• • • ELECTRICAL DESIGN SOFTWARE • • •
REIGNITING THE SPARK IN BUSINESS GROWTH THROUGH ERP SOFTWARE
Gary Reynolds, software director at OGL Computer, look at the new government incentives to innovate
F
or electrical businesses, investing wisely in areas that will yield the greatest dividends has never been as important as it is now or as incentive- rich. A £520 million government, “Help to Grow” scheme was recently announced by Chancellor Rishi Sunak, aimed at helping some 130,000 SMEs to embrace digital innovation by accessing expert technology advice and discounted “productivity- enhancing” software.
Under the scheme, eligible businesses will receive 50% off business software – up to £5,000. While this is indeed an attractive incentive for electrical busi- nesses jostling for a competitive edge – the question remains where should companies invest for optimal long-term returns?
We recently conducted a survey which revealed that 85% of electrical and electronic businesses holding inventory, believed that technology was paramount to the efficient running of their business. 80% of respondents affirmed that automating business pro- cesses, helped them to stay competitive.
THE COST OF STILTED BUSINESS PROCESSES
Currently, many businesses processes are not auto- mated, nor streamlined. Their operational functions are often housed inefficiently in disparate, unlinked software systems that don’t speak to one another, resulting in silos of data in disparate locations. How does such a situation come about? Most busi- nesses are not technology-led. Instead, they adopt technology as and when they need to. An electrical business may start with a basic accountancy pack- age including quotes, purchase orders and invoice payments. As businesses grow, often additional soft- ware is added on ad-hoc until there is a patchwork of non-communicative software, causing bottlenecks in the daily running of operations.
WHY INVEST IN ERP SOFTWARE?
Implementing ERP or Enterprise Resource Planning software solves these issues by consolidating dispa- rate software systems to a single platform where all parts of the business talk to each other and data is presented in one single dashboard. The resulting effi- ciency is fundamental to business growth - all without
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the added cost of hiring extra IT staff. In our survey, 57% of respondents cited the main reason behind using a single software system was re- duced administration time, followed by 40% claiming improved accuracy of information, while 37% cited improved efficiencies by eliminating the duplication of work across different departments. An integrated ERP system provides a business with immediate oversight of all functions. This allows users to navigate easily between differing operational tasks using a single, centralised platform. A real-life example of an electrical business benefit- ing from an integrated ERP set-up is family-run spare parts wholesale, distribution and service, Anderson Electrical. It has transformed its operations with Profit4, a self-serve ERP software. Profit4 is a busi- ness and stock management software that facilitates wholesale, merchant, stockist and distributor busi- nesses to gain overall visibility of business processes and data, while streamlining operations to reduce costs and improve efficiency.
Anderson Electrical used ERP to improve intercon- nectivity throughout its business, explaining: “With Profit4, all areas of our business are now connected - nothing will get missed because we can create workspaces to give us complete visibility, rather than writing notes on scraps of paper!”
A single dashboard that displays data from all parts of a business is integral to enabling business to accu- rately and swiftly extract data. It allows companies to analyse and manipulate information for the purposes of reporting and future planning. Accurate infor- mation retrieval also increases productivity, thereby increasing profits.
Businesses of any size can benefit from ERP soft- ware. The capabilities of an automated business process software extend far beyond the scope of busi- ness accounting and reporting activities. They also as- sist with order management, supply chain processes; stock and warehouse regulation; Commerce and improving customer service functionalities by offering insightful data and oversight, enabling swift, informed decision-making when you need it.
As Anderson Electrical puts it, “our new streamlined system gives us the flexibility to move in times of uncertainty”.
An integrated system gives an organisation the data and stats of a customer’s journey, sales infor- mation, warehouse efficiencies, stock control as
well as team performance. It arms businesses with the ability to predict trends, understand best per- formances, and importantly it underlines areas for improvement.
Last but not least, critical business functions like regulatory compliance and risk management can also be handled with ease. Many business process software systems also include software to help busi- nesses plan, budget and forecast.
Businesses can deploy ERP software at any stage of its growth and the capabilities of the software will grow with your business. Implementing it from the outset has the added benefit for firms of medium to long-term scaling.
For electrical wholesalers and distributors like Touchstone Lighting, taking control of stock and warehouse operations has a ripple effect on variables such as customer service, reputation, team morale and profits.
Touchstone Lighting implemented OGL Computer’s ERP software to manage its stock of more than 2,000 different lighting control gear products. Through this implementation of OGL Computer’s business management software, Touchstone Lighting could disseminate the information it needed instantly, so its customers were never left waiting – this was especially important when Touchstone Lighting’s customers’ customers were waiting at their trade counters!
Instead, the integrated ERP solution helps Touch- stone fulfil its customers’ needs without delays as the software does “99% of the things we need it to do”.
MIGRATING TO A SELF-SERVE ERP SYSTEM
However, if you are moving from standalone account- ing systems to a self-serve ERP suite, the process need not be daunting. Good ERP software providers will ensure that accessible support teams will be on- hand to guide on all aspects of using the software, from data transfer to training existing staff. If you are an electrical business that still relies on manual processes and uncommunicative software systems for your day-to-day processes, you could see real benefits from a unified ERP system. And now, thanks to the backing of the government’s “Help to Grow” scheme, there’s never been a better time to digitally overhaul your business.
ELECTRICAL ENGINEERING • SEPTEMBER 2021 15
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