Gartner defines ERP2 as collaborative e-Commerce which sees ERP working with CRM ie ERP2=ERP+CRM
International Data Corporation (IDC) does not use the term ERP2/ERP but defines Enterprise Applications as comprising ERM, SCM and CRM
Basically,
Gartner’s ERP2 = IDC’s ERM+SCM+CRM
Legend :
ERP2 = Extended Enterprise Resources Planning
ERP = Enterprise Resources Planning
ERM = Enterprise Resources Management (FMS+HRIS)
SCM = Supply Chain Management (SDS+MRP+LMS+PPS)
CRM = Customer Relationship Management
ERP as seen as an Equation
ERP2 = ERP + CRM
where ERP = Enterprise Resources Planning (transactions based)
CRM = Customer Relationship Management
ERP = Financial Management (FMS) +
Human Resources Management (HRIS) +
Distribution (SDS) +
MRP +
Materials Management (LMS) +
Manufacturing/Production Management (PPS)
CRM = Suite of inter-related modules to track
Pre-sales +
Marketing +
Post-sales activities +
Retaining existing customers +
Sales force management
SCM = Supply Chain Management (decisions based, implemented using ERP) and comprises
Distribution +
MRP +
Materials Management +
Manufacturing/Production Management
Evolution, from MRP to ERP2
ERP2 started out as Materials Requirement Planning (MRP) and evolved into Manufacturing Resources Planning (MRP2) with the addition of manufacturing and production management.
Subsequently, with the inclusion of financial management and human resources management, it became Enterprise Resources Planning (ERP).
Finally, with the inclusion of customer relationship management and supply chain management, it is currently described as ERP2 or Extended Enterprise Resources Planning (Collaborative e-Commerce)
Again, Viewed as an Equation,
MRP = Distribution + Materials Management
MRP2 = MRP + Manufacturing + Production Management
ERP = MRP2 + Financial Management + Human Resources Management
ERP2 = ERP + CRM
Thursday, April 30, 2009
Thursday, April 6, 2006
ERP and the Accountant
Any self-respecting Accountant should be aware of their involvement in an ERP project in areas such as :-
• Financial Accounting
• Fixed Assets
• Treasury Management
• Self Assessment Tax
• Sales Distribution and product inventory
• Logistics Management and materials inventory
• WIP
• Costing (Product, FIFO/Weighted Average)
• Balance Scorecard
• Financial Accounting
• Fixed Assets
• Treasury Management
• Self Assessment Tax
• Sales Distribution and product inventory
• Logistics Management and materials inventory
• WIP
• Costing (Product, FIFO/Weighted Average)
• Balance Scorecard
ERP2 Implementation Tips : After Implementation
- Getting post-implementation support from in-house team and/or Software Vendor
- Turnover in trained personnel may jeopardise the continuous running. In this respect, either training support from Software Vendor or strong in-house training unit is necessary
- Continous review of ROIs/KPIs from the implemented ERP2 system with a view of improvements
ERP2 Implementation Tips : During Implementation
- The need for user to be committed in attending training by Software Vendor
- Overcoming users resistance on workflow and system changes.
- Integrating with other ERP2 software used by the customer's vendors in diverse industries. KarenSoft's Rosettanet middleware will help to resolve this issue.
- Need to take into account unforeseen operational interruptions which will cause delays in the ERP2 project implementation from time to time.
- Lack of experienced Customer personnel in implementing the system. In this respect, the right ERP2 vendor will be able to provide adequate training and hands-holding.
- Incorrect specifications given during system study by Vendor. This can be resolved if the Software Vendor are principals (like KarenSoft) and not merely representatives.
- Where remote access is needed from areas where bandwidth is an issue, the need to have low bandwidth access via the right system architecture. For example, KarenSoft SCM can be accessed anytime and anywhere through a 22.8 dial-up and still get 'speed of thought' response.
