Month: October 2021

The IT industry is advancing exponentially, with innovative solutions being crafted ever so frequently.

Enterprise Resource Planning software, while not a new solution in itself, has gone through numerous upgrades – new features and functionality, the inclusion of artificial intelligence, cloud deployment, and a whole lot more.

Before you purchase an ERP solution for your business, it’s important that you know the different ERP systems available in the market today.

Interestingly, ERP software is categorized in several ways, and it’s important for you to know all of them.

Today, numerous types of ERP solutions have emerged, and are in the process of encompassing multiple niches.

The diverse range of ERP solutions can make it mind-boggling to choose the right one for your business – but hopefully, this article will help.

ALSO READ:  How ERP Software is Playing Role to Improve Business Productivity?

Characteristics of an ERP system

With the right use of ERP, you can enhance and streamline your business processes, configuring the system as per the needs of your business.

It contains modules for different processes like:

• Finance and Accounting – ERP can handle vast amounts of data easily and with great speed; it collates financial data from all the departments, prepares financial statements, and generates reports
• HR – ERP software maintains a database with comprehensive employee information, including attendance, performance appraisals, salary, leave, awards, and so on. It becomes easy to decide on promotions, salary raises, or even if the company needs to lay off people.
• Inventory Management – you will be able to know at a glance which items you need to restock, and which you’re holding an excess of; ERP will ensure that you don’t under or overstock raw materials so that you can have smooth and continuous production
• Project Management – the software can help you manage your projects smoothly by dividing the project into small, manageable chunks, and allocating resources optimally. This can help you complete projects within deadlines and budgets.
• Sales and Distribution – Manage sales orders better and deliver superior customer service with automated solutions, simplify price list management and more, like in this module from Tranquil.
• Supply Chain Management – helps to ensure that production and procurement activities are optimized. Numerous activities and stakeholders are involved in the supply chain, and it’s a complex process. An effective ERP will effectively handle storage, transport, and demand management of manufactured goods.
• Purchase/Procurement Management – get real-time info on orders, time of delivery, and the cost with this module that automates purchase orders and helps you control material and other expenses.

This is by no means a comprehensive list; some modules may have more, or some may have less.

However, these are the most common ones.

Perhaps the biggest advantage of ERP is automation; with manual entry and processing out of the way, it minimizes the scope for error and makes for quicker, and more efficient operations.

ERP also centralizes information from across the company, tearing down departmental silos.

Every employee uses a unified platform, and this fosters greater collaboration between teams.

Whether you’re a startup or a multinational corporation, ERP is available for your business.

ALSO READ: Top Trends of ERP System For The Future

Types of ERP Architecture

There are two main types of architecture for ERP software – monolithic, conventional system, and postmodern systems. Let’s see the differences between the systems.

The Monolithic Architecture of ERP

• Features single tech stack and design
• Frequent updates are required to improve the solution
• Rigid system that is not built to scale with the business

The Postmodern Architecture of the ERP System

• Customer-centric and intuitive, hence easy to use
• Incorporates cloud technology and social media
• Simple and flexible, easily scalable with business growth

For understanding ERP systems, let us now look at the various categories they are divided into, based on various parameters.

ALSO READ:  Influence and Importance of ERP System in Different Industries

Cloud vs On-Premise vs Hybrid

This distinction is made based on the method of deployment and maintenance.

Cloud-Based ERP Software

Here it is installed and maintained in the cloud. This means your data is securely stored on remote servers, minimizing the risk of data tampering and theft.

It also means less cost for you as you don’t need extra hardware.

Cloud ERP software facilitates remote working and collaboration as it can be accessed from any mobile device or computer with an internet connection.

Cloud ERP is offered as a SaaS, or software as a service, outsourcing the IT and maintenance costs to the provider.

It is also easier to deploy, maintain, and upgrade.

It is ideal for small businesses because of the lower cost as compared to on-premise software.

ALSO READ: How to Choose the Best Business ERP Software Solution for Your Organization?

On-Premise ERP

It is deployed on servers at your place of business.

This means more hardware expenditure for you, but less dependence on vendors.

You can customize the solution better, and also lay the foundation for future expansion into hybrid deployment.

The system and the data can only be accessed at the computers on your premises.

These conventional ERP systems are also more complex and expensive as there are proprietary, and typically, necessitate the services of consultants for implementation.

This process in itself is usually time-consuming and expensive to boot.

Hybrid ERP system

As the name suggests, this approach is a mix of the two methods above.

It is especially useful for large organizations that already have an ERP solution implemented on the premises.

They may choose to have a cloud-based ERP system to support small business units, regional offices, etc. that may have specific needs different from those of the head office.

ALSO READ: Benefits of ERP for Accounting and Financial Management

Generic Vs Industry Specific ERP

ERPs are categorized depending on what they are designed for.

Generic

These are the most common ERP systems – a one size fits all software, that may not be able to cater to specific functionality a particular business requires.

This type of ERP is available even today.

Older, well-established, and reputed ERP vendors are likely to offer a generic ERP platform that can be tweaked to fit your specific needs.

These solutions are not tailor-made for one industry, but calibrated for very particular applications, and are great to start with.

This is especially true for niche businesses and those that can function with a generic approach.

