Empower your decision making with more knowledge of ERP systems
If you are looking at adding an ERP system or are unsure if it’s the right thing for your business right now then this is the resource for you. One of our brilliant team members graciously agreed to share some of her expertise about ERP systems. Here’s an in-depth Q&A with our Head of Accounting, Larissa Cangialosi.
Q: What is an ERP system?
A: ERP (Enterprise Resource Planning) is a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, and supply chain operations.
Examples: Netsuite, SAP, QuickBooks Desktop (lower tier), Microsoft Dynamics
Q: What is an Inventory management system?
A: A system used to track your goods throughout your entire supply chain, from purchasing to production to end sales.
Examples: DEAR, SOS, QuickBooks Commerce
Q: What are the differences between the two systems?
A: There are four main differences. Inventory management is a plug-in that needs to be synced to accounting software. ERP has accounting, operations, and other departments on the same software, centrally. An ERP is pricier and more complex. And finally, setup time is much longer for an ERP than an inventory management system.
Q: Are there any similarities between the two systems?
A: There are a few similarities as well. Both can plug into other technologies (e.g. Shopify, SPS Commerce, Amazon). They both require ongoing maintenance and utilization of the technology to arrive at good and useable data. For setup, both generally require consultants to 3rd parties to help implement the system.
Q: How should a company prepare to implement either of these options?
A: Be sure your master data is correct and comprehensive. Know your bill of materials for each of your SKUs. You want to have good starting balances of inventory. Get your operational workflow identified and adjusted to the system. Obtain physical counts to ensure starting balances.
If you’d like to learn more about ERP systems and need assistance setting it up, reach out to our account managers to get started!
For more information watch our Coffee Break video on this subject or if you need help please reach out to us at: