In its simplest form, vendor relationship management software can be thought of as a process that helps improve supplier relationships. But beyond that, it has the ability to make enterprises more successful by giving them access to invaluable information, better control over the supply chain, and greater transparency into various processes.
Vendor relationship management is one of the most important factors in achieving supply chain excellence. However, most organizations fail to fully utilize it because they lack a holistic approach to the process and are not fully aware of how VRM can directly affect their bottom line. Here are three vendor relationship management strategies that can be used to maximize the value of supplier relationships: · Communicate often - Vendor relationships won't survive if you don't keep in touch with your suppliers on a regular basis. Communication needs to be a two-way exchange where both parties contribute information and ideas that help one another. The more research you do before communicating with vendors, the better quality the information they receive will be, and they'll respond more favorably. · Build partnerships - Vendor managers need to treat suppliers as partners instead of simply as business entities selling products or services. This means that both parties need to work together, share information and focus on understanding each other's needs and interests. · Create a win-win situation - The best vendor managers realize that it is not possible for an organization to thrive without its vendors also thriving. Because of this, they'll try to create mutually beneficial arrangements that benefit both sides. · Measure performance - In order for organizations to effectively manage their vendors, they need to be able to measure the performance of each supplier they work with. They can do this by measuring things like the quality of the products or services received, the number of problems experienced while working with a given vendor, how quickly a vendor responds when problems occur, and many others depending on the nature of their industry and needs. An effective cloud-based vendor management system will help enterprises: · Establish clarity with suppliers to reduce costs by reducing waste and inefficiency and by increasing supply-chain visibility · Identify and engage with new suppliers based on specific needs. · Improve efficiency by leveraging pre-established agreements between manufacturers and suppliers · Gain a competitive advantage through increased agility through increased flexibility and reduced lead times. · Establish strong collaborative partnerships with suppliers to encourage innovation, develop new products or services, enhance existing products or services, increase value to customers, drive productivity improvements, etc. If your relationships with vendors are costing your business time, money and energy, get to know how can you manage vendor relationships that works via TYASuite plug and play vendor management software.
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Procurement management, or source-to-settle, is the procurement lifecycle, beginning with the evaluation of purchase options and ending when supplier invoices are paid.
Procurement management is a huge and diverse field, with many functions and activities taking place in regard to sourcing, purchasing, and settling supplier invoices. It is the process of making decisions about the purchasing of goods and services for a company. Procurement includes defining business plans, sourcing potential suppliers, creating buying strategies/criteria, evaluating offers, negotiating contracts and managing supplier relationships. Procurement is becoming newly important as companies shift towards increased buying of services, products and materials from outsourcing vendors or by creating strategic partnerships with other companies (such as developing joint ventures) in order to gain access to expertise the company may not have within its own organization. Poorly managed procurement can mean lost sales, wasted money, and increased risks. Often, procurement professionals are in charge of sourcing products or services without any strategic vision, and without linking purchasing to the overall business plan of the company. With procurement management software, your business can build a supply chain based on strategic goals and risk assessments. Procurement management software speeds up the sourcing cycle and provides transparent insight into the costs of goods and services with tracking capabilities Integrating Procurement Management across all four disciplines — sourcing, purchasing, vendor service and accounts payable — provides for a more complete picture of real-time order status, allowing for faster delivery times as well as minimizing the risk of non-payment from creditors due to inaccurate invoice processing. If your organization has a requirement for multiple suppliers or complex transactions, then you can increase efficiency and reduce costs by having cloud-based procurement software in place. Contact us for a free consultation, or to request immediate assistance with your next procurement to pay management project. Conventional methods of monitoring stock levels and keeping track of orders across channels can be time-consuming and costly.
Ineffective enterprise systems and fragmented data sources cause you to waste time piecing together information from individual systems. The result is inaccurate data dispersed across numerous platforms, wasting valuable hours to find what you're looking for. Worse yet, due to outdated enterprise and technology systems, losing or duplicating key data points while manually keying in information becomes a major concern something that accounts for costs not only in terms of lost revenue but also in terms of wasted labor hours that could be better spent elsewhere. Globally, businesses face many challenges when it comes to managing their inventory. These challenges include:
Inventory management system allow businesses to manage inventories with limited resources while also freeing up agents who would normally dedicate their time to keeping track of inventory levels manually. In addition, these programs will prevent overstocking or understocking products by accurately predicting future product demand based on previous trends. Inventory control software will integrate with your ERP system to make sure that the information is accurate and synchronized between the two systems. In addition, it should be able to handle the following:
The manual nature of procurement means your CPOs are drowning in a sea of emails, spread sheets, and filing cabinets.