- Need to co-ordinate implementation and ISO procedures
ERP Implementation Tips : Before Implementation
- Getting Top Management support
- Documenting existing workflow, identifying SWOTs
- Identifying the expected tangible benefits and any measurable ROIs/KPIs
- Need to put together the project team which should comprise departmental heads from Marketing,Materials Control, Purchasing,Production Control, Finance & Document control (ISO)
- Need for significant intra-departmental co-operation . As such, adequate representation from the various departments is crucial to ensure that intra-departmental processes and workflow as well as individual departmental needs are taken to account.
- Choosing the right ERP2 software which can truly integrate between SCM, CRM and ERM. Do not underestimate the nightmare and the waste of time and resources if integration has not been factored in from the beginning of the project.
- Choosing the right software vendor who has to be suitably experienced i.e with a good track record and who can provide strategic business consulting on SCM, software development and support infrastructure. Costs should not be the only reason for choosing the right vendor.
Thursday, February 16, 2006
People: Your Key to Successful ERP, Smart Investor, January, 2003
By Chee Chong Hwa, CA(M), CPA, Chief Executive Officer of KarenSoft Technology Berhad, a homegrown solutions company.
The numerous benefits, the outcome of a successful ERP2 system implementation, make ERP2 projects involved yet worthwhile undertakings. It is the norm for project managers to focus on the technical and financial aspects of a project but many forget that often, it is the human factor that plays an equally consequential role in ensuring the success of an ERP2 implementation.
It would not be wrong to say that it is one of the key factors that drive a successful ERP2 implementation. Hence, this article looks at the critical factors needed for a successful ERP2 implementation with a special emphasis on the human factor behind successful ERP projects.
Distilling from KarenSoft's experience of more than 10 years of implementing large-scale enterprise applications for customers, the discussion of critical success factors will be divided into two categories-strategic and tactical factors.
Strategic factors are those that must be present throughout the entire life cycle of an ERP2 project while tactical factors, on the other hand, applies to specific phases within a project's life cycle.
What is ERP2?
Let's take a quick look at ERP2 and what it consists of before moving onto a discussion of critical factors. ERP2 is defined as Extended Enterprise Resources Planning (ERP2) where it comprises Enterprise Resources Management (ERM), Supply Chain Management (SCM) and Customer Relationship Management (CRM).
Seen as an equation, ERP2 = ERM + SCM + CRM where: ERM = Financial Management System + Fixed Assets Register + Human Resources Information System; SCM = Sales Distribution System + Materials Requirement Planning + Logistics Management System + Planning & Production System.
Alternatively, ERP2=ERP+CRM, where ERP=ERM+SCM
A good ERP2 system should consist of individual modules which can be adapted to suit the specific needs of each customer, eliminating the need to shoehorn the customer's business processes into the ERP2 system's reference model.
Critical Success Factors
There are 8 strategic factors to look out for in carrying out a successful ERP:
a) Sustained management support
Sustained management commitment, both at top and middle levels during the implementation, refers to management's own involvement and its willingness to allocate valuable organisational resources.Management support is important for accomplishing project goals and objectives and aligning these with strategic business goals.
b) Effective organisational change management
Organisational change refers to the body of knowledge that is used to ensure that a complex change,like that associated with a new ERP2 system, gets the right results, in the right timeframe, at the right costs. A proper change management ensures the acceptance and readiness of the new system, allowing the organisation to derive benefits from its use. A successful organisational change approach relies on a proper integration of people, process and technology.
c) Good project scope management
Project scope management involves the clarification of project goals and their synergy with the organisation's strategic goals. This includes both scope definition and control. Some components of this factor are: scope of the supply chain, business processes, and business units involved, ERP2 functionality to be implemented, and technology to be replaced/upgraded/integrated.
d) Competent project team
ERP2 projects typically require some combination of business, internal IT, vendor, and strategic consulting support. The structure of the project team has a strong impact in the implementation process. Note that two important factors are the integration of the vendor's consultants into the team and the retention within the organisation of the relevant ERP2 knowledge, A reliable solutions provider should supply both technology and business consultants to a customer's project team. It should also include a training programme that's designed to maximise the retention of score ERP knowledge needed by users to perform their tasks effectively.