Industry Specific

As the name suggests, this type of ERP software is designed to cater to the unique requirements of specific industries.

These are also called vertical ERPS – they are smaller and generally priced higher but are customized for niche industries.

Examples are Manufacturing ERP, food and beverage ERP, Construction ERP, and so on.

Each of these industries has a few unique challenges that must be addressed for the business to be successful.

The food and beverage industry deals with perishable items; manufacturing industry project management is cumbersome; construction material costs tend to rise steeply throughout the project life-cycle, and so on.

Size of Businesses Targeted

Different ERP systems target different types of businesses – depending on the complexity and turnover of the business targeted, ERP solutions are divided into different tiers.

Tier I

ERP solutions built for large multinational corporations with over $750 million revenue, come under this heading.

Such enterprises are highly complex, with multiple locations, currencies, languages, disparate processes, complicated hierarchies, structures, etc., and may even encompass several industries.

Upper Tier II

ERP solutions designed for companies with revenue of $250 to $750 million in annual revenue and are likely to be less complex than the previous category of businesses, but yet are large and complex enough to warrant specialized ERP solutions.

ALSO READ: Benefits of ERP Software for Healthcare Industry

Lower Tier II

Small to midsized companies with revenue over $10 million but less than $250 million, are served by ERP solutions.

Businesses in this category typically belong to a single industry and have only one entity.

Tier III

There are hundreds of software providers who specifically cater to small businesses.

Some robust ERP solutions are capable of serving small to medium businesses in addition to Lower Tier II companies.

These solutions can be completely modified by removing modules not needed for that business and supports fewer users so that the ERP solution is more affordable for a small business.

A lightweight solution costs less, while improving operations, and is also more effective for small-scale companies.

Comparing ERP Systems

Now that you have seen the various types of ERP software, it is time to decide which one you should get for your business, for this, you need to make a few comparisons, or consider the following:

Cost

Undoubtedly, this has to be thought of; after all, for a small company or startup, having an expensive solution may turn out to be counterproductive.

This is not to say that you must jump at the cheapest solution.

You need to find the right balance between price, functionality, ease of use, and so on.

Deployment

Check whether the ERP is on-premise or cloud-based; on-premise software may be more expensive and require more IT staff to maintain and manage; Cloud-based could increase vendor dependence.

ALSO READ: Saudi Arabia Makes Electronic Invoicing Mandatory

Ease of Use

Check how intuitive the software is; there could be a lot of employees in your organization who need to use the system but are not tech-savvy.

Ensure that the ERP software you implement is user-friendly.

Determine Your Company’s Goals

When you are crystal clear about your company’s goals, you will know what kind of ERP solution will help in your business journey.

Tranquil is a robust, cloud-based ERP system that will scale your business. We can help you optimize and streamline your processes, and achieve your business goals quickly.

If you are still unsure about implementing ERP for your business or confused about which one to choose, Schedule a Demo with us. Our team will answer any queries you may have. Contact us.

 

ERP software has matured and evolved a great deal, and today it supports most business functions, like HR, accounts, manufacturing, and other server-side processes, to e-commerce, marketing, and sales forces automation, and other client-side functions.

Businesses depend on ERP to streamline processes, reduce expenses, and automate monotonous tasks; additionally, it also provides access to business-critical information in real-time, which drives decision-making.

With businesses relying on enterprise resource planning solutions increasingly, they continue to evolve, and include more functionality, and integrate with new technologies too.

ALSO READ: Role of ERP Software to Improve Business Productivity

Let’s now take a look at some of the ERP trends we can expect in the near future.

Enterprise Resource Planning Trends

1. Cloud ERP

Most organizations were comfortable with ERP applications deployed on the premises, and a bit reluctant to implement cloud-based solutions.

However, that is now changing, and more businesses are choosing cloud ERP like Tranquil.

After all, the deployment is simpler, it’s more flexible, scalable, necessitates lesser internal IT resources, and facilitates new functionality, all at a lower cost.

The ability to remotely access data, work and collaborate, has especially proven useful in pandemic times, with most employees working from home.

Again, it results in lower costs for both businesses and employees, saving on commuting, rental, equipment, and other costs.

ALSO READ: How to Manage Your Business from Home in Pandemic Situation?

2. Digital Transformation

By integrating digital technology and methods in business functions, organizations can improve operations, boost productivity, and boost revenues.

Digital transformation can also help a business stay relevant and competitive, and deliver enhanced customer service.

With an ERP solution touching every area of a company, it’s probably the best place to start the digital transformation of a business.

3. Two-Tier ERP

Normally, companies preferred a single ERP solution for every regional office, subsidiary, and HQ.

However, this actually worked out to be more expensive and was also very cumbersome to implement.

Subsidiary offices often had unique requirements that didn’t necessitate the complete corporate system functionality, and this led to many issues.

Due to this reason, future trends in ERP are that two-tier ERP is gaining in popularity.

This approach allows organizations to have a separate, tier 1 ERP system for the corporate office, and another, tier 2 system for subsidiaries and regional offices – often, this is the cloud-based version as well.

The larger companies may still use the core ERP solution for finance and other critical processes, with the smaller offices implementing solutions to address their specific requirements.

However, for this system to be effective, it’s imperative that data exchange takes place smoothly between these two tiers.

