then communicate that information immediately to the department's employees, and together, they make improvements. No more surprises.

So, not only did the smart ERP system assist employee satisfaction by allowing for real-time evaluation of work, the company benefits over all as well, with more efficient, cost-effective solutions delivered not a week or a month from now, but now.

ERP systems are tremendous resources for companies looking to stay competitive by increasing efficiencies and improving communications, but only smart ERP systems take full advantage of integrating all systems and departments over one enterprise resource management system.


By Denise Harrison