Why are building ERP RFPs not always helpful for your company?

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RFP for ERPs is an essential document that mentions the company’s ERP requirements to vendors, but overly complicated RFPs can create troubles.

RFP stands for Request For Proposal. It’s a document that states the features the company needs in the Enterprise Resource Planning (ERP) software. RFP should be short and crisp and only stick to its intended purpose. But sometimes, it gets carried away with unnecessary details. Almost all ERP vendors set a certain threshold for the size of RFPs and don’t consider documents that are longer than it. So you must stick to the RFP size mentioned by the ERP vendor.

An important point to note is that all companies don’t have similar requirements. Multinational corporate houses that have branches spread across the globe conduct multiple business processes and have longer RFPs. But small and medium businesses don’t require the same level of detail. They must create RFPs that are only a few pages in length.

This article will give critical reasons why ERP RFPs are not always helpful for your company.

1. RFPs can become too specific.

RFPs can sometimes become too specific about the software applications that the company requires. 

Consider the following two cases.

Case 1: The ERP software should collect, analyze, and provide critical customer information based on factual data.

Case 2: The ERP software should have a “customer review screen” that provides the following information about the customer:

a. Needs, wants, desires, and ambitions

b. Past purchasing pattern

c. Buying habits

d. Credit limit

e. Past sales history

f. Contact information

g. Geographic details

h. Demographic details

i. Psychographic details

j. Behavioral details

Can you see the difference?

The first case provides a general problem statement. On the contrary, the second case offers too many specific details regarding how the ERP software should function. Companies should give specific details later, for example, during the demo stage, when other details have been finalized. It’s because each ERP software is unique and functions differently. 

In short, the RFP must shed light on business requirements instead of software requirements.


Also Read: Customer Segmentation in CRM

2. RFPs can set unrealistic expectations.

One of the most significant drawbacks of RFPs is that it sets unrealistic expectations. Sometimes companies demand substantial functionalities at a minimal price. If you do so, your RFP will get rejected by most ERP vendors. So research well before sending the RFPs. A good practice is to mention prices (in figures) against each ERP module

For example:

Module Expected Price
Supply Chain management  USD X
Sales and Marketing USD Y
Human Resource Management USD Z
Finance and accounting USD A

Such tables make it easy for ERP vendors to determine what functionalities companies need and gauge their budget.

3. Sending RFPs to numerous vendors.

Many companies send their RFPs to numerous vendors, let’s say more than 30, simultaneously. Suppose you get a response from 15 vendors who quote their prices and are ready to deliberate further. Would you be able to communicate with all 15 of them? 

No.

It’s advised that companies must do market research before sending their RFPs. It makes it easy to select only those vendors that provide top-notch ERP systems within the company’s budget.

Experts suggest that companies send RFPs to not more than 5 or 6 ERP vendors because even if 2 or 3 vendors are shortlisted, it’s convenient to deal with them simultaneously.


Also Read: Why the Future is all about Bots for Enterprise Vendors?

Conclusion

We have seen all the problems associated with ERP RFPs. Many experts suggest that companies shouldn’t draft RFPs. Instead, they should prepare a shortlist of the functionalities they require in the ERP software and discuss with ERP vendors on a case-to-case basis. Ultimately, it depends on which path you want to take, but if you decide to prepare an RFP, you must keep the points we have discussed in this article. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

3 ways ERP software will revolutionize the banking industry

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ERP in banking will make the operations super fast, safe and drain fewer resources.

The banking industry is becoming more and more dependent on technology. Today, people don’t visit banks to submit checks or take financial guidance. Instead, they rely on mobile applications to transfer money online and gain knowledge regarding financial principles. Thus, banks & financial institutions need to implement ERP software that can take care of everything, including:

a. Financial transactions

b. Customer interactions

c. 24/7 banking facility

The pandemic has made remote work a norm, and if banks don’t change accordingly, they will be forced out. 

This article will discuss the benefits of ERP in banking and why banks should implement them sooner than later.

1. How IoT-enabled ERP software will revolutionize the banking industry?

Internet of Things (IoT) is a term that embodies a network of interconnected devices. These include mobile phones, tablets, computers — fundamentally every electronic device that has a WiFi connection. As discussed above, today, people don’t have enough time to visit a bank now and then. Instead, they prefer banking through their mobile devices from the comfort of their homes. The benefits of ERP in banking are that it keeps all the records safely into the central database and facilitates secure financial transactions between IoT devices and the banks’ servers. 