e) Business process improvement
Business process improvement concerns the alignment of the client's business processes with the ERP2 system's business model and related best practices. This process is especially critical for small businesses that do not have well-defined or rigorous business processes. For example, KarenSoft customers under this category will typically purchase our standard ERP2 package with the goal of rapidly aligning their ad hoc workflows with more efficient ones found in our ERP system. This is done primarily through quality, training programmes provided by our own KarenSoft Institute of Technology.
f) A project champion
The main reason why a project champion is considered to be central to successful implementation is that he/she has both the position and the skills that are critical for handling organisational change. In the context of Malaysian SMEs, the ideal project champion is usually the Chief Executive Officer or Managing Director.
g) User involvement and participation User participation refers to the behaviours and activities that users perform in the ERP implementation process. User involvement is evidenced by full and active participation in the training programmes organised by the vendor.
h) Trust between stakeholders
During the implementation phase there are different stakeholders involved such as managers, users, consultants and vendors. A high level of trust between them will go a long way towards the achievement of project goals and the resolution of conflicts.
Tactical Factors
a) Dedicated staff and consultantsUsually, in many cases the time dedicated to the implementation project is shared with other activities. It is also important to ensure that the staff believes in the project success and makes the necessary sacrifices of time and energy. Consultants should be involved in a way that helps the implementation process while also sharing their expertise with the internal staff involved.
b) Strong internal and external communication Communication should be of two kinds: internal within the project team and external to the whole organisation. This means not only sharing information between the project team but also communicating to the whole organisation the results and the goals in each implementation stage.
c) Formalised project plan/schedule This means having a well-defined plan/schedule for all the activities involved in the ERP implementation, with appropriate allocation of resources for these activities. To ensure project completion according to the plan/schedule, close monitoring and controlling of time and costs should be done by the project manager.
d) High-quality training programme The training plan should take into consideration both technical staff and end-users, and its scope will depend on the type of implementation approach selected. KarenSoft's approach to training is two-fold: one, we seek to impart the core ERP2 knowledge needed by our users to perform their tasks and second, we seek to impart enough system maintenance and support knowledge to our customer's IT personnel so that they can offer effective first-line support to the users.
e) Preventive troubleshooting This factor is related to the problem and risk areas that exist in every implementation. Troubleshooting mechanisms should be included in the implementation plan. Two important aspects are the adaptation and transfer of old data, and the 'go live' moment. The time and effort involved in the transfer of data from previous systems should be properly planned and budgeted.
The numerous benefits, the outcome of a successful ERP2 system implementation, make ERP2 projects involved yet worthwhile undertakings. It is the norm for project managers to focus on the technical and financial aspects of a project but many forget that often, it is the human factor that plays an equally consequential role in ensuring the success of an ERP2 implementation.
It would not be wrong to say that it is one of the key factors that drive a successful ERP2 implementation. Hence, this article looks at the critical factors needed for a successful ERP2 implementation with a special emphasis on the human factor behind successful ERP projects.
Distilling from KarenSoft's experience of more than 10 years of implementing large-scale enterprise applications for customers, the discussion of critical success factors will be divided into two categories-strategic and tactical factors.
Strategic factors are those that must be present throughout the entire life cycle of an ERP2 project while tactical factors, on the other hand, applies to specific phases within a project's life cycle.
What is ERP2?
Let's take a quick look at ERP2 and what it consists of before moving onto a discussion of critical factors. ERP2 is defined as Extended Enterprise Resources Planning (ERP2) where it comprises Enterprise Resources Management (ERM), Supply Chain Management (SCM) and Customer Relationship Management (CRM).
Seen as an equation, ERP2 = ERM + SCM + CRM where: ERM = Financial Management System + Fixed Assets Register + Human Resources Information System; SCM = Sales Distribution System + Materials Requirement Planning + Logistics Management System + Planning & Production System.
Alternatively, ERP2=ERP+CRM, where ERP=ERM+SCM
A good ERP2 system should consist of individual modules which can be adapted to suit the specific needs of each customer, eliminating the need to shoehorn the customer's business processes into the ERP2 system's reference model.
