SMB Archives - 鶹ԭ Africa News Center News & Information About 鶹ԭ Wed, 17 Jan 2024 08:41:38 +0000 en-ZA hourly 1 https://wordpress.org/?v=6.9.4 Busting the Biggest ERP Myth — That it’s Not Suitable for SMBs /africa/2024/01/busting-the-biggest-erp-myth-that-its-not-suitable-for-smbs/ Wed, 17 Jan 2024 08:41:38 +0000 /africa/?p=147181 The traditional thinking is that applyingERP to a small business’schallenges is a bit like using a flamethrower to kill a mosquito or unleashing a tsunami...

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The traditional thinking is that applyingERP to a small business’schallenges is a bit like using a flamethrower to kill a mosquito or unleashing a tsunami to put out a candle—anexpensive, risky solution that may harm the business more than it helps.

As small and medium businesses (SMBs) accelerate their growth, they quickly encounter many of the same challenges with which larger enterprises are grappling.Poor visibility into operations, slow or inefficient business processes, and an inability to move fast to respond to a changing business landscape are just some of their issues.

The answer that most larger businesses embrace to these challenges is an enterprise application suite that allows them to manage every aspect of their business in an integrated way. Just like larger businesses,SMBs needtechnology thatscales as they grow, helps them to streamline their processes, and enables them to maintain process discipline—all without constraining their agility.

Yet enterprise resource planning (ERP) software has a reputation for being too expensive, complex and feature-dense for the average SMB. The traditional thinking is that applying ERP to a small business’s challenges is a bit like using a flamethrower to kill a mosquito or unleashing a tsunami to put out a candle—an expensive, risky solution that may harm the business more than it helps.

However, ERP has evolved over the years, and many of the preconceptions SMBs have about ERP have become misconceptions. Indeed, one global IDC study shows that92% of SMBs(those it defined as leaders that are outperforming their peers)use or plan to use ERP software. Let’s bust some of the myths about why ERP isn’t a good fit for SMBs.

Let’s explore the myths behind ERP

Myth #1: Not only is it too expensive, but the costs are too unpredictable

As the ‘e’ in the acronym implies, the first ERP software suites were complex, monolithic solutions designed for larger enterprises. They’d need substantial budgets for hardware, software licences, consulting and integration to implement an ERP suite. The complexity of the deployment meant that the costs weren’t always predictable. So many SMBs still think ERP is still just too expensive for them.

Reality:Today, SMBs can choose from a range of ERP solutions that are designed to beaffordable for smaller organisations.They can opt for a software-as-a-service or hosted solution that enables them to pay a predictable monthly fee for their software. Total cost of ownership is kept low since ERP solutions for SMBs are designed to be low maintenance. Plus, today’s modular architectures mean ERP can scale and grow to meet an SMB’s evolving needs.

Myth #2: ERP takes years to implement

Many SMBs still think of ERP as a project that will take years to reach fruition, causing disruption to their business for 18 months or two years as they implement the software. ERP is associated with complex business reengineering exercises as well as extensive customisation and integration efforts. But is this still the case?

Reality:ERP best practices for companies of all sizes have come a long way over the past 10 years. And SMBs, especially, can benefit from ready-to-run cloud ERP built on the latest industry best practices. Proven tools and methodologies bring predictability to the scope and timeframe for an ERP deployment. It’s today possible to deploy anERP solution in months or for simpler cases, even within weeks.

Myth #3: The path to ROI is long and uncertain

In a challenging environment, most SMBs are looking for quick wins when it comes to cutting costs, increasing productivity and driving revenue growth. Many perceive an ERP solution as an option that will take years to deliver return on investment (ROI), soaking up human and financial resources until they can finally go live with their platform.

𲹱ٲ:The modular nature and flexibility of a modern ERP system means that it doesn’t need to be rolled out in a single, big-bang implementation. Companies can introduce ERP modules in a phased approach, using the features and functionality that address their most pressing pain points. They can expand the deployment over time, effectively using ROI from the earlier phases to pay for the later ones.

Myth #4: ERP is too complex for SMBs

ERP software packs in a lot of functionality, so many SMBs are concerned that it could add more complexity to their processes. Many also wonder whether the software will be too difficult for their end-users to use, especially if they’re implementing ERP after using Excel or simpler finance packages for many years.