2. How CRM-enabled ERP software will revolutionize the banking industry?

Today, every industry understands the criticality of developing excellent customer relationships. If a business lacks a vibrant customer base, it cannot survive for long. CRM-enabled ERP software will allow you to interact with customers 24 hours a day and 7 days a week. It also has a chatbot feature that provides instant solutions to customer queries. In case the chatbot fails to solve the query, it routes the problem to human agents. CRM-enabled ERP software also enables banks to categorize customers based on various parameters like:

a. Geography

b. Demography

c. Behavior

d. Psychography

e. Spending habits

f. Past purchasing pattern

g. Monthly/yearly income

This helps the bank brainstorm different offers for various customer segments and increase their monthly/yearly spending. 


Also Read: How can ERP and CRM Integration Improve Operational Performance for your Business?

3. How the cybersecurity feature of ERP software will revolutionize the banking industry?

Statistics show that there were more than 375 cyberattacks daily in India in 2020. And the graph is only set to rise. Cybersecurity has emerged as one of the most crucial capabilities in the 21st century. Scientists and researchers claim that quantum computing will revolutionize this field as hackers won’t be able to break encoded data. But there is a long way to go before that becomes a reality. Until then, ERP software is your safest bet as it provides access to authorized personnel — frontline executives, C-suite managers, vendors, suppliers, and distributors — only. Moreover, ERP software offers other data security features like:

a. Multi-factor authentications (MFA)

b. Weak-password checks

c. Placing a limit on failed login attempts

d. Prevents against account enumeration attacks

e. Generates new random session IDs after every login


Also Read: ERP and Cybersecurity – What no one is talking about?

How will Sage X3 help you to conduct safe banking operations?

Sage X3 has numerous features and modules that will simplify the entire banking process and allow you to conduct operations safely and accurately. 

Here are the key features of Sage X3 for the banking industry:

a. Track customer activity in real-time

b. Generate rich reports instantly

c. Brainstorm strategies based on factual data

d. Monitor ATM transactions 24/7

e. Solve customer inquiries instantly

f. Produce error-free results

g. Ensure data protection

Conclusion

The banking industry is rising rapidly. A significant number of people are opening their bank accounts and are using mobile banking services. But if you fail to provide them on-the-go safe financial transactions and solve their queries instantly, your customer base will shrink. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

Why should businesses digitalize their digital stack? 

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Companies must sort critical data from their extensive data repositories and discard the rest. 

Companies invest in the latest Enterprise Resource Planning (ERP) software to benefit from their improved features, capabilities, and processes. But a significant amount of them pays little attention to their data repositories. Research shows that businesses store data equivalent to about 200 million DVDs every day. The growing amounts of unnecessary and unused information impede decision-making and brainstorming effective strategies. Companies should keep only necessary and critical business information and shouldn’t fall victim to the data-dump syndrome

If data is managed carefully, it can give various insights into the business environment. Further, businesses can run these insights through machine learning algorithms and contextual intelligence systems to better prepare themselves to compete in the market. But all of it requires a dedicated data management strategy.

This article will shed light on how businesses can create a dedicated data management strategy.

1. Reimagine how front and back-office data can help you.

A substantial amount of companies have their customer data stored in repositories distributed across various organizational groups. Moreover, there are multiple data sources — both structured and unstructured — linked to those data repositories across both the front and back office

Today, more companies realize the importance of consolidating data into a single source. And that is why they are implementing top-notch Enterprise Resource Planning (ERP) software like Sage X3 and Customer Relationship Management (CRM) systems like Sage CRM. But the problem remains intact because most of the information is still unused. 

Businesses must sort useful data and discard the rest because of the following reasons:

a. The effectiveness of the algorithms that automate business processes will be boosted.

b. Relevant data delivers crucial market insights that uncover unseen opportunities and help increase revenue. 

c. User-friendly dashboards that help to make business-oriented decisions.


Also Read: How can marketers use their data more effectively?

2. Ensure that the correct data is present at the right time.

You must have heard the proverb “Data is the new oil” umpteen times. This quote emphasizes the importance of data in the current business environment. Business management software such as ERP and CRM systems capture a significant amount of data daily. Still, the problem is that with the substantial increase in data volume, human analytics has fallen flat. Moreover, with the introduction of Industrial Revolution (IR) 4.0 technologies — such as machine learning, artificial intelligence, Internet of Things (IoT), and data science — manually managed analytics is becoming error-prone and sluggish. It requires a complete revamp. 