Critical Success Factors
There are 8 strategic factors to look out for in carrying out a successful ERP:
a) Sustained management support
Sustained management commitment, both at top and middle levels during the implementation, refers to management's own involvement and its willingness to allocate valuable organisational resources.Management support is important for accomplishing project goals and objectives and aligning these with strategic business goals.
b) Effective organisational change management
Organisational change refers to the body of knowledge that is used to ensure that a complex change,like that associated with a new ERP2 system, gets the right results, in the right timeframe, at the right costs. A proper change management ensures the acceptance and readiness of the new system, allowing the organisation to derive benefits from its use. A successful organisational change approach relies on a proper integration of people, process and technology.
c) Good project scope management
Project scope management involves the clarification of project goals and their synergy with the organisation's strategic goals. This includes both scope definition and control. Some components of this factor are: scope of the supply chain, business processes, and business units involved, ERP2 functionality to be implemented, and technology to be replaced/upgraded/integrated.
d) Competent project team
ERP2 projects typically require some combination of business, internal IT, vendor, and strategic consulting support. The structure of the project team has a strong impact in the implementation process. Note that two important factors are the integration of the vendor's consultants into the team and the retention within the organisation of the relevant ERP2 knowledge, A reliable solutions provider should supply both technology and business consultants to a customer's project team. It should also include a training programme that's designed to maximise the retention of score ERP knowledge needed by users to perform their tasks effectively.
e) Business process improvement
Business process improvement concerns the alignment of the client's business processes with the ERP2 system's business model and related best practices. This process is especially critical for small businesses that do not have well-defined or rigorous business processes. For example, KarenSoft customers under this category will typically purchase our standard ERP2 package with the goal of rapidly aligning their ad hoc workflows with more efficient ones found in our ERP system. This is done primarily through quality, training programmes provided by our own KarenSoft Institute of Technology.
f) A project champion
The main reason why a project champion is considered to be central to successful implementation is that he/she has both the position and the skills that are critical for handling organisational change. In the context of Malaysian SMEs, the ideal project champion is usually the Chief Executive Officer or Managing Director.
g) User involvement and participation User participation refers to the behaviours and activities that users perform in the ERP implementation process. User involvement is evidenced by full and active participation in the training programmes organised by the vendor.
h) Trust between stakeholders
During the implementation phase there are different stakeholders involved such as managers, users, consultants and vendors. A high level of trust between them will go a long way towards the achievement of project goals and the resolution of conflicts.
Tactical Factors
a) Dedicated staff and consultantsUsually, in many cases the time dedicated to the implementation project is shared with other activities. It is also important to ensure that the staff believes in the project success and makes the necessary sacrifices of time and energy. Consultants should be involved in a way that helps the implementation process while also sharing their expertise with the internal staff involved.
b) Strong internal and external communication Communication should be of two kinds: internal within the project team and external to the whole organisation. This means not only sharing information between the project team but also communicating to the whole organisation the results and the goals in each implementation stage.
c) Formalised project plan/schedule This means having a well-defined plan/schedule for all the activities involved in the ERP implementation, with appropriate allocation of resources for these activities. To ensure project completion according to the plan/schedule, close monitoring and controlling of time and costs should be done by the project manager.
d) High-quality training programme The training plan should take into consideration both technical staff and end-users, and its scope will depend on the type of implementation approach selected. KarenSoft's approach to training is two-fold: one, we seek to impart the core ERP2 knowledge needed by our users to perform their tasks and second, we seek to impart enough system maintenance and support knowledge to our customer's IT personnel so that they can offer effective first-line support to the users.
e) Preventive troubleshooting This factor is related to the problem and risk areas that exist in every implementation. Troubleshooting mechanisms should be included in the implementation plan. Two important aspects are the adaptation and transfer of old data, and the 'go live' moment. The time and effort involved in the transfer of data from previous systems should be properly planned and budgeted.
