ABCosting and ERP Systems
Enterprise Resource Planning (ERP) systems are essential to properly administre manufacturing type of organizations. There are many different departments in any business and the information those departments need to do the work properly is generated in other departments at the same time, this means that they need to work together to serve the clientele satisfactory as data exchange is vital for their regular operations.
Manufacturing companies would use ERP systems to combine the information gathered from planning, purchasing, inventory, sales, marketing, finance and human resources to facilitate coordination and increase efficiency both in operations and management.These systems usually are executed in the form of software tools that provide a web environment where employees can load their operational information with ease making the reporting part fast and easy.
As ERP systems are essential to the administration of the company, ABCosting systems can use the same operational information an interpret it from the financial perspective. Not only allowing both methodologies to work together but actually making them absolutely necessary of one another.
The ABCosting system will track how much resources are being utilized both as direct costs and overhead (indirect) costs by all the different processes and compare them towards the final product, service, channel or administration costs to determine profitability and cost reduction opportunities to name a few simple benefits.
For more information on how ERP and ABC systems can and should work together read this article: Click Here
For more information on how Activity-Based Management / ABCosting can help your business achieve new levels of profitability without losing Value, please CONTACT US and we will be happy to answer all your questions.
By combining different practices and tools, your company can identify growth opportunities faster and discard factors that don’t add growth.
Increase your organization’s profitability by identifying profitable and unprofitable customers, products, services, etc. and making the required changes.
We work with your teams to have them buy-in into measuring performance for process improvement and setting relevant strategic growth objectives.
Our customers use TMS to get instant reports on cost allocations so they can easily identify cost reduction opportunities and maximize resources.
In a complex world, reducing products and services complexity can push your company to become the industry leader and grow your loyal clientele.
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