Month: November 2021

ERP or Enterprise Resource Planning is a software solution that helps businesses to streamline and automate processes, encompassing every aspect of the business.

An ERP solution like Tranquil facilitates interdepartmental coordination by bringing organization-wide information into a single dashboard and provides 24/7, 360-degree, real-time visibility into your business operations. Till now, this software was only deployed on the computers in the office, but that changed with the advent of cloud computing and enterprise mobility.

The answer to the question ‘What is Mobile ERP?’, is simple: it simply means an ERP mobile application.

By enabling remote access to the company ERP software through mobile devices, companies can be more agile and responsive to situations. With data on sales, customer habits and purchase history, insights, and functionality at their fingertips, agents on the field are able to achieve a lot more.

They can deliver personalized customer experiences, and close deals – and even place orders immediately.

Carrying out business activities is much simpler and more efficient with mobile ERP; in fact, one could say that it is the answer to the frequent complaint of “I wish I could do this even when I’m not at my desk’.

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

Mobile ERP applications enable companies to provide superior quality service, be more productive, forge robust business relationships, and give them a competitive edge.

Mobility has a huge impact on the way businesses conduct their daily operations.

Mobile ERP apps allow employees to access the ERP through their own mobile devices, regardless of where they are, bringing in more flexibility and boosting productivity.

It allows team members to upload, access, and share critical information through their hand-held devices, ensuring real-time data on the go, without necessitating extra expenditure, while ensuring they stay informed throughout.

Benefits of Mobile ERP

Now that we have gained a basic understanding of what mobile ERP is, let’s take a look at the many mobile ERP benefits.

It is important to remember, however, that the ROI from mobile ERP can be different for different businesses.

It depends on several factors and variables, all of which cannot be discussed here.

1. Cloud Storage

Everyday business operations are simplified by cloud-driven mobile ERP apps, as the need for manual information recording is greatly diminished.

Mobile ERPs are flexible and can streamline processes with no compromise on operational efficiency.

Storing data on a remote server – a central cloud – that allows access from anywhere, delivers immense value in terms of savings and productivity.

Costs are significantly reduced as there is no need for heavy financial outlay to purchase new equipment of infrastructure to deploy cloud-based mobile ERP.

ALSO READ: Advantages of Software as a Service

2. Improved Decision Making

With all the relevant information available in a centralized database, and accessible in real-time, 24/7, you can see exactly what is happening where.

It helps you identify roadblocks and bottlenecks, supply chain disruptions, and verify that everything is happening as planned.

If it is not, you will be able to take the relevant, data-driven decisions and actions to resolve them quickly before they become big problems.

You can see what works and what doesn’t and can adjust your strategy to get better outcomes.

3. Greater Collaboration

ERP systems bring all the information from multiple departments into a central database, and this allows team members to collaborate better with each other.

They don’t have to wait for a chain of command to get the information they need, and they can leverage the information to carry out their tasks quickly.

Sharing information is hugely beneficial for the entire organization, as it helps to bring all relevant people on the same page.

4. Improved Quality of Personalized Service

Mobile ERP empowers employees by providing instant access to critical and relevant information when on the go, enabling them to resolve customer queries, and providing data to prospects without any delays.

They can use customer information like preferences and purchase history to offer personalized purchase experiences on the spot.

This provides enhanced experiences to customers and helps forge strong, long-term relationships with them.

ALSO READ: How is AI transforming ERP? 

5. Business Agility

Mobile ERP apps streamline and simplify cumbersome and monotonous tasks and even time-consuming on-site app implementation.

This makes businesses more agile and flexible, speeding up the process and making it more affordable to the organization.

It helps you to be more proactive, and forge stronger bonds with your vendors, customers, and even employees.

ALSO READ : Guide on How Do ERP Systems Work

6. Enhanced Productivity

As team members are able to access the ERP mobile app remotely, like when they are commuting, waiting in line, or anywhere else, there is a significant reduction in downtime.

With full access to the whole range of business functionality, employees can work from home, just as if they were at their desks in the workplace.

Working with a mobile ERP system also reduces the paperwork.

The combination of all these factors means that your team members are free to focus on more important tasks, increasing productivity, and eventually improving the bottom line.

7. Streamlined Supply Chain

Mobile ERP can help streamline your supply chain, helping you keep in-depth records of your inventory and suppliers, and track the movement of raw materials and finished products from end to end.

The mobile app collects information from all aspects of the supply chain and displays it in a single place, enabling you to see the supply chain in its entirety.

You will be able to understand the supply chain much better, and also see how to optimize the supply chain with minimal changes.

ALSO READ : Role of ERP in Supply Chain Management

8. Accurate Data Capture and Better Data Quality

For any ERP system to function, it needs data that is input into the system.

You could say that the ERP itself is as good as the data it receives.

Thanks to mobile ERP apps, any transaction can be carried out on the spot; this means, data is collected through the mobile app and gets automatically recorded in the ERP system.

There is no need to enter the data in the office system again – reducing errors caused by manual data entry and ensuring greater effectiveness.

It also ensures the elimination of duplicate data and deleting redundant data – ensuring that your data is clean and high quality.

All of this helps save time and money and brings more efficiency into the process.

ALSO READ : Benefits of ERP for Accounting and Financial Management

9. Competitive Advantage

A company that has mobile enterprise applications for business processes has a definite competitive edge over its competitors.

Today’s customers are very demanding and tech-savvy; they want to do business with a company that leverages modern technology to give them quick, superior service at the lowest possible cost.

With a mobile ERP solution, you have greater control over business operations; you will enjoy improved productivity, and your team members will be able to provide exemplary service.

This will help your business gain more customers while retaining your existing ones, speed up turnaround times, and help your business to grow.

ALSO READ : Factors for a Successful ERP Implementation

10. Greater Visibility

Mobile ERP makes it easy to track the processes and activities of multiple businesses at different locations – across various departments as well.

You can simply track them via your mobile device without having to physically access any of those locations yourself.

You can effectively project and plan business processes, and strategize about inventory, marketing campaigns, and more.

Your mobile ERP app collects data from multiple points, providing real-time information and valuable insights so that you know exactly what is happening where, and what action to take for business growth.

11. Device Agnostic

A reliable mobile ERP app is built to function smoothly on any mobile device – regardless of size, screen resolution, or operating system.

It delivers the same, seamless experience whether you use the latest Android phone or an older version of the iPhone.

This makes it super convenient for employees, as it means that they do not have to get another phone for work purposes.

They can continue to use their own mobile devices at work or to access the ERP app when they are not in the workplace.

ALSO READ : What are the Challenges in ERP Implementation?

What Does the Future Hold for Mobile ERP applications?

The global COVID-19 pandemic has made remote working, or working from home, extremely common; with most employees fearing exposure to the virus, they prefer working from the safety and comfort of their homes.

As it saves time from commuting and leads to more productivity, companies are also happy with this new norm.

It has also been made easier with cloud-deployed mobile ERP applications.

Today, an increasing number of organizations are switching to the mobile platform.

ERP mobile apps are driving innovation, not to mention remote workforces.

They are improving visibility across business departments, speeding up automation, and delivering improved efficiency and higher revenues.

The future, therefore, certainly looks bright for mobile ERP apps – and they are definitely here to stay.

