The benefits of combining ERP software and CreditManager
The vast majority of businesses will have an enterprise resource planning (ERP) system in place. It can be a great tool for handling and sharing data. However, it’s unlikely you’re getting as much from your system as you think – particularly in terms of credit management. For these tasks, specialist software is much more effective and reliable. Fortunately, you needn’t choose between using an ERP system and using credit management software as they can be used in conjunction.
In fact, CreditManager can be used as an extension of your ERP system. By using the two systems alongside each other, you benefit from having a single place to house all relevant debtor and invoice data. It also makes it possible to configure your credit management procedure without having to cope with the restrictions of the ERP system. Additionally, CreditManager is a complete solution and is much more versatile than ERP systems. This results in a greater degree of flexibility with regards to managing and designing workflows for dunning, for instance.
How does your ERP software exchange data with CreditManager?
CreditManager and your ERP system can exchange data in two ways. Firstly, it can be done in the traditional way, with at least a daily import of data from the ERP system. This should contain both debtor data and invoice data.
The second method is to use APIs. At Onguard, we want to enhance the data exchange so we are currently developing an API platform which will be available to our customers in 2020. This can be used in addition to the traditional method and will allow users to move data in real-time, rather than once a day, for instance.
While the ERP system is the leading application, you can enrich the data using CreditManager. For example, if the ERP system doesn’t have full contact details for a debtor and someone using CreditManager is contacting them, you can send that enriched contact data back to the ERP system. CreditManager brings together a huge amount of information so people can get an overview of data that they would otherwise have to look into different applications to find.
Benefits of exchanging data with CreditManager
A major advantage of using CreditManager alongside your ERP system is being able to use findings from CreditManager in the ERP system or other applications. Additionally, you can use different sources to feed information into CreditManager. For example, you may have two different ERP systems that supply debtor information and a further five invoicing applications. By using CreditManager, you can combine all of this data together in one application to gain an overview of everything.
CreditManager also excels in helping you keep control of the two major aspects of credit management. Firstly, it minimises the risk with regards to new or existing debtors. If you use CreditManager effectively, it reduces risk and increases the chance of debtors paying on time or early. Therefore, you aren’t required to make provisions to gain forward capital in the form of a loan for debtors who ultimately won’t pay. Secondly, using CreditManager positively impacts cash flow. This is due to the system informing you when to send payment reminders or make a call. It also provides debtors with the necessary tools to make payments or get information if something isn’t clear.
Using CreditManager with your ERP system can also have a positive impact on your customers. CreditManager allows you to tailor the dunning procedure towards your own categories of customers and you are in full control of sending communication, whether digitally or via letters. Digital information sent via email means you’re giving the customer the chance to react to statements immediately and actions can be automatically processed in CreditManager. This means they’re not only able to pay faster but can communicate with you more easily with regards to disputes or questions over invoices.
In using CreditManager alongside your existing ERP system, you are able to enrich your data to ensure you are making the most of it. This will enable you to enhance your credit management processes and share information between systems much more easily. Consequently, you’ll benefit from more accurate information, reduced risk and improved cashflow.
For more information regarding CreditManager and the benefits of a credit management software for your organisation, click the button and download our white paper. Credit management for beginners whitepaper