It’s less expensive, easier to implement, and affords subsidiaries the flexibility of responding to dynamic business conditions.

This approach is also great for organizations that are on a steep growth curve.

ALSO READ: ERP implementation Failure Reasons and Tips to Avoid

4. Other Technology Integrated With ERP

It’s true that the new age ERP is a major factor facilitating the digital transformation of a company; however, it is only a part of the larger technological disruption taking place in business.

Organizations are integrating their business apps with emerging technologies like IoT to streamline and enhance their core processes.

There are companies that also integrate e-commerce with their ERP software to enhance online order workflows by activating order execution, updating the inventory, and logging payment.

Experts also expect a closer connection with social media.

Viewing social media activities of both prospects and customers in the same place, businesses can gain a clearer understanding of what drives their audiences and what they want, enabling them to formulate targeted digital marketing campaigns and enhance customer experiences.

ALSO READ: Factors for a Successful ERP Implementation

5. The Internet of Things

IoT is a technology that involves connected devices and allows them to send data over a network by themselves, sans human intervention.

An example is sensors fitted in a car that collect data, and share that data to a platform – this can help the owner know about the condition of the car, and conduct maintenance service in time.

When it comes to ERP, there are devices that can be attached to tools and equipment, routing data to cloud-based apps.

Performance, usage, location, and other information can be accessed, enabling companies to recognize what needs maintenance, which assets are unused, and so on.

6. Personalization

The previous ERP systems were pretty rigid as they were based on complicated languages; however, the modern ERP solutions are mostly cloud-based, allowing for customization and simple configuration.

Software companies are also designing ERP systems for specific industries – like special features for the manufacturing industry, F&B ERP, and the like.

As the focus on personalized and bespoke solutions intensifies, it warrants the development of ERP software that can incorporate customizable dashboards, AI-driven interfaces, and other features.

AI-based chatbots that are capable of using text or voice inputs to provide replies to customer queries based on historical data in the ERP system are a good example of this.

ALSO READ: Saudi Arabia Makes Electronic Invoicing Mandatory

7. AI-Powered Insights and Improvements

ERP systems that have machine learning and artificial intelligence incorporated into them, help enhance business processes even further, in addition to providing greater personalization.

Previously, only a minuscule number of ERP solutions had embedded AI; but future trends in ERP systems indicate that the majority of ERP systems will have built-in capabilities of artificial intelligence.

This is because AI offers several benefits like:

• Actionable Insights – As AI can scrutinize mountains of data within seconds and recognize patterns, it is capable of forecasting numerous trends for the near future that were hitherto impossible.
• Efficient Processes – Thanks to automation, AI enables business processes to become more streamlined and efficient. Through machine learning, AI can ensure optimal labor and delivery schedules to reduce inventory costs, improve supply chain management by identifying reliable suppliers, ensure greater accuracy in financial management, and more.

8. Predictive Analytics

Though data was being collected, it was not utilized to its maximum potential – but that is all set to change.

With IoT connecting employees and tools and equipment to the internet, we can expect massive amounts of data to be churned.

As the potential of AI in ERP became known, more and more organizations now want to mine customer and operational data for more relevant insights that will eventually impact their profitability.

Past business data could be analyzed with the help of ERP previously as well, but the future trend for ERP will be about using predictive analytics to visualize the possible future outcomes.

This could be about say the possibility of machine breakdowns; management can proactively schedule maintenance and service to prevent lengthy disruption of work.

With accurate predictions on the basis of analysis of big data, companies can approach business strategy more intelligently and efficiently.

ALSO READ: Influence and Importance of ERP System in Different Industries

9. The age of context

Today, companies are operating in a world of multiple channels, and use technology that is smart and intelligent.

It understands your situation, and the kind of information you would want, and how you want to see it presented, and we will soon see the impact it actually has on performance.

According to experts, web and mobile applications are likely to integrate context-aware functionality to foresee the needs of users and enhance the efficiency of routine, everyday tasks.

Let us see how this will work with a simple example: an engineer on field service will automatically get the job instructions, customer relationship history, and the entire asset information immediately on arrival at the job spot.

ALSO READ: Detailed Guide on ROI on ERP Implementation

10. Mobile ERP

While traditionally ERP solutions have offered some amount of support for mobile in the past, the situation is rapidly changing, with mobile apps becoming more sought-after and popular.

The ERP software is evolving, and enabling access on the go to critical data, ensuring that employees are able to complete client-side and server-side tasks regardless of time or place – at the airport lounge, sitting in a car, or from the warehouse floor.

Mobile ERP also fosters collaboration for teams separated by geo-locations and time zones and has proved especially valuable in the pandemic era.

Mobile ERP applications with intuitive interfaces can ensure that employees can complete their work, regardless of whether they are in front of a computer or not.

Logging calls, submitting expense reports, keeping track of time, and other important tasks can be completed directly from their phones.

Additionally, they can view the status of approvals and important workflows, among other things.

In a nutshell, we can say that Mobile ERP affords valuable insights and data in real-time, and delivers overarching benefits like 24/7 remote access, enhanced productivity, and precise capture of data.

All of these help in making the business more agile.

ALSO READ: What are the Challenges in ERP Implementation?

