10 Best ERP System Software Companies in Singapore for Customised Workflow and Process Automation

How to Choose the Best ERP System for a More Efficient Order and Supply Management

Managing your business data is relatively easy when you’re still a small business with few employees and a low volume of stocks. For your business's data gathering and organisational administration, you may be able to manage with a basic spreadsheet program.

However, as your business grows, so do all its individual component processes, from gathering raw materials you’ll need for your products to finally putting your products on the hands of your customers. Without a reliable enterprise resource planning system, this could lead to delays in information retrieval, lost customer opportunities, and disconnected processes – all resulting into your company’s operations and service quality being compromised. 

Businesses that want to expand or need better inventory management must have a trustworthy enterprise resource planning software to store all their data, record their transactions, and compile and organise every information related to running the company.

Enterprise Resource Planning Explained

The term “enterprise resource planning” started in the 1990s and was used to describe material requirements and manufacturing resource planning programs. ERPs, however, are not just limited to manufacturing because they are also used in human resource management, accounting, and various other business departments. The use of ERP solutions grew at the start of the 2000s when the shift to newer systems became commonplace in many businesses.

Previously, the use of business management software was limited to back-office tasks, but developers saw its potential for front office tasks as ERP integration has the ability to simplify multiple processes. Nowadays, ERP systems are integrated with the whole business model and used to manage core business processes, from supply chain management to customer relationship management.

An ERP system is described by the following qualities: its real-time operation, integrated systems, consistent modules, the database for applications, data or application integration, and the type of deployment (which can be cloud-based, on-premise, or software as a service). An ERP system automates business processes so business leaders and managers can spend more time doing core tasks and improving customer service.

An ERP software provides real-time visual data of what is happening with the business and what you can expect regarding productivity and cost savings. Using information gathered from your supply chain, production, marketing, human resources, and sales and accounting, you can make accurate business decisions, increase efficiency, and optimize your use of resources. You no longer have to rely on instincts and manual processes because now you have accurate and updated facts and figures to guide your decision-making.

How the ERP Systems Work

Enterprise resource planning systems work by using a pre-defined, uniform information structure. Any data entered by any of the business’s authorized departments is automatically synced throughout the system and becomes accessible to all users. This standardized structure allows every user across every department to have the same information that they can use for their respective operations.

For example, a supplier and distribution company operates in multiple locations, moving both materials and personnel continuously. As sales, employee and inventory data is inputted into the ERP system, managers can access real-time information about any aspect of the operation, ensuring that demands are anticipated and provided with appropriate resources, and that the entire business performs at optimal capacity.

Most ERP systems today cover several areas, including the following: management accounting, human resources, financial accounting, order processing, manufacturing, project management, supply chain management, customer relationship management, school or education institutions management, supply chain management, customer relationship management, school or education institutions management, and data services.

The Business Value of ERP System

An ERP system unifies all business functions, allowing users to operate optimally based on information from the system. Here are other benefits of an ERP system:

• Generate detailed analytics and financial reports for each department and monitor the company with a single vision in real-time.
• Understand what the business is doing right, capitalise on that, and change processes that can be enhanced.
• Make better plans and improve coordination throughout your business using accurate details. An ERP software provides graphs, charts, and reports with the click of a button.
• Automation of time-consuming and repetitive tasks, allowing users to focus more on improving business performance and productivity. Additionally, tasks prone to human errors are minimised.
• Get immediate updates on inventory, customer orders, and supplier purchase orders. It also improves forecasting future demands to ensure the company always has adequate supply.
• Use company resources efficiently. An ERP software helps allocate needed capital, materials and other resources where they will generate the most impact, minimizing oversupply and wastage, as well as the need to retrain staff or hire new ones.
• Improve communication and transparency among staff and managers. When everyone has access to the same information, it’s easier to understand each other and work toward similar objectives.
• Visibility of the different departments in the company, allowing for comparison and evaluation of performance. This also helps managers make the best decisions because they will see the impact of the changes they plan to make.
• Spot inefficiencies in the business, making it easier to manage time and resources company-wide. See growth opportunities as well.
• The more users access the system, the better it is in spotting problems and mitigating them before they cause significant disruptions or massive damages.
• Data can be accessed anywhere and on any device, especially with a cloud-based ERP, as long as there is an internet connection. User don’t need to be in the central office to access information.

Types of ERP Based on Model

The type of ERP that will suit your business depends on what products or services you sell, your number of employees, the volume of your inventory, user support, functional requirements, existing systems, and future scalability. This is why no one ERP software system will work for all types of businesses. 

