ERP for the Electronics Industry: Financial Needs
Why would anyone in the electronics industry consider an ERP system for their business? The longer I thought about the answer to that question, the more I thought that the reply is somewhat the same as any other industry. The electronics industry is generally considered to be manufacturers of electronic products. A producer of television sets with annual sales of millions of units belongs in the industry and so does a producer of a satellite instrument where the expected sale is one, the range is wide - the functionality of electronics ERP must be equally wide.
Realizing Your Business Needs
Some of the more common reasons to consider Electronics ERP systems are financial. Your reporting needs have grown or somehow changed. Or, maybe those needs were always there but you have limped along with work-around processes.
Do you need SEC or other security-related reporting capability? Do you expect someday you will have that need? If you plan to issue common stock and trade it publicly, this is an important need.
Does your venture capitalist or angel sponsor require specific reporting? You really do want to keep these people satisfied. Their needs are right up with your customers in importance.
The financial statement formats that came packaged in your previous tool might have been adequate once. The basic reports in any ERP will be a starting point still. Fortunately, your electronics ERP will have the capability to create custom reports that you can design to meet your new needs and your future needs almost whatever they become. And, if not, there are many third-party tools available that can read your ERP data and provide the reporting capability you need.
Some other financial needs might describe your needs. Do you want to do business over the internet? That will require taking payments “in the cloud” so you will need to hook up with PayPal or Square or other payment processors. Those payments will need to make entries in your bank and accounts receivable accounts and shouldn’t require any human intervention.
Other businesses factor their receivables. This was common with international trade in the days of sailing ships. Only last week, I read that this is still done today. Factoring means you sell something to your customer. Your factor, maybe a bank, will pay you immediately at a discount. The factor will collect the money from the customer based on the agreed upon terms.
I mention factoring, not because it is common, but because there are a wide variety of financing needs and you will want to ensure your electronics ERP and its accounting modules will completely and easily satisfy your needs.
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