jobmate CEO Chris Dalton

Operators and suppliers in the transport and distribution industry are fast becoming aware of the benefits associated with using an efficient enterprise resource planning (ERP) system, but they can be forgiven for not fully understanding how to select a solution that best fits their business model.

In broad terms, an ERP system should ensure increased productivity by automating all key business processes while providing management insight, control and agility. The system should embrace reporting, IT requirements, accounting, ecommerce, labour, purchasing, HR and cost control, forecasting and job planning. Most importantly, it should be a native cloud SaaS where the operating system and data are in the cloud, allowing them to be simply integrated through application programming interface (APIs) with other software, plus fully cyber-secure by being hosted in a reputable cloud software service.

ERP stands for:

Enterprise – The business

Resource – The employees, products, suppliers and assets of the business

Planning – The planning of the work and services the business offers

Or put simply, it’s all about controlling every key aspect of your business through one operational software package. However, ERP is not to be confused with financial and customer relationship management (CRM) packages, which the common definition of ERP often creeps into.

Traditionally, ERP has been the domain of large businesses. It can be expensive, inflexible, customised to a particular business requirement and not always user-friendly—most likely because its user interface model is drawn from a spreadsheet design. These ERPs are often known as ‘on-prem’, which operate on a company’s own hardware/network infrastructure. Mobile ability is also limited or non-existent as it requires special devices, not just an everyday Android or Apple mobile phone or tablet.

The software used is ‘compromised’, with feature modules that serve a purpose but were never best-in-class; so businesses may under-perform by using adequate yet not wholly applicable or integrable software. The systems can be expensive to maintain and have high initial development costs, implementation fees and licences.

The evolution of ERP systems from traditional on-prem to software-as-a-service (SaaS) native-cloud-based (operating software and data are in the cloud), particularly with the advent of native cloud hosting (such as AWS and Microsoft Azure), has significantly expanded ERP software’s reach through flexibility and lower costs for medium and smaller sized businesses.

This shift initially drove an app market based on singular features, but now, more complex native cloud ERP systems are available. Their advent is bringing down prices and improving accessibility through progressive web application to mobile apps, which provides greater accessibility, control and cost reduction.

The key advantage of native cloud over on-prem software is that you can easily connect to other software through APIs while benefiting from a flexible and multi-functional solution. Plus, it brings the peace of mind that comes with being virtually impervious to cyber attack.

This change has created a best-in-class software pedigree comprising distinct functions within a single and seamless operational ERP software solution, which can be expanded through simple integrations of your choice with off-the -shelf financial, CRM and HR packages.

Of course, numerous solutions are on offer, some more sector-featured than others. Either way, it is recommended to choose best-in-class operational software that combines easy use and installation with sector-specific functionality and the security assured by native cloud.

Ultimately, your operational ERP system is your business’s ‘beating heart’; it is the engine that collects financial data and manages jobs, data, suppliers, stock, customers and deliveries while keeping admin time and costs down. Above all, it can give you visibility, information control and the freedom to manage and grow your business more effectively.

So, if now is the time to select an efficient ERP system for your business, invest plenty of time in researching the market.

Chris Dalton, co-founder and CEO of ERP software developer Jobmate

 

Topics