https://www.actouch.
com/erp-
workflow-helps-business/
How ERP Workflow works?
One of our customers recently asked us a question during our presales activities,
“How can I inform my Stores person on what he has to do today? What Invoices, he
should be packing and shipping? I can’t send an email every time or call him what
to do. Can you do a ERP Workflow process and handle this communication
problem?”.
This question put us into thinking how can we help? Can we build a workflow Engine
in our ERP?
What is ERP System or ERP Software?
Meaning of ERP is a short name for Enterprise Resource Planning. Means, we are
integrating the business functionalities across the enterprise into one.
There are many ERPs in the market from standalone application to Cloud ERP
Software like ACTouch.com. Some of them are good in one business vertical, while
the other in another vertical. So its difficult to predict that one ERP fits all the
business needs.
Traditional ERP does the following for
SMEs.
1. They are Data and transaction centric and not a Process centric like define
masters and setups and use them for the transactions. Some are working as a
pseudo process, but doesn’t give a full flexibility.
2. Do the transactions and store the data and related information in database.
3. Based on these data and someone has to act. It ensures that right data is
available for the right people to act and work on it.
4. All these data are stored and generated in multiple MIS formats for the
management to understand and act on.
5. It interconnects the departments, its activities and smoothens the process.
But, the many ERP’s never do the
following work.
1. An alert or decision making systems at the time of doing a transactions
or see the future behavior based on a single parameter change. Because
we can do data analysis and not before these data are produced. Sort of
postmortem work.
2. A workflow management process or Business Process management
(BPM) with clearly defined entry and exit parameters for each Business
cases.
3. Communication engine between different departments, so that there is
no confusions and all are OK. One of the problem reported by many
CEO’s is, they couldn’t tell their subordinates on when and what to
complete or ship the materials etc. Due to this reasons, even though
they have an ERP, they are still emailing their data to employees.
4. Controlling application based on end users criteria or as per their will.
5. There are some tools integrated to handle the futuristic needs of the
business. But they are expensive.
But, the real business challenges are as
below.
1. Each customer has their own process, control mechanism. Most of these are
defined more than 20 years ago and still they follow it.
2. Each one has their own workflow and approval process — for example
1. Some wants to create a Sales Order, Check with Finance whether they
received money or not? After receipt then confirm SO and release to
production.
2. Some customer has a process of take an order and check with Stores
whether these items available to confirm the Order with customer. Here
based on the SO Amount, the approval authority could change by
Director or Unit heads or MD.
3. The workflow has to be flexible as each one can have their own status comments
and with their own “wordings” to track and control the process.
1. Sales Order created.
2. SO Created and approved.
4. How to integrate the same with ERP and make sure it too understands these
comments?
5. How these comments makes sense to their Internal Teams and how they work
seamlessly?
This is the opportunity, where
ACTouch.com’s Business process
management or ERP Workflow Engine is
defined.
ERP Workflow management or Business process management (BPM) tool should be
central to business needs and helps the Business to manage their complex
communication process and action to happen based on some trigger etc. This helps
company’s efforts to improve the process and efficiency. ERP Workflow
Management tools and Enterprise Resource Planning (ERP) been used for many
business integrations. Both technologies can help with business process
automation, data transfer, and information sharing, the technological approach and
features of solutions provided.
The advantages of ERP Workflow is
many. We tried to give them in a
Workflow model.
Major Benefits of ERP workflow
a. ERP Workflow process is divided into multiple components.
1. Your business process is divided into multiple components and each one is
managed by Different department to approve and accept.
2. Each department have to accept and complete the tasks before the next
activities could begin.
3. Each business components are logically connected with time bound work.
b. Hardened ERP modules are converted into WORKFLOWS based on your
NEED’s – Move away from the Traditional Data centric activities to Process Centric
activities.
c. Each Activity is based on the timeline and it gives an alert on who has
to act on it and by which cut-off date etc. It helps the business to review
and identify the bottleneck areas to improve.
d. Workflow helps the Management to redefine their process to reduce the
frictions and reduce wastage of time.
e. Improve communications and inter-company relations.
https://www.box.com/en-in/resources/what-is-workflow
