Automating your business operations has never been as easy as it is now. Today the market offers hundreds of business management softwares and in this article we are letting you in on a secret – why TIL ERP is one of the best ERP solutions you can find in the market.
In our ERP there are several different ways to ensure that you have sufficient stock, with sufficient inventory at all times the business operations become very smooth and easy.
1. Always make sure the product is in stock
Let’s assume that you are a manufacturing company, who runs out of inventory in the middle of manufacturing important consignment. Not only would it delay the pace and deadline of the delivery, but it will also affect the reputation of your company.
When a product or raw material reaches a minimum set quantity, the ERP will trigger an automatic purchase order of RFQ(Request for quotation) in the purchase module, when the purchase department confirms the RFQ-it becomes a Purchase Order for the vendor.
We can also add more than one vendor for any product and enter the price per unit or UOM set for the product.
2. Prepare the purchases in advance
Imagine that a repair workshop receives machine parts for maintenance, once a delivery date of seven days is established, since they need to buy spare parts to repair, however one of the spare parts takes five days to arrive.
How do they make sure they have all the necessary parts on time so that the machine can be repaired and delivered as promised?
Set delivery lead time
In purchase applications this function plays an important role in making sure the inventory is always planned keeping in mind the time taken to deliver the ordered products.
In our ERP, we can set the delivery lead time for each vendor, which is calculated and taken in consideration while placing a purchase order.
By setting the lead time of delivery, estimation of product arrival date, which can be used to commit the delivery of the products to the customer.
Once the delivery lead times of the suppliers have been assigned, next time a Purchase Order is created,ERP will give a tentative date for the receipt of the order.
3. Pay only for the received products
What would happen if a company producing and packaging fresh fruits received an order, of which only half met the quality standards and the other half had to be returned to the supplier. However, upon receipt of the invoice, the order is one hundred percent soiled. How to know what happened and if the company has to pay for the entire order…
Our ERP Purchase application has the 3-way matching functionality, allowing you to identify which invoices must be paid by comparing the information that appears in the Purchase Order, the Invoice that the supplier sends and the Receipt in the warehouse.
3-way matching: Purchase, receptions and bills
This functionality will spare you the misunderstandings, money and time.
How it works
Once this function is enabled, the next time you have to pay a supplier invoice, our ERP will automatically notify you whether or not it should be paid according to the information obtained. To verify if the invoice must be paid, from the supplier invoice, go to the Other information tab, where you will have a new field enabled: Should be paid.
4.Order manufactured after the sales order:Make-to-Order (MTO)
Imagine that a car manufacturing company wants to launch a new product, however, they want to manufacture after request. So only when this product is sold the necessary inputs will be purchased for its production.
The Make-to-Order functionality triggers a draft Purchase Order related to a specific product used for manufacturing the car, it can be for logistical or economic reasons you decide not to maintain inventory of those products, unless needed.
Set up an MTO product
This function can be performed from an existing product, the product configuration, go to the Inventory tab and check the checkboxes Replenish on Order (MTO) and Buy.
The next time this product is sold, when confirming the order, a RFQ related to the Purchase Order will be automatically triggered.
To know more about smart business processes and operational systems we develop at TILSolutions,please leave your contact details in the contact form or reach us at email@example.com we would be happy to know more about your business and suggest an ERP solution for the same.