Getting An IT Grip on Costs, Smart Investor, November, 2002
Competition in the post-AFTA manufacturing environment will be stiff, especially for the small-and-medium enterprises. One solution to implementing a reliable, customisable and user-friendly solution is the KarenSoft Extended Enterprise Resources Planning (ERP2) for the SMI's manufacturing environment.
The Asian Free Trade Area (AFTA) implementation is just around the corner. You're in the Small Medium Industry (SMI) and you wonder what the hoopla is all about. After all, AFTA doesn't affect you, right? Wrong!All businesses be they big or small will be influenced by the effects of globalisation, deregulation and digitisation. You've heard about how AFTA will open global markets and how you will earn from an almost limitless market but if you do not have a proper internal system of handling the new onslaught of business, you'd be at best, floundering while the rest of the SMIs gleefully anticipate earning considerable profits.
Looking at this scenario, how would an SMI take charge and still be in control when AFTA happens?To be able to compete and still operate profitably, SMIs acknowledge that cost reduction is the key. Escalating costs have always been the bogeyman for the business community, and more so for SMIs. The main point is this: only when your costs have been lowered can you begin to look into areas like competing with the other SMIs in the local or, in this case, the international arena.Lowered costs means an SMI can begin to look beyond local boundaries - the SMIs can then tap into the much talked about global market, provided the SMIs costs are kept low.
The question is, how does an SMI lower costs?The answer lies in implementing a reliable, customisable and user-friendly solution such as the KarenSoft Extended Enterprise Resources Planning (ERP2) for the SMI's manufacturing environment.KarenSoft ERP2 clearly simplifies the job for many SMIs eager to lower costs and increase efficiency in their manufacturing environments. The KarenSoft ERP2 is also a web-enabled e-Business solution (applicable to both industrial and commercial sectors) so it's basically a two -in-one solution - one that allows you to improve and automate your internal processes and one that enables you to conduct e-Business.Automating SMIs' Internal Processes.
The KarenSoft ERP2 is an all-inclusive solution which comprises seven cycles: Sales Distribution, Materials Requirements Planning, Logistics Management, Planning and Production, Financial Accounting & Fixed Assets, Human Resources information, and Customer Relationship Management.
The Customer Relationship Management (CRM) system assists SMIs in managing and ultimately, applying existing customers' information to maintain and improve the business. At the same time, it also generates more prospects, taking into account their product information, marketing strategies, customer feedback and competitors.This means through CRM, SMIs can analyse market share and market intelligence, track marketing campaigns and handle sales force management so SMIs can increase rapport with current customers while strategizing and growing their business.On a more pragmatic note, CRM improves customer retention rate leading to greater customer lifetime value (CLV). Customer lifetime value (CLV) describes the present value of the stream of future profits expected over the customer's lifetime purchases. For example, the CLV of a supermarket's loyal customer can easily exceed RM30,000.00. Figures like this, coupled with the fact that it costs roughly five times more to attract a new customer than to retain an existing one, demonstrates the absolute necessity of CRM.
SMIs can use the Financial Accounting (FAS) & Fixed Assets (FAR) systems to manage fixed assets, generate unlimited financial reports, manage cash flow, calculate reinvestments, track and improves cash management and more. Furthermore, KarenSoft ERP2's Financial component saves time, reduces workload and optimises scarce resources.
Besides the two systems, SMIs would also find the Sales Distribution System (SDS) incredibly easy to use and extremely helpful for the sales and marketing departments. They would be able to use this system to capture customer information, track sales quotations, initiate sales processes based on sales orders and monitor multicurrency pricing, order status and sales performance.
Besides the Sales Distribution System, the Materials Requirement Planning (MRP) component enables the Materials Control Department of any SMIs to explode material requirements based on sales orders or forecasts with reference to a structured Bill of Materials. As Such, when an order is received, the SMI would be able to know automatically how much of stock is currently stored, how much of materials to purchase and if extra materials are needed, the minimum quantity to orderIncluded in the KarenSoft ERP2 is another component which allows SMIs to control scheduling and planning.