What’s Likely to Happen Next? The Future of ERP

A quick recap of ERP trends for the near future – more and more companies are likely to migrate to the cloud for their ERP solutions, as the twin advantages of agility and speed become very clear.

This will help businesses compete and stay relevant in the market today.

Those businesses who have already implemented cloud ERP will explore ways to make maximum use of the cloud power for their benefit.

Businesses will also look forward to optimizing their ERP software for remote work – the COVID-19 pandemic has ensured that everyone will be prepared, should another disaster visit us again in the future.

This means more emphasis on mobile ERP functionality, boosting workflow automation, supporting remote training sessions, and facilitating remote access to critical data in a secure manner.

It is also highly likely that capabilities of managing the supply chain will be expanded so that companies can protect themselves against sudden changes or disruptions in the supply chain in the future.

Have you moved your ERP to the cloud yet? If not, why not Schedule a Demo with Tranquil, to see for yourself the benefits you can enjoy with this system? Our representatives will be happy to answer all your queries.

Tranquil is a prominent cloud-based ERP software system that helps you to manage your projects and business work in a hassle-free way. Moreover, with this software, you can access your business data anywhere, any time. If you want to management ERP software system, you can get in touch with Tranquil software.

The textile industry’s main activity is manufacturing and selling cloth; however, as in any other industry, procurement of raw materials, warehousing, product distribution, human resources, quality control, and so on are just as important.

It is essential that an efficient solution is implemented that will help businesses to be more effective, and grow quicker. ERP in Textile industry can greatly benefit the businesses in this industry.

In 2015, operational revenues from the textile industry in Saudi Arabia touched nearly $3 billion; the kingdom mainly exports to the US, to the tune of $58.5 million; today, the global export value of textiles and apparel stand close to 500 million USD, with the UAE being the biggest importer.

There are over 200 textile and apparel factories operating in the country, and they have experienced a growth of about 29% on average.

Textile sales make up around 9% of the total exports of KSA, and the industry, along with the furniture segment, employs around 15% of the eligible workforce in the country.

ALSO READ: How ERP Software Enhancing your Business

Textile ERP software helps businesses streamline and automate their processes, and manage their entire process from start to finish much more efficiently.

It centralizes information from all departments, making inter-departmental communication and collaboration easy, and transparent.

 Critical areas like inventory, finance, procurement of raw materials, and so on, can be managed effectively with a robust ERP solution.

A good ERP system like Tranquil offers efficiencies of time and cost affords greater end-to-end visibility and functionality across the organization.

Cloud-based software offers advantages of any time, anywhere accessibility, real-time information from any department and so on, that help in the efficient control and monitoring of operations, responding to queries swiftly, planning production better, and more.

Let us look at the benefits offered by ERP in textile industry in detail.

Benefits of ERP in Textile Industry

1. Streamline Supply Chain Management

ERP software helps to streamline, track, and effectively manage supply chains – and especially in the case of global markets, it is invaluable.

Inter-departmental collaboration, production, and distribution: all these can be significantly improved with automation.

An efficient ERP solution has the capability to predict market requirements based on historical data; this can help businesses prepare, and ship products in time.

With total integration of all business operations, you will also save time and money.

ALSO READ: Future of Enterprise Resource Planning

2. Mobile Data Access & Security

Cloud-driven ERP systems eliminate the need for you to be at your desk in the workplace, and this extends to your team as well.

With employees working long hours and even in the field, it is imperative that they can access the system whenever they want from whichever location they are in.

You have the added benefit of providing controlled access to employees according to their roles.

This ensures data safety while providing much-needed information to employees in the field, helping them close sales, conduct audits, and quality checks.

Controlled access with multi-layer authentication helps protect your sensitive data and prevents corporate espionage.

ALSO READ : Saudi Arabia Makes Electronic Invoicing Mandatory

3. Improve Collaboration and Communication

Intra-departmental collaboration is important for any company to function successfully, and an ERP system for textile industries facilitates this very well.

It provides a centralized platform for communication in addition to automation. Employees from various departments can easily share, upload, and retrieve data as and when needed.

4. Easy Handling of Payments and Receipts

Cost accounting is a tough job for most companies, as they have to juggle several things like managing multiple clients, assembling several orders with differing prices, generating bills and receipts for a range of products, and more.

There could be similar products that need to be shipped to different customers at different prices, depending on the contract or agreement.

It can get very cumbersome to create a price list with multiple rates, specific discounts for various customers, tracking outstanding bills, credit limits, modifications in the bills, maintaining sale and purchase ledgers, and the like.

ERP can help in seamless handling of payments and receipts as it can easily process vast amounts of data in a short time, and even generate MIS and taxation reports.

This can help to carry out an in-depth analysis of the outstandings and liabilities and convey the payment information with greater clarity.

ALSO READ: Benefits of ERP Software for Waste Management

5. Generates Financial Reports Accurately

ERP in textile industry helps businesses with financial information by helping management to create accurate reports of accounts automatically and in real-time.

Production cost, income, debts, expenditure, profit and loss statement, and balance sheet are some of the reports that the ERP solution can generate.

The Finance Management module of Tranquil cloud ERP is a feature-rich solution that simplifies complex financial and accounting activities.