At Tranquil ERP, we will be happy to deliver a mobile ERP app that is customized to meet the exact needs of your business. We have the expertise and capabilities to perform integrations with your existing or legacy business systems and can help you achieve your business goals faster and more efficiently.

To see how it works and how it can actually improve your business, schedule a demo here.

Our representatives will contact you soon.

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.

 

Manufacturing, by nature, is a complex business; when it comes to chemicals, it can be even more challenging, and potentially dangerous as well.

Safety is imperative when it comes to chemicals; there are also strict regulations in place which need to be adhered to.

It is also important that you have real-time information about the production, there are new production technologies coming to the fore, and of course, R&D is crucial.

Additionally, any manufacturer wants to bring in greater efficiency while cutting costs.

Chemical industries also are challenged by high volatility, and there are often dramatic shifts in demand; legacy systems and manual processes can hamper your flexibility and capability to control business operations.

So how would you, as a manufacturer of chemicals tackle these challenges?

Since this business is heavily reliant on inventory management, industry experts are of the opinion that ERP solutions will benefit manufacturers immensely.

ERP for chemical manufacturing can help streamline processes, and handle large data volumes speedily and efficiently to provide information in real-time that drives improved decision making; ERP can make your business agile and proactive.

ALSO READ: How ERP Can Improve Business Efficiency?

Let us take a detailed look at the benefits offered by the chemical industry ERP:

Benefits of ERP for Chemical Industry

1. Formulation Management

Accurate measurements, potencies, qualities, concentrations, and reactions of raw materials is extremely critical in the chemical industry.

The formulation is the basis of material purchases; an efficient ERP system like Tranquil gives you the ability to set up and maintain a system to manage formulae.

It can track the raw material in stock, and the quantity required to produce finished goods that match sales forecasts; this helps to diminish material costs as well.

Tranquil’s procurement management feature enables you to meet production requirements uninterruptedly, by alerting you to raw material needs, allowing you to order continuously.

Formulations that necessitate potency adjustments can also be managed easily, with businesses being able to track raw inputs straight back to the specific vendors; they are sent notifications regarding potency adjustments, they can also handle returns and cancellations quickly, reducing your costs.

With the right ERP software, you can be sure that you are right on the dot with formulae for the manufacturing and distribution of chemicals.

2. Inventory Control

To achieve the most effective inventory control, you need to use quality control information, expiry dates, traceability data, and other data elements.

ERP systems have all the warehouse and shipping locations this helps to manage locations, FEFO, and so on and automate processes that connect quality control data with lots and batches.

This connection can be extended to link all the collected information to the raw material supply; this further leads to a chain of gathered data capable of tracing all inputs to their apps and locations of end customers.

This helps quick resolutions of on-field problems and optimizes product traceability.

To put it in simple words, ERP systems help you track inventory according to license, attributes like potency, item, lot number, warehouse, status, UOM, location, and so on.

Add that to mobile-friendly processing of transactions, and inventory management becomes a breeze.

3. Product Innovation

When every department shares information within an ERP system, chemical manufacturers can manage product lifecycles more efficiently, at the same time, predicting future demands.

You can also gain a competitive edge by supporting collaboration, and responding quickly to your customers’ enquiries and demands for sales.

4. Improved Collaboration

When all the departments in a company are connected within an ERP solution, there are pan-organizational benefits.

The integration of various functions – like vendor monitoring and evaluation, managing contracts, invoicing, procuring materials, and making catalogs – with key stakeholders become more efficient.

This helps forge strong bonds with suppliers and gives you leverage when it comes to purchasing, helping you get lower prices for procurement and purchase.

5. Greater Efficiency in Supply Chain

You can shorten the time taken for cycles to complete by collaborating closely with supply chain members, boosting efficiency and visibility of the supply chain, and decreasing inventory costs at the same time.

You can use chemical ERP for strategic management of raw materials, reduce costs, minimize wastage, and eventually enhance profitability.

In fact, you can even reduce the working capital requirement as you will be able to plan for supply and demand more effectively.

ALSO READ: Role and Benefits Of ERP In Supply Chain Management

6. Responsive and Agile Manufacturing

Chemical manufacturers can be more flexible with the supply chain when there is a change in demand thanks to ERP software.

New or altered production plans can be shared with all stakeholders in the supply chain networking, allowing them to adjust their manufacturing in real-time.

This is based on precise marketing and sales activities which can help with manufacturing decision-making.

In the chemical industry, it is an extremely vital requirement that when it comes to formulae or the manufacturing process, the modification has to be easy.

With ERP, there is higher responsiveness on the alterations made, enhanced synchronization, fewer errors, and less time wastage thanks to real-time information.

7. Improved Operations & Inter-department Collaborations

Without synchronization, things can get pretty chaotic in your chemical business.

Productivity depends to a great deal on collaboration between teams and departments, and lack of it can negatively impact productivity.

However, ERP software facilitates collaborations, helping your business to grow.

8. Tracking & Analysis

Tracking operations is important for all businesses with multiple teams and large SOPs; an ERP solution will help you easily track all your operations from one unified dashboard.

Business analysis is a critical part of business, that helps you see what strategies work and what doesn’t, and where you need to make improvements.

Tranquil ERP comes with a powerful inbuilt BI and analytics that helps with all the statistical data that is essential for your business.

ALSO READ: Challenges in ERP Implementation

9. Better Electronic Records Management

The efficacy of future analytics depends on the precise management of records and data – regardless of the industry.

ERP drives better decision-making with easy electronic storage of data and records.

It eliminates the problems of lost papers or unavailability of information in crucial moments, usually associated with manual systems.

10. Remote Access

With a robust ERP system, you can be sure that you will be able to access all the features when you need them, regardless of where you are.

This is extremely helpful when your agents are out in the field, or you are talking to a potential customer at an expo, and need details like previous orders, prices of your finished products, quantities you have on hand, how quickly you can supply the order, and so on.

Mobile accessibility allows you to tap into your ERP and use the information to close deals, negotiate terms, and convert more customers.

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

11. Increased Customer Satisfaction

With better inventory control, improved productivity, formula security and management, and integration with CRM or customer relationship management software, you will be able to provide better customer service – more personalized, relevant, and quicker fulfilling of their demands.

12. Ease Production Complexities

Chemical ERP affords companies greater flexibility for planning batch production jobs as well as purchase orders depending on supply and demand.

This helps to make sure that production is carried out without disruptions or delays.

ALSO READ: How is AI transforming ERP? 

13. Ensure Safety & Quality Across Processes and Products

An efficient and reliable ERP solution like Tranquil ERP helps chemical manufacturing companies to take care of the health and safety of their employees and customers.

The option for incorporating manufacturing instructions and maintenance of HMIS during production, generating SDS sheets and GHS labels during product shipments, etc., is how an ERP achieves this objective.

14. Regulatory Compliance

It is vital that chemical manufacturers comply with the many regulations in place for the industry, ranging from local to international.

Chemical production and handling is a high-risk business, and therefore safety is of utmost importance in this industry.

Technology helps to a significant extent and has been playing an important role since the early days.

Compliance with regulations is especially critical as industrial accidents could impact public health and safety for years to come even.

You need to have solutions for ensuring the safety of employees and the general public.

ALSO READ: Factors for a Successful ERP Implementation

Regulatory compliance modules capable of testing warehouse conditions, temperature, factors of ingredients, final products, and so on, are essential, as are reporting capabilities that will help fulfill compliance requirements.

