Expanding your business involves more than just an increased investment, it’s also about adapting your day-to-day operations and business practices to suit the new business environment. In our experience, the most common strategic limitation is the adoption of legacy systems or processes that can restrict your business from growing at a more rapid pace or remaining agile in today’s economy. Another limitation is when separate departments or companies in a group of companies use different systems with limited or no integration – this causes multiple versions of the truth, duplicated efforts and a great deal of manual intervention.
To put this into perspective, we asked our Chief Executive Officer, Ashley Regenass, and Lionel Weidemann, one of SynergERP’s Sage X3 Consultants, to elaborate on the benefits of integrating a global company using ERP software.
How does Sage X3 make it easy for global organisations to manage multiple companies?
Previously, only large companies could dream about diversifying their markets by going global. Today, because of technology and our changing economy, global companies can be startups – with 10 offices and only 15 employees. In fact, today’s companies have to go global to survive.
What is important to a company – whether a startup, small to medium or medium to large – is that their ERP system must be able to support the complex dynamics of multiple companies, sites, legislations, languages and currencies. Most systems will support it inherently through silos – a silo for every company. On the other hand, Sage X3 supports all these dynamics off a single system.
To illustrate this, let’s use an example: There’s a group of companies with a factory in Mozambique that is responsible for the manufacturing, the office in Mauritius is the owner of the intellectual property and the office in South Africa owns the customer base. You then get an order from your customer in South Africa which needs to go through Mauritius where a purchase order is sent to Mozambique.
In this simple process, you’re dealing with different companies, employees, languages and currencies. In many organisations, this means that three different systems are being used to process this order. In so doing, you could very well go through six transactions and three sets of master data. With Sage X3, the process allows for the creation of a single order that will automate the transactions between Mauritius and Mozambique running off a single system with one set of master data, all while managing the different legislations, currencies and languages. Sage X3 allows you to manage your business in an efficient manner by reducing complexities and automating processes, supported by a strong workflow engine and visual processes that ensure user satisfaction.
How does Sage X3 help your international workforce stay aligned?
Because Sage X3 is web-based, employees and customers globally can interact as if they’re under one roof. Take for example this theoretical company, which pools a workforce of 1 000 employees across offices in South Africa, Australia, Dubai and the US to service clients globally. With Sage X3, a single database will allow the organisation to manage resources, project planning and billing in a more efficient way. By plugging Sage X3 into Sage X3 HR (an end-to-end HR and payroll system) country-specific tax rules and regulations are automatically taken into account when salaries are calculated.
Name a few examples of modular functionality in Sage X3 that make global expansion easier and more cost-effective:
This is important for businesses because they cannot predict how they will change in the future. Systems need to allow for growth and even shrinkage. Businesses should be able to consider their priorities first. They might say: “Let’s get Sage X3 implemented today, but we don’t need a particular module yet, only further down the line.” It will be available for them when they need it. If you phase out one aspect of your business, it’s easy to unbundle the functionality of your software.
In many cases, there are a very specific line of business systems bespoke to an organisation, so it’s important to have a platform that is open to these types of integrations. For instance, we wouldn’t take over the strategic business system of an insurance company that has built the system solely to manage insurance claims when we’re dealing with them. Through integration, we can ensure that the bespoke system is linked to the ERP which will perform all other business functions.
SynergERP is commended for being exceptionally strong with disconnected businesses and companies with multiple entities, sites, geographies and languages. Explain how SynergERP adds unique value in this context.
Our client, Telesure, is a typical example of a disconnected company with multiple sub-companies, legislations and systems. As a disconnected business, it struggled with the following:
- Different levels of management battled to get the reporting they needed.
- They were producing year-end audits of over 30 pages with no drill-through capability.
- Finding the right software and implementation partner that could integrate their business management system (or ERP as commonly referred to) with their insurance-specific systems.
After an intensive workshop with the client, we were able to consolidate Telesure’s management reporting by simplifying and speeding up the process by:
- Introducing a management-level reporting solution so reports could be grouped into dimensions, pyramids and accounts. A pyramid was used to set up a hierarchy of data at different levels. For instance, the top level will deal with consolidated revenue and expenses; the second, fixed assets; and the third, a detailed parameter of all accounts. This functionality gives Telesure the ability to access the right reporting for each line manager.
- Taking audit reporting from 30 pages to about three. This doesn’t mean important information is left out. Users have a master data view where they can see the overall information of the company and drill through the data to a deeper level.
- Building the integrations and interfaces from the bespoke systems into Sage X3.
We go out of our way to ensure clients have the right software that are fit for purpose.
Contact us to discuss your requirements.