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Here are three ERP questions?
ERP Questions
In the last episode Jeri Wambeek of WAO Connect discussed ERP systems with you. ERP stands for Enterprise Resource Planning. In this episode let’s ask Jeri three listener questions about ERP.
Here is what we learned but please listen in as Jeri explains all this much better than we ever could.
To listen while you drive, walk or work, just access the episode through a free podcast app on your mobile phone.
1 – Inventory + Warehouse Management Systems
The first listener question is from Timothy Bartholomew about inventory and warehouse management systems and to what extent these two need to talk to each other for batch tracking.
“Is it possible to have an effective batch tracking ERP without the system being linked to your warehouse management system?”
In this situation you need to ask three questions.
1 – Do you really need to track batches? Because batch tracking is hard and eats up resources, so only do it if you really have to.
2 – Can you create an automatic link between your inventory and warehouse management systems? If you can’t, can you at least do daily uploads of data – see the next question.
3 – Is there a way you can feed the information from the warehouse management system into your inventory system? For example through daily uploads of data.
If you can’t do that either, then you can’t do batch tracking with the ERP you have. So you either have to give up on batch tracking or you need to give a new ERP.
2 – SAP
The second listener question is about the market position of SAP in Australia. SAP is usually only for really large corporations – think ASX listed.
They don’t really have a market position in the small to medium business sector, even though they are trying to change this.
3 – Varying Purchase Prices
How do you handle varying purchase costs, shipping costs and FX differences in Xero? And how would an ERP handles this?
When you create an inventory item in Xero, you set a cost price. And that’s it. You can’t change it, while in an ERP you can.
To get around this, don’t include shipping and FX in your cost price and instead expense those as untracked items on your bill.
If you want to include shipping and FX in your cost price, you need an ERP.
Summary
Please listen to this episode since Jeri Wambeek shares a lot more insights than we covered in these shownotes.
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Last Updated on 24 August 2021