It is necessary to maintain detailed information and generate reports like VOC and SARA, as well as HAZMAT bill of lading to ensure compliance with various authorities.

Needless to say, this necessitates intensive quality control measures at every phase in the production and supply chain.

An ERP solution like Tranquil ERP leverages automation tools that employ robotic techniques for maintaining regulatory compliance.

It helps businesses in the chemical industry to comply with stringent regulations that govern the storage, transportation, handling, labeling, and use of chemicals

ALSO READ: Benefits of ERP for Accounting and Financial Management

15. Optimizing Supply Chain and Production

The Chemical industry is a demanding one, where business processes can slow down without transparency and complete visibility from the supply chain right up to production.

Slowed production translates into an inability to meet customer demand, and that spells trouble.

However, an efficient ERP solution provides data in real-time; like product lifecycle management, materials resource planning, etc., which helps to enhance production efficiencies.

An ERP for chemical manufacturing affords a real-time view of assets and production performance, leading to improved visibility and fewer roadblocks – thus helping you to meet customer demands quicker, and more efficiently.

Final Words

You have seen the multifaceted benefits a chemical industry ERP can usher into your chemical manufacturing business.

You can automate, scale up, and beat the competition to be one of the leaders in your field. At Tranquil, we can customize the ERP solution to align it with your specific business goals.

If you’d like to see for yourself how it would work, schedule a demo right now!

We will be happy to answer all your queries related to ERP for your business.

 

ERP solutions like Tranquil are today indispensable tools for businesses small and big. By automating and streamlining business processes, and centralizing information from various departments, it provides access to all employees to critical data that helps them make informed decisions.

It eliminates human errors and improves data accuracy, saves cost, time, and effort, and frees employees to concentrate on core business activities.

How ERP Modules Help Businesses

Enterprise Resource Planning modules are designed to handle specific business processes, provide data, and make it easier for employees to complete their tasks.

Financial and critical operational information from every department is brought into a single dashboard, providing real-time access to accurate data.

Modules are the most important components of the ERP system.

As the software is designed in a modular fashion, it is flexible and can adapt and scale to the changing needs of the business – a major reason for its wide adoption.

A company can choose to purchase only those modules that are necessary for their business, and capable of addressing their specific needs and challenges.

New modules can be added whenever required, without implementing a new system.

ALSO READ: Top Trends of ERP System For The Future

ERP Modules and Functions

Let’s now take a look at the most commonly available ERP software modules, along with their features and how they help the business.

1. Customer Relationship Management (CRM)

This module stores every bit of information about prospects and customers, including the entire communication records – like calls and emails with the date and time – and the buying patterns.

By giving sales teams critical customer information, the system helps them to provide excellent customer service.

You can also leverage CRM for managing opportunities and leads.

By tracking all interactions with prospects and suggesting which campaigns or promotions should be used for which customer.

ALSO READ: Guide on How Do ERP Systems Work

2. Ecommerce

With the growing popularity of E-Commerce, now Ecommerce is part of ERP system modules, making it easy for businesses to sell their goods and products online.

There are several user-friendly tools that employees can use to add and update the module with items, content like titles, images and descriptions, and more.

Through integration with other ERP modules like inventory, order, and payment, all the information is routed to the central dashboard, with every transaction being recorded.

Items that are sold out are automatically removed, and orders are shipped on time.

3. Purchase

Also called Procurement, this module enables a company to order and purchase the raw materials it requires to produce and sell goods.

It maintains a list of suppliers along with the items, and when requests for quotes are sent, it tracks and analyzes these quotes.

The purchase module assists the purchasing department to draft and send the purchase orders once a particular quote is accepted.

It then tracks that order – checking when it leaves the seller’s facility, and then on arrival, updates the inventory.

ALSO READ: How is AI transforming ERP? 

4. Inventory Management

This is one of the most important ERP modules, as inventory is the life-blood of a business.

Inventory can be better managed and controlled with it, as it can track quantities and location of items, right up to specific SKUs, and provides a comprehensive picture of incoming and existing inventory – as it is integrated with the Purchase module, as we saw previously.

Inventory costs can be managed more efficiently, and management can ensure adequate stocks without spending too much.

By evaluating sales trends and checking product availability, helps businesses take actions to sell faster, and increase margins, minimize delays and ‘sold out’ situations, improving customer service.

It can also be used to manage sales and purchase orders, and shipping, if there is no supply chain management module available separately.

In large organizations, this module can be tweaked to track multi-location inventory also.

5. Finance

As it enables businesses to realize their present financial condition and future prospects, the Finance module is one of the most critical business modules in ERP.

The Tranquil Finance module manages the general ledger, tracks pending payments that are owed and to be paid, generates and stores financial documents like tax statements, payment receipts, and balance sheets.

Tasks like reconciling accounts, vendor payments, billing, etc can be automated, and the accounts department can close the books in time, complying with regulations and industry standards.

The module also helps the Finance department to prepare important reports like P&L statements, reports, and more, as it contains the requisite data.

ALSO READ : Benefits of ERP for Accounting and Financial Management

6. Manufacturing

The first ERP solutions were created for the manufacturing industry, and to date, it is an important component of the software.

Most solutions have a Manufacturing or Production management module that makes production planning easy and facilitates smooth and continuous production.

It makes sure that there is sufficient machine capacity and raw materials; it also updates the status of goods being manufactured so that management can measure actual output against the quantity forecast.

Businesses can get real-time information from the shop floor about work in progress and finished goods; the software computes the average production time for an item to compare the supply with demand forecast, helping management to properly plan for sufficient production.

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

7. Warehouse Management

For businesses that run their own warehouses, this module offers a speedy ROI.

It can guide warehouse employees through all the processes, depending on the warehouse layout – starting from stowing goods on the arrival of shipments, to packing and shipping.

Multiple picking strategies like zone, wave, and batch are supported, based on the most efficient one for a business; even the most effective path can be displayed to staff.

Employees can find products speedily, thanks to integration with order and inventory management.

This fosters quick shipments, and fast deliveries – making for happy customers.

8. Order Management

This order management module routes every order to retail stores, distribution centers, or to the warehouse once customers place orders.

It then tracks its status – preparation, fulfillment, and shipping.

This activity ensures that orders don’t get lost, and helps maintain punctual deliveries, without resorting to expedited shipping, which incurs more cost.

Sophisticated software can also help businesses decide the best option in terms of cost and speed of delivery (depending on customer location) for fulfilling orders: store, distribution center, or warehouse

9. Project Management

This module is a bit different from other types of ERP modules; project management encompasses the entire organization and not a specific function.

It helps management to break a project down into small, manageable tasks, and assign resources like HR, finance, equipment, Tranquil Project Management module handles everything from employees to customers and schedules to invoices, ensuring that tasks are completed within deadlines.

It does the following tasks:

• Estimates – allows comparison of current project cost against quoted value
• Activity – track tasks, schedule employees, record billable hours, send invoices, order materials, and more
• Costing – keep track of all expenses of projects, jobs, and tasks, to understand current profitability
• Schedule Staff – assign tasks, and automate salaries of employees
• Job Activity – view all data regarding individual jobs, like materials used, recording billable hours, scheduled employees, etc

10. Supply Chain Management

You can track every step in the movement of goods and supplies from start to finish within the supply chain.

The module can also handle products returned to the vendor for replacement or refund.

