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Insights, Trends, Tips and Happenings in The ERP Industry

Read our official blog to know the latest accomplishments in the ERP industry, including best practices, trends, tips and news from our experts.

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How to use ERP to expand your business?

A rise in the trend of businesses going online has led to the emergence of different technologies. And ERP systems have not only attracted the customers but have also helped many companies reshape their business structure.

Enterprise resource planning or ERP has gained massive popularity in recent years because it helps you with the planning of resources, through its process management software. ERP enables you to implement a system of applications to manage the overall business and merge with the technology, human resources, and services.

Additionally, an ERP system enhances your business-to-business strategy and helps you grow at a faster pace. Thus, the ERP system has been used as a business-to-business strategy continuously. By using an integrated ERP system, B2B strategy can be developed via your improving sales, productivity, pricing, etc.

ERP as a Business-to-Business Strategy

Using ERP information, the primary objective of a business is to improve the sales volume and marketing strategy, and thus, your ERP system can be used in the following-

1. Pricing Strategy

ERP is being used as a pricing strategy for a whole host of products, helping you determine the maximum retail price. For you to understand market elasticity and sales volume of a particular organisation, ERP is needed to implement a proper pricing strategy. Here, ERP lends a helping hand towards the implementation of the pricing strategy.

Example – as per the annual report of Tata Consultancy Services (TCS), the company has used its ERP as a pricing strategy.

The relation between B2B and ERP

As you might already know, a large number of B2B business have various complexities, and to eliminate this complexity, as an organisation, you will want to implement a strategic ERP system in your business.

It helps in maintaining the accounts payable, accounts receivable, finance management, preparing a visual report, and statutory reports of your organisation.

Hence, the ERP system can be utilized by you as a B2B strategy. It has been developed to eliminate the complexities relating to customer ordering and transaction processing for your organisation.

1. Accounts Payable

Concerning accounts payable of your organisation, most of the small and medium enterprises face complexities in maintaining the accounts payable; especially in payroll and material management. It is strongly recommended to the SME's to implement an ERP system to maintain PFQ, material receipt, bills, purchase order, and payment status of your organisation in an efficient and organized manner.

In the B2B business of your organisation, accounts payable maintenance is required to eliminate all the complexities arising from the customer ordering and transaction processes.

Example – Mahindra Motors implemented a developed strategic ERP system to establish financial performance and increase the profitability of the organisation.

2. Accounts Receivable

The Accounts Receivable in your organisation, and all other types of small and medium enterprises need strategic ERP systems to improve their accounts receivables. It comes with various complexities as the Accounts receivables include sales orders, multiple receipts, challans and invoice, vouchers, etc.

Thus, it is recommended that your organisation implement strategic enterprise resource planning with CRM. This helps you, as an enterprise, maintain your accounts receivables. Nowadays, an ERP system is used as a B2B strategy to improve financial performance.

Example – Justdial has adopted an ERP system to improve upon their financial development and eliminate the complexities arising in customer ordering and transaction processing.

3. Finance Management and Preparing Statutory Statements

Implementing an ERP system can improve your organization’s financial management structure. This helps you prepare the statutory financial statements like GST payment and GST returns, TDS, IT returns, and Form 16.

Besides that, it also helps you improve upon the preparation of Auto Bank Reconciliation Statements, ledger, balance sheet, and trial balance and ordinary accounts for your organisation, and all the other types of small and medium enterprises.

Hence, most of the small and medium-sized enterprises have adopted a developed strategic ERP system for use as a B2B strategy.

Example –Flipkart has taken a strategic ERP system and used it as a B2B strategy for eliminating factors that are involved in financial performance.

Conclusion

For you to eliminate the negative factors that impact a customer's ordering and transaction process, an ERP system is a must. This is because an ERP System assists your organisation in improving productivity, sales, and pricing strategy.

Also, there is an ERP system that can be adopted by you in the organisation as the same is done for all other different organisations. It is recommended, therefore, that all types of small and medium enterprises should implement a suitable ERP system to cultivate a B2B strategy, so it can be used to take your business to the next level.