𲹱ٲ:Ease of use of ERP software has improved in leaps and bounds, with a slick user experience that will be familiar to anyone who has used a mobile app or cloud productivity tool before. While there are many features and modules available, the deployment can be tailored to the business’s needs. ERP makes life simpler because it eliminates redundant processes, breaks down data and business siloes, and reduces the need to work across multiple tools, systems and manual processes.

ERP is not just for big business

ERP can help businesses of all sizes to streamline processes, remove duplication of effort and enable the frictionless flow of accurate information across their operations. It’s an essential tool for any business aiming to achieve greater efficiency to increase operating margins, while leveraging improved insight to grow revenues. Today’s solutions enable SMBs to unlock the power of ERP, so they can compete with larger companies on a more even footing.

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Choosing the Right ERP Solution for your SMB Manufacturing Business /africa/2023/12/choosing-the-right-erp-solution-for-your-smb-manufacturing-business/ Fri, 01 Dec 2023 07:18:44 +0000 /africa/?p=147122 Small and medium-sized enterprises (SMBs) in South Africa’s manufacturing sector face some of the toughest operating conditions they’ve seen to date. Click here for more...

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Small and medium-sized enterprises (SMBs) in South Africa’s manufacturing sector face some of the toughest operating conditions they’ve seen to date.

Load shedding, continued supply chain disruptions and a volatile rand dollar exchange rate are all putting their resilience and adaptability to the test.

That’s why it’s more important than ever for SMB manufacturers to invest in the right business solutions.

“Against the backdrop of difficult economic conditions, SMBs need to be more agile, efficient and competitive to grow their businesses,” says , Managing Director , SEIDOR in South Africa.

“The right enterprise management solution can enable them to streamline their business processes and gain the visibility into their operations they need to navigate a complex and fast-changing environment.”

de Leeuw outlines some of the qualities a SMB manufacturer should seek from an ERP solution:

Integration

An ideal ERP solution should feature tightly-integrated modules that work together seamlessly. This provides a single source of truth for all business information. Such a solution enables the back-office and shopfloor teams to work seamlessly together.

As an example, a South African contract manufacturer of personal care and cosmetic products for retail customers and brand owners, was frustrated by multiple, disparate applications and their limitations.

Working with SEIDOR to implement has enabled the company to enjoy direct benefits such as improved cost analysis, a leaner warehouse, more accurate forecasting and better production management.

Industry-specific functionality

Whether in discrete, batch or processing manufacturing and whether it is production of food or vehicle components, SMBs will benefit from a solution with functionality designed for the specific processes and vertical market. Some particular features to consider include inventory management, warehouse and supply chain management as well as material requirements planning.

End-to-end process automation

The right ERP solution should boost productivity and efficiency by enabling automation of repetitive tasks across complex processes such as accounts payable, accounts receivable, and inventory management. They help reduce the need for the team to key in data into multiple systems or repeat the same process over and over again.

Real-time insights into business performance

An ERPplatform should feature powerful reporting and analytics tools that enable performance tracking in real time. Users should be able to access up-to-the-second insights about the key performance indicators that matter to the business, so that a faster, more accurate, and timely decisions can be made.

Fast-tracked, affordable implementation

SMBs can’t afford to throw large budgets at ERP implementations or wait years for return on investment. They need ERP software that can be rolled out fast. An implementation partner with fast-tracked, templatised ERP methodologies can help to accelerate deployment software and the road to business value.

Customisability

Today’s leading ERP solutions are highly configurable, allowing users to modify the system to their unique requirements. They can also be easily integrated with other systems, such as e-commerce platforms, point-of-sale systems, and customer relationship management software.

Scalability and adaptability

An SMBs business might be small now, but it may grow in the future. Needs may evolve as the organisation changes and the ERP solution should offer pathways to changing and growing without needing to rip everything out and start all over again.

“鶹ԭ Business One is an example of a powerful ERP suite that offers a complete solution for small and medium manufacturers and meets all their requirements,” says de Leeuw.

“SEIDOR has a proven track record in helping SMB manufacturers in South Africa and other parts of the world unlock its benefits—with an accelerated methodology for deploying preconfigured 鶹ԭ Business One solutions,” he continues.

SEIDOR’s template-based approach offers a number of attractive benefits, including fast implementation of best-business-practices.