Businesses should do the following immediately to enrich their analytics profile:

a. Add automated reasoning to dashboards.

b. Implement predictive forecasts

c. Add automatic workflows

As mentioned above, the three things will provide added advantage to your business by helping you estimate what the customer is most likely to buy, identify skill gaps in employees, and predict financial turnover. 

3. Focus on improving data security.

Cybersecurity has emerged as a critical topic that companies need to focus on. Do you know that more than 375 cyberattacks happened daily in 2020? And the figure is only rising. Companies must protect critical customer data from hackers. Otherwise, customers wouldn’t like to entrust them with their personal data. The same goes for employees who have to share sensitive information while joining the company mandatorily. Businesses have to also adhere to government rules, regulations, and norms such as GDPR because they can attract severe penalties if not followed. 


Also Read: ERP and Cybersecurity – What no one is talking about?

Conclusion

Remember that data is at the core of making market-specific decisions. This warrants a data-first management strategy that will ensure you have relevant data stored in your repository. This data will help you brainstorm comprehensive strategies and avoid becoming victim to the data dump syndrome. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

How can ERP forecasting improve business efficiency?

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Forecasting in ERP helps extrapolate current data to forecast future trends.

Forecasting is a mathematical concept that helps estimate future trends based on current data. It’s an essential tool as it allows companies to brainstorm effective strategies and shape business plans according to changing customer needs and market dynamics. Enterprise Resource Planning (ERP) software already has a significant data repository that has a vast collection of:

a. Customer data

b. Competitor data

c. Market data

d. Applicable government norms 

The forecasting module in ERP uses these data points to estimate how the market is shaping up and what the company should do to maximize profits and cut operational costs.

This article will shed light on the different kinds of forecasts the ERP software can make.

1. Forecasting module in ERP helps make financial Forecasts.

Financial forecasts help companies to estimate:

a. Revenues

b. Profits

c. Product demand

d. Changing customer buying habits

With financial forecasts, businesses can create their budgets and determine where to invest and save costs. It also impacts the initial quote and service charges. 


Also Read: How CFOs Are Forecasting Sales Amidst The Pandemic?

2. Forecasting module in ERP helps make demand forecasting.

Demand forecasting helps companies predict which product is more likely to be purchased and which one will lose its appeal. In effect, demand forecasting allows companies to increase the production of those products whose demand will soar and discontinue manufacturing those that will experience a slump. 

ERP software forecasts demand based on the following factors:

a. Geography

b. Demography

c. Behavior

d. Psychography

e. Past purchasing pattern

f. Customer buying habits

The ERP software also analyzes the sales pipelines that help determine which quotes are more likely to convert into orders.

3. Forecasting module in ERP helps make supply forecasts.

Supply chain forecasts determine:

a. The time it takes for raw materials to reach the companies’ inventory from the vendor. 

b. The time it takes for finished products to reach the market from the manufacturer’s warehouse through the supplier/distributor.

The factors that enable supply chain forecasting are:

a. Shipping schedules

b. Public holidays

c. Natural calamities like Covid-19

d. Weather reports

e. Union strikes

f. Time taken in previous deliveries

g. The lead time promised by the supplier


Also Read: Why the sales forecast is an important metric to consider even before engaging your sales team in actual sales?

4. Forecasting module in ERP helps schedule jobs.

Job scheduling has emerged as one of the most critical components of forecasting recently. The ERP software schedules jobs in the following ways:

a. Sends alerts and notifications to employees describing when and where they need to be present.

b. Arranges the required raw materials, tools, and equipment.

c. Performs automated recoveries and restarts in case the system fails.

d. Generates audit trails for maintaining regulation compliances.

e. Produces reports of incidents.

5. Forecasting module in ERP helps integrate data for external sources.

Data sources can be classified into two categories:

a. Internal data sources: Internal data sources include data that is stored in companies’ systems across various departments, such as:

i. Finance

ii. Sales

iii. Marketing

iv. Supply chain & logistics

v. Warehouse

vi. IT

b. External data sources: External data sources include data that is stored in repositories outside the company, which includes:

i. Government data

ii. Stock exchange data

iii. Reports published by international institutes like UNO, WHO, etc.

iv. Researches published by scientists regarding climate change

By combining both the internal and external data sources, the ERP software gains a broader lens to forecast changing trends and patterns.

