Real-time ERP software versus last day's or month's numbers: what's the difference?
The ERP systems Logres works with show the user real-time figures and data. But why really? What is really the difference between being able to see real-time data versus overviews of the past day or week?
Companies that do not yet use ERP software often rely on manual data entry and the manual compilation of reports for overviews. These actions take time and, as a result, management decisions are actually never made based on current data, but always on data from the previous month.
Even if your company is already using certain software programs, the data you are viewing is far from always current or real-time. Many software programs run synchronizations overnight, so the data you are viewing is actually always the data from the day before.
Flexible response to supply and demand.
The latter is not always bad: it only becomes annoying when your business is very dynamic or when you have a desire to be able to respond more quickly and flexibly to supply and demand.
After all, a day's time difference can be huge when it comes to placing purchase orders that allow you to meet a sudden increase in demand for a particular product. Also, when it comes to production planning, for example, it can be important to be able to quickly anticipate supply and demand.
How real time is real time really?
The word real time is frequently claimed by erp software that in fact is not that real time at all. Perhaps there is no day or week delay, but still, a lot can happen in the time it takes someone to place an order and complete its payment.
Is your system updating data while consumers or erp users are busy? In SAP HANA, real-time is actually real- time, and that sometimes makes all the difference in the world....
Inventory Management
Perhaps one of the best-known examples of the convenience of real-time data is real-time inventory management. Without real-time data, you have to build in quite a bit of margin to make sure you don't receive more orders than your inventory is large.
However: if your inventory is corrected in real time by incoming orders, for example, from your web shop, you can have much smaller margins, which means products are not rusting away in your warehouse and only costing money.
Combining real-time data with historical data
The best companies are those that combine the flexibility of real-time data with historical insights. Only the combination of the two gives you reliable forecasts, for example.
For example, such a forecast tells you how quickly demand for certain summer products will rise in the spring, while real-time data ensures that this forecast is adjusted upward when good weather creates the spring feeling among consumers.
Differences between the actual (real-time) data and the forecast also tell a lot about how well your business is doing or show mercilessly where the problems are. Finally, ERP systems that process real-time data can also send alerts if things are not going well or if certain business processes are failing.
Competitive position
Whatever your business: for virtually all companies, today's times demand flexibility and scalability. If you are unable to respond to changed circumstances in a timely manner, you will quickly lose out to competitors.
With the current corona pandemic, business is much less predictable for many companies than it used to be. Purchases are increasingly taking place online. Consumers are also less and less brand loyal and used to the conveniences of large web shops that automate everything. In short: every reason to take the next step now and start using the power of real-time data.
Do you regularly find yourself falling behind? Are you losing speed, market share or have the desire or better anticipation? Then come talk to us about the possibilities of real-time erp software. We would love to help you move forward!
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