Why service needs a different ERP.
24 Aug

Why service needs a different ERP

ERP use is part of everyday life in most companies today. It is almost impossible for companies of all kinds to manage their work without a correspondingly helpful software. In the course of this, ERP solutions were developed which, on the one hand, were supposed to cover all these needs without making constant adaptation of the software necessary. On the other hand, many industry applications were created to cover the requirements and processes of the respective specialisation: Also for companies that mainly deal with services.


The small (big) difference

ERP systems were initially developed primarily for manufacturing companies and wholesalers. All resources are planned and controlled via the software. In the process, the Cost unit is always defined by the individual product. Ergo, a company that Cars produces and sells sees the car as a cost unit.

However, today more can be bought than just a product. Services are offered and traded in the same way. If a company sells software, for example, this often includes implementation or adaptation. This is called a project. However, it is difficult to control a project via an ERP system that is used to fixing the cost unit to a product. This is because projects, in contrast to "productions", are limited in time. They take place once within a fixed framework.

Service providers work in projects

Is the cost unit now the projectcertain (service) performances can be recorded as a product - e.g. project management. However, in the everyday life of a service provider, the ordered quantity does not match the delivered and invoiced quantity. An ERP system that works on a project basis implies that the software must be flexible and allow the service provider to react quickly to changes in the scope of the project. This includes always keeping an overview of all project data in order to use resources correctly. calculate to be able to do so. This is the only way for the service provider to be able to plan and repeat success.

For this reason, companies that think and work in projects need ERP software that works in the area where it is needed. In addition to standard functions such as order processing, the system must be able to map the special features of project-based processes such as service recording.

Being able to react flexibly to customer wishes is part of the service

When introducing ERP software, the Standardisation of processes, master data and conditions is a prerequisite. However, especially for service providers, business software should be flexible enough to adapt to a wide range of customer requirements and conditions. The effort involved in recording and invoice The cost of providing services at various contractual conditions is one of the main cost drivers in a service company. This is where contract management is needed, in that the conditions can be stored behind each item, which are automatically drawn by the system during invoicing.

MariProject on the basis of SAP Business One

You can find out how the fully integrated solution for service providers can support you in the sale of complex projects at our Product page. We would be happy to demonstrate the system to you. Please contact us for this Contact on.

The employee as a core resource

The service provider is usually the resource human being, i.e. the employees. This person should be stored in the system with all the data arising from his or her person and actions. This includes their time planning, including holidays, their ability to work under pressure in the project and for administrative tasks, their position within the company structure and their skills. Furthermore, the costs and revenues of the employee must be derivable. In addition, it should be possible to store billing rates for customers and projects at different levels. Last but not least, the system must be able to distinguish between freelance and permanent employees. Field work usually involves a lot of travelling. The software must be able to handle these expenses and the handling of travel expenses for customers and employees in an integrated manner.

Mobile and in real time

In the rarest cases, the service is only provided on the premises of one's own company. Rather, the employees work at the customer's site and often come to the home company only sporadically. In order to ensure timely processing and ultimately calculation of performance data, it must be possible to record them on site using mobile devices. In the best case, the customer confirms the work done immediately and releases it for billing.

Real controlling without Excel

In addition to automation, the evaluability and the controlling The main object of an ERP implementation for service providers is the management of all services. When comparing time and budget planning with daily actual values, the reports coming from the system should also deliver data that provide all essential content for project, company and financial planning. The clear goal must be, in the sense of a valid database, to support the use of Excel and similar tools.


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