Conclusion

Remember that forecasting depends on AI and ML algorithms that become better as the amount of data increases. Companies need to be patient as the forecasting ability of the ERP software requires substantial time to produce top-notch estimates. But once there is enough data, the forecasting module in the ERP software will contribute to business efficiency significantly.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

Here are 3 reasons why your services projects aren’t profitable and how to go about it

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A services project requires a prudent allocation of resources, business management suites, and top management handholding.

Project managers in the service industry have two important goals to achieve:

a. Produce the best quality products for the end-user.

b. Deliver it on-time.

But seldomly does the company asks them about the challenges they face while implementing the milestones. 

Here is a list of critical parameters that decide the success of project managers:

a. Access to business management suites like ERP, CRM, and HRMS software that introduce automation.

b. Judicious allocation of resources.

c. Handholding to deliver projects under stringent budgets and within the stipulated time.

This blog will discuss why a services project may not be profitable and what you can do about it.

1. Less project visibility.

Often, the project managers don’t have a project management tool to track the project’s progress or use different tools to handle various project aspects. It leads to diminished visibility regarding:

a. Current status of the project.

b. Who is doing what.

c. Updating dashboards

d. Monitoring KPIs.

e. How are resources being allocated.

Because of the reasons as mentioned above:

a. Different teams fail to coordinate effectively.

b. Resources are wasted.

c. Project status and financials aren’t aligned.

d. Managers waste time reconciling data across different project management tools.

e. Managers get an unrealistic picture of the project’s health.

2. Wasted resources.

A critical parameter to judge a services project’s success is the number of billable hours per employee. It helps maintain healthy cash flow and boost profits. But that is not always the case. A business often wastes a lot of resources. The following points explain how:

a. Assigning tasks that require the use of skills A, B, and C to an employee who possesses skills X, Y, and Z.

b. Not automating manual tasks that waste employees’ time, which could have been used for performing strategic tasks that require creativity and intelligence.

c. Manually filling, updating, and reconciling financial data that lead to human errors.


Also Read: How do ERP systems help improve your cash flow?

3. Poor collaboration.

Project managers face difficulties communicating critical business details with their team members and employees working in various departments. The following reasons explain why:

a. Existence of information silos that don’t allow vital information to flow from one department to another.

b. Unavailability of business management software such as CRM (Customer Relationship Management) systems leads to miscommunications and delayed feedback.

c. Timesheet approvals and project statuses are given verbally instead of tracking them on software systems. 

Inaccurate communication exceeds the budget allocated for the project and decreases expected profitability.

After learning the main pain points, it’s time to see the available solutions.

A practical solution for companies to deal with a services project is to combine business automation suites like ERP, CRM, and HRMS software systems. These systems provide better control and help boost profits because of the following advantages:

a. Improved project visibility by providing access to the project’s current status, updating dashboards, monitoring KPIs, and checking how resources are distributed. Business management suites substantially increase project profitability and weeds out inefficiencies in the system.

b. Judicious allocation and distribution of resources in the enterprise. The business management suite knows all the employees’ skills and abilities and assigns tasks based on that. It also provides correct estimates concerning project profitability based on factors like employee presence/absence, market conditions, and current government policies.

c. Improved collaboration by destroying information silos and allowing a healthy flow of information between various departments. It also automates timesheet approvals and updates project statuses from time to time.


Also Read: Utilizing Your CRM Software the Right Way!

Conclusion 

Service projects require autonomous software systems that can handle the nitty-gritty of a services projects right from initiation to conclusion. ERP, CRM, and HRMS software allow business stakeholders to get a comprehensive picture of all business activities, see what everyone is doing, and make last-minute changes whenever possible. These factors enable businesses to produce cutting-edge products and increase their profitability.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

4 crucial predictions for Financial Planning & Analysis in 2021

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FPA will undergo massive changes in 2021 owing to the digital revolution.