6. Quality Management

ERP software streamlines the production process from start to finish, ensuring that the finished product meets quality requirements before being shipped to market.

It incorporates quality control in every stage of the manufacturing process, eliminating the possibility of defects, and maintaining compliance with regulatory requirements in addition to customer requirements.

ALSO READ: Advantages of ERP Waste Management System

7. Reduce Machine Downtime

Textile ERP software optimizes machine performance to ensure maximum uptime, enabling management to get real-time information about your assets and their condition.

It also records and tracks information like the duration of the machines’ operation, if they are under or over-utilized, and facilitates scheduling of servicing of the assets.

The software can also monitor the dates when maintenance checks are due and send alerts.

All these help you to utilize the machines optimally and to extend their life.

8. Increases Sales

Manufacturing quantities are generally decided by examining past sales; ergo, order quantities, pricing, distribution, and so on need to be monitored carefully.

The risks associated with supply chain disruptions, sudden changes in price, etc., can be mitigated with accurate sales forecasts and continuous monitoring by the ERP software.

It also facilitates the formulation of appropriate strategies for improving sales.

ALSO READ: Benefits of ERP Software for Healthcare Industry

9. Cost Savings:

ERP enhances the process flow, thereby reducing expenses of labor; it also manages the entire information like shift timings, tasks allocated, skills, and so on.

The software facilitates a more effective allocation of organizational resources to boost productivity and overall efficiency.

10. Organizes Customers Easily

ERP software empowers your sales team by providing critical customer information to them regardless of time, place, or device.

By looking at the purchase behaviors and seeing in which stage of the buyer journey the customer is in, management can create appropriate strategies, target the exact audiences for specific campaigns, taking precise follow-up actions.

ALSO READ: Benefits of Retail ERP in Business

11. Management of Supplier and Customer Queries

Sales and Procurement teams are better equipped to handle customer and vendor queries, thanks to automated manufacturing and inventory accounting processes.

Customer support teams can get instant access to customer information, and resolve supply chain problems on the go as well.

ERP software can also help in maintaining consistency in purchase orders from retail businesses, track online transactions, manage delivery dates, and compute overall sales based on varying margins.

ALSO READ:  Factors for a Successful ERP Implementation

12. Optimizes Production

It is imperative the production is optimized in the textile manufacturing process, enabling management to resolve hurdles, and take proactive steps to ensure continuous, smooth production.

All this is made possible by ERP solutions that help businesses to handle all these issues with ease; the software also provides innovative solutions to optimize production.

ERP functionalities include helping the production team to manage the availability of raw materials, efficiency of employees, and maintain quality – thus enabling the company to get the most with less effort.

13. Automates Invoice Generation and Manage Payment

Cumbersome and monotonous manual tasks like generating invoices can be easily automated in an ERP solution, with the staff printing and sending the invoices to customers automatically.

The invoice status will also be displayed – and if an invoice is pending, the employee in charge can follow up with the customer to get the payment.

14. Simplifies Purchasing and Vendor Management

Vendors are managed as per their contact information, price lists, and so on by the ERP solution for the Purchase Department; they also get ratings depending on their past performance.

The software also simplifies purchase management as approval matrices are arranged online, and requests for purchases are automatically converted to orders.

These are fail-safe measures aimed at preventing fraud and exceeding approved budgets.

ALSO READ:  Benefits Of Software As A Service

15. Provides Flexible Accessibility

As ERP is cloud-based, you and your team can access the system from any device and at any time.

With real-time access to information, you can gain visibility into your operations whenever you want, and take action whenever required.

16. Customer Satisfaction

By reducing the delivery time for executing customer requests, ERP in textile industry can help enhance customer satisfaction and loyalty.

This could be queries, complaints, or simply orders.

By reducing the time taken to respond to customer demands and requirements, a business can create a good impression and earn loyalty.

ALSO READ: Critical Factors to Consider in Designing ERP User Interface

17. Better Inventory Management

Textile ERP automatically manages stock operations so that the right product can be delivered at the right time to stakeholders.

Tranquil ERP’s Inventory Management provides traceability of batches in addition to centralized inventory.

Through seamless integration with other business systems like purchases, sales, production, and so on, the software can generate reports in real-time that empower the management to make informed, effective decisions.

It is crucial that the system is frequently evaluated to prevent the hazards of inadequate or unnecessary inventory.

Thanks to ERP, merchandise can be categorized according to parameters like color, price, size, and so on.

The item order can be updated depending on fulfillment dates and market demand; algorithms are used to process sales to maintain the accuracy of profit computations.

In case of fluctuations in margins, overheads, or manufacturing expenses, the matrix can be adjusted through the introduction of new parameters.

Eventually, you get an efficient system that reduces market-related collateral risk.

ALSO READ:  Influence and Importance of ERP System in Different Industries

Conclusion

ERP software in textile industries can greatly enhance their chances of success and help them stay competitive through innovative and flexible features and modules.

With more and more textile manufacturers choosing to implement ERP solutions, it is definitely here to stay.

If your company hasn’t yet implemented one, it’s time to seriously consider this option.

When you team up with a reputed and reliable provider of ERP software, you send a message to the competition that you are in for the long haul, and are serious about your business.

Just make sure that you get the system customized so that it is capable of handling your specific business requirements, increases productivity and efficiency throughout your organization, and helps you march ahead of the competition.

