Implementing an ERP System in China

Enterprise Resource Planning (ERP) applications are software systems that are used to synchronize in-house business processes while automating standard back-office duties and tasks. Integration is the key benefit of an ERP system that can bring together your marketing, production, sales payroll departments, and human resources (HR) in a database for simplicity and user interface needs.

It’s can be a difficult and daunting decision to choose an ERP system in China that is reliable and easy to use. But if you happen to pick an inferior ERP system, it can have massively negative ramifications for your business and the integration of your departments. It can even be a major liability and disrupt your entire business when its purpose is to simplify and streamline your business processes. The main implementation issues stem from poor internal controls that were unchanged during the implementations or insufficient local regulatory knowledge.

Do not underestimate the need and value of implementing a top-notch ERP system. It just needs to be done correctly. It’s quite simple for businesses to implement an affordable and effective ERP system that can improve both transparency and production.

Creating more flexibility and agility to your company processes while also stabilizing your long-term growth goals is how an ERP system can benefit your business. Optimizing your business processes and formalizing the improvement is why you need implementation. This will guide your employees and help them to follow recommended practices while giving everyone a reliable and concise idea of the company structure and operations. Management can then use the information from the ERP to accurately forecast and make well-informed choices going forward.

Why Does My Business in China Need an ERP System?

Its commonly known that foreign businesses operating in China can struggle with issues pertaining to internal controls, transparency, and productivity. You can synchronize your companys values and processes with an ERP system to standardize all routine procedures, tasks, local law compliance, and real-time data analysis. And if you are currently operating the business from outside of China, it can be instrumental in keeping track of your management teams until you are back.

Are There Any ERP System Alternatives?

There are a few tried and tested accounting applications that can be used to integrate your company operations onto Cloud platforms. By using these systems, you can remain a flexible and cost-effective business that not only keeps you organized but also competitive against your industry rivals. Avoiding massive upfront costs to pay for digital infrastructure and services while having a single access window is the ultimate in streamlined internal processing.

Companies that have offices or branches in numerous Asian nations can really benefit from a customized system that can integrate HR and payroll into a single entity to keep in total control. These systems can also be used in conjunction with a vast array of regulatory issues and different languages to streamline everything.

All the best software that is dedicated to business processing is essential for becoming more productive and so the company decision makers have direct access to company information at their fingertips. Saving money on internal budgets while simultaneously increasing expansion and growth across the board is where integrated systems come into their own. But before you go all-out to choose a software system, you need to perform an audit to ensure that the said system, software, hardware, or subscription service suits your business model and budget.

Can I Use and Deploy Pre-Existing ERP Systems into my Chinese Office?

Local regulatory requirements and connection speeds are the two main considerations you have to take into account when using or deploying an existing ERP to your Chinese business or office.

If your existing ERP system comes from outside of China, there could be some teething issues or non-cohesive elements. It could even cause your business significant operational issues and even shutdowns in China if the systems cannot be integrated. Most ERP systems that are designed outside of China need extra work on them to be compatible with the local standards, especially where adopting Chinas general accepted account principles (GAAP) is concerned.

ERP systems that operate in different time zones to China or lack local language proficiency can really slow down the integration process in the most frustrating manner. Its recommended that you find additional support from local service providers in China that have extensive experience in IT implementation and local accounting, while also being fluent in both Chinese and English.

What Are the Major Challenges Integrating ERP Systems in China?

Its not just a China thing. Implementing ERP systems can be complex and complicated no matter which country you are operating in. Having committed and reliable experts in areas such as finance, operations, and IT who understand the local business climate is so important.

Its also just as important to have access to senior management personnel that already have in-depth knowledge of your companys internal comings and goings.

Preparation and planning are everything. Leave no stone unturned in your pursuit to incorporate and integrate an ERP system in China with the minimum of fuss and hassle. Its advised that you make an internal audit beforehand so you can clean up or streamline any existing internal controls before they are moved and integrated into the new platform. The post-deployment training of employees is also essential. And always ensure you have top-notch on-call IT support on hand in the weeks after incorporating an ERP system into your China office or branch.

Schedule a China ERP Implementation Consultation

Schedule a Consultation with Acadia Advisory to discuss our China ERP Implementation services and learn more about how we can assist your company in China.