We're guessing that one of your top goals as a manufacturer is to make sure your company's operations run smoothly. Right? The good news is that an effective ERP system can help you do just that.
An ERP system provides consistent information and data that can be used for analysis and reporting, which in turn supports better, faster decision-making 
and ensures the most reliable cost and profit breakdowns. Here are a few tips to help you both improve the quality of your ERP data and get the most out of it.
1. Simplify input
Whenever possible, simplify input into the system by using automated data collection or turning off unneeded prompts and fields. Ensure that your process requires transactions to be entered as close as possible to the location and time where the actual activity occurred to minimize the likelihood of forgotten or incorrect entries.
2. Keep your system secure
This might seem like a no-brainer, but you'd be surprised how many companies forget this step. Enforce strong passwords and periodic password changes to help keep your system secure. This precaution helps ensure that only authorized people process transactions and can help reduce input errors.
3. Know your sort and analysis codes
Most ERP systems have a variety of codes used to sort and aggregate data for reports and planning purposes. When you first implemented your system, you may have spent time deciding on the right codes to use, but just as your business changes over time, so should the codes you use. You may have realigned sales regions, introduced new product lines or added a new class of items to your inventory: and any of these events might require a new classification code or the retirement of an old one. Review all your codes at least annually to be sure they still meet your needs. In addition, educate your team on the definition of frequently used codes so they know how to choose the best code for common transactions.
4. Conduct routine data cleansing
Despite everyone’s best intentions, bad data may creep in to your system over time. Put a procedure in place in order to routinely clear out bad data and identify its source. This might entail correcting duplicate customers, unpaid invoice balances, negative inventory quantities and small balances on work orders. These small corrections will yield big improvements when it comes to data integrity and efficient planning.
Just as important as removing bad data, is uncovering its source. Take the time and extra step to find out where bad data is originating from. Once you've uncovered where that bad data is coming from, you can see to it that processes get changed in order to prevent the issue in the future.
5. Perform audits
Audit key data periodically such as payables, receivables, open orders, and any other critical information. For example, one form of data audit is cycle counting inventory. Part of the reconciliation process for cycle counts should be tracing discrepencies back to the error source so that mistakes don't happen again. With all audits, be sure to include reconciliation processes in your standard procedure.
These tips will have you well on your way to clean and error free ERP data. As a result of these actions, you'll enjoy more efficient planning processes, as well as lower inventory and stock outs. But beyond improving your day-to-day processing, your cleaner data will better reflect the reality of your business and provide the insight needed to support decision making.