If you’d like to see how it actually works before making a final decision, simply Schedule a Demo here. Our team will be happy to help you with it.

 

Electronic invoicing refers to the procedure of switching over to electronic processes for issuing invoices, from the conventional manual, paper-based invoices, and debit and credit notes. The process aims to facilitate the processing and exchange of invoices and debit and credit notes in a systematic, electronic form between sellers and buyers.

FATOORAH is the name given to the e-invoicing project in the KSA. It is applicable for B2C, B2B, as well as B2G transactions.

You can Schedule Demo

The Authority in Charge of Implementation

The Zakat, Tax and Customs Authority, or ZATCA is the authority that has been given the charge to implement and administer the VAT, or tax, in Saudi Arabia. This organization has the authority to do the following:

• Registering and de-registering taxable individuals for VAT
• Administering the filing of VAT returns and refunds
• Conducting audits and field visits
• Power to penalize individuals or companies for non-compliance of regulations
• Implement the electronic invoicing framework in Saudi Arabia

The Zakat, Tax, and Custom Authority (ZATCA) of Saudi Arabia had announced on December 4th 2020, that an electronic invoice will be made compulsory for all resident tax payers in the country in the following year.

This extends to third parties who furnish invoices in the name of taxpayers, subject to VAT. Only companies not resident in KSA do not fall in the ambit of this regulation.

More details were published by the Authority on 28.05.2021, outlining the technical specifications, rules for each phase, and detailed requirements with regard to e-invoices and related documents.

December 4th 2021 is the day chosen for the rollout of this new regulation. The ZATCA declared that this rollout will be implemented in two phases.

As per the regulation, resident taxpayers need to be fully capable to not just issue, but also save and alter e-invoices by the specified date.

The regulations contain specific terms and conditions and requirements with regard to e-invoices, as well as e-credit and debit notes. It must be borne in mind that these regulations will be subject to the provisions related to tax invoices as stated in the VAT legislation. Penalties will be levied on those who do not comply with the regulations.

Along with VAT and the e-invoice regulations, sections with regard to proof of e-transactions and e-signatures as stated in the Electronics Transactions Law will also be applicable to the e-invoices and electronic credit and debit notes that are issued.

Key Provisions of the New Regulations

Businesses operating in Saudi Arabia, must bear in mind these important points:

• From 04.12.2021, e-invoices must be issued – this is the first phase
• The second phase will be rolled out later, and in this phase, taxpayers should link their system for issuing electronic credit and debit notes, and invoices, with the ZATCA systems so that critical data can be easily shared and accessed
• It is necessary to issue electronic invoices in Arabic primarily; additionally, other languages like English, may be used.
• The provisions are applicable to all supplies that are taxable – subject to the standard or 0 rate of value added tax; the provisions are also applicable to consumers both within and outside the country (if sales happen outside Saudi Arabia)

Why is the KSA Government Implementing e-invoicing?

Saudi Arabia is not the first country to move to electronic invoicing; in fact, it is following the global trend of doing away with paper invoices.

It is a natural progression of the modern economy, and the system of electronic invoicing will help in the modernization of the country’s tax infrastructure, help the authorities control more effectively, while diminishing the cost of administration.

Seeing how other countries have benefited from electronic invoicing systems, Saudi Arabia has also decided to modernize its invoicing and tax systems.

Electronic invoicing can bring in a sea change, and offer numerous benefits, which are to do with:

1) Security, and 2) Efficiency

With electronic invoices, the government will be able to identify and track the movement of money, goods and services in real time.

This will have the effect of increased tax compliance, greater transparency on commercial transactions, and data-driven, informed decisions.

Electronic invoices can result in more efficient, smooth trade, leading to hassle-free transactions, quicker payments, and decreased expenses, delivering in-depth and exhaustive insights into market dynamics.

In turn, this facilitates fair competition while boosting competitiveness among businesses, and providing greater protection in the market, in sync with best practices globally.

Phases of the FATOORAH e-invoicing Project and Important Dates

Phase 1 : December 4th 2021

From this date, manual, handwritten or types/printed invoices will be unacceptable. It will be mandatory for taxpayers to issue e-invoices and relevant electronic notes with a compatible system that enables the necessary fields to be displayed in the e-invoice. This phase is to be utilized by those covered by the new regulation, to prepare for phase 2.

The system should also be capable of archiving, and issuing a copy to the client. These fields must be mandatorily included in the e-invoices in the first phase:

• The purchaser’s VAT number (if a registered taxpayer who has to compulsorily issue invoices)
• The date of the issue of the invoice and VAT

In addition to those, B2B invoices can contain QR codes (optional) but on simplified invoices used in B2C invoices, it is mandatory.

Taxpayers need to ensure that they implement certain security measures for their invoice generation systems, like preventing data manipulation, requiring stringent authentication for accessing data, ensuring that the counter for sequential numbering of invoices cannot be reset, among other things.

Phase 2 : January 1st 2023

In the ‘Integration Phase, it is mandatory for every invoicing system to be compatible with the system used by ZATCA, and this integration will be performed gradually, depending on the class of taxpayer.