One method to classify ERPs are the modules used. Examples of modules are supply chain, inventory, finance and accounting, customer relationship management, sales and marketing, purchase, and engineering or production. In detail, here are examples of ERP based on modules:

Modular

This type of ERP is a product of single-function systems, therefore it is recommended for industry-specific businesses. This type of ERP is ideal for businesses that sell particular goods or render specialised services and if the company handles a lot of information. The only thing to watch out for is that implementation of different modules might be challenging if you wish to add more in the future. Modular ERP is also difficult to implement if you want to use cloud ERP.

ERP Suites

This type of ERP software system includes multiple modules in a single package, making integration across different processes easier. An ERP suite allows for new modules to be added, effectively increasing its functionality as needed by the business. This is recommended for large businesses.

Best-of-Breed

Also called generalist ERPS, this is what you will usually find in most providers. The great thing about it is that there are a lot of options businesses can choose from. Most types of industries will also benefit from a generalist ERP. We recommend this for companies that want to enjoy the benefits of several modules for different departments, need a solution that handles a broad spectrum of processes, and have access to various features. However, this may not be easy to integrate, especially for small businesses that do not need a lot of features. Specialised companies will also find this lacking.

Types of ERP Based on Implementation

ERP implementation or utilisation is another primary consideration when choosing an ERP software to avail. There are currently four ERP deployment models you can choose from based on the size and scale of your business.

On-Premises ERP

In this type of ERP deployment, the software vendor installs the program on local computers and servers that are physically present on the company premises and is operated by the company itself. This is a good option for businesses that have the resources to install and maintain the needed hardware systems and software. Flexibility is a plus here as users are not limited to specific modules and can modify as necessary.

Open Source ERP Technology

This ERP system is available for everyone: the source code can be accessed without paying for anything. This is recommended for companies that are still unsure about getting a premium ERP software, as it allows them to freely try and see whether an ERP system could really bring in a lot of benefits to their business. However, access to the full suite of features are typically limited unless user pays for a subscription.

Cloud-Based ERP Systems

This is the most popular type of ERP solution currently, especially among SMEs (small and mid-size enterprises). Cloud ERP is also known as SaaS, meaning the company does not need to invest in hardware and software to enjoy the benefits. Instead, they pay for a subscription service to have continuous access to the software via the internet. This is a perfect setup for businesses that do not have the capital to invest in on-premise ERP. However, it must be noted that control over the applications and security can still be an issue.

Hybrid ERP Software Solutions

Specialised systems incorporating other solutions with on-premise ERP are recommended if your company already has an in-house system. This is an excellent solution for users who want to enjoy web-based services and the flexibility and control over specific modules without having to rebuild the entire infrastructure.

System Features of ERP Software

When looking for the right ERP solution for your business, you need to know which features are available. The modules, which are the heart of the software itself, includes several features and functions. Choose your ERP software based on your company’s needs and which features would give the greatest boost to your company.

Automation

Repetitive tasks take time and are prone to human error. With an ERP system, processing orders, invoices, reports, and more becomes more accessible and efficient.

Accounting

An indispensable feature, ERP accounting software is used for streamlining data input and organisation, sending invoices, and generating financial reports. It also helps in preparing tax filing documents required by the government without having to hire an external accountant or bookkeeper.

Data Analysis

This feature makes financial reporting and forecasting more accurate, which is especially helpful if you want to expand or improve production. Reports can be generated within just a few seconds and an overview of important processes can be accessed through the dashboard.

Manufacturing

This helps streamline the business processes involved in producing goods. It also facilitates monitoring of item availability, raw materials, shipment, and fulfilment of orders. It can eliminate a lot of repetitive tasks tied to inventory, production, sales, purchasing, and planning.

Inventory Management

This is quite handy for many manufacturing and retail businesses. It helps monitor the stock, reorder items, estimate when things will go out of stock, distribute goods in different shops, and recommend purchases or orders.

Human Resources

If the company has more than 20 employees, this might be a handy feature when monitoring employee information and job applications. Paperwork involved throughout the employee lifecycle can be recorded, stored, and safely accessed anytime.

Customer Relationship Management

If customer service representatives need to monitor order fulfilment, his feature lets users monitor purchases in real-time. It also simplifies tasks in following up with customer queries, updating contact information, and recording correspondences.

Sales and Marketing

Companies can use ERP software to improve their strategies in selling their products or services as the system can be used in forecasting, financial management, and sales tracking. The marketing team can also use the data in the system to improve their promotional campaigns.

Fields and Industries for ERP

ERP systems are used to connect various business departments. Does this mean ERP is only for manufacturers and large-scale enterprises? Not at all. One advantage of ERP systems is that they can adapt to the needs of the business regardless of its type or what industry it belongs to. It has different functionalities, features, tools, and modules, which can be included based on each company's unique needs.