The Planning and Production system (PPS) allows SMIs to plan product scheduling based on the current orders or forecasts, machine capacity and manpower. SMIs would find this module irreplaceable as it gives SMIs an accurate idea of the available resources as well as them monitor quality at each process and stage and provides support for inventory management.For example. SMIs can monitor material issues, machine performance, production flow, daily output and control each process. Since the system can handle unlimited user-defined work-in-processes, SMIs will find this system helpful in supporting the Shop floor in the case of semi-finished and finished goods inventory management.
Subsequently, procurement is handled by the Logistics Management System (LMS) whereby the Purchasing/Logistics department can initiate purchasing processes based on purchase requisitions and subsequently monitor order status. At the same time, they can also monitor vendors/subcontractors' performance, multi-currency pricing, delivery and quality. When this is integrated into the Financial component, Purchase Orders can be automatically generated, thus saving time and increasing work efficiency.
Moreover, KarenSoft ERP2 taps into the local SMI environment, understanding local operations, statutory requirements and cultural factors, rendering it completely user-friendly. With the Internet becoming more prevalent in today's business, SMIs would be glad to know that KarenSoft ERP2 comes fully web-enabled to support IT initiatives. KarenSoft also provides IT and applications training with after-sales services and support so SMIs can be assured of quality support all the time.SMIs and SMEs would find the KarenSoft ERP2 comprehensive as it supports the Balanced Scorecard concept ie looking at four perspectives of the business - the financial, customer, innovation and learning as well as internal processes.
Implementing KarenSoft ERP2 in their respective organisations would equip SMIs with an added competitive edge.Among the other clear-cut benefits are: duplicated work is minimized; bottlenecks and inefficiencies can be identified; pricing remains competitive; inventory holding costs and human resources costs are lowered and the SMI concerned can respond to customers in a timely manner.
KarenSoft ASP Model - An Alternative
Besides the standard version, KarenSoft also offers the ASP version of ERP for SMIs who are unable to afford ERP2. KarenSoft provides SMIs with the Supply Chain Management solution via the ASP model where software is delivered over the Internet for a fee. As an Intel Solutions Provider, KarenSoft works closely with world-class data centres to supply SMIs with web-enabled ERP2 solution.
The Asian Free Trade Area (AFTA) implementation is just around the corner. You're in the Small Medium Industry (SMI) and you wonder what the hoopla is all about. After all, AFTA doesn't affect you, right? Wrong!All businesses be they big or small will be influenced by the effects of globalisation, deregulation and digitisation. You've heard about how AFTA will open global markets and how you will earn from an almost limitless market but if you do not have a proper internal system of handling the new onslaught of business, you'd be at best, floundering while the rest of the SMIs gleefully anticipate earning considerable profits.
Looking at this scenario, how would an SMI take charge and still be in control when AFTA happens?To be able to compete and still operate profitably, SMIs acknowledge that cost reduction is the key. Escalating costs have always been the bogeyman for the business community, and more so for SMIs. The main point is this: only when your costs have been lowered can you begin to look into areas like competing with the other SMIs in the local or, in this case, the international arena.Lowered costs means an SMI can begin to look beyond local boundaries - the SMIs can then tap into the much talked about global market, provided the SMIs costs are kept low.
The question is, how does an SMI lower costs?The answer lies in implementing a reliable, customisable and user-friendly solution such as the KarenSoft Extended Enterprise Resources Planning (ERP2) for the SMI's manufacturing environment.KarenSoft ERP2 clearly simplifies the job for many SMIs eager to lower costs and increase efficiency in their manufacturing environments. The KarenSoft ERP2 is also a web-enabled e-Business solution (applicable to both industrial and commercial sectors) so it's basically a two -in-one solution - one that allows you to improve and automate your internal processes and one that enables you to conduct e-Business.Automating SMIs' Internal Processes.
The KarenSoft ERP2 is an all-inclusive solution which comprises seven cycles: Sales Distribution, Materials Requirements Planning, Logistics Management, Planning and Production, Financial Accounting & Fixed Assets, Human Resources information, and Customer Relationship Management.
