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MYOB ERP Solutions

Intro Guide to Business Benchmarking to Help Your Business Grow

 

 

business benchmarking, ERP

Intro Guide to Business Benchmarking to help your business grow:

Benchmarking is a vital part of any successful business. No doubt you’ve questioned many times how well your company is performing compared to your competitors? But without a way of tracking the business’ performance, it’s nearly impossible to maintain its success and profitability. Your business is a valuable investment – and without a way to measure the way it functions; sales revenues can decrease and your internal costs will significantly rise. Here’s what you need to know about business benchmarking and how it can help your business grow:

Getting Your Head Around Business Benchmarking

Business benchmarking offers detailed insights into where improvements can be made within your company to increase profits. While you may do your usual month-to-month financial reporting, business benchmarking goes more in-depth. It provides you with a means to compare your business to competitors in the industry and offers an effective way to see exactly how you’re performing and lift your potential.

This tool is ideal for small to medium businesses predominately, but something every company can – and should – benefit from. To evaluate opportunities for improvement, you need access to all the information. From here, a plan can be developed to help achieve your business goals and push the company ahead of its competitors.

How Business Benchmarking Boosts Your Business

Through detailed insights customer’s needs are identified, the company’s strengths and weaknesses are highlighted and performance expectations can be prioritised for specific areas of opportunity. This boosts your business by encouraging and meeting set goals and allows you to understand your competitors better. Without this knowledge, how can you become more competitive and effectively manage change?

The Vital Correlation Between Business Benchmarking and ERP

Business benchmarking and Enterprise Resource Planning (ERP) work together to collect the information and help report your growth data. Benchmarking is paramount to understanding your industry and customer’s needs to create niche goals for your industry. These strategies become better established through the adoption of systems like ERP, which allow you to utilise process management software to manage the business and automate data relating to human resources, technology and services.

Without a process management software like ERP, effective management to boost your business’ performance is hard. Business benchmarking involves a variety of tools, software applications and indexes to collect relevant data and provide reports to give you the information you need to work with to grow.

6 Essentials to Implement

To benchmark your business through ERP, you need access to these detailed reports. But exactly what information should you be looking at?

  1. What You’re Benchmarking: Be specific! Client satisfaction is the most common driver for small businesses. Review your business goals and focus on something special and targeted for your niche.
  2. Your Competitors: Who are you benchmarking against? Define your competitors and work out what they’re doing differently to you that’s working for them. Consider both current and future competitors and how they’re operating within your industry.
  3. Review Objectives and Trends: What strategies are your competitors using that give them a competitive edge? Leverage benchmarking tools and the date compiled from ERP to put together a competitive analysis, see what direction your industry is heading in and how to keep your business aligned with the latest trends and customer needs.
  4. Look at the Efficiency of Your Business: Benchmarking and ERP will give you a good indication of how streamlined your processes are. Review whether they’re bringing in new leads and converting to sales and what gaps there are here. Make sure your business is moving forward with the latest trends rather than being stuck in old habits and getting left behind.
  5. Expenses and Sales: Benchmarking helps to determine whether you’re spending too much on rent, inventory costs and employee income. By using tools like ERP to collect data, you’ll be able to make some cut backs.
  6. Develop an Actionable Plan: Benchmarking and ERP are useless if you don’t devise a plan to put the work into action! Use your research and data to create a tactical plan for your objectives. Define actionable, realistic steps with timeframes and specific tasks to make it happen. Track the progress of each goal on a weekly basis to ensure you’re meeting set milestones.

Benchmarking is the ultimate way to understand where your business can make improvements. Once the above essentials have been implemented, it’s important to continuously monitor the results. Through this, you’ll gain a better understanding of your business, competitors and the industry. Business benchmarking and software management tools like ERP will ensure your finger is on the pulse when it comes to industry trends and internal and external data.

For more information about how Horizon Business can offer tools for your benchmarking, contact us today.

Make Better Business Decisions with Business Process Management Software

Make better decisions with business process management software

As a business owner or manager, you are often faced with making important decisions under time and budget pressures.  This can be made even more difficult – and the consequences far more dire – if you do not have access to accurate and timely information to help guide your judgements.