Financial Planning & Analysis (FPA) allows businesses to plan and estimate their future budgets and create a perfect blueprint. It enables them to:

a. Increase revenue

b. Boost profits

c. Reduce operational expenses

d. Predict market trends

e. Prepare budget estimates

Technology has made it possible for businesses to do financial planning and analysis conveniently. Business management suites like Enterprise Resource Planning (ERP) software have finance and accounting module that facilitates planning and analysis of financial activities. But numerous companies resist implementing such software systems due to:

a. Overdependence on legacy systems.

b. Lack of funds to purchase ERP software.

c. Don’t have the technical expertise to operate ERP software.

d. Strong resistance from employees on adopting technological systems.

The finance department needs a digital transformation because:

a. The duties and responsibilities of the CFO are drastically transforming.

b. Finance principles across the globe are changing rapidly.

c. Governments are formulating strict laws and levying rigorous penalties on companies that don’t adhere to such regulations.

It was essential to understand why finance needs a digital transformation because all predictions for FPA in 2021 are, in some way or the other, related to the digital transformation. 

1. FPA will get automated in 2021.

Many businesses still rely on their employees for managing finance activities like:

a. Accounts receivable

b. Accounts payable

c. Closing balance

d. Cash flow statements

e. Balance sheet

f. Income statement

g. Budget report

Businesses fail to realize that employees can make numerous errors while creating reports. On the contrary, ERP software is specially built to fill specific details instantly without any mistakes. It also helps to reconcile data stored in different repositories. Moreover, employees can focus on strategic tasks that require intelligence and creativity and leave monotonous and repetitive tasks for machines. 


Also Read: How do ERP systems help improve your cash flow?

2. FPA will use simulation.

Critical analysis of data is beneficial for all kinds of businesses. Data analysis allows businesses to unearth crucial information regarding:

a. Investments to be made in the financial year.

b. Estimating tax savings.

c. Financial resources required for developing new products and improving existing products.

d. Classifying products in different categories such as star, cash cow, question marks, and dog.

These data points help categorize data into small readable chunks that make it easy to glean critical data and make meaningful forecasts and simulations. Otherwise, companies often rely on historical data to do FPA, leading to financial, strategic, and operational failure.

3. FPA will go beyond mere finance.

Gone are the days when information silos restricted the free flow of information from one department to another. Thanks to business management suites, today, everything is interconnected. It’s high time for FPA to go beyond finance and include other departments, including Human Resources, Sales & Marketing, and Supply Chain. This is often referred to as the Extended Planning and Analytics Approach (xP&A) that further develops into Integrated Business Planning (IBP). IBP allows companies to get a 360-degree perspective of their employees and provides hidden insights. It also provides a level of comfort and flexibility that helps make better decisions.

4. FPA will expose risks well before time.

Managing risks is critical for businesses. If risks aren’t managed properly, they can cause severe damage to businesses, such as:

a. Diminished revenues

b. Reduced profits

c. Falling behind in competition

d. Extreme government penalties

e. Damage to life and property

ERP software will introduce advanced solutions that augment early warning systems and allow companies to prepare themselves before issues arise. It will help businesses to protect themselves from uncertainties.


Also Read: Manage Financial Risk with an ERP

Conclusion

Thanks to the significant increase in the implementation of digital technologies, FPA will undergo substantial changes in 2021 and beyond. Business management suites like ERP, CRM, and HRMS software systems will enhance decision-making ability, provide solutions at the right time, and boost market competitiveness. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

5 reasons why the automotive sector cannot survive without ERP software?

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ERP software in the automotive sector increases efficiency, boosts profits, enhances inter-department communication, and most importantly, automates every process.

According to the Indian automobile industry report 2020, India displaced Germany to become the fourth-largest auto market in the world in 2019. Moreover, India is expected to replace Japan and become the third-largest auto-market by 2021. The report further says that domestic automobile production has increased by 2.36% between 2016-2020. Overall, the automobile sector is expanding rapidly and companies that are outperforming have one thing in common. All of them use Enterprise Resource Planning (ERP) software to manage their daily operations. 

This blog will focus on why ERP software has become the bread and butter of the automotive sector.

1. ERP software reduces costs.

There is no doubt that integrating ERP software with automotive manufacturing systems is an expensive task. But there are numerous advantages that ERP software brings to the company that offsets every cost component involved. Firstly, it integrates all the different software interfaces that the automobile company uses to manage various departments, including:

a. Finance & Accounting

b. Sales & Marketing

c. Supply Chain

d. Vendor relations

e. Customer relationship management (CRM)

ERP software combines all these components and displays them on a single-window allowing all stakeholders to gather information conveniently. 