Though typically it includes multiple functions like purchase, manufacture, order, and inventory management, it is capable of a whole lot more.

ALSO READ: Benefits Of ERP In Supply Chain Management

11. Human Resources Management

HR management is similar to CRM, but only for employees.

It contains detailed information on employees and related documents like appraisals, offer letters, employee benefits, etc., and tracks hours worked and paid leaves, sick leave, and so on.

It helps eliminate inaccuracies and duplication of data, which happens when you have this information stored on multiple spreadsheets in the absence of an ERP solution.

12. Marketing Automation

This is a relatively new entrant into ERP solutions, and it helps handle marketing campaigns across various digital channels like SMS, web, social media, and email.

Based on customer segregation and campaign rules, it can automate the sending of relevant email messages to customers.

Marketing automation also delivers detailed reports on campaign performance, which helps businesses to decide about future marketing strategy and expenditure.

It helps to boost customer loyalty, increase leads, and eventually, sales and revenue.

Which Modules do you Need?

When it comes to choosing the ERP modules and ERP implementation for your company, you need to consider your business model, industry, the challenges you are facing, your goals, and your budget as well.

Certain modules are necessary for almost every business:

• Finance – to monitor financial health and ensure timely payments
• CRM – to improve customer service
• HR – to ensure employee tracking, timely salary payments, tracking progress, rewarding deserving employees, etc.
• Supply Chain Management – for any business dealing with products, whether it is manufacturing, or retailing – or even distribution
• Project Management – for consultancies, service and repair companies, agencies, as it helps get quick ROI by automating complex processes

Other modules depend on the individual businesses – as we saw before, warehouse management is essential for companies that run their own warehouses; Ecommerce for those keen to sell online and want to push it in a big way, and so on.

Eventually, you also have to consider your budget – how much can you spare, how much you are willing to invest, and what returns you expect to get on the investment.

You can always start off with basic modules, and add the ones you feel are necessary for your business, as you grow.

If you’d like to see for yourself how Tranquil ERP works and how it can benefit your system, schedule a demo with our team. We will explain in detail and answer any queries you may have.

 

The Food and Beverage industry of Saudi Arabia is the largest in the Middle East, valued at around 45 billion USD. The Saudi Arabian General Authority for Investment (SAGIA) forecasts that a 6% growth in food services expenditure can be expected by 2024.

In 2018 itself, the F&B industry contributed 10% to the GDP; this gives a clear idea of the importance of this sector on the economy of this country.

Food and beverage are a rapidly evolving one, and the manufacturers face several unique challenges over and above the pressure to produce safe, high-quality products – fresh, chilled, and frozen – and provide impeccable customer service.

As lifestyles change and awareness increases, people are becoming more health-conscious and demand healthy and nutritious food; there are also shifting trends in the preferences regarding food sources, and sustainability.

Technology has also made inroads into this industry as in others. Manufacturers need to maintain utmost safety while keeping costs down – this is probably the biggest challenge they face.

Retailers also influence the industry together with food service. This means manufacturers have to innovate continuously and be flexible to stay relevant and cater to discerning customers. Additionally, regulations are stringent and keep increasing, especially with regard to traceability, additives, reduction of fats and salts, proper labeling, and more.

ALSO READ: Guide on How Do ERP Systems Work

ERP for food industry can help you, regardless of whether you are stressed due to retailer pressure, or hassled by the rapidly changing regulations and compliance requirements – or even if you’re just interested in implementing digital transformation in your business.

What is Food-Specific ERP Software?

We know that ERP is a software tool that businesses use to automate and streamline their operations.

It provides a 360-degree view into the performance of the individual employees, and the departments, in real-time.

An ERP for food and beverage industry is designed to optimize processes that are specific to the industry, bridging gaps in areas that conventional methods could not.

With the rapid growth of the industry, small and medium F&B manufacturers are looking for integrated and automated solutions rather than manual spreadsheets that are error-prone.

Unique responsibilities of manufacturers in this sector include product safety, shelf-life, ingredient safety, compliance with labeling and packing regulations, recipe management, maintaining product quality, and so on.

Conventional methods are incapable of handling all of these requirements – but ERP solutions specifically designed for the purpose, can.

ALSO READ: Factors for a Successful ERP Implementation

Benefits of Food and Beverage ERP Systems

F&B ERP software delivers a plethora of benefits to manufacturers:

• It helps the manufacturer to develop products according to the prevailing market trends
• You can launch new products in the market quickly and cheaply
• Reduce wastage, use materials optimally, manage inventory better, and reduce expenses significantly
• Ensure compliance with food safety regulations
• Deliver products that are high quality and safety at the right time and price
• Ensure traceability from start to finish
• Boost inter-departmental collaboration, the efficiency of operations in manufacturing, and enhance productivity
• A good ERP system is flexible, and evolves and scales as the company grows.
• Provides centralized information from across departments
• Access real-time production, sales, and distribution data and monitor and control your business efficiently
• Get accurate forecasts that help in strategizing and planning production for the future

Food and beverage ERP software is designed to help F&B businesses to do business better, and achieve rapid growth. Though you may feel hesitant about implementing an ERP for your manufacturing business, the benefits offered by this tool are certainly enough to overshadow your fears.

ALSO READ: Benefits of ERP Software for Healthcare Industry

Challenges and Opportunities

While every business has unique challenges, the F&B industry as a whole faces a few challenges that impact every business in it.

Shifting consumer preferences necessitate that every business in the industry adapts to cater to the new requirements.

Let’s take a detailed look at those challenges.

1. Inventory Management Complications

Inventory management is a critical business function for the food and beverage industry, especially since the products are perishable; it’s imperative that this is performed to perfection, but it’s also the most difficult.

With increasing food intolerances among people, they have had to change lifestyles and diets, and are moving towards healthier eating.

Most consumers today demand food without preservatives and artificial additives, insisting on organic food, and the like.

However, these foods have a short shelf life, and are more vulnerable to pathogens, complicating inventory management.

A robust ERP like Tranquil has an efficient inventory management module that tracks expiry dates, alerts you to low stocks, and helps reduce wastage and spoilage.

2. Product Traceability

One of the most important trends that is bringing about change in the food industry is the demand for increased transparency.

Consumers demand to know exactly what they are going to eat – it could be to ensure that the food is as per their dietary requirements, or to avoid allergens, or even because they want food that is produced ethically.

This has given rise to detailed labeling of ingredients on products – which in turn necessitates traceability of ingredients or products from start to finish, to achieve optimal transparency. This can be near impossible to do manually – however, food and beverage ERP systems, make it possible.

ALSO READ: Top Trends of ERP System For The Future

3. E-Commerce

Delivery of meal kits and groceries has become very popular now, and these are facilitated via mobile apps.

It is vital that time and information are managed impeccably so that these perishables can be properly delivered.

By integrating your ERP system with the mobile app or e-commerce system, you can easily keep pace with the innovations and dynamic consumer requirements.

It also helps you to get an overview of critical product info in your e-commerce store.

4. Strict Regulations

The food and beverage industry is also subjected to some of the most stringent regulations in place to get certified. These regulations are subject to change frequently and suddenly, leading to food recalls and business losses.

Recently, the nutritional labeling requirement in KSA was updated by the Saudi Food and Drug Authority, the SFDA.