The Customer Relationship Management (CRM) system assists SMIs in managing and ultimately, applying existing customers' information to maintain and improve the business. At the same time, it also generates more prospects, taking into account their product information, marketing strategies, customer feedback and competitors.This means through CRM, SMIs can analyse market share and market intelligence, track marketing campaigns and handle sales force management so SMIs can increase rapport with current customers while strategizing and growing their business.On a more pragmatic note, CRM improves customer retention rate leading to greater customer lifetime value (CLV). Customer lifetime value (CLV) describes the present value of the stream of future profits expected over the customer's lifetime purchases. For example, the CLV of a supermarket's loyal customer can easily exceed RM30,000.00. Figures like this, coupled with the fact that it costs roughly five times more to attract a new customer than to retain an existing one, demonstrates the absolute necessity of CRM.
SMIs can use the Financial Accounting (FAS) & Fixed Assets (FAR) systems to manage fixed assets, generate unlimited financial reports, manage cash flow, calculate reinvestments, track and improves cash management and more. Furthermore, KarenSoft ERP2's Financial component saves time, reduces workload and optimises scarce resources.
Besides the two systems, SMIs would also find the Sales Distribution System (SDS) incredibly easy to use and extremely helpful for the sales and marketing departments. They would be able to use this system to capture customer information, track sales quotations, initiate sales processes based on sales orders and monitor multicurrency pricing, order status and sales performance.
Besides the Sales Distribution System, the Materials Requirement Planning (MRP) component enables the Materials Control Department of any SMIs to explode material requirements based on sales orders or forecasts with reference to a structured Bill of Materials. As Such, when an order is received, the SMI would be able to know automatically how much of stock is currently stored, how much of materials to purchase and if extra materials are needed, the minimum quantity to orderIncluded in the KarenSoft ERP2 is another component which allows SMIs to control scheduling and planning.
The Planning and Production system (PPS) allows SMIs to plan product scheduling based on the current orders or forecasts, machine capacity and manpower. SMIs would find this module irreplaceable as it gives SMIs an accurate idea of the available resources as well as them monitor quality at each process and stage and provides support for inventory management.For example. SMIs can monitor material issues, machine performance, production flow, daily output and control each process. Since the system can handle unlimited user-defined work-in-processes, SMIs will find this system helpful in supporting the Shop floor in the case of semi-finished and finished goods inventory management.
Subsequently, procurement is handled by the Logistics Management System (LMS) whereby the Purchasing/Logistics department can initiate purchasing processes based on purchase requisitions and subsequently monitor order status. At the same time, they can also monitor vendors/subcontractors' performance, multi-currency pricing, delivery and quality. When this is integrated into the Financial component, Purchase Orders can be automatically generated, thus saving time and increasing work efficiency.
Moreover, KarenSoft ERP2 taps into the local SMI environment, understanding local operations, statutory requirements and cultural factors, rendering it completely user-friendly. With the Internet becoming more prevalent in today's business, SMIs would be glad to know that KarenSoft ERP2 comes fully web-enabled to support IT initiatives. KarenSoft also provides IT and applications training with after-sales services and support so SMIs can be assured of quality support all the time.SMIs and SMEs would find the KarenSoft ERP2 comprehensive as it supports the Balanced Scorecard concept ie looking at four perspectives of the business - the financial, customer, innovation and learning as well as internal processes.
Implementing KarenSoft ERP2 in their respective organisations would equip SMIs with an added competitive edge.Among the other clear-cut benefits are: duplicated work is minimized; bottlenecks and inefficiencies can be identified; pricing remains competitive; inventory holding costs and human resources costs are lowered and the SMI concerned can respond to customers in a timely manner.
KarenSoft ASP Model - An Alternative
Besides the standard version, KarenSoft also offers the ASP version of ERP for SMIs who are unable to afford ERP2. KarenSoft provides SMIs with the Supply Chain Management solution via the ASP model where software is delivered over the Internet for a fee. As an Intel Solutions Provider, KarenSoft works closely with world-class data centres to supply SMIs with web-enabled ERP2 solution.
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