Over the past couple of years, we have seen an increase in the number of companies who are becoming challenged by the results of their own success. Years of growth and global expansion through acquisitions and new market opportunities have left these companies with manufacturing, distribution, accounting, customer service, and procurement operations that are being run on disparate legacy business systems and poor business processes. These systems and processes are highly inefficient, expensive to support and maintain, and lack visibility into the global business data executives need to make quick, informed decisions.
By implementing globally adopted systems and processes, companies can streamline processes, improve decision making, increase margins, and encourage growth.
With globally adopted systems and processes, executives are given a comprehensive, real-time view of the entire organization for financial reporting and operational decision making. A global ERP system also allows for consolidated and standardized processes that enable an organization to consistently optimize business functions, such as intercompany trade, multi-site planning, shared services, and book closing. Finally, a global ERP system helps companies to better collaborate across value chains and work more efficiently with other operations, partners, and suppliers.
Single Business Management System:
Global organizations need a way to move out of silos of data and systems, especially considering the vast differences in geography and culture, and operate with the best processes and people working together across locations. Globally adopted systems allow a business to break down these cultural and geographic barriers and get people working together in an efficient manner.
Global Adoption of Best Practices:
A global ERP solution helps companies optimize and standardize business processes while encouraging the adoption of best practices throughout the organization. Streamlined processes lead to better performance and more efficient people. Globally adopted best practices also supports cost-effective expansion, enabling organizations to use company-wide standards, templates, and best practices to "cookie-cut" new locations, regardless of geography.
Faster Financial Reporting:
The ability to more quickly close the books and provide much more timely financial results to corporate management is a great benefit to global organizations. Global ERP solutions provide much greater visibility to individual global entities and the ability to view the entire enterprise with multiple currencies and multiple locations; this positions organizations to quickly grow and expand as the market dictates.
Compliance and Risk Management:
Global visibility and control of compliance-related processes and activities are key factors in enforcing effective compliance and risk management practices. A Global ERP solution can enable your organization to streamline and comply with a variety of global and local compliance requirements and customer mandates, including financial, legal, and environmental. By utilizing a single solution for policies and procedures, process documents, database logs, reports, charts, and key risk indicators, global organizations can see the whole picture, take control of processes, mitigate risks, and ultimately reduce the cost of compliance.
Reduced Operating Costs:
Organizations that successfully adopt global systems and processes see reduced operating costs in a number of areas. With a single global ERP system, companies benefit from reduced IT costs, including staff, support, infrastructure, and applications. Standardized processes also enable organizations to continuously improve efficiency, productivity, and decision making – enabling volumes to increase without needing an equal increase in operating costs.
Many companies put off selecting a new ERP system because it’s a complicated and expensive undertaking. When you make the right choices, though, the process becomes less daunting and even welcome.