However, as your business grows, you may face anxiety from ‘guesstimating’ in decision-making if a big picture view of crucial factors that can impact your organisation’s performance is not readily available.

It comes as no surprise that better insights lead to better business decisions. The challenge can be in finding a flexible, fully integrated system that can deliver critical information when you need it.

MYOB EXO software can help take your decision making and business process management to the next level.

MYOB EXO Business Software offers a highly customisable ERP that is customisable, responsive and can integrate with industry specific tools.    As a proven management tool for medium to large enterprise, MYOB EXO has been successfully deployed across a wide range of industries – from manufacturing and retail to mining and a range of service based industries.

MYOB has long been a world leader in assisting business with enterprise resource planning activities such as:

  • Production planning
  • Job costing
  • Manufacturing and service delivery
  • Sales and marketing (Point of Sale and Customer Relationship Management)
  • Materials management
  • Inventory management
  • Finance and payroll
  • Shipping
  • And more

Use of business process management software can mitigate substantial risk in planning and decision making. Once you have an efficient system in place, you are better placed to focus on making the most of your business opportunities and in implementing data-backed decisions that impact your bottom line.

Why You Need Business Process Management Software

Whether your business is experiencing rapid growth or running disparate systems that run the risk of double-handling, MYOB EXO can help you make better business decisions and give you greater control over your operations.

Here are three reasons to consider implementing MYOB EXO business suite:

  • You want to standardise your business processes, reporting and data capture procedures. MYOB EXO enables you to implement uniform procedures across your organisation and ensure that business rules are followed.
  • Vital business data is often locked away in ‘silos’ and inaccessible to the people who need it. MYOB EXO helps you leverage your database resources to the maximum extent possible giving those that need information access to it instantly.
  •  The cost of doing business is becoming more expensive and you need to boost productivity whilst keeping a lid on costs. MYOB EXO can help your team to work faster and more effectively.

 Make Better Business Decisions

Horizon Business Systems have been helping businesses make better decisions and manage business performance with MYOB enterprise solutions for over a decade. Contact us today to find out how we can help your business achieve.

An Intro Guide to Job Costing

Job costing is a crucial aspect of your business. It’s vital to set the right prices for your products and services to ensure that your business makes a profit. Although the process may seem simple enough on the surface, it can be tricky and time-consuming to do well. Here’s what you need to know to get job costing right for your business:

How Job Costing Works

The basic principle behind job costing is to determine all of the necessary components of a particular job and how much each of those components costs. These can include parts and materials, shipping and transportation, worker wages, and even overheads to name just a few. The specific components you will use in your job costing calculations will depend on the products or services your company offers and what is necessary to produce them.

Using your integrated business management software (like MYOB Exo) is a key component in getting a handle on the costs involved in each job. Your accounting software will give you a breakdown of your daily overhead costs and your parts invoices, your payroll function will give you an idea of the wage costs, and even your time entry system can give you a better idea whether staff are over-servicing on certain jobs or product production so you can adjust your costs accordingly.

Once you have a general sense of how much each component costs, you can calculate how much the job will cost as a whole. By combining all of the included costs into one figure, you can determine an appropriate price for your products and services to generate income for your business. A job costing module that integrates with all of these modules can pull in the necessary elements and do the calculations for you.

Why Accurate Job Costing Is Important

If you are unaware of the actual costs of producing your company’s goods and services, you run the risk of undervaluing them, thus hindering your business’s ability to turn a profit. If you go too far in the other direction and overprice your offerings, your customers may leave for your competitors who offer fairer prices in relation to the value of the work.

Particularly if you are in a service-related business, you may offer your clients price quotes before you begin the work, so you’ll want your quotes to be as accurate as possible. If you quote too high, you could lose the job to another service provider with lower rates. On the other hand, if your quote is too low, you run the risk of upsetting your customers when the project goes over budget. Job costing will help you find the balance between the two, giving you the most accurate estimates possible.