Secondly, automobile companies need not waste their time and resources training their employees to work on multiple software systems. 


Also Read: Add-on modules in ERP software and their benefits

2. ERP software boosts interdepartmental collaboration.

Automobile companies, or any company for that matter, can succeed only when different departments work as a cohesive force. Unfortunately, data silos or information silos restrict the free flow of information between various departments. On the other hand, ERP software promotes interdepartmental collaboration by:

a. Providing all authorized stakeholders access to critical business details from a single window.

b. Boosting database security.

c. Enhancing interdepartmental collaboration.

d. Restricting the access of unauthorized personnel from accessing confidential data.  

3. ERP software provides comprehensive reports. 

Accessing comprehensive reports is essential as it eliminates human errors and keeps everyone on the same track. ERP software produces the following reports for the automobile sector:

a. Expense statements

b. Income reports

c. Inventory status updates

d. Key Performance Indicators (KPIs)

e. Financial compliance

While generating reports, ERP software considers two things: historical data and estimations of how the market will transform based on changing customer needs and fluctuating market trends.

4. ERP software enhances customer support.

The automobile sector requires an excellent customer support service system that helps customers navigate through all the stages of the buying journey:

a. Identifying various automobiles in the showroom.

b. Collecting valuable information about the identified automobiles.

c. Evaluating the best automobiles based on the collected information.

d. Making the final purchase.

e. Assisting customers by providing best-quality support services in the post-purchase phase.


Also Read: The top customer service trends of 2021

5. ERP software maximizes productivity.

Increasing productivity has become critical for all industries, including the automobile sector. By boosting productivity, automobile companies can:

a. Increase the number of vehicles they manufacture.

b. Reduce the cost per vehicle by using autonomous systems.

c. Enables real-time tracking of raw materials and finished products across the entire supply chain.

d. Monitors the shortage and surplus in the inventory and ensures that the right product is being delivered to the right person.

e. Checks the quality of the materials produced by disposing of products that don’t adhere to the set guidelines.

Conclusion

ERP software provides multiple advantages to automobile companies. They significantly increase efficiency, improve transparency, promote interdepartmental collaboration, and minimize unnecessary costs. If you are looking to invest in automobile ERP software, you have landed at the right place. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software for the automobile sector that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

5 ways how integrating IoT will supercharge your ERP software

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The combination of IoT and ERP software will club automation with interconnected devices that will prove beneficial for companies and users alike. 

Enterprise Resource Planning (ERP) software automates business processes and activities that increase productivity and boost profits. On the other hand, the Internet of Things (IoT) is a web of interconnected devices that facilitate sharing of critical business information conveniently. When both these technologies combine, magic happens. A business performs fabulously across business parameters like automation, workflow, operations, and customer services

According to Global Market Insights, the intelligent apps market will grow at a CAGR of 40% from 2021 to 2027 and is expected to reach USD 150 billion by 2027. The demand for intelligent apps is rising because businesses worldwide have understood the importance of integrating their ERP software with IoT and data analytics

This blog will provide 5 points on how integrating IoT will supercharge your ERP software.

1. Significant improvement in data quality.

IoT systems send uninterrupted, secure, and high-quality data to ERP software. Sensors connected to the device send data in real-time and encryption algorithms ensure that data remains unhackable. If there is a change in the information en route, it’s updated in the ERP software. For example, you are a bottle manufacturer. Suppose there is a malfunction in the belt of the bottle manufacturing machine. The IoT sensor will send real-time information to the ERP software so that your team can take immediate steps to rectify the problem. 


Also Read: 3 Reasons Every Manufacturing Business Should Embrace IIoT

2. Substantial improvement in operational development.

ERP software has considerably increased the efficiency of operations through intelligence and automation. IoT-enabled ERP software takes this a step further by providing real-time information about:

a. Inventory updates

b. Manufacturing records

c. Automated data entry

d. Missed deliveries

e. Reordering of raw materials

f. Monitoring supply chain

3. Provides real-time analytics.

IoT sensors provide flawless data streaming that allows businesses to get access to real-time data. It helps brainstorm effective strategies based on:

a. Changing market trends.

b. Customer needs, desires, and ambitions.

c. Competitors analysis.

d. Business trends.

e. Current marketing strategies.

f. Government policies.

IoT-enabled ERP software also utilizes AI & ML techniques to provide rich insights and estimations that help make better strategies.


