The Potential of Cloud Based ERP in Pandemic
12-May-2020 by Shashank Rameshwar
With the COVID-19 pandemic shutting down businesses and forcing teams to work remotely, the importance of a cloud-based ERP software is being felt by companies around the globe. ERP systems accommodate sudden or abrupt business changes and facilitate working from home arrangements.
In order to understand how ERP can help businesses during the COVID-19 pandemic, it is important to look at the situation the world is currently facing. Due to social distancing measures taken to prevent the spread of COVID-19, businesses were required to temporarily shut down their offices and ask employees to work from home. While essential services are allowed to function, the impact of COVID-19 on the economy and various sectors is yet to be fully comprehended.
Outlined below are ways that cloud-based ERP systems help facilitate the transition to remote work, maintain business operations as usual and position businesses to thrive during and after this time of uncertainty.
Empowering employees working from home - Businesses across all spectrums are minimizing the number of people coming into their plants and offices and maximizing the number working from home. In a manufacturing environment, it’s typically front office personnel who work from home, such as those in administrative, planning, and design roles. So, for the employees on WFH accessing data becomes difficult. A cloud based single sign on ERP platform can turn out to be savior in such situation
Accessible Visibility to Key data sets like Manufacturing Data, Sales Data, Purchase Data, Inventory Data, Financial Data & many more
Automate Manual Business Processes - Organizations will need to automate manual business processes and workflows to create operational efficiencies in a remote-work environment. They should, for example, consider automation of approval workflows like ordering and processing of invoices. Similarly, the practice of using manual spreadsheets for reporting and forecasting will need to be replaced with something automated and centralized.
Anticipate changes in accounting - Organizations that have not automated their accounts payable (AP) functions are likely to find it difficult to manually process invoices, transmit physical checks, and deposit receivables. In such pandemic situation, it may be difficult to contact entities that have not paid their invoices or to deposit payments received. To help stabilize cash flow, accounts receivable (AR) modules can be added to ERP systems to help organizations send out dunning notices, determine optimal payment terms, and track payments. Businesses may want to consider their approach to handling AR. The traditional approach of following strict rules regarding late payments, dunning letters, defaults, and write-offs may not be as effective a strategy. On the other hand, focusing on enhanced communications with customers, offering incentives for early payments, allowing payment holds, and discounting may produce better AR results.
Take Advantages of Dashboards & Real Time Statistics - Many employees are both dispersed and virtual, and that can interrupt reporting and data analytics processes and workflows. Dashboards and workflows built into ERP solutions can help businesses manage remote reporting. They can also be customized to help teams manage unexpected costs, new ledger items, and financial closes.
Realtime & Controlled Operations - A fully integrated cloud ERP system will help maintain the same level of efficiency businesses would expect in a traditional in-person environment, despite staff not being housed in a central location. Cloud-based technology provides a 360-degree view of the business, allowing teams to quickly generate reports, track profitability, review product information and manage relationships with customers – ensuring proactive and sensible decision making at any time.
With SAP Business One HANA Cloud Organizations can get their critical processes online and control the activities.
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