Future Benefits for Your Business

Aside from benefiting your customers with fair pricing, job costing also has a host of benefits for your business itself. Your preliminary job cost estimates will give you a benchmark against which to compare your actual costs. For example, you may notice that it took your team longer to complete a job than you had originally anticipated, resulting in higher wage costs for the job. This could alert you to potential productivity issues among your team or could be a sign that you are underestimating the amount of work involved. Either way, you’ll be able to adjust your prices accordingly.

Frequent monitoring of your costs will enable your business to stay on top of changes in the marketplace with regards to the price of materials. Even small changes could have major impacts on your costs. If left unchecked for long periods of time, these rising costs could eventually put your company out of business if your prices do not rise accordingly.

Business Management Software Makes It Easy

Calculating job costs by hand is time-consuming and increases the risk of error. It is also extremely difficult to track trends and changes over time. With business management software, like the EXO Job Costing Module from Horizon Business Systems, you’ll have all the data you need right at your fingertips. You’ll be able to print out detailed estimates for your clients, showing all of the information they need to make an educated decision about employing your services. Finally, staying on top of your job costing gives your business the greatest chance of succeeding financially through careful monitoring and adaptation.

To find out how our business management software can give you the power to create more accurate jobs costings, just get in touch with our team today!

What Costs Are Involved in Implementing an ERP System?

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An Enterprise Resource Planning (ERP) solution can be one of the most effective investments that a company can make to enhance efficiency, profitability, and long-term sustainability. However, it is also often one of the most difficult decisions to make, due to the initial effort it takes to implement the software and train staff, as well as the costs involved.

When purchasing an ERP system, there are a number of expenses that have to be taken into consideration beyond just the software. In fact, it is estimated that the actual ERP software only accounts for about 30 percent of the overall expense.

The Size, Scope, and Customisation of the Software

The cost of the actual software will vary based on how dynamic the system needs to be. The more applications that are required and the greater the level of customisation, the more expensive the software. Generally, larger organisations will pay much more than small and mid-sized businesses because they will have to implement a large, highly specialised ERP software solution.

Hardware – If Your ERP System Is Deployed On-Premise or Cloud-Based

Hardware can take up another 20 percent of the total cost of an ERP system. For small and mid-sized businesses that may not have enough resources to invest in upfront ERP costs, it may make more financial sense to opt for a cloud-based deployment, which involves a software as a service (SaaS) payment model. With a subscription-based ERP solution, no hardware expenses are required, as all the servers and other hardware are housed by the vendor. Also, the maintenance and support costs are generally rolled into the monthly fee. However, cloud-based ERPs are often much ‘lighter’ packages than onsite, so if it’s data-heavy information you’ll need to track, on-site may be a better option or your business.

Licenses

The more licenses your company requires, the higher your overall ERP costs will be. This is another reason why larger businesses have much larger software expenses. To save on licenses, keep in mind that you don’t need a license for every potential user. You’ll only need to acquire enough for the maximum number of concurrent users.

Implementation Costs

Whether you are getting your first ERP solution or replacing a legacy system, this is where the bulk of your ERP expenses will go – as much as half of your upfront expenses. Implementation costs cover the following:

  • Overall planning and organising of the project
  • Prototyping functional areas of the business
  • Installing the software and system configuration
  • Implementing process changes
  • Completing conversions

Who you choose to take care of your implementation process is going to impact the overall cost. Some ERP vendors will offer implementation services, while others won’t, which means your company could be working with a third-party vendor like an IT provider.

Implementation also includes training costs, an essential area for having a successful implementation process. Research shows that companies who invest heavily in training their staff are more likely to have a successful ERP implementation process. Setting aside less than 13 percent of the overall ERP implementation budget for training is linked to an increased likelihood of going over budget and exceeding project time frames.

One way that businesses can cut these costs is by being as involved in the process as possible. Having an internal project manager from your own staff, as well as a core team that works directly with the ERP vendor, will help the process go more smoothly and will help to prevent the project from going over budget.

To save on training costs, consider preparing several members of your staff to train the rest of your employees. It helps to have several IT professionals or other employees on your team who know your ERP system like the back of their hand. They can not only train others, but they may also be able to help when other staff members run into questions.