Relying on spread sheets and emails to create, review, and approve procurement processes is time-consuming and prone to mistakes. The more complex the procurement process, the harder it is for companies to make the best decisions. To understand how procurement works, let's try to simplify it into simple steps: The procurement to pay process typically involves many stakeholders, including executives, managers, procurement specialists and finance experts. Understanding their needs and internal requirements will help you choose the right automation software for your organization. Start by modelling your current procurement process. Identify key areas such as contract approval, budget approval and payment approval that can be streamlined through automation. Audit this process to identify challenges and opportunities. For example, do payments always follow a predefined order? Are contracts being approved manually? Does this hinder the process? Once you've identified areas for improvement, it's time to choose the right procurement automation software. Find something that supports your business processes while providing flexibility and scalability. You might want to consider cloud-based solutions to save on upfront costs. Once you've chosen the right solution, build the right workflows for each step in the process. It's also important to define roles and responsibilities for each stakeholder involved in this process to ensure that everyone understands their responsibilities and can communicate effectively during each step of the workflow. Once your workflows are built, it's time to automate your procurement processes. Test them out thoroughly before running it for real and keep refining them as needed until all stakeholders are satisfied. So the bottom is line is that companies do need a way to streamline and smooth over their procurement processes in order to make strategic, timely decisions. Almost 70% of companies use software to manage their sourcing process. Consider investing in cloud-based plug and play Procurement Software to supercharge your current process and see instant results! Cloud-based ERP systems are quickly gaining ground as the preferred technology for small to midsized companies. Businesses can enjoy the significant benefits that cloud ERP systems bring to the table without having to devote resources to installing and maintaining on-premise software.
In contrast to traditional on-premise ERP systems, a cloud ERP software can be implemented in as little as 24 hours, which is a major advantage from an implementation timeframe perspective. In addition, because cloud ERP systems are hosted online, there is no need to hire and train additional IT resources or dedicate space for servers. In fact, most of the time you won't even have to purchase software licenses for your employees or outsource IT support needs. And because cloud software is scalable, your business will grow with you — if your company expands or contracts over time, you can simply change your subscription plan accordingly. Some organizations may be able to take advantage of more benefits than others, but here are a few things to consider: Small Organizations: If you have minimal IT resources in your organization, then a cloud-based ERP system is an extremely attractive solution. You can be up and running in a very short period of time with minimal training. Cloud-based systems also have low barriers to entry and are easily scalable, so if your business grows or if you expand into multiple locations, it's easy to add additional modules as you need them. Midsize Organizations: If your company has a dedicated IT staff, but doesn't have the resources or expertise in-house to implement and manage an ERP system, a Cloud ERP in India offers a better ROI because it eliminates the need for on-site hardware and software updates and maintenance. In addition, since cloud-based solutions are easily scalable, they allow you to grow as your company does with no unnecessary cost burdens. Large Organizations: Large companies may not think about the advantages of cloud-based solutions because they already have the infrastructure in place to support Large investments in expensive hardware, highly qualified in-house IT staff to maintain the hardware and software, updating and upgrading software manually. Cloud ERP systems don't have these issues. All you need to do is pay the monthly subscription fee, providing your credit card details online or over the phone. And if you have a problem, call your provider. Take the time to research the cloud ERP implementation programs available today. Evaluate them against your business needs and goals before deciding which one will be best for your particular business operation. Well, with ERPs it's not just about selecting and going live with a software service as others. This is highly crucial as your ERP implementation phase decides what benefits you are going to derive from it.