The authority periodically issues warnings to consumers about certain brands or foods for not adhering to prescribed norms. Therefore, every business operation needs to be executed with great precision and care.

Key Features

Now that you know the challenges the industry faces, let’s take a look at what features a food and beverage ERP should have. When you’re hunting for a good ERP solution for your business, make sure it includes the following critical features:

1. End-to-End Management

Managing the processes of an F&B business from start to finish is made easy with end-to-end management tools, like project management from Tranquil.

It centralizes all the data and workflows, rather than keeping it on several independent platforms, enabling manufacturers to organize their data better, and access it easily.

This helps them to improve data integrity, control quality, manage the production, make forecasts, etc.

It also helps users to view every operation at a glance, generate reports, and identify potential problems.

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

2. Regulatory Compliance and Reporting

Precise tracking and traceability are vital to food safety.

The level of inspection and analysis in the F&B industry is extremely high, making it all the more important to have a system that helps automate regulatory compliance.

In the case of audits or product recalls, this feature can help to pinpoint and detach an issue for a quick resolution.

Product traceability will not only record the ingredients that were used from start to finish, but also the manner of usage.

3. Streamlined Security Protocols

Every ERP solution may not have stringent security; ensure that the ERP you choose has strict authentication protocols for user permissions throughout the system.

This will ensure only authorized access and minimize chances of a data breach

ALSO READ: How is AI transforming ERP? 

4. Real-Time Reporting Capabilities and a Centralized Database

To be successful in today’s F&B manufacturing industry, you need to be able to access critical data whenever you need it. Tranquil is a cloud-based ERP that does just this.

It also enables you to update numbers, and get reports when you need them. You need not depend on employees to remember all the products and other information.

The ERP maintains historical information and stores it safely in an organized manner. Employees can access this knowledge base within the system, and use it when required.

5. System Integration

A robust ERP solution should be able to integrate with business systems like CRM or HRMS, as a comprehensive system will let you locate every bit of business data in a single unified system, and give you access in real-time.

The availability of data from critical areas significantly improves BI and analytics as well.

ALSO READ: Benefits Of Software As A Service

6. Intuitive User Experience

Change is always met with resistance; a new software system can be daunting to use for your employees.

A good ERP system, therefore, should have a short learning curve, which will ease their apprehensions.

An intuitive and easy-to-learn system will be quickly accepted and adopted by employees and used appropriately.

7. Process Manufacturing

Several production tasks involve process manufacturing; an ERP system for food industry executes tasks like scheduling distribution, analyzing quality, and controlling production.

You can decrease costs by enhancing accuracy and maximizing the workforce hours; this can be achieved through supply chain automation.

Your business profitability is impacted by the production process.

Process manufacturing is involved in many production tasks.

An ERP system performs tasks such as production control, quality analysis, and distribution schedule.

Process manufacturing features include:

• Quality management – Managing allergens like nuts, gluten, colors, etc., inspections, quality testing, and so on
• Sales and inventory management – The systems should be able to perform effective stock management and prevent spoilage and wastage. By linking with sales order information, managers can see the location and levels of stocks so that they can refill to maintain optimal levels
• Recipe control – This is a complicated task and needs to manage information like quantity, cost, formula, and more.
• Shelf life – F&B ERP should have automated alert systems to notify management when ingredients are either past or approaching date of expiry

8. Financial Management

Look for an ERP with a robust integrated financial system, like this one from Tranquil.

It can record expenditure precisely and provide real-time information and help categorize your transactions correctly.

The system can also generate detailed reports that help you craft better strategies for business growth.

ALSO READ: Benefits of ERP for Accounting and Financial Management

9. Deployment Options

ERP systems can be cloud-based or on-premise; both have their own pros and cons.

Look for a provider who offers flexible deployment options and subscription options so that you can get a solution that is a good fit for your business.

10. Vendor Maintenance and Support

Lastly, make sure that the vendor you choose is prepared to offer immediate technical and maintenance support if you face any issues.

Ascertain that the vendor has a good reputation, and is not a short-term operator. Ideally, these services should be included in the contract:

• Support desk
• Regular updates
• Remote login support
• On-site support and maintenance

Final Words
Tranquil offers an all-around view of your food and beverage manufacturing business, allowing you to configure the system, providing in-depth functionality and wide scope to ensure that you can meet the requirements of the market today.

Our cloud-based software with a modern, intuitive interface, includes all the features you require to help you do business better. Want to see how it works before you take the plunge? Click here to schedule a demo.

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.

Artificial intelligence though not absolutely new, is still not very mature yet; but we have already got glimpses of what it can do, through the many AI incorporating apps that have been released.

What Exactly Is Artificial Intelligence (AI)?

It refers to the ability of computers to execute tasks that necessitate human-like thinking: analyzing, deciding, etc. Software with AI enables computers to perform functions that used to be done by humans.

There are different types of AI – from simple speech and image recognition to deep machine learning that enables computers to process huge data volumes to identify patterns and take decisions on that data.

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

Artificial Intelligence Within ERP Systems

AI in ERP systems helps vendors to enhance ERP solutions through natural language user interfaces, machine learning, and so on. By incorporating AI in ERP, businesses get actionable insights that help them improve overall efficiencies, productivity, and profitability.

How Does AI in ERP Work?

ERP solutions help streamline and automate processes to improve efficiencies and centralize the data from all the departments, like finance, warehousing, HR, sales, manufacturing, etc., providing real-time information to businesses.

As the software ‘learns’ and becomes more intelligent, the AI-driven ERP system will handle more and more operations that were hitherto performed by humans, in a fraction of the time, and with few errors. After all, massive volumes of data can be processed in minutes by computers.

Today AI is used to assist in every enterprise data processing area.

Chatbots interact with users to talk or message in a system for placing orders, entering expense reports, updating the status of jobs, and so on.

The bots are capable of executing most of the tasks that necessitated manual data entry. As machines learn more and become more independent, they take over more and more tasks that are monotonous and time-consuming (when performed by humans).

AI tools are capable of carrying out several data management problems, like removing duplicate data, updating details like address, vendor information, etc. if they have changed, and so on.

The use of AI will also result in almost zero omissions; missing bits of information renders the software incapable of completing the processing or lead to erroneous results. For example, an employee may use an old address of a customer, without realizing they have moved.

However, when everything is automated, there is no chance of this happening as the address is updated immediately. When a software app has access to innumerable transactions regarding a particular vendor, it is able to provide up-to-date insights into the financial stability of that vendor than an employee.

AI is increasingly being used to make critical business decisions in almost all industries.

ALSO READ: How Do ERP Systems Work

How Artificial Intelligence is Transforming ERP

AI technology is already transforming business processes in organizations across the world.

Every day, we see innovations and improvements in self-learning and data mining, and analytics, adding immense value to businesses.

AI in ERP systems can make a significant impact on the day-to-day business processes and operations by reducing expenses and eliminating human error.

This technology has the capability to learn to improve its proficiencies and thus enhance efficiencies throughout the organizations. Thanks to the advancement in ERP technology in the past years, businesses have gathered tons of data, but till now, they had not been able to exploit that data to its fullest potential and make data-driven decisions.

Customer Service / CRM

The chatbots in AI-driven ERP software can be used to reply to customer queries and comments at any time or day (regardless of working hours), improving customer service.