SMEs will benefit a lot from ERPs. The integration of processes and the centralisation of the system will transform these businesses by reducing operating costs, adding security to data, and providing business forecasts. ERPs can be used by any type and size of business as long as you find the right provider. 

Industries as diverse as retail, manufacturing, construction, technology, distribution, hospitality, and even government agencies can use ERP solutions. Based on the type of industry, products sold and services rendered, several employees, and unique needs, your company can have any of the following modules and features:

• Finance: The most basic ERP modules include general ledger management, accounts receivable, accounts payable, and other financial documentations.
• Customer Relationship Management: The system can be used to keep track of correspondences with customers and clients. It can also be used for lead management to increase sales.
• E-commerce: Helpful in managing both the front-end and back-end processes of the online store. 
• Human Resources Management: This module helps you manage employees and keep track of applicants and other human resources data.
• Inventory Management: With this module, information is always up to date if you want to maximise your stock. The work process is significantly faster compared to traditional paper based manufacturing system.
• Manufacturing: Some of the earliest forms of ERP were based on material requirements planning. This module will help your business run productions properly by ensuring you have enough raw materials, equipment, and order information.
• Marketing Automation: You can easily manage and oversee all marketing and advertising campaigns for your company website, social media pages, email or newsletter, and other channels.
• Order Management: Using this module allows companies to monitor and prioritise customer orders, and thus enabling them to respond to requests and fulfil deliveries promptly.
• Procurement: With this module, users can monitor their purchases and automate orders and quotation requests, ensuring that you always have enough supplies for your production.
• Professional Services Automation: Most useful for tracking business-related projects, this module makes billing and expense monitoring more transparent and convenient.
• Warehouse Management: This module allows companies to monitor receipt, delivery, packing, and shipping of goods at the touch of a button.
• Workforce Management: This is used to keep track of the time and attendance of employees; managers can also use this to monitor the productivity of their departments.

Implementation and Deployment of ERP Software

Implementation of an ERP system differs depending on its type of deployment and the services included in the package. Generally, it starts when the implementation plans are finalized. The management, third-party provider, and business managers then meet to discuss the details of the package.

Next, the actionable plans are formulated. This will include the customisations that are necessary for the business. Not all companies will be using the same modules, therefore customisation is an important step. Training and licenses are also needed for specific applications.

When ready, the team proceeds to the installation and testing stage: this is where the business data and all related information are migrated. In this stage, the provider ensures that all modules are functional and all date is secure. Once the data migration is completed, the software goes live.

Considerations for Moving to ERP Systems

When choosing a module or package for your company, your primary considerations should be its initial cost, your business environment, and the possibility of future upgrades.

Keep in mind that the needs and scope of your business can change, and it might be necessary in the future to modify your business processes, re-evaluate legacy systems that cannot be integrated, transfer massive amounts of classified data, and change your management structure. All of these must be compatible with your choice of ERP system.

The type of software that is right for your company also depends mainly on what you can afford. Cloud-based systems are more affordable than on-premise and hybrid ERP for SMEs because there is no need to buy extra hardware and software.

The type of ERP system you pick should also fit within your specific industry, optimise both general and unique business processes, and meet any special needs you might have. If you’re considering expanding in the near future, you should choose an ERP solution that allows for upgrades and replacement.

Keep in mind that certain complications may arise regarding security, customisation, and training. The importance of keeping your data secured cannot be stressed enough. Whether you choose an on-premise or cloud ERP platform is based on security practices by the software provider.

Access control is one solution to securing data in the system. Another feature is database level security which is also responsible in managing the data input or output and database storage. It partitions data, resulting in only a subset of the information readily available for users who have access to the system.

Most commercial enterprise resource planning systems are configurable, allowing the incorporation of various modules to match industrial requirements. By having clear objectives and plans for future demands before implementing the system, you can ensure that the deployment and integration is conducted smoothly.

Small businesses may not need complicated systems that require additional training before they can be used, but all companies aim to grow, and you should be ready when it happens.

ERP vendors offer packages for specific industries, that is why you need to ask for a list of services and engage with the provider before deciding. A good provider presents you with a clear implementation plan and post-purchase activities. They must first meet and discuss the requirements and installation with you to know which type and modules are suitable for your business.

A good ERP applications provider should also show or discuss the project plan to clear what will happen during the installation process. Issues, such as requirements, data migration, data security, training, maintenance, and troubleshooting, must be clarified.

Learn more about different ERP solutions and how they can benefit your business by checking the service packages of top-rated ERP providers in Singapore.