The rapid implementation time and a low-disruption approach minimises the impact of the rollout on the business, allowing operations to continue as usual. Once implemented, the solution offers process harmonisation across business units and reduced operational costs.

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Smart Warehousing a Key Step in SMBs’ Digital Transformation Journey /africa/2023/10/smart-warehousing-a-key-step-in-smbs-digital-transformation-journey/ Wed, 04 Oct 2023 06:53:47 +0000 /africa/?p=146940 Can digital transformation be done on a small budget? The answer is yes. Click here for more information about SEIDOR Africa For small to medium-sized...

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Can digital transformation be done on a small budget? The answer is yes.

For small to medium-sized manufacturersand distributers, the advantage of digital technologies is that they can be built up over time, with each investment enabling the next.

Although adoption of Industry 4.0 on the African continent is lower than in the developed world, the impact that smart technologies can make at a socio-economic level – by saving money and increasing efficiency – is being widely discussed.

The past five years have accelerated changes in the logistics industry, pushing up the demand for faster delivery, omnichannel ordering and multi-channel delivery options, and increased order and product trackability.

In Africa, online retail revenue is estimated at around, which is only 3.5% of total retail sales.

“To meet the needs of this burgeoning sector, a warehouse management system (WMS) requires integration with an enterprise resource planning (ERP) to enable data exchange, order processing, accurate inventory management, demand forecasting, enhanced reporting, improved customer experiences, cost efficiency, and more,” saysAndre Adendorff, Director of Presales, SEIDOR in Africa.,”.

“Integration ensures that warehouse operations are synchronised with broader organisational processes, facilitating accurate insights, streamlined workflows, and better decision-making across the supply chain.”

Grappling with the complexities of more extensive logistics systems can be daunting for SMBs. Hence the need for warehouse solutions that cater to this market. They need solutions that are easy and quick to implement.

The right solution can drive digital transformation at operational level, yielding several key benefits:

  • Moving from manual and offline systems to real-time tracking of inventory
  • Realtime visibility into inventory levels
  • Warehouse layout- and bin management
  • Elimination of business process waste and increased processing accuracy
  • Compliance and security
  • Alignment of digital initiatives with business objectives
  • Increase in overall customer service levels
  • Creation of an analytics environment that enables data-driven decision-making “To find the best fit, SMBs need to look to trusted solution providers,” Adendorffsays. “Tried and tested digital transformation solutions are quick to implement, easy to onboard and use, and offer an accelerated ROI. Forward-thinking African and South African manufacturers and distributorsare looking to adopt world-class standards in their warehouses to enable accuracy in tracking of inventory movements within the ‘four walls’.”

Digital transformation is a journey toward creating an entirely new business, he adds. The best digital transformation solutions will support end-to-end warehousing requirements, including:

  • Procure-to-pay cycles
  • Order-to-cash cycles with omni-channel sales support
  • Replenishment
  • Item placements and put-away rules
  • Production issues for raw materials
  • Receipt finished goods and manage work-in-progress stock
  • Quality control
  • Inventory counting
  • Batch- and serial number entry
  • Configurable label printing
  • GS1-128 (UCC/EAN-128) standardisation
  • Intelligent devices and cloud-based services and applications

How can mid-size companies traditionally shorter on resources tackle such an initiative?

“Start by assessing the current environment, processes, and systems in use,” says Adendorff “Next, establish a committee that will embrace the initiative and ultimately be the owner from start to finish. Project assessment, evaluation, and planning are key.”

“Post implementation, SMBs need to consider further warehouse optimisations as part of the digital transformation journey.”

As an example, integrating warehousing solutions alongside 鶹ԭ Business One, SMBs can digitise their warehouse management processes, improve efficiency, accuracy, and visibility, and ultimately enhance their overall warehouse operations.

“It is important to remember that digital transformation is not only about technology. It encompasses a total shift in organisational culture, processes, and mindset.”

“The essence of digital transformation lies in reimagining and reinventing business models, workflows, and customer interactions to leverage technology’s full potential,” says Adendorff.

“SEIDOR Africa transforms the logistics processes into finely-tuned operations that drive productivity and profitability in the supply-chain.”

“A warehouse management systemfast tracks the digital transformation journey and core warehouse functionality allowing for speed, agility, traceability, and compliance while remaining adaptable,” he concludes.