An employee talking to disgruntled customers can get flustered and fatigued; a chatbot on the other hand, will answer customer queries in a neutral tone, and give appropriate responses about issues like order status, etc; complaints will be forwarded to human employees to look into.

They are free to handle these and other serious or complex matters that may affect relationships with customers. Additionally, machine learning in ERP systems means it can also collect cross-organizational data in real-time and study customer history, providing valuable insights that drive improved decisions.

ALSO READ: Trends of ERP System For The Future

Sales and Marketing

AI-driven ERP solutions can help identify new leads for marketing and sales.

It can track and recognize purchasing trends and behavior to determine what is being bought by whom.

A business may be able to identify a feasible target market which they had missed in their branding and marketing strategies. But now they can target this group and cater their marketing efforts for them, grabbing a bigger piece of their market share and improving their bottom line.

Inventory Management

Inventory Management is a big headache for most businesses.

To effectively manage inventory, a business needs to maintain adequate stock as well as cash reserves – only then can the business operations and processes be carried out efficiently.

By implementing AI-driven ERP, you can mitigate the risk of producing too little or too much – and this means minimizing inventory problems, or expensive small-scale productions.

Eventually, AI in ERP systems means reduced expenses and increased revenues.

While it is understandable that businesses may be apprehensive about implementing artificial intelligence in their organizations, there is no cause for fear.

Moreover, the plethora of benefits offered by AI technology should be the deciding factor in its favor. Through the elimination of mundane tasks which are prone to errors, optimization of operations, and streamlining of processes, organizations can become more productive and efficient, and increase their revenues.

How AI Improves ERP Software

1. Advanced Analytics

Artificial intelligence can process huge data volumes; this makes it possible for the ERP software to provide accurate, real-time data insights, like purchase trends and behaviors in specific customer categories.

This will allow you to deliver customized marketing messages, with the products and services of their preference to targeted audiences.

2. Warehouse Management

With AI in ERP systems, businesses can easily conduct testing of numerous forecasting models with great accuracy.

This can be adjusted for disparate variable types, like disruptions in the supply chain, the introduction of new products or services, an increase or decrease in demand, and so on.

ALSO READ: Benefits Of ERP In Supply Chain Management

3. Forecasting

Processing historical data and making forecasts is one of the most valuable features of AI-based ERP systems, as this can help greatly in future planning.

AI tools pick out seasonal patterns in business and recommend whether you should reduce or increase production.

Forecasting is rendered extremely affordable by AI tools – and very precise as well. With reliable predictions, you can bring down the risk of over or under production, manufacturing the required amount only.

4. Financial Management

One of the biggest headaches for any Accounts and Finance department in any business is the month-end or quarterly processes, and closing operations.

Reports need to be cross-checked for accuracy, and account balances compared to ensure compliance and eliminate misrepresentation of financial facts.

It is a time-consuming and mundane task, and often errors may creep in.

However, thanks to machine learning in ERP systems, AI can automate and streamline the process, reducing time and effort, and eliminating errors for a more accurate report. For example, artificial intelligence can divide invoice data into different categories, and be able to pinpoint the difference between a monthly phone bill, and the purchase of a phone.

ALSO READ: Benefits of ERP for Accounting and Financial Management

5. Interdepartmental Processes

Connecting the different departments in a business, like accounting, HR, marketing, sales, inventory, and so on, can be quite daunting, as it will lead to handling mountains of data.

AI, however, is capable of handling these gigantic volumes of data.

It also brings all of this information into a central database from which employees can easily access the data they need, simplifying this complex process.

6. Customer Service

AI-driven ERP solutions can help you to improve your customer service; not only does it provide invaluable information about customer behavior and preferences, it can also analyze employee qualifications, perform appraisals, help in scheduling service calls, and with planning.

7. Production Processes

With AI in an ERP solution, a business can weed out processes that are less efficient; the AI will also be able to make recommendations on how to bring down expenses, reduce energy consumption, and more. Thanks to predictive diagnostics, AI-powered ERP software can help minimize the wastage of resources.

8. Human Resources

Another advantage of AI-enabled ERP software is that it can be proactive. For example, it can detect what employees need a raise. In addition, it can analyze data on the skills and experience of applicants, expediting the recruiting process.

9. Sales Automation

Through machine learning, chatbots today have become sophisticated enough to carry out the whole sales triangle, and not just help customers with their queries.

Today, bots are capable of coping with segmentation and providing real-time responses.

Chatbots powered by AI not only help customers but also conduct the whole sales triangle. Now, bots can cope with segmentation and provide responses in real-time.

ALSO READ: Challenges in ERP Implementation

Should You Implement an AI Driven ERP System?

It is true that an ERP solution itself integrates disparate functions and departments in an organization, and centralizes all the information in a database, providing real-time, 360-degree visibility into an organization. When integrated with artificial intelligence, however, it goes to the next level, analyzing massive amounts of data, making accurate forecasts, and recommending strategies, remedies, and so on.

An AI-driven ERP system can help you achieve your business goals faster, and stay one step ahead of the competition. Ergo, it makes good business sense for you to implement an ERP with inbuilt artificial intelligence.

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.

 

Before we talk about how ERP works, let us get an in-depth understanding of what it is.

Meaning and Definition of ERP

ERP can be considered to be a system that maintains a database that contains info related to all the processes in a business: HR, Finance, Sales, Customer Relationship Management, etc. But it’s not just a database – it’s a whole lot more.

It automates and streamlines business processes, integrating with other software solutions to present real-time, unified, organization-wide data in a single place.

It reduces human intervention and manual labor, decreasing errors and boosting overall productivity and efficiency.

You can say that in short, it is a suite of integrated software that helps you to manage, automate and link important business processes together.

Centralization of information also makes the processes more consistent and ensures improved customer service.

A Brief History of ERP

The idea of ERP, interestingly enough, has been around for a pretty long time – way before the actual ERP application was launched. Let’s see the timeline to get a better understanding of the evolution of this software.

The 1960s: With the number of manufacturing companies increasing, automated systems emerged, to help with managing the various processes.

1972: The foundation for ERP automation was laid when SAP launched its primary solution to process data in real-time.
Over the following twenty-odd years, the technology advanced significantly, with new functionality and features being added, and ERP grew in popularity.

The 1990s: More and more businesses adopted ERP, and with increased penetration of the internet, providers adapted and tweaked the system to serve a wide variety of requirements.

2013: The first cloud ERP solution was launched, and businesses could choose to have their app and data stored on remote servers rather than on their premises.

2021: Cloud is now the most popular and sought-after mode of deployment for ERP software – for example, Tranquil ERP . Mobile apps have made ERP even more accessible and convenient for companies.

ALSO READ: Top Trends of ERP System For The Future

What Does an ERP System Do?

ERP software like Tranquil makes use of a centralized database to optimize business processes, reduce manual effort, and simplify complex workflows. The dashboards in an ERP system display real-time data collated from various departments and allow employees access to critical information while helping to measure productivity and profitability.

Without ERP, this data is siloed according to departments, and it can be very difficult for say, a sales manager to access info from Inventory, and so on.

However, with an ERP solution, information from almost every department in the company is displayed in one place, allowing your employees to take timely decisions and achieve business goals. They can also save the time required to complete their tasks, and also improve inter-departmental collaboration.

Let’s see how ERP systems work with an example:

When an ERP solution receives an order from a customer, it automatically routes it to the distribution center that is located closest to that customer or is positioned to execute that order the fastest.

