There is so much to consider during an ERP implementation, isn’t compliance something that can be attacked once everything else is in place? Compliance is a combination of people, processes, and software. Since these same components are part of a successful ERP implementation, it just makes sense to consider both at the same time. A good implementation focuses on more than just installing hardware and software; it considers how that software will complement the way things get done. And keeping track of how things get done (and making sure these processes meet internal and external expectations) is the dominion of compliance.
Including compliance concerns in the implementation process is obviously important in a heavily regulated industry where compliance is always front and center. But consider a manufacturer who uses only a single regulated raw material. Perhaps the ERP team may forget to factor in the effort that goes into tracking the material. Just a little foresight during the implementation, however, can map the software to the business process in such a way that tracking the material becomes seamless and, therefore, cost efficient.
Another way that an organization can prepare for compliance when selecting an ERP solution is to thoroughly research its reporting capabilities. A company may not see a current need that requires reporting, but compliance requirements can come up in unexpected places, and having the flexibility to report on these requirements can save money and time. For example, suppose a major trading partner wants to renegotiate contracts and it would be extremely helpful to know whether contractual obligations have been met for shipping and receiving materials and products. Compliance might not be the first thing that comes to mind, but complying with contracts is still compliance. An organization that has selected and implemented an ERP solution with compliance reporting capabilities can track whether the organization has been meeting its obligations.
A solid implementation can also pave the way for compliance by focusing on the importance of well-organized data in all aspects of the company, not just financials. It’s hard to predict what future expectations will need to be met, but having well-structured data allows a company to produce reports that demonstrate their compliance with those expectations. Having the data readily available will quickly identify what needs to change to become compliant.
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