So is an ERP System Worth the Investment?

The benefits of ERP software include streamlining operations, increasing efficiency, and boosting productivity with a centralised, easy-to-use solution. Because of this, ERP solutions are generally well worth the investment – provided you invest effectively and efficiently in getting the implementation and training processes right from the start. This is the case across the board, from small businesses to enterprise level corporations. To find out how much of a Return on Investment that you may expect from your ERP system, use this tool for finding the ROI of an ERP solution based on your industry.

Learn everything you can about the ERP implementation process and choose a vendor that can answer all your software needs with one integrated, powerful software solution, and you are more likely to benefit immensely from your new system.

If you’d like to speak to our team about how the MYOB Exo or MYOB Advanced ERP systems can benefit your business, get in touch with us today!

5 Ways ERP Software Can Make Your Business Run More Efficiently

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How much further could your business go if it was running more efficiently? With a streamlined workflow and many of the costly operational hiccups of day-to-day business eliminated with an Enterprise Resource Planning (ERP) software solution, you will be equipped with the right tools to unlock your organisation’s potential.

Today, many small to mid-sized businesses depend on business management software to get things done, from invoicing to accounting to stock levels to customer management. ERP brings all these solutions into one application, and therefore brings all information into one central hub. This means that an update in sales for example, will also adjust inventory, order management, and financial management. Sometimes described as the nervous system of a business, ERP software allows each area of your business to communicate, relate, and integrate all into one dynamic solution, which has the potential to improve overall operations enormously. Perhaps the greatest aspect of an ERP solution is its versatility; different add-ons can be embedded in the software to suit the specific needs of an organisation – and you can even have custom add-ons designed specifically for your business needs.

Are you considering investing in business management software (like MYOB Exo) but not sure how exactly this software will make a difference? Here are five ways that ERP software can boost efficiency – and your bottom line.

Greater Automation

With ERP sofware, it is possible to automate more workplace tasks. With all operational functions rolled into one over-arching management app, you’ll no longer have to spend time ensuring that your stock levels are sufficient in your warehouse, because inventory is automated. Lengthy and cumbersome order fulfilment paperwork can be fully automated as well, as can some facets of marketing, customer service, and accounting. This automation frees up labour hours so employees can work on more productive tasks like research and development and strategic planning.

Data Is More Visible and Readily Accessible

When all the information that you need about your business can be found through one central platform, you’ll save time looking up data files, cross-checking to ensure that data is accurate, and even searching for lost information. Everything can be found through the ERP software. Having all the data in one place also makes sophisticated forecasting possible – which can help your business form more effective business strategies with a clear picture of the numbers.

Ability to Reduce Waste Through Data Analysis

This is what really sets ERP software apart from using a series of separate business apps. With a single platform tracking your workflow, you can spot exactly where you’re losing money or wasting resources during normal operations. From poorly used warehouse space to honing in on excess production or long wait times, you’ll be able to recognise where you can make changes to help your business run more efficiently.

Better Communications, Which Means Faster Collaboration

Accounting, sales, customer service, and other departments can more easily communicate with each other because everyone is working through a central platform. When someone from sales enters data for example, the accounting department receives the same information, and in real-time. Not only does this make the flow of work between departments easier, but it also reduces the lost time and resources caused by errors, which are an inevitable by-product of using multiple apps.

More Effective Customer Service

Many businesses opt to embed a Customer Relations Management (CRM) app in their ERP solution, which can completely revolutionize the way your business interacts with customers. This will make the order management process simple, ensure more accurate inventory updates, and allow customers to keep track of their orders along the way. It also allows your organisation’s customer service team to spend their time interacting with customers, rather than doing the tasks and tracking that your ERP can do. When CRM is separate, managing the customer lifecycle becomes difficult as you would have to track data through the lifecycle from different applications, and then bring this information together in order to make a clear assessment.

Businesses with an ERP solution are operating at a great advantage. The more efficient your business is, the more you are able to excel, and grow. Get in touch with us to learn more about how MYOB EXO can improve your business’ efficiency.