Also Read: Teaming up ERP with IoT & Big Data for Actionable Intelligence

4. Minimize downtime.

ERP software has helped businesses considerably decrease their downtime, enhancing the system’s ability to return to working conditions quickly. IoT-enabled ERP software takes this a notch higher by providing access to accurate and secure data. It avoids inefficient maintenance routines that reduce maintenance costs and minimizes downtime. A report by McKinsey suggests IoT-based predictive maintenance helps reduce equipment downtime by 50%. In short, IoT optimizes a company’s working ecosystem, thereby reducing/eliminating downtime.

5. Helps forecast better.

It’s essential to have excellent forecasting tools to determine which product has a brighter future and which should be shelved. IoT-enabled ERP software makes forecasts based on the following data points:

a. Demand forecasting: IoT-enabled ERP software finds out which time of the year registers maximum sales. It also pays attention to other factors like geography, demography, behavior, and psychography of customers to classify products in different categories like Star, Cash cow, Question Mark, and Dog.

b. Financial forecasting: IoT-enabled ERP software explores how much the company is spending and its earning potential. It checks budgets and expense reports in real-time to estimate product demands or capital requirements. Moreover, managers can monitor the spending habits of customers and make better predictions. 

Conclusion

IoT-enabled ERP software is no less than a magical boon for companies who are serious about increasing their productivity, efficiency, interdepartmental collaboration, and significantly improve customer and vendor relations

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

4 Key differences between ERP software and accounting software

Reading Time: 3 minutes

ERP vs. Accounting software has been a topic of heated debate that needs a quick solution. 

Although many people use them interchangeably, there are various differences between Enterprise Resource Planning (ERP) and accounting software. On one hand, accounting software deals with topics such as accounts receivables, accounts payables, handling day-to-day sales orders, counting revenues, and financial reporting. On the other hand, an ERP system is a business management suite that consists of multiple modules such as manufacturing, finance & accounting, sales, marketing, supply chain & logistics, warehouse and inventory, purchasing, and human resources. So, in effect, accounting software is a subset of ERP software. 

This article will shed light on the differences between ERP and accounting software and end this debate forever. 

Why a stand-alone accounting software is not enough?

We live in a world where faster turnaround time has become a necessity. Companies also need to maintain a robust and long-lasting relationship with customers by sending instant replies to their queries and understanding their needs, desires, and ambitions. Sales and marketing no longer depend on hearsay and intuition. Instead, their reliance on data is increasing every day. Maintaining excellent relations with vendors, suppliers, and distributors have become the cornerstone for transforming into a market leader. Stand-alone accounting software, as the name suggests, will help you with accounting & finance-related challenges only. But what about the other domains?

4 Key differences between ERP software and accounting software

Here are 4 things you must keep in mind while doing an ERP vs accounting software analysis. 

1. ERP system provides an enterprise-wide solution.

ERP system is a business management software that provides a 360-degree perspective of your entire business. It has the following modules:

  1. Sales Management
  2. Marketing Management
  3. Accounting & Finance Management
  4. Human Resource Management
  5. Supply chain & logistics Management
  6. Inventory & Warehouse Management
  7. Customer Relationship Management

In short, the fundamental difference between ERP and accounting software is that the former efficiently manages all the business modules while the latter handles only the finance & accounting module. 


Also Read: Tips to find the Right Accounting Software for your Business

2. Accounting software and ERP software are not always GAAP compliant.

Many local vendors sell accounting software and ERP systems that aren’t Generally Accepted Accounting Principles (GAAP) compliant. Before investing in either accounting software or ERP system, you must confirm whether it is GAAP compliant or not. Complying with GAAP norms, tax laws, and government regulations is necessary if you don’t want to land yourself in trouble.

3. Accounting software doesn’t provide rich details about the customer.

In today’s world, maintaining a robust and long-lasting relationship with customers is a must. No company can afford to continue its operations without having a substantial customer database. Companies that fail to understand customer’s needs, desires, and ambitions often fail to retain them. On top of that, research reveals that acquiring new customers is approximately five times more expensive than retaining the existing ones. ERP software has a Customer Relationship Management (CRM) module that instantly solves customer inquiries. On the contrary, accounting software doesn’t have a CRM module.

