Global ERP is Gaining Prominence with Cloud Global ERP Leading the Pack
Why implement a Global ERP?
As an organization expands, the need for a global ERP solution becomes glaringly evident. Miscommunication between locations, misallocation of resources, and accounting and inventory errors are just a few of the issues that can arise as an organization expands across multiple locations and jurisdictions or goes global. Global ERP solutions exist to alleviate those growing pains.
It is not uncommon for an organization with multiple locations worldwide to be utilizing disparate systems. From a cost point of view, these disparate systems are increasing the error rate for human entry and are drastically inefficient. Duplicate data entry is time consuming, expensive and prone to human error. A well-developed global solution consists of necessary business systems to relieve the error and efficiency issue.
As a second consideration, enterprise resource planning solutions provide upper-level management with the utmost clarity and control through the ability to view sophisticated dashboards and generate reports. This detailed reporting is possible due to the fact that the ERP is the central location for all relevant business and process data, such as an organization’s inventory, accounting, customer, vendor, and shipping data. When it all comes down to it, a global ERP system saves considerable financial resources. Global ERP enables organizations to cut costs and streamline processes, while allowing management to be empowered and make intelligent business decisions because they now have a holistic picture of their organization.
APQC. ERP Consolidation: The Rationale is Growing Stronger
Why all global ERP solutions are not created equal.
One important fact to note is that not all global ERP solutions are created equal. For years, corporations have been implementing complex enterprise resource planning systems and hosting them on premise. This is where the first problem arises. On premise solutions need constant upkeep and continual supervision by staff. A complex array of server infrastructure needs to be implemented so that each location has rapid access to the ERP.
Let’s use this on premise ERP scenario as an example: A midsize organization has a team in Germany that handles all accounting tasks. The organization has 6 warehouses internationally and the general manager at each location is responsible for entering up-to-date inventory information into the ERP. The organization will incur a large expense to develop server architecture to meet the needs of each location. An even greater cost will be incurred in providing IT resources to ensure system upkeep.
That leads to the second biggest issue with certain ERP solutions: facilitating the needs of employees in different regions of the world. Using the aforementioned scenario, let’s say each warehouse or distribution center is in a different country. The ERP solution now needs to be able to store, process, and present data in multiple languages and multiple currencies.
The key to improving this scenario is to pick a global solution that is hosted in the cloud, and also provides multi-location, multi-currency, multi-language, and multi-location capabilities while allowing for the control of advanced user permissions.
The advent of Cloud Global ERP and why it works so well.
As mentioned in the last section, on premise ERP presents a slew of costly issues. With the advent of cloud global ERP, those issues have been solved. As technology progresses, the market leaders in enterprise resource planning are making the switch to providing cloud global ERP solutions. These solutions can be accessed by any user from anywhere in the world. Since these systems function from large server infrastructure spanning numerous continents, data speed is vastly increased.
Another benefit to cloud ERP that is often overlooked is scalability. Due to the nature of hosting organizations such as Amazon Web Services and Microsoft Azure, as your organization grows, the location based hosting can grow with you.
What has really increased the rapid adoption of cloud global ERP is the drastic cost reduction this infrastructure presents in comparison to on premise ERP. Unlike on premise ERP solutions, cloud global ERP systems have minimal hosting fees and no on-site infrastructure costs. Additionally, cloud ERP organizations provide all of the system upkeep and technical resources needed to have a fully functional and optimize ERP solution, which is a monumental reduction in overall IT costs.
Global ERP: Choosing a Global ERP Solution Delivered in the Cloud
There are numerous benefits to global ERP solutions that are offered in the cloud. These solutions allow organizations to have fully integrated systems, while attaining greater cost reductions, improving efficiency, and enabling management to make educated decisions based on the ability to see a holistic view of their organization. In a world that utilizes multiple languages and multiple currencies, picking a global ERP provider that can accurately fulfill your organization’s needs is paramount.
With the advent of cloud global ERP, immediate efficiency and cost savings can be realized without having to experience the pitfalls of an on premise ERP solution. For more information on global ERP solutions, learn about Trek Cloud ERP – a Global ERP Solution.