When it comes to ERP, the implementation cycle is a long process and it can take ample time and participation of you and your service provider. The ERP implementation process begins from gathering your business’ requirements for ERP, choosing the right software, customization and system deploying cycle, data migration, pieces of training, going live, and managing the ERP support. In This Article:
ERP implementations can be complex and challenging undertakings, even under the best of circumstances. The process includes a number of steps that must be performed in a specific order and can take anywhere from 6 to 18+ months to complete. Full ERP implementations will require organizational change and user adoption, detailed planning, accurate requirements gathering and preparation, proper planning for system customization, data migration, data integration across disparate systems, end-user training for new processes, and effective project management. Implementing a new ERP system successfully is complex and time-consuming. Let’s explore the steps in the implementation process and examine what you need to know about managing change. Importance of a well-planned ERP Implementation Process According to Global consultancy McKinsey, more than 70% of all digital transformations fail. A recent study over several ERP implementations in the past 10 years reveals that around 60% of ERP implementations took longer than expected and around 75% of ERP projects exceeded the allocated budget. The main reasons behind these failures were found to be revolving around the business's interest during the implementation process of ERP. Unclear project requirements with core team members not caring to give enough time for the project and the core team consisting of the wrong people are some major issues in this regard. Well, all such causes can be nullified if we take our ERP implementation process as a priority during the project tenure. The leadership participation to help set up the correct requirements and get the right system deployed becomes important when it comes to the Enterprise Resource Planning implementation process. Phases of ERP Implementation If we have thought of ERP implementation for our business, we are close to achieving the benefits of streamlining our business process with automation. But to get the best out of our investment, the ERP implementation process should be as efficient as possible at all stages. An error-proof ERP implementation life cycle with effective participation and a clear approach can do wonders. Let's see what these phases are? 1. The Discovery Phase Discovering the needs of ERP implementation is the first and foremost step towards your process automation planning. Before going through the multiple phases of ERP implementation, the two most common yet important aspects are 'When' and 'Why' ERP? 1.1 When should ERP be Implemented? There may be a global buzz towards business process automation, tougher competition, and some process optimization requirements that might bring up the thought of ERP implementation but how we'll come to know when is the best time for us to automate our business processes? Well, multiple signs can help us decide this. There may be multiple software on which different departments are running, there may be less transparency and sync between processes and require a manual tally mechanism to match up with data from different departments, data becoming unmanageable, scaling up of business, etc. and all of these shouts for the requirement of a centralized ERP software needs. 1.2 Why do we need an ERP Implementation? Keeping track of your business processes manually is time-consuming and prone to errors. With a cloud ERP implementation, you can eliminate repetitive tasks and make better decisions based on the real-time analysis of the most recent data. A cloud-based system offers the enhanced ability to streamline business processes while keeping in tab with production demands. A digital transformation is necessary to change your business processes, keep up with the latest technology, and get ahead of the competition. 2. The Project Planning Phase A well-planned project is a must for ERP implementation. From the appointment of an efficient project team to examine all the current workflows and define goals for ERP service, to budget allocation at first place, all becomes mandatory in the project planning phase for ERP. The project team shall be appointed with the necessary leadership to carry on with the ERP implementation process journey. Such a team generally includes an executive for budget allocation, project managers, business process experts, or the concerned department representatives along with IT leaders. From preparing the project plan, important timelines, resource allocation, and daily management, the project team shall be responsible. The business process experts (can be leaders from concerned departments) in the project teams are mostly into defining requirements for ERPs along with possible improvements in the current workflow with all possibilities of growth and scalability in the future. The executives may help decide the budget allocation based on the requirements set by the process leadership. The team shall collaboratively document all the specifications and KPIs based on which they can monitor the ERP service's benefits and add-ons for the business. 3. The Service Selection & Evaluation Phase The requirement analysis will provide you with answers for why an ERP system is required and for what goals. Along with this, the requirement analysis will also speak up for the type of service that is required in your case. Based on the goals and timelines, there can be two categories in 2022 that you can choose from, i.e. having an on-premise system or subscribing to a Cloud-based ERP service. If you are preferring to go for the robust Cloud-based ERP services, the process will deviate accordingly and the next step would possibly be the package selection. The twenty-twenties is a decade of a high trend for cloud-based ERP solutions that are easily customizable, fastest to implement with high flexibility and scalability as the super-strengths. There are multiple service providers across the globe with all needs brought on a single centralized system for complete resource planning across all departments. But, choosing the best ERP software for your business is highly dependent on your business process. Once you are done with the service selection, the next thing is the package selection that is desired. Service providers have ERP solutions for all departments, but your requirements may be more or less. The selection of the right packages may help you to get the SaaS as required along with the best subscription prices. GAP Analysis It's a crucial evaluation phase in the ERP implementation life cycle. In this phase, the Gap analysis is done which speaks up for the missing sync between the requirements and the ERP offerings. This gap analysis shall be taken into account with the leadership to ensure you get the ERP to meet all the functional requirements for your business. Service agreements with ERP vendors can be the final point to discuss here. Your package selection with the number of users may give you a clear idea regarding the subscription price regularly and can help build your contract with the service provider. 