Taxpayers will be notified a minimum of 6 months prior to the date of mandatory integration. In this phase, taxpayers must follow these norms:

• All e-invoices, like simplified tax invoices etc., and the relevant papers must be created and issued in PDF or A3 format with XML, or simply XML.
• The taxpayer should be able to get online and via the ZATCA API, integrate with outside systems.
• Generating a QR code and hash, a unique universal identifier, and a digital signature are to be compulsorily implemented to ensure the authenticity of the invoices and prevent tampering with them.

The Zakat, Tax, and Custom Authority has defined what its e-invoicing system is like, and what the technical specifications for the e-invoices should be.

It is recommended that businesses take the initiative to migrate to the new e-invoicing system as soon as possible.

In phase 1, taxpayers can venture into the new system and familiarize themselves with it, allowing them to lay the foundations for an efficient system compatible with the official system of ZATCA.

The invoices are required to go through the ZATCA e-invoicing platform, for which you need to use the API integration tool of the system to connect your system to the central platform.

Benefits and Advantages of e-invoicing

Adopting an electronic invoicing system offers innumerable benefits for the country as a whole, and for the individuals subject to the regulations. Here we enumerate some of the most significant ones:

• Ensuring fair competition and consumer protection by implementing an amalgamated process for auditing and corroborating invoices, thereby improving the business ecosystem.
• Minimizing parallel economy transactions
• Minimizing fraud, purposeful omission or concealment of transactions by increasing regulations for tracking invoices and retaining data
• Enhancing customer experience, and digitizing the relationship between customers and vendors
• Improved compliance with tax regulations via more effective authentication of business transactions.
• Saves time, as unnecessary steps are removed from the invoicing process
• Reduce expenses as you no longer have to pay courier charges for mailing invoices, or for printing them
• Minimize use of paper
• Affords better control and offers deep insights into the invoicing process, as all information is stored on a single unified platform, that can be accessed regardless of location or device. It gives an overview of invoicing with automated and inbuilt reports and analytics.

How to Fulfil the Technical Requirements?

Any business falling in the ambit of the regulation can approach reputed software vendors or electronic invoicing solution providers to build compliant e-invoicing solutions. Those with full-fledged IT teams in-house should have no major issues in fulfilling technical requirements.

Tranquil is a prominent cloud-based ERP software system that helps you to manage your projects and business work in a hassle-free way. Moreover, with this software, you can access your business data anywhere, any time. If you want to management ERP software system, you can get in touch with Tranquil software.

 

ERP or Enterprise Resource Planning is a software solution that streamlines and automates business processes and helps manage an organization more efficiently.

It integrates various departments like HR, Manufacturing, Accounting, Sales, Inventory, Marketing, etc., and stores all related data centrally.

The ERP tool has an intuitive interface that is accessible to all those who need the data but has built-in authentication protocols that provide access to only relevant sections of the system and data.

In the waste management industry, ERP revamps existing systems for better efficiency.

Also Read : Benefits of ERP Software for Healthcare Industry

People, offices, factories, educational institutions, hospitals, construction activities, restaurants and hotels – all generate huge amounts of waste every single day.

Toxic waste permeates our ecosystems, and it’s no laughing matter; it’s a hazard for not just our health, but the entire ecosystem, and threatens several species.

The rapid development that we see around us, with scant regard for proper waste disposal or environmental impact, is what is leading to this situation.

It is therefore imperative that waste management is properly carried out by individuals, businesses, nonprofits, and governments alike, to not just protect the health of the present population but for the future generations as well.

Waste management is a lucrative industry with great potential; however, the players should be able to keep pace with the fluctuating requirements and regulations of the industry with alacrity.

Constant change is a norm in this arena, and those who want to be a part of this industry must be equipped to comply with modified regulations and legislation immediately.

Day by day we see governments around the world tightening the norms and regulations for waste disposal and reporting of the same.

This makes ERP for waste management an absolute necessity.

ALSO READ:  Benefits of ERP for Steel Industry

Why is ERP important for Waste Management?

ERP is capable of managing almost every single business function, creating a lean, accurate operation, and delivering a bird’s eye view of your business.

Managers can improve productivity, cut costs, incorporate agility, and deliver customer satisfaction.

If your waste management business has not yet implemented major software solutions, you may be a bit hesitant in getting waste management software; here we present a few compelling arguments in favor of getting ERP software for your waste management business.

Once you go through them, you will be convinced of the need for waste management ERP.

Your current processes may not be efficient enough, and if you’re still managing with spreadsheets, you could easily lose track or even find it tough to communicate effectively with the various departments.

However, when you implement ERP, you will be able to integrate the different departments seamlessly in one central platform.

This gets rid of duplication and decreases errors due to manual data entry.

ERP software comes with inbuilt analytics and generates insights that help you make informed decisions that help improve productivity and efficiency across the organization.

Also Read :  Factors for a Successful ERP Implementation

Need for an Organized System for Waste Management

It is important to plan and implement the system properly to ensure that waste management is carried out responsibly.

The types and sources of waste need to be identified, and then the cost of carrying and treating it, categorizing and segregating it, and so on, are the various activities related to waste management.

Of course, the entire process needs to be continuously monitored as well.

Gathering and observing the data to measure the current systems is imperative so that an economic and effective system of waste management can be created.

