Operations management system
ERP operations management ensures the smooth running of your supply chain, working across internal teams, partners, vendors and customers. For COOs, supply chain management software helps increase supply chain agility, efficiency and collaboration to support strategic goals.
Maximize operational efficiency: explore key features
Operations functionality within an ERP system review should include:
- Asset management – through data capture, tasks, reporting, automation and workflows, how does the ERP help you manage and service the equipment in your company, for example, machines, production equipment, and vehicles?
- Cost accounting and cost management – the ERP must be able to allow your operations and finance teams to understand and control overheads and profitability of allocated areas of your business (e.g. machine hours used, goods in production and inventory, or electricity costs etc.)
- Inventory and warehouse management – focus areas cover inbound and outbound operations, quality management, stock control and activities (BOM creation, movements, transfers, counting, adjustments etc.). How does the ERP support you in optimizing your warehouse layout, processes or stock levels for example?
- Master planning and MRP – what features and functions will allow you to set, manage and balance the need for raw materials and capacity in the future? Does the ERP allow you to calculate short-term net requirements based on current order book?
- Production control – a best-in-class ERP should cover the entire production life cycle (i.e. all the steps to manufacture an item). What are the processes for each stage, e.g. production orders, batch orders, and kanbans? Walk though from order creation to closing of the financial period.
- Product information management – the centralized management of how items are defined, categorized and configured with full document management, search (including attributes and dimensions detail) and sharing capabilities. When products are updated, what controls and audits are in place through the life cycle?
- Transportation and logistics management – an ERP should be able to cover the inbound and outbound management of your own transport fleet as well as transport suppliers and couriers (across road, rail, shipping etc.). Do you need to understand landed costs?
- Service management – if your business operates services and subscriptions, your service operation will need to operate service agreements based on SLAs. The ERP will be working across finance, sales, customer service and inventory teams to understand and deliver the resources needed to support the customer.
