The ERP geniuses of multisite and multi-company operations

Multi-site or multi-company SMEs and SMBs face a complex challenge in managing their operations. On the one hand, they have to manage each entity according to its own management rules, and on the other, manage the whole according to unified criteria. On the other hand, a given company or site may be a supplier, customer or subcontractor within the Group's ecosystem. ERP can bring real benefits in terms of simplification and standardisation, provided it is designed for this type of multiple configuration. 

The advantage of ERP software tailored to multi-site management is that it embeds the standard functionality required for multi-level management, with real granularity in the handling of processes and flows, from the entity to the group. 

Specific features of multi-management

Multi-site or multi-company management takes place at different levels: each entity or site must be managed individually, and at group level, unified and global processing is essential. For example, the product nomenclatures of each manufacturing site need to be mastered, which complicates Production planning: and the resources required at group level. 

Added to this are the transactional flows specific to the model: the entities operate as subcontractors. However complex and varied these inter-company transactions may be, the company needs financial consolidation, a common repository and visibility for management purposes.   

In such a configuration, a group can benefit from the simplification and optimisation of an ERP to grow if it is specifically designed according to multi-site/multi-company logic. 

Multi-site ERP: the advantage of unification 

In a company with several sites, but without a single ERP to manage them all, each site operates with its own solution, like a "simple" company. This is not uncommon in groups that have expanded through acquisitions. While each ERP system can optimise the activity of its business unit, each operates in a silo, with its own database. As a result, the consolidations required at group level are a headache in terms of collecting disparate data, some of which is duplicated, and standardising the management tool. 

An ERP designed for multisite operations is suited to granular management of the various sites and to overall management at group level. The advantage is that it offers the same database to support all these levels of management. The data is thus standardised, and the rules for analysing and calculating the data will be consistent throughout the group. The result: site-by-site management capable of handling specific management rules (economic quantities, replenishment thresholds, etc.) and reliable feedback of usable information to Business management at group level. 

A tool that makes things clearer for decision-makers 

The management of a group needs to identify the performance and trends of each entity in its management. However, without a solution to collect and unify the various indicators, the task is extremely complex. 

For example, how do you "take out" the total turnover achieved with a given customer or supplier, common to several entities?Specialised ERP systems are perfectly capable of handling this type of request, in the same way as they can handle changes in a product's stock or turnover rate, or the occupancy rate of production resources used by several sites. This gives management real clarity over the parameters of its choice. 

Optimised multi-site management 

The logical benefit of a centralising ERP in a multi-company, multi-site group: managing operations becomes smoother and faster. 

Many processes have been simplified and automated, such as the production of global production orders across the Group. An operation specific to a multi-site company, this type of OF benefits from the multi-level management of the ERP specialising in the subject: in addition to the group scale of the order, the solution will also manage the distribution of charges between different entities, taking account of their specific characteristics.  

Multi-site management also benefits from lighter ERP use, since it eliminates multiple entries, cumbersome synchronisations between different databases, and the need to pool different processes and resources between different sites. These are all valuable optimisations for multiple management. 

Centralising and securing access 

Centralisation also means pooling the ERP database across all entities. Fine-tuned access management is therefore essential to ensure that each user has access only to what is relevant to their mission, in a hermetically sealed way. Secure access of this kind must also be simple for everyone. 

ERP for multiple sites has everything covered. It allows you to fine-tune user profiles and access rights. Between functions that only work with data from their own entity - for example, sales functions - and management functions that supervise the group, compartmentalisation is controlled and data confidentiality is ensured. 

Subcontracting orchestrated within the group 

One of the main characteristics of management in a multi-site group is the different inter-company flows that exist. Managing subcontracting within the group is one of the biggest challenges of multi-site operations. 

A specialised ERP masters this model with the appropriate functionalities. Its single database enables interconnection between entities, and real-time feedback of requirements from one entity to another, which will then supply it. As everything is carried out within the same solution, the entities can dispense with purchase orders and delivery notes and make do with the inter-group invoicing automated by the ERP. Traceability is guaranteed from end to end, providing complete visibility of the transaction.  

An ERP that evolves with the multisite model 

Each multi-company, multi-site business has its own configuration and its own evolution. This is why the best specialist ERPs offer an architecture that is flexible enough to adapt to total or partial homogenisation, and allow the model to be changed over time. 

For example, an ERP designed for multi-site use will offer several architecture models, alongside the model of complete unification (a single database in a single environment for all entities):  

• One environment and one database per entity: this model enables the Group to maintain the independence of its companies' processes and data; 
• A single environment, but one database per entity, with a view to partial unification. In this case, each entity holds its own data, but the group can proceed with a partial homogenisation of operations and processes; 
• A hybrid model between the previous possibilities, particularly in holding companies bringing together several groups with different management methods. 

Regardless of the architecture model chosen, an ERP specialising in multisite management takes care of managing the group and its entities according to tailor-made rules, with a guarantee of overall consistency and simplification.