Making the numbers add up
By 123 Insight Ltd, developers of MRP/
ERP/CRM solutions
T
here are strong arguments for
accounting information to be
visible within MRP, but should you
select a manufacturing system for your
business purely because of its financial
capabilities?
Most departments will be affected by a
new MRP/ERP system, so ensure that it
meets the needs of all and involve each
department manager in the selection
process. However, it’s not clear-cut, with
many common pitfalls:
THE BLINKERED CONSULTANT
External consultants often focus on
finance and may not understand other
departments’ needs. One existing
123insight user was told by a consultant
to replace it with an ERP system with
integrated accounts, which ‘would take
them to the next level’. One year on and
£100,000 later the system still wasn’t
working. They returned to 123insight,
adding an interface to Sage 50 accounts.
They could only do this because of
123insight’s low monthly subscription.
THE SAFE BET
Several companies best known for
their accounting products also offer
manufacturing software. Just because
a brand may be a market-leader in one
sector it doesn’t follow that they will be
strong in another.
THE IMPOSED SYSTEM
During an acquisition the parent company
may impose their own accounts or
manufacturing systems. Businesses
often fail after acquisition – not because
enough investment wasn’t made or that
they was failing anyway, but because they
was forced to implement a system that
simply could not deliver.
INTER- DEPARTMENTAL FRICTION
There is often tension between
Finance and other departments when
implementing a manufacturing system,
as the financial aspect is seen as more
important. With many systems being
10
accounts-led there is a risk that Finance
will see it as a cure to all their problems
and assume the same for everyone.
WHAT DOES ‘INTEGRATED ACCOUNTS’
MEAN?
Usually, a vendor that has an MRP/
ERP system with accounts as part of
the product brand will refer to it as
‘integrated’. It may be that the product
grew over time, often through acquisition,
to include other features, with many
horror stories of disjointed interfaces and
problems with functionality. ‘Integration’
does not have to be between two
products from the same supplier. Many
systems – both MRP and accounts – are
designed to allow simple and easy data
exchange.
WHAT ‘INTEGRATION’ DO I REALLY
NEED?
Sales/purchasing departments need credit
limits, accounts on stop, outstanding
invoices and payments made for
customers and suppliers. Staff need to
make decisions such as ‘can I take this
order?’. Despatch may also need visibility
of a customer’s status. 123insight’s
accounts connectivity options provides
tight integration with popular accounts
systems such as Sage 50/Sage 200, Access
Dimensions and Xero, ensuring you can
choose the best accounts system without
compromising on your manufacturing
system.
SO, HOW DO YOU CHOOSE?
‘Best in class’ is the best. Choosing a
system that ticks all the boxes for some
departments but that is mediocre for
others is false economy, so select the
best manufacturing system to manage
stores and production, and the best
accounts system to fit with your business
requirements.
SUMMARY
Maybe you are happy with your
accounting system and looking to
implement MRP for the first time but
are wondering if you need something
all-encompassing. Or perhaps you’ve
outgrown your accounts software and
want to ‘think bigger’? 123insight has
a range of connectivity options with all
major accounting systems. So, select the
right accounting tool for the job and
choose the level of connectivity required.
For more information, visit
123insight.com and request access to
free online demo videos.