If you have observed keenly, you may have noticed sometimes that the return address on the package of some product you purchased may not match the address it was sent to you from. This is ERP efficiency at work!

ERP software may analyze factors like shipment time, inventory levels, and so on, to determine which distribution center to send the customer order from.

The main aim of ERP is to improve the effectiveness and profitability of a company by optimizing resource use; this could be brought about by reducing the number of resources used, or allocating them appropriately for various tasks, and so on.

By centralizing information – metrics, reports, and real-time data – from disparate systems and departments, allows a 360-degree view of the allocation and use of resources.

These insights can help management to make informed decisions on improving resource use to boost profitability and growth.

Like, if you see that some strategies are not giving you the expected ROI, you can remove resources from there, and re-allocate them to those strategies that are performing well.

ALSO READ: Understanding the Role of ERP in Supply Chain Management

How Does ERP Software Work?

We have seen what an ERP solution does – but how does ERP software work exactly? Let’s find out.

ERP software uses a definite, standard data structure to function. Any information entered by a specific department becomes immediately available to every authorized user across the company. As there is a uniform structure, everyone knows the situation in the company.

Let us consider a food distribution chain with multiple locations. They often share resources like HR and inventory.

As information about sales, quality, and employees is entered in the software, the format indicates the exact location it is from.

Data is then incorporated into workflows and processes throughout the organization.

It helps management to see which location is performing better at say, reducing spoilage as compared to another location not very far away.

The Finance team can study rent and sales, and that can help them decide if consolidating would be a good idea or not.

ALSO READ: Benefits of ERP Software for Healthcare Industry

For ERP solutions to be at peak efficiency, it is essential that it has modules for every major business function in a company, and data is entered properly and in time; it is also imperative that the maximum number of stakeholders are given access to the system.

To facilitate automatic data flow into the ERP software, you can integrate all the disparate business systems you have implemented, even if they are from different providers. Systems like HRMS, CRM, Payroll, etc., can be easily integrated with your ERP.

How ERP software works today is that the software, including the centralized database with all the information, is stored on remote servers so that on the premises of the client, no extra storage is required.

Employees can access the system from wherever they are, as long as they have a computer or mobile device that is connected to the internet. Of course, access is strictly controlled through two or more authentication factors.

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

What Are the Benefits Of An ERP System?

In short, ERP delivers significant business value, like:

• Pan-organizational visibility
• Real-time business data and analytics that provide actionable insights
• Improved customer service
• Elastic modularity
• More efficiency and productivity
• Increased automation and minimized errors
• Streamlined, speedier business processes
• Higher security and quality of data
• Scalability – to align with business growth
• Better supply chain management
• Decrease overhead expenses
• Easily integrates with other business software
• Ensure Proper regulatory compliance
• No additional IT expenditure
• Facilitates remote work, collaboration, and monitoring, when it is deployed in the cloud

ERP software reduces the resources required to successfully and optimally run a business without compromising on quality and profitability. The entering of data happens automatically in the backend, and this information is shared with units that require it.

Let us assume that the system receives an order for a particular item that happens to be one of the last few ones in stock; the inventory management module notes this information and alerts relevant departments, like Purchase and Finance, so that the item can be ordered and restocked. The sales team is also notified so that they can be careful when customers enquire about that item.

ERP systems can be customized to include modules that your business needs so that you can achieve your goals quicker.

How To Use ERP Software

Implementing an ERP system will of course cost you money, so it’s best that you ensure you get the best use out of it. Here is what all you need to do for that:

• Evaluate your Business Processes – Decide the processes that are most important and need maximum attention. Is it a robust Finance module that you need, or Sales? If you need all the processes, then you need a higher-priced software that will handle it all.
• Train your Team – Make sure that your employees receive sufficient training on the correct use of the software; this will ensure that your company will get the most out of the ERP solution. Employees will be able to adapt easily to the change as well.

• Ensure Data Quality – ERP solutions handle every detail related to the flow of data. You need to ascertain that the data is precise, relevant, current, and complete, to get the best out of it. Define data entry standards across departments, including file naming practices, versions, and so on. Conduct audits periodically to check that these standards are being adhered to.
• Customize – Many ERP systems provide a ‘one size fits all solution. Talk to your provider and insist that the solution you implement has to have all the functionality you need; and also to eliminate the modules and functions you don’t want. Customize the software so that it aligns with your business requirements. You can also do small-time customizations with plugins and integrations. This is one of the best ways how to use ERP system to get maximum ROI.
• Future-Proof your solution – the ERP solution you implement now may not be as useful to you 5 or 10 years down the line. Technology is constantly changing and evolving, and the business landscape is also highly dynamic. Find out from your vendor about their roadmap for the future and whether they do adequate research and development, and if they are capable of incorporating additional functionality in the future.
• Think about Integration – integrating disparate software with ERP helps improve the efficiency of your processes even further, eventually impacting your bottom line.

         ALSO READ:  ERP software in Warehouse & Fixed Asset Management

• Total Ownership Cost – investing in ERP won’t come cheap; look at the total cost of ownership, including initial purchase of hardware, future upgrades, maintenance, and so on. Compare that with the time and effort you expect to save with the implementation.
• Cross-functional Implementation Team – it is a good idea to have a team comprised of members from multiple departments for the implementation of the new system. This way, you can be sure that all the important areas and concerns of your business are handled, and you can take feedback from all departments who will use the system.
• Senior Management – it is essential that they are with you and on board with this decision. While it is not necessary that they are involved in the implementation process, it is imperative that they approve of the decision to implement ERP without hassles. This will smoothen resource allocation for the implementation.
• System Lifespan – How is ERP used in business, and what ROI you get from it, determines if it was a viable and feasible decision or not. These returns may vary over time, so it is important to track and make adjustments to your goals every now and then. Ideally, even more than just an ROI, you should get real value for your money.

Schedule a demo with the Tranquil team, and get your doubts and queries resolved.

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.

 

Supply chain management is a critical component in a business, and more so for the manufacturing industry, as they depend on vendors and partners to deliver the appropriate quantity and type of resources at the appropriate time to ensure continuous production, as per the schedule.

Managing the supply chain is pretty time-consuming, and even daunting, especially if not managed properly. It can lead to poor productivity, lower quality, delay production, and even result in unnecessary expenditure and loss of profits.

For a growing business, this activity can gain in importance even more.

ERP in supply chain management can significantly aid businesses to optimize and streamline processes for better outcomes.

ALSO READ: Top Trends of ERP System For The Future

Supply Chain Management Systems:

Businesses today have to be agile and able to adapt to dynamic changes.

As most companies have complicated hierarchies and organizational constructs and have to handle stakeholders internal and external, they have to be sure that the correct information is available always.

Suppliers, vendors, distributors, manufacturers, retailers, and end-users make up the supply chain.

SCM aims to match the supply to the demand for products and services profitably.

Supply activities need to be planned, carried out, monitored, and controlled appropriately so that the trust and collaboration among supply chain partners are improved.

Three types of flows in SCM:

• Material Flow – the movement of product from a vendor to the consumer, and vice-versa (for repairs and service)
• Information Flow – tracking orders, capacity, delivery schedules, and so on.
• Financial Flow – invoices, credit terms, payments, etc., which necessitate a high level of cooperation among the supply chain members.

An efficient ERP solution coordinates these three important flows.