4. The Customization and Testing Phase After the software selection and evaluation phase, here starts the job of your cloud ERP solutions provider. This phase involves work mainly on the service vendor's end yet it may involve multiple meetings and discussions for process improvements and re-designing of customized modules. Complete configuration with safe Data Migration is the critical process involved here. Testing can go parallel with the development phase, as the team can monitor and test-verify specific modules that are ready. Various re-testing and amendments can be suggested where required. The better you collaborate with your ERP vendor in this phase; the best results can be brought up with the project. Meanwhile, the team is supposed to work on necessary documentation and training materials for their end-users. The project team is not just responsible for carefully listening to the end user's issues and concerns, but needs to also help them understand the reason, goals, and benefits of ERP implementation. ERP implementation is a complex process and hence, you will have to look for well-organized ways of training users, which is only possible with two-way communication with them. 5. The Deployment Phase (Go-Live) With the final testing of the ERP modules and training of end-users, the ‘day’ has arrived, when you are finally ready for the actual implementation process. Still, we need to keep all the rush aside and be ready for the downtime and other issues on our way. We shall be more patient at this phase and be highly resistant to the changes. The Various Trends in ERP Deployment Organizations adopt different approaches when it comes to going live with a new set of software. 3 key common approaches that can be chosen for ERP implementation include: 1. The big bang approach: A highly popular approach among various big businesses. With the big-bang approach, the software is installed in one-go on a go-live date for entire teams of the organization including sales, finance, operations, marketing, etc. Thus, requires a lot of planning, as a single mistake has the potential of affecting all business functions. 2. The phased approach: As the name suggests, in this approach organizations plan phased implementation as per the department, location, manufacturing unit, etc. The risk is lower as it will not have a huge impact on the entire business at a time and things can be quickly tackled in case of faults. 3. The parallel approach: In this approach, teams integrate a new parallel system, while the older one is already in function. This again minimizes risks involved in implementation, as you already have the old system running parallel to back switch to. However, running two systems at a time comes with its own set of technical glitches including issues like data synchronization as well as issues with the end-users. How long does it take to Implement an ERP System? ERP implementations take six months? No way! A lot of companies in the late-90’s, 2000’s and early-2010’s thought they would get a company off the ground just by picking up an ERP system from their local reseller and be running smoothly three months after the installation. Those companies were wrong. Agile, ever-changing business models require agile, ever-changing business software. With today’s modern Cloud ERP Software technology companies can expect quicker implementations with better integration between their current systems and their new business software. The Essence ERP implementation process is a major project that can be an exciting and great learning experience for the whole project team. The inside-out process journey and optimization cycles can boost up the process knowledge along with the real value i.e. automation. The implementation process experiences shared by various industry leaders show how they have gone through the unnoticed finer points of their business process became added a great experience to their profiles. Remember, it's always teamwork when it comes to optimization and automation. Your ERP implementation cycle if went well, can thrive the business process and help the business touch skies with its real-time cost-cutting and saving mechanism. You stock up on inventory, but your customers don't buy everything. You lose money and have to take back unsold items or throw them away.
How many times have you lost track of what's in stock? If your store (or manufacturing plant) is small enough, you may be fine with a simple pen-and-paper system to keep track of your inventory. But the more products you have, the harder it gets. The hard part? Updating each product manually as you take it off the shelf, then updating again when you reorder. If you're out of stock, you have to manually mark it that way too—even if it isn't out of stock! In a Stitch Labs survey, 67% of respondents reported losing customers after errors led to overselling or being out of stock after an order was placed. Stock outages undermine the big picture of your business. For every product, knowing what's in stock is key to building a successful business. Running out of stock because of poorly managed inventory can cause chaos in your operations and affect customer satisfaction. Inventory management is one of the most important phases in a business cycle. Having just the right amount of inventory might mean more sales and fewer expenses. On the other hand, having more items on hand can lead to extra fund allocation and wasted space. Instead of spread sheet ledgers or legacy systems, today's best inventory management software uses features, like real-time inventory management and e-commerce integrations (with both online stores and marketplaces), that allow business owners to analyze their item data in one place. You'll be able to track everything from back-ordered products to the number of your in-stock items. In addition, the top-rated inventory management tools also provide multiple order statuses, customizable invoice templates and emergency stock alerts. All this helps you understand your sales mix, see trends over time and keep customer satisfaction high—helping you boost revenue and save money by avoiding overselling or running out of stock. Cloud-based inventory management system gave us an all-in-one solution for tracking and storing product info, receiving and processing orders, placing shipments, and more. Businesses of every size can benefit from the best inventory management software because it increases efficiency and improves accuracy in crucial areas of their business. When your business needs to be fast and responsive, inventory management is essential. |
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