What can ERP system bring for printing and packaging companies?

[China Packaging Network] ERP system can ensure the accuracy and timeliness of information transmission, effectively improve work efficiency, this effect is obvious. However, for the sound development of enterprises, it is necessary to have both efficiency and control. It is also crucial to balance the relationship between the two. ERP system can improve the control of the company? How can ERP system help the construction of the internal control system? The author believes that reasonable and complete internal control should include control environment, risk assessment, control activities, information and communication, and monitoring.

Create a lean environment

Effectively improve the honesty of employees, which is what we often say about corporate culture. As an information management system, the ERP system does not seem to have a direct relationship with it. However, with the establishment of ERP, all employee work behaviors will be traced and restricted, which will benefit the building of a corporate culture of integrity. At the same time, ERP has also solidified many standardized work procedures, such as precise procurement according to production plans and inventory, and rational scheduling of production tasks under the mode of multi-variety and small-batch orders, which has greatly improved employees’ competency and effectively promoted enterprises from The transition from extensive management to intensive management.

In addition, ERP systems also play an important role in the internal risk of the company. Some of the reports and processes in the ERP are specifically designed to analyze internal risks, such as analysis of the upper and lower limits of inventory, analysis of production schedules, and performance and profitability analysis of business orders. For some operational risks, such as postponement of delivery time, lack of timely supply of production materials, problems with product quality, and large fluctuations in production costs, ERP can also quantify the indicators. Through the effective identification and analysis of these internal risks, printing companies can take timely response measures.

Implement effective control

The establishment of the ERP system can help the printing companies establish some standardized control procedures, so that some requirements that are greatly affected by human factors or difficult to implement by manual operations can be effectively implemented. For example, performance evaluation can compare actual performance with different criteria such as business indicators and financial indicators.

In the control activities, there is also a crucial link to achieve "the separation of incompatible duties", such as authorization, execution, record, supervision, etc. cannot be performed by the same person. The ERP system has a clear division of responsibility and authorization system, and printing companies can completely follow the ERP context to complete this control activity.

At the same time, the ERP system is also a system that provides internal information and regulates internal information. The rational use of ERP by printing companies can use the ERP system to formulate related systems and use the ERP system as the carrier to run the system and data in various business management activities of the company. Through the operation of the ERP system, employees will better understand the company's management system, understand their own job responsibilities, understand how their work is connected with the staff of the front and back processes, and participate in the business process of the company.

Continuous supervision and management

Continuous monitoring exists in every daily business activity of the printing company. If there is no ERP system, there will be greater blindness and randomness in the monitoring activities of enterprises. There will be no scientific standards, or they will be in a form, and they will not be able to play their due role. Or several parties may hold their own opinions and it is difficult to reach consensus. Through the establishment of an ERP system, the business activities of various functional departments have formed an organic whole, and natural mutual restrictions and monitoring have been established. For example, the production plan in the ERP system is linked to the business and production departments, the demand for materials is linked to the production and procurement department, the capital plan is linked to the business department and the financial department. Based on detailed records and using scientifically formulated plans as the yardstick, it is possible to achieve mutual understanding. Continuous effective monitoring.

It can be said that the ERP system affects every aspect of internal control construction. However, on the ERP system, it does not mean that effective control is implemented. Only with a good ERP system, can we better improve the control of the enterprise and enable the company to walk steadily and further on the road of rapid development.

(Author by Holly Cloud, Unit: Hebei Xinhua United Printing Co., Ltd.)