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Why More and More SMBs are Moving to the Cloud in 2022 /africa/2022/08/why-more-and-more-smbs-are-moving-to-the-cloud-in-2022/ Wed, 31 Aug 2022 07:34:48 +0000 /africa/?p=143752 Cloud computing has grown into a vast ecosystem of technologies, products, and services, giving rise to a multi-billion-dollar industry. More than ever, customers are coming...

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Cloud computing has grown into a vast ecosystem of technologies, products, and services, giving rise to a multi-billion-dollar industry.

More than ever, customers are coming to us for assistance in addressing their most pressing business challenges, including business model changes, process automation, supply chain resilience, and sustainable operations,” says Pedro Lopes, Group Managing Director, SEIDOR in Africa.

In the past year, cloud spending by SMBs has shot up significantly, according to the annual.

As many as 53% of SMBs surveyed in the report are spending more than $1.2 million annually on the cloud. That’s up from 38% last year.

In South Africa, SMBs are making serious investments in the cloud and the ability to setup cloud resources in a multi-tenancy or shared model enables businesses to benefit from the cost-savings realised by sharing infrastructure.

This is ideal for workloads that need enterprise-quality computing at a reasonable price. Offloading server room apps and backups/disaster recovery to the cloud is a sweet spot for achieving immediate gains especially for SMBs.

“This means we can manage and monitor multiple systems for numerous customers all in one place. Software-as-a-Service (SaaS) tenants access multi-tenant applications or services to which they are subscribed.”

“With the central management enabled by multi-tenancy, we can increase scalability, reduce costs and improve security.”

“SEIDOR in Africa is not only seeing the demand for 鶹ԭ technology continuing to climb, but is also witnessing a wave of ERP modernisation to the cloud as a result of the greater emphasis on digitising and automating mission-critical business processes and core operations,” says Lopes.

“Companies that already use ERP in the business understand the value of implementing cloud and know that they can transition systematically with minimum downtime,” he adds.

“鶹ԭ Business One is the go-to 鶹ԭ Cloud ERP for SMBs because it is a single, affordable solution to manage an entire business – from accounting and financials, purchasing, inventory, sales and customer relationships to reporting and analytics.”

“Our clients know that we will build a cloud ERP roadmap that works for each unique business.”

“Those that have not yet embraced cloud ERP are noticing the unquestionable benefits and many are wanting to modernise for fear of falling behind their competitors.”

“Others are not sure where to start and what to ask because there is a plethora of offerings, making it confusing, complex and difficult to make a choice. They are adopting a ‘wait and see’ approach.”

“The key question SMBs should be asking is why they want to migrate their business systems to the cloud,” says Lopes.

“The overarching reason is the agility and overall value provided by cloud computing, which enables businesses to stay competitive and innovative.”

Especially now, in post-pandemic hybrid work environments, cloud technology allows users to access files faster, interpret complicated data more easily, and enjoy enhanced security benefits.

Cloud computing provides work-from-home employees to access the same technology they have at the office, keeping them productive and collaborative.

The cloud also allows companies to trim hefty IT budgets in an uncertain economy.

“One of the biggest advantages our cloud ERP offers is the partnership 鶹ԭ has with major hyperscale cloud providers like Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure.”

“It means the best solution is available when it comes to security, scalability, rapid deployment, and cost-effective implementation because these hyperscalers, as well as 鶹ԭ international, have teams of people working around the clock to ensure their solutions are best of breed.”

“As an example, 鶹ԭ provides the services and tools to ensure that a company’s application layer is secured properly after migration to the public cloud.”

“Data stored on the cloud is encrypted, making it safer than other hosting solutions. Business owners need never worry about losing data with cloud technology because of better disaster recovery and business continuity.”

“When moving to cloud technology, our clients can prevent data breaches, and better meet regulatory and governance requirements together with seeing significant cost-savings.”

“The access to much-needed insights and analytics in seconds also makes it easier to collaborate, and assess findings for better business decision making,” says Lopes.

SEIDOR in Africa offers affordable innovation for any type of SME as the pay-as-you-go model for their services, allows SMBs to scale up or slim down quickly when needed.

Withsaying they have experienced operation improvements within the first few months of adopting cloud tech, there’s no denying that the cloud is the way forward for businesses to succeed. Those that don’t make the transition run the risk of being left behind.

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