An Enterprise Resource Planning (ERP) system can play a crucial role in enhancing control over business operations, especially in scenarios where remote teams operate with varying degrees of autonomy. It could be especially useful in the recent localization trend: having a company in China managed by a local team while the HQ is located abroad, an ERP system could provide significant benefits in the controls and oversight.
Read our previous blog post on Corporate Fraud and Corruption in China
Adopting a Cloud ERP system
Adopting next-generation ERP services will allow your company’s desktops and applications to run in the Cloud and ensure business continuity no matter your location. All you need is reliable Internet access, and you can remotely access your company and make data-driven decisions from anywhere, anytime.
ERP supplies a variety of applications that can be customized to your specific needs. Some important modules in the ERP system are accounting, sales, customer relationship management (CRM), procurement, inventory, and human resource management (HRM). Additional modules include supply chain management, manufacturing, asset management, E-Invoicing, and many more. Thus, a Cloud ERP system can give you insights into all the diverse aspects of your business in China.
Read our post on Automation of Business Accounting Processes
Benefits of a Cloud-based ERP software
An ERP system facilitates standardization and centralization of processes. By implementing consistent workflows and predefined procedures across different branches, you can ensure that operations are aligned with the company’s overall objectives. This eliminates the potential for local teams to deviate from established protocols due to their relative autonomy.
ERP systems offer real-time visibility into various aspects of the business. This includes financial data, inventory levels, production schedules, and more. With this information readily available, managers at the headquarters can monitor activities in China closely and quickly identify any irregularities or deviations from expected norms. This transparency promotes accountability and discourages unauthorized actions.
Learn more about How to Prevent Corporate Fraud and Corruption in China
ERP system also aids in data integration and accuracy. By centralizing data storage and processing, the chances of errors and inconsistencies diminish significantly. This is particularly beneficial in a scenario where local teams might make decisions based on incomplete or outdated information. With accurate and up-to-date data, the headquarters can make informed decisions that align with the company’s global strategy.
Conclusion
An ERP system can help improve control over a business by standardizing processes, enhancing visibility, ensuring data accuracy, and facilitating better communication and collaboration. For a scenario where a remote team has a considerable degree of autonomy, implementing an ERP system could bridge the gap between the headquarters and the China team, fostering a more synchronized and controlled approach to business operations.
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As you decide to reinforce controls over your localized business, S.J. Grand’s team can help you achieve your goals by providing a smooth transition and optimizing internal processes.
S.J. Grand Financial and Tax Advisory assists foreign firms in navigating the complexities of operations and investments in Greater China since 2003. For more information contact us at contact@sjgrand.cn.
S.J. Grand is a full service accounting firm focused on serving foreign-invested enterprises in Greater China. We help our clients improve performance, value creation and long-term growth.
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