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Improve Risk Management with an ERP System

By Jessica Chiarodo

Risk Management Blog Cover ImageAre You Prepared to Manage Business Risks? 

No business or industry is free of risk. Regardless of size or scale, your organization will face challenges. But the companies that best handle risk are those that will be successful. Business best practices coupled with robust technology will help your business manage and mitigate risk. 

Enterprise resource planning (ERPsoftware has proved durable for many manufacturing and distribution businesses. Set to centralize your business and simplify operations, their strengths have helped firms grow while mitigating risks.  

 

Detect Operational Anomalies  

In manufacturing and distribution businesses, it’s easy for minor issues to slip through the cracks as processes move quickly. However small errors can pile up and become a major issue. As a distributor or manufacturer, anything interrupting your supply chains of products is a potential risk.  

ERP software can be geared towards detecting possible issues before they become major problems. If an error is apparent, a message is sent to the appropriate department, notifying them to resolve the issue. From thereyou can address the error and solve it before there is any damage done to the business. 

 

Improve Business Planning 

Most businesses have general business plans covering their upcoming year. But to create truly effective plans, businesses need access to accurate data and information.  

Many businesses use separate systems for different departmentsExcel, QuickBooks, filing cabinets, etc.and operate in silos, separate from one another. This can lead to missed opportunities, poor decisions, and can severely impact your business plans. 

To remedy this situation, ERP solutions centralize your data under one system. Rather than having your items separated by department and technology, information can be easily accessed and uniform for any department that needs it.  

 

Avoid Resource Mismanagement  

For companies that use physical resources to manufacture products, managing those resources can be a daunting task. Resource control is complex, especially if data entry and reporting aren’t accurate. 

Let’s assume the product you manufacture relies on a resource we’ll dub “C” and is used at a specific quantity during production. The system you use to report resource depletion is manual-entry oriented, meaning it’s only updated after a batch is made. For the most part, it does its job until one day you receive a massive order and discover you don’t have enough resource “C” in stock to complete the order on time. You’ll likely frustrate or even lose that client by the time you have enough resource “C” in stock to resume. 

Alternatively, you can use an ERP system to automatically remind you when you are low on a necessary resource, eliminating manual data entry and allowing you to order the resource you need to run your business 

 

Wrap Up  

An ERP system allows you to take better charge of your business and manage risks. While business risk is unavoidableERP will reduce many potential difficulties. By better managing operations and allowing for easier information access, you’ll have a better grasp of your affairs. With the specific needs of your industry in mind, ERP solutions are set to deliver. 

Infor logo 1024px (1)Datix is an ERP expert. We have been implementing ERP systems for over 20 years, and we are an Infor partner and an Epicor® expert. Our consultants will align your ERP to your business processes, helping you mitigate risks along the way. Plus, we will be with you from start-to-finish in your implementation.  

To mitigate business risks, contact Datix to learn more about ERP today! 

Tags: data management, ERP, mitigate risk, Infor partner

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