Different types of waste mandate different treatments: plastic, metal, paper, electronics and so on can be recycled or reused, or need to be disposed of in an appropriate manner.

They should not be dumped in landfills with biodegradable waste, but sometimes, it does happen that way. Therefore, segregating the collected waste is extremely crucial.

Allocating adequate finances to machinery and human resources required to manage the waste also needs to be done optimally.

A lot of variables are at play in this industry, and they are interdependent, making it all the more necessary to have a software solution to help.

ALSO READ: ERP software in Warehouse & Fixed Asset Management

Advantages of an ERP Waste Management System

When waste management organizations have excellent project management, and good control over their processes like accounting and contracts, they can offer the best services to their customers.

ERP provides real-time information, a big, centralized database, and precise predictive analytics, helping businesses with more efficient gathering and disposal of waste.

1. Better Management of Information

It is crucial that all the information regarding various dumping and collection sites is documented properly.

With ERP for waste management, you have flexible configuration options that let you set parameters like type and quantity of waste, location of sites, resources needed, and so on, and easily input them for future requirements.

You can also add, delete, and edit the information as per your requirements.

You can easily check on what tasks are complete and those that are pending by tracking the business info and monitoring the metrics for progress.

This is helpful to employees as they can focus on completing the tasks that are pending, boosting their productivity and efficiency, and carrying out the collection and disposal of waste within the stipulated time.

Also Read: Key Benefits of ERP for Accounting and Financial Management

2. Effective Resource Allocation

Businesses typically use ERP to keep a record of all transactions and churn out reports based on the data collected.

When you use ERP in waste management projects, you can get information in real-time about the human resources allocated to each task or project.

This has the benefit of enabling you to optimally allocate resources to ensure better outcomes and taking remedial actions as they are necessary.

It helps you to assign employees to tasks based on priority, and to put the right person for a particular job.

Managers can delegate work to employees, who have the capability to verify what they have been allocated to work on.

You can achieve a smooth and hassle-free allocation of work, consequently increasing efficiency and productivity, save time, and eliminate over or under allocation; you can also prioritize tasks, and make sure your teammates work accordingly.

This is especially helpful when you are working on big projects, and/or have multiple sites.

Also Read : Importance of ERP System in Different Industries

3. Safer Disposal of Waste

The major concern for individuals and organizations for preserving a healthy and clean environment is disposing of waste in a safe manner.

This can only be achieved when the waste is properly categorized as per type, the quantity recorded, and diligently tracked from the collection phase through carrying, right up to disposal.

Thanks to enterprise resource planning software, this entire process becomes simple.

The solution helps you document every bit of information in connection with the disposal, including the cost, the method of disposal, the quantity, dumpsite, transporter availed of, invoice, shipment, and so on.

In this way, you can supervise the actions that were taken at each level, and make sure that every single activity was carried out efficiently, complying with the regulations and protocols prescribed by the authorities for managing waste, or recycling initiatives.

ALSO READ: Benefits of ERP Software in Textile Industry

4. Optimized Scheduling of Tasks

Often, you may find yourself juggling several projects simultaneously; now this can be very daunting without the help of a robust and effective ERP solution.

With a centralized system that provides access to pan-organizational data and transactions in real-time, you gain visibility of everything that’s happening in your business.

Powerful data analytics provide actual figures of what’s happening in every department; in totality, all these features enable optimal scheduling of tasks for more effective service.

Also Read : Challenges in ERP Implementation

5. Organize Preventive Maintenance

All of the equipment and vehicles your organization use in collecting, treating, carrying, and disposing of waste need to be properly maintained; this could include servicing, tune-ups, parts replacement, and more.

With ERP software, you get real-time information about the health of all the vehicles and equipment used by your organization, making it simple to track and schedule maintenance checks to prevent serious damage.

This helps to ensure that most of your machinery is operational for the maximum time.

Timely servicing of vehicles and equipment helps to protect from sudden breakdowns, which could mean having to spend big money on repairs, as well as impacting productivity.

ALSO READ: What is Batch Picking? 

6. Generate Quotes Dynamically

This may seem unimportant, but it’s not; you need to be able to give accurate quotes or estimates for different waste management projects.

Sure, you can do it manually, but those quotes could be erroneous, and it could harm your goodwill.

With ERP waste management, you get a sophisticated and automated generation of quotes that make the process of submitting proposals a breeze.

You can incorporate numerous parameters including the resources necessary, investment, and so on.

Robust ERP solutions will also allow you to tweak parameters to meet your specific requirements.

ALSO READ: Benefits of ERP Software for Healthcare Industry 

Conclusion

After reading the above-mentioned points, you can see that implementing ERP for your waste management business will help you to simplify the complicated processes, boost productivity and efficiency, and eventually, your revenues.

Cloud-based ERP solutions will enable remote work and collaboration as well, ensuring that you manage everything well regardless of where you are.

It also ensures greater data security.

Streamlined ERP solutions help ease the mundane, everyday tasks to empower the entire team across the organization, helping them to provide safe, efficient services on time to customers.

Tranquil is a prominent cloud-based ERP software system that helps you to manage your projects and business work in a hassle-free way. Moreover, with this software, you can access your business data anywhere, any time. If you want to manage an ERP software system, you can get in touch with Tranquil software.