The mining industry’s biggest partner – ERP systems

I have been doing a lot of research lately on the mining industry and how beneficial and actually crucial it is the have the proper ERP system in place to assist in the everyday running of a mine and eventually to grow your business and to show a return on your investment. Mining is one of the most demanding industries out there and if not run properly it can leave communities devastated and thousands of people with no income.

ERP systems have been designed out of necessity as there was a need for a system to assist in the planning and running of big organisations such as the mining industry. Even as early as the 70’s was there a need for an enterprise resource planning system. Obviously have there been a lot of systems designed that made the processes of running a business easier, but only a mere ten years ago did the concept of ERP systems arise.

When starting your business are there a lot of factors to take into account such as financials, production, human resources and customer relationship management. All these departments play a crucial part in any business.  

Following will be some of my findings of what to look for in the perfect ERP system specifically aimed at the mining industry. Disclaimer: findings of a blogger, researcher and sometimes a mad man and not that of a mining mogul.

FINANCIALS

The most important factor when starting a business is the financials. A lot of money has been injected and probably a lot of investors took the leap of faith of investing in you and your mining venture. It is important that an ERP system can handle your mine’s financials. Financial accounting, creditor’s accounting, payment management, cost accounting and investment accounting are just some of the functions that an ERP system should be capable of handling.

PRODUCTION PLANNING AND PRODUCTION

After year one when the mine is up and running it is important to start looking at production to increase the revenue of the mine and also keep the investors happy. Work schedule management, technical data configuration, linking to weighing scales, cost calculation, quality assurance and capacity planning should be on top of your production wish list.

MATERIAL REQUIREMENT

All ERP systems should consist of a material requirement module that can assist in the categorising, arrangement and rearrangement of materials for certain production lines, a benefit is that these modules can be set up well into the future, this will be beneficial for companies to plan a whole years production in advance and even further if the need arises. These requirement modules can be customised in any way the user sees fit for him or her to execute the task efficiently.

SALES AND DISTRIBUTION

At this stage things are looking up and it shows that the mine is starting to show a return on investment and that the mine is ready to start selling its produce. ERP systems have sales and distribution software included that can assist in the managing of sales and taking care of distribution schedules to ensure these products get delivered to the promised destinations. Also look out for capabilities such as setting up of contracts, offers, order entries, delivery and shipping planning and invoicing.

WAREHOUSE MANAGEMENT

Warehouse management goes hand in hand with a mine’s production planning. Warehouses need to communicate with the production department in setting up inventories to keep track of what stock enters and leaves the warehouses. This in turn will trigger certain production notifications. Management of locations, workload analysis, preparing of orders and tracking of operations will be key functions that will help in running your warehouses successfully.

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

CRM is a complete customer management system that will ensure open communication channels between all your clients and suppliers. And for the more adventurous people out there can CRM systems be used to run marketing campaigns and drip marketing campaigns.

HR

Human resources are essential in any major corporation, this will help you keep tabs on all your employees and also take the stress out of managing their pay rolls. Clocking in and out of staff is easily manageable. Training schedules can be set up and talent management can be tracked.

There you have it, a complete system that ensures transparency throughout all of your business processes. Most importantly, the right ERP system can and should show a return on your investment and this system itself is an investment as it can grow with your business.

I can safely say that I know a bit more about the mining industry and how crucial it is to have an ERP system tailor made to you and your company’s specific needs. Luckily do I not know enough yet to start my own mining company, but I am willing to offer my consulting services to any unsuspecting victim.

What CFO’s need to know about ERP systems

As a financial director it is your job to take care of a business’s financial well-being. In essence it is your task to make sure your business survives and that everyone within the company can keep their jobs. Each company is different and each company will need a tailor made business solution to help manage and run the business successfully.

Talking about business solutions, it is always wise to look for an ERP system that can show return on investment (ROI) and that can assist in producing a transparent view of your company’s financial situation. When a company gets started a few key factors should play a big part in the future of your business.

We at Synergy Group (Pty) Ltd have been studying the demand for a proper business solution package and we would like to share with you what we as a service provider think are the crucial factors to look out for while searching for that ERP system that will best suit your company’s needs.

Following will be the indicating factors that the CFO can’t over-look when searching for the right ERP system.

Financial accounting

Accounting should be made simple with a complete system that can do all the mundane accounting tasks like; recording, summarising and the communication of business transactions and formulating these processes in formal financial statements.

