Mark Kendall, Sales Director at MAM Software, reveals how looking for a new ERP application can benefit factors in 2020.
The start of a new year is the perfect opportunity to take stock of your core business processes and where improvements can be made.
Choosing ERP software that will meet your growth objectives and support your current business is critical, and there are several features to look out for when searching for a new software provider.
ERP can integrate several of the core processes that are essential to running your business, and can streamline them into a single system. Whether it’s helping your staff process transactions more efficiently, or ensuring that stock is accurately tracked, an effective ERP solution will simplify these critical functions.
A good ERP application can also help you identify where improvements can be made across your operations. Time and cost savings are just two of the areas where factors can make improvements by choosing the right ERP, both of which can result in more efficient operation and a better bottom line.
How can ERP help your business?
One of the key features of ERP is its ability to enhance customer service. Factors need to be able to rely on their system to provide accurate pricing at point of sale, but also to retrieve the information quickly – software that includes advanced sales order capabilities can make this happen. Prices and discounts can be applied automatically, while product-specific promotions can be incorporated for retail or trade customers.
Being able to accurately keep track of stock is crucial for any motor factor. Items need to be traced from goods received to despatch, to ensure that stock levels are properly maintained. ERP can bring these analysis tools together and give an accurate overview of day-to-day operations, making it easier to recalculate minimum and maximum stock levels based on sales history and forecast demand.
Accounting is a core area of a growing business that can also be made easier with ERP. Making Tax Digital (MTD) came into force in 2019, and it requires VAT-registered businesses with a turnover exceeding £85,000 to submit electronic returns. Some ERP systems have been reviewed by HMRC and are approved as MTD compliant, helping factors to ensure that they are meeting their legal obligations.
An increasing number of software providers are moving their products to the cloud for the convenience and cost savings that it offers. A cloud-based infrastructure can also be beneficial for expanding motor factors, as it’s easy to deploy across several locations.
This has been the case for J4 Truck Components, which recently invested in MAM’s Autopart software, citing the flexibility that it offers. The company’s previous system was not capable of coping with the level of growth that it had experienced, but moving to a cloud-based solution has facilitated this expansion.
“Stock levels are increasing and so are the number of part lines; our previous system couldn’t handle this expansion, but we are confident in the capabilities of our new software,” said Phil Edwards, Managing Director of J4 Truck Components.