Networked ERP: New-Age Solution for Achieving Business Efficiency
Published on : Friday 10-06-2022
A networked ERP is required for industrial companies to comply with Industry 4.0, says Kamlesh Kumar.
ERP or Enterprise Resource Planning is now used commonly in a variety of businesses. Continuous communication and data transfer between different sites and entities is required for resource planning. This guarantees that the businesses run smoothly and that everything is in order.
When the internet and digitalisation were not as popular, traditional ERP performed a vital role in business management. Although considered difficult to implement and expensive, once adapted, traditional ERP added efficiencies into the system by connecting data between various departments within an organisation. However, with technology advancements, and increased connectivity through the internet, businesses are taking leaps into integration and globalisation. Thus, the need is felt to integrate data not just within departments but also between entities that an organisation works with. With the traditional ERP, each transaction's data must be entered numerous times and a paper trail must be maintained, it presents its own set of issues. Because all stakeholders' data is not updated at the same time, continuing with the traditional procedure can result in massive and inefficient inventory builds-ups. Information does not move smoothly across departments or among external stakeholders, resulting in inefficiencies and discrepancies in results.
This makes data handling exceedingly inefficient, resulting in duplication, errors, and delays/losses owing to a lack of up-to-date data on multiple instances. As a result, it is critical to move toward new technologies in order to boost productivity and reduce the number of human hours lost as a result of these issues
While the old approach served the industry well in the past, the digitised version utilising computers assisted in the movement of data from manual to electronic formats. However, the shifting needs of today's world environment necessitate a digital transformation of not just data types, but the entire processes as well. The network ERP, which modifies methods by which information is shared with all stakeholders, is the most recent solution to this need.
Data, discussions, and documents, among other things, can be shared and updated simultaneously across all stakeholders – internal and external – eliminating the need to update business transaction data and/or scan/store transaction documents multiple times at each end, resulting in data discrepancies, delays, duplication, and wasted time and effort. Smooth data sharing is the future of corporate scalability and profitability in order to facilitate access and exchange with their business partners.
Digitalised data entered at any point of origin is shared throughout the business's stakeholders and systems, including suppliers, buyers, and others, while the organisation retains control over disclosing that data at its discretion. As a result, digitalisation and smart networks can help organisations overcome some of their most pressing issues. It simplifies the entire business processes, and ensures that updates are shared in real time with everyone. Thus integration, business expansion, global business, etc., become a smooth transition for any business.
Businesses that use a networked ERP benefit from a scalable and high-performance design, zero data duplication, item and supplier master data classification, holistic and integrated decision making, and less reliance on paper trails, all of which reduce security threats. This is why a virtual SCM ERP is required, as it creates a smart network of data and information that connects a company's whole ecosystem.
Virtual SCM ERPs provide standardised procedures, data sets, and document generation, resulting in a universal data set, easy data sharing, analysis, and forecasting, as well as in-depth industry research and data trend projections, all of which are crucial for strategic decision making. Smart networking reduces the need to handle several software and data sets, making it easier to manage company activities including customers, vendors, human resources, financial transactions, order processing, procurement, and inventory.
A networked ERP ensures that data visibility is maintained for all stakeholders within the enterprise (as per the requirement and discretion of the organization of course). The organisation can effectively manage its data and control the flow of information. The immediate benefit of this visibility is that everyone is aware of the necessary information, including any gaps between demand and supply verticals, and they may cooperate to close such gaps. Furthermore, because all stocks are visible across the entire chain, inventory and stocks may be optimised and redirected as needed utilising networked ERP, saving time and money for all parties. As a result, the cost of items sold decreases, and profit increases.
This saves the party that needs these goods, both time and money; and saves the expense of inventory build-up for the party that has excess supplies but no need for them. As a result, all parties benefit from significant business synergies and goodwill. A networked ERP is required for industrial companies to comply with Industry 4.0. This system assists the service industry as well as the manufacturing industry, saving money, time, and enhancing profitability, goodwill, and assisting in corporate expansion.
Kamlesh is the CEO of Zumbido, the world's first networked ERP. The cloud based, user-owned solution can be a turnaround especially for Small and Micro Businesses by integrating and synchronising data input not just within departments but across the entire business network. The software being device agnostic, can be accessed anytime, anywhere, on any of the user's devices; allowing the latest information to be available for smart decision making at the management's fingertips. The Canada-based company launched Zumbido Express in India recently. This being a cloud-based SaaS model, is ready and easy to implement in practically no time and at very affordable costs.