4. ERP systems use the power of the cloud effectively.

Cloud systems have become a necessity in today’s business environment. It allows companies to operate from anywhere and at any time. Salespeople no longer have to wait to return to the office to upload/change the documents. They can do the same from the client’s place itself. The business departments can transfer information and get access to real-time data. But most accounting software systems are devoid of cloud capability, which restricts companies from making practical decisions based on real-time intelligence.


Also Read: 5 Tell-Tale Signs Your Business Needs a Cloud-based Accounting Software

Conclusion

This article brings out the differences between ERP and accounting software and why the former is better than the latter. We strongly suggest you investing in ERP software as it will provide you a comprehensive business solution, make effective decisions, thereby allowing you to emerge as a market leader. 

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

 

4 trends that will dominate manufacturing in 2021

Reading Time: 3 minutes

New advancements in technology will allow manufacturing companies to attain greater heights in 2021.

With the introduction of industry 4.0, the manufacturing industry has gone through a drastic change. New tools and techniques allow manufacturing companies to enhance their productivity, cut down expenses, gather essential business insights, and provide top-notch customer support. 

According to industry experts, the next race will be to unite the human race with machines. The industrial revolution 5.0 is all about striking the right balance between the workforce and smart systems. The covid-19 pandemic has only exacerbated the adoption of intelligent technologies. Companies that leverage the power of autonomous systems will gain a fair share of the manufacturing industry.

Here are the top 4 trends that will dominate manufacturing in 2021:

1. 3D printing is on the rise

3D printing is helping the manufacturing industry to increase its production speed and become cost-effective. The rapid prototyping feature of 3D printing allows manufacturers to test initial product prototypes in a safe setting. The plus point is that companies don’t have to mass produce items and warehouse them. Instead, they can manufacturer items on demand. This feature saves time and cost.

Another benefit of 3D printing is that it significantly decreases the time to process tooling sets — molds, fixtures, and jugs — required to manufacture heavy equipment. 


Also Read: How can ERP software help manufacturing companies enhance their operations?

2. Introducing employee safety measures will become mandatory

2020 saw the spread of the covid-19 virus globally. There isn’t a single place on the planet that hasn’t been affected by the virus. Millions have been infected and hundreds of thousands have lost their lives. The pandemic has also changed the business landscape. Employee safety has become the prime focus of businesses, especially manufacturing and supply chain companies, where people come in close contact.

Manufacturing companies will have to pay extra focus on safeguarding their employees’ health. They need to create employee healthcare plans, frame emergency policies, and provide immediate medical assistance to those who contract the virus. 

It’s necessary to monitor who enters and leaves the facility and enforce social distancing measures to minimize the virus’s spread. For those who have to travel to different places frequently, manufacturing companies must provide a Personal Protection Equipment (PPE) Kit to lower the chances of contracting the virus. 

3. Manufacturing companies are becoming B2C oriented

Manufacturing companies realize the benefits of becoming B2C companies. The following reasons explain why:

a. Higher profits: B2C companies sell directly to customers. Instead of selling their products at wholesale prices, manufacturing companies can sell them at retail prices and maximize their profits

b. Better customer relations: B2C companies are in close contact with customers that allows them to understand their needs, wants, and ambitions better.

c. Excellent branding opportunities: Generally, third-party vendors dilute the original manufacturer’s name and often misrepresent the brand’s reputation. B2C companies directly interact with customers, which plays a significant role in deciding the final product’s price.

d. Less time to reach the market: The traditional route to market is long. It requires manufacturing companies to collaborate with vendors, suppliers, and distributors and respect the contract terms. But B2C companies can conduct market research, quickly prototype, test, and launch their products in the market.  


Also read: How B2B Companies can focus on Improving Customer Experience Remotely?

4. The AR and VR market is hot

Until recently, customers preferred a professional to come onsite to fix equipment. They were apprehensive of repairing and troubleshooting by themselves. But the covid-19 pandemic has forced everyone to stay at home, including service technicians.

Customers are opening to the idea of remote-working solutions. This has been possible because of assistive technologies like Virtual Reality (VR) and Augmented Reality (AR) that allow service technicians to fix, replace, or repair equipment remotely. It diminishes the risk of contracting viruses for both — customers and employees.

Conclusion

New developments in technology are helping the manufacturing industry to grow rapidly. Companies are using improved tools and techniques to increase their profits, decrease their expenses, gather business insights, and monitor the market. You can keep in mind these top 4 trends that will dominate manufacturing in 2021 before making any essential business decision.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.