Six Ways ERP Can Take Your Small Business Global
Many small and midsize business owners dream of operating internationally. Regardless of how or where an organization decides to expand, Enterprise Resource Planning (ERP) software can significantly increase the likelihood of success, be it regional or national growth. So, no matter whether you’re a small business or a mid-sized company, if you’re on the cusp of growth, it’s time to consider an integrated ERP solution. Let’s explore what’s important to know about achieving global ERP.
Why Global ERP?
Among multiple reasons why organizations prefer a global ERP – cost, better decision making and uniformity across multiple locations hold more weightage. A global ERP solution helps to integrate all departments and locations into one business system, providing organizations accurate and up-to-the minute information about costs, trends, margins, and more. Organizations need to regulate business processes across multiple geographies and an integrated ERP can help achieve this.
Selection and Implementation
Getting to a global ERP can reduce cost, increase global visibility, accelerate decision-making and outspread standardized business processes across a geographically diverse organization. The first step in selecting a global ERP is raising specific questions about capabilities. For instance, can the software handle multiple currencies, multiple languages, multiple units of measure, multiple sites, multiple manufacturing modes, multiple organization structures or hierarchy? The ability of an application to handle and connect different business operations is important in order to achieve global ERP.
Global ERP is usually not implemented all at once. It’s important to have an enterprise software partner that offers software flexible enough to do this, and can at the same time plan the entire global implementation in advance. Planning ahead ensures that businesses don’t start implementation and to start with only evaluate if the configuration is compatible with subsequent sites. It is imperative that the implementation plan address the entire project holistically from the start in order to avoid delays and additional cost.
One of the most essential value propositions of an ERP is that it provides real-time visibility into the most significant operations of your business. However, when it comes to international expansion, not all ERPs are created equal.
When a small or midsize business considers a global ERP, there are six must-have features that should guide the search.
- Cloud-based: To achieve rapid ROI, global ERP should be 100% cloud-based to avoid costly and time consuming software updates. For deployment flexibility, scalability and affordability, an ERP should be cloud-ready, whether it’s on a private hosted environment or on a public cloud.
- Multi-accounting Standards: A global ERP must support the ability to have simultaneous views to financial documents including invoices, balance sheets and more using varying accounting standards.
- Modular: The ability to add pre-built capabilities to the core ERP means companies can cost-effectively add functionality on as-needed basis. This ensures a functional footmark for the core application itself, for faster deployment times.
- Multi-currency Support: The ERP must support different currencies, exchange rates, and fees for currency exchange. It should also track payment dates and help reconcile issues related to changing exchange rates and shifting values of currencies and inventory.
- Role-based Security: It must provide secure, role-based access to functionality and data regarding individual lines of business and international operations on a country-by-country basis.
- International Reporting Requirements: As countries have differing tax laws, regulations and standards, country-specific documentation is needed for international commerce – a global ERP should streamline these critical reporting requirements.
The most significant criteria is to ensure a global ERP is 100% cloud-based solution in order to avoid any disruption while deploying ERP to your business. This eradicates the cost overruns and delays associated with sending IT personnel to each of your physical locations to install or troubleshoot your solution.
Expansion – whether through acquisition, creating new business units, or building operations in new countries – creates challenges for every business. Selecting the right technology solution to build a strong foundation for growth will help small and midsize companies optimize the performance of existing and new business units.
Deskera delivers fully integrated, fully compliant and quick to deploy ERP software for growing and midsize businesses. The ERP software because of its modular structure enables quick implementation and lets organizations to go live in days instead of months.