Receivables and creditor accounting

Essential to the successful running of your business, you will need ERP software that can regulate your creditors department.  Transparency throughout this department will ensure you know exactly who owes you what.

Payment management

Necessary tools within your ERP system will allow you to manage your accounts and monitor which transactions have been finalised. Real-time ERP systems will simplify the process of searching the history of your accounts, payments of these accounts and checking the statuses of payments.

Cost accounting

Cost accounting is a helpful tool that should be present in a proper ERP system.  It can assist in the management of your company’s budget and the setting up of cost control programs.  

Investment accounting

Managing of your accounts that are directly linked to investments can easily be executed through the proper ERP software.

Controlling

Systems must easily be set up where a company’s cost expenses can be managed in relation to the company’s budget for the financial year.

Consolidation

Consolidation or merging of all your financial statements should be an easy and uncomplicated task with the help of the right software.

Always ensure that you choose a system that will fit your company’s profile and take care when making your decision. Shop around and take part in a few free trial ERP systems to help you simplify your decision. Click here for a White Paper on the perfect ERP system.

Who run the world…..Girls

For a while I wanted to write about the gender ratio between men and women in executive positions of companies in our country. You couldn’t imagine my excitement when I came across an article that was exactly about this very subject. Before I start this article I just need to point out that I have no intensions to stir anything up or make waves.

It has been the age old debate of where the woman’s place is in the world. It has always been a blurred vision, somewhere between a house, kids and the work place. I grew up with both parents working, I was never fortunate enough to have a stay at home mom. And that is the reality of today’s times, only a few fortunate families can afford for the wife to stay at home and take care of the household.

Women are seen as the softer, more beautiful and more fragile of the two genders. This I think is the reason that so many people in the world have the idea of only men being the go getters and the ones bringing home the bacon. History has shown this. Men were the gatherers and hunters of our time. This is easily understandable then that this has been how we are meant to think. I beg to differ though, I know a few women that can sling a gun or a fishing rod just as well as any strong burly man I know, heck, even better than me. That said, my fishing skills leave much to be desired.

Okay, so back to the issue of women in the corporate world. Think about it clearly, how many men that you know of have higher positions in the corporate world than women, take it further, have you seen any male receptionists or male PA’s lately, my point exactly.

 Let’s look at the IT industry, Sarita Visser, CIO of FNB Commercial Bank claims that the world is lagging the gender equality curve. This is great news. According to her there is a lot of progress made in breaching the gender equality gap. Even in her work environment they are doing their part towards promoting women. Specific strategies were set in place to attract women in terms of equity targets and targeted development. The right candidates with the right potential are identified and enabled accordingly. They are making a concerted effort to develop and promote these women.

Palesa Sepanya, IS Operations manager for PetroSA, on the other hand claims that decision makers still don’t trust women to be technically capable of leading. She believes that woman should desperately start marketing themselves and to acknowledge their technical abilities. She strongly believes that women should start making noise about their achievements. I strongly agree with her. Well said lady.

From personal experience, one of the founding members of our company is a woman and 19 years on she is still going strong. My mentor and the person that I look up to for advice and guidance also happen to be a woman.  And for the record, I am a man.

Well done to the women who are making their mark in the business world, long live the power of women and thank you for bringing kindness, compassion and beauty to the business world.

How to choose an ERP system 

A lot of time and effort were put into taking the leap of faith in starting your own business, and like your child you will nurture and take care of this business. You would like to see your business grow, develop and show success and of course a return on your investment.

When starting your own business we can safely say that you have asked all the necessary questions and probably the most asked question of all, what is an ERP system and do I need it?

Enterprise Resource Planning (ERP) is the beating heart of any business, don’t have an ERP system? We suggest you look no further. Welcome to the world of ERP and what it can do and mean for you and your business.

This question gets asked more than what we care to count, following will be the necessary information, all you will ever need to know about ERP software.

ERP systems are the complete business solution for your company handling all aspects of your business, from financials, manufacturing, distribution and customer relationship management. ERP software, designed for the sole purpose of growing and developing your business. ERP systems need to be transparent in all areas of your business, this will be key in tracking your business’ growth and success rate.

Businesses and business strategies are forever changing and improving. That is why choosing the right ERP system with the necessary ERP software should be the driving force when choosing an ERP system. These systems should be tailor made to your specific needs. Never has it been more clear that these systems should have almost ‘artificial intelligent’ like capabilities. Having the peace of mind that your money spent will be beneficial in the long run.

 For a company that has been providing business solutions for the past 20years we can put our stamp of approval on this ERP systems software.