Role of ERP Play in a Supply Chain Management Strategy?

The role of ERP in supply chain management is very valuable, and has impacted the manner of operation and spurred business growth. For businesses to succeed and grow, it is imperative that there is effective supply chain management and a robust ERP solution.

An expert ERP provider like Tranquil can help you bring all supply chain operations into one unified dashboard, affording greater visibility and smooth coordination with both vendors and suppliers.

Integrating ERP and SCM

Integration is the most critical feature of supply chain management ERP software, as it amalgamates germane information and processes from every operation; integrated with SCM, the software will help companies to adapt, develop, and protect against market risks.

This integration of ERP and SCM also affords greater visibility into every operation, boosting efficiency and speeding up the processes to deliver enhanced customer satisfaction.

However, it could create some challenges for your employees, and it’s a good idea to have a clear understanding of the role of ERP in supply chain management.

ERP software tackles palpable supply elements like transport and warehousing and monitors the marketing factor to ensure effective management of consumer demand and supply.

Starting with the acquisition of raw material, right up to the product distribution phase, ERP provides immense benefits.

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

Benefits of Using ERP in a Supply Chain Management

Implementing ERP for your supply chain management strategy can drastically improve your business.

Combining efficient and streamlined and effective SCM workflows with a feature-packed ERP environment provides a host of advantages as listed below:

1. Supply Chain Planning

This includes choosing the marketing channels, deciding the campaigns, defining the amount of stock and inventory needed, and making sure that production and replenishment can keep up with the demand.

ERP system in supply chain management offers a simple and flexible manner of establishing and modifying parameters within which the supply chain has to operate.

2. Monitoring and Maintenance

ERP in supply chain enables businesses to supervise, assess, and modify supply chain activities in real-time, ensuring that they are able to stay flexible and competitive and reduce operational costs.

3. Procurement, Purchase, and Implementation Management

Procurement and supply of resources like goods and services required across the supply chain can be managed much more effectively with a robust procurement management module in an ERP, like the one in Tranquil.

Our solution provides visibility across platforms on all components of the supply chain, from manufacture to transport to delivery.

4. Measurement and Evaluation

If you have several disparate systems and workflows in your organization, measuring actual results against projected targets or expectations can be almost impossible.

ERP systems like Tranquil collect information precisely and organize the data such that they can quickly identify and resolve unwanted supply chain variances.

5. Efficient Prediction and Lean Inventory

ERP software in supply chain management can help to make accurate demand forecasts, ensuring minimal inventory cost – especially in the case of production processes that are in huge batches.

It is essential to maintain a lean inventory to enable ‘just-on-time’ production, reduce production expenses, and keep supply chains elastic.

6. Efficient Managing Demand & Procurement

When the system receives orders, it creates demand, thereby automating demand planning.

On receipt of the order, the software schedules the next steps to be taken.

The team can see real-time info about the resources and are able to efficiently plan production jobs and delivery of products. Other supply chain tasks that can be automated and optimized to increase efficiency include materials transport, warehouse management, and so on.

7. Faster Decision Making

ERP and supply chain management when used in combination, empower you so that you can take quick action on the information you get.

For example – when you see that the number of units sold for a particular product is rapidly ascending, you make sure that you procure more materials to produce that item, and take advantage of the prevailing demand, boost your sales and increase profitability.

8. Risk Mitigation

ERP systems can warn you about potential delays or unavailability and automatically take action to prevent those events.

For example, let’s say your main vendor is unable to supply your order. The system will send you a notification, and route the purchase order to the next preferred vendor.

9. Automation and Accessibility

ERP software is often integrated with other business systems, allowing for process automation, reducing human intervention and the possibility of errors to a great extent.

With more business being conducted remotely and, on the go, managers and senior employees need information access when they are not at their desks.

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

10. Total Control

Ultimately, ERP in supply chain affords you greater control over your business operations.

A fully integrated ERP solution like Tranquil enables you to study the data to gain additional customer insight, which can help your sales team.

It also helps you oversee partner-focused marketing activities – letting your whole team view the big picture and make informed decisions.

11. Quick Processing & Documentation

ERP software can create invoices and send them straight to the consumer on product shipping. In the case of overseas shipping, it can also generate and send the necessary import-export documentation.

The system maintains an archive of information related to shipment and delivery so that errors are minimized, and deliveries can be in time.

12. Enhanced Collaboration

Supply chain management ERP software is valuable in enabling seamless coordination between vendors and companies. Suppliers connected through the ERP software can work more efficiently with your business to minimize bottlenecks, like identifying low inventories quickly and ensuring availability of the same, to help you achieve your goals.

13. Increased Visibility

Tranquil is a robust ERP solution that provides an in-depth, real-time view into your business operations.

This visibility and transparency enable entrepreneurs and managers to craft intelligent strategies about efficient use of resources – from materials to HR.

See where you’re doing well, and where you aren’t, and take remedial actions to improve outcomes.

14. Cloud Capabilities

With cloud-based ERP systems like Tranquil gaining in popularity, organizations are increasingly enjoying benefits like mobility and enhanced data security.

It facilitates remote working and collaboration as the system can be accessed by any authorized person on any mobile device.

This empowers your staff, letting them make on-the-spot decisions without necessitating meetings. By providing critical business and customer information on the go, also helps field agents to deliver personalized and enhanced customer service.

ALSO READ: Benefits Of Software As A Service

Vital Features of an ERP Supply Chain Management Solution

You should remember, however, that the benefits mentioned above can be achieved only when your system prioritizes these important features:

• Customization: supply chain issues will vary from industry to industry; make sure your ERP provider is able to customize the software to incorporate the functionality you require, and your dashboards display relevant data.
• IT and Support: Your ERP system should not cause problems for you, rather it should simplify matters and lower your IT costs by reducing human error. Make sure that this is what you are getting.

Relevance of Supply Chain ERP in the Current Scenario

Other than precise forecasts, efficient planning, and collaborating, ERP software in supply chain brings about business disruption – and you need to be ready to adapt quickly and appropriately so that you’re not left out when it hits your industry.

The pandemic has taught everyone that it is essential to be prepared and respond in time to maintain business continuity.

This has led to a shift of focus from cost saving to supply chain adaptability, speed, and managing risk, with an aim to create elastic sourcing and supply chain networks that are better connected, so that customer demands can be met.

We have already seen how performance improvements like speedy decision making, quick response, and enhanced visibility serve to make supply chain activities robust and prepare businesses for disruptions.

ERP Systems Offer Superior Supply Chain Solutions

Supply chains consist of multiple departments and organizations, making it cumbersome to manage them effectively.

ERP systems like Tranquil are invaluable tools for the development and deployment of efficient supply chain systems.

No company can afford to continue with inefficient or outdated supply chain processes – this can be easily taken care of today, by implementing a robust ERP system.

ALSO READ:  Challenges in ERP Implementation

How to Choose the Best ERP and Supply Chain Implementation Strategy

If your company already has an ERP solution, ensure you use the data and the overarching view of the organizational processes and workflows to craft a supply chain process that’s more efficient.

If you’re using disparate SCM systems, your business can significantly benefit by implementing an ERP system that offers access to the critical manufacturing, financial, and inventory data required for building a supply chain management process that will perform well.

You can, of course, determine which system is best depending on the specific needs of your industry and business, and accordingly, implement that system.

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.