Choosing the right software for management plays a strategic role in businesses. While many organizations believe that a single ERP system is sufficient to support their operations, there are systems with different focuses that can make a significant difference in outcomes, such as MyABCM.
Although both are related to the management and control of information, it is important to understand that ERPs and MyABCM serve complementary functions. Keep reading to learn the differences between them.
ERP is a system that encompasses the operational management of various business areas, such as finance, accounting, human resources, inventory, procurement, sales, and production. Its main function is to centralize information and processes, facilitating the integration of activities across departments, as well as recording daily routines and transactions.
MyABCM has a specific purpose, focusing on cost management and profitability. It stands out for its detailed analysis of costs associated with different areas, products, customers, or processes within an organization.
Thus, it goes beyond daily administration, offering a specialized approach to issues such as profitability reports, process and activity analysis, performance indicators, benchmarks, managerial simulations, and much more.
One of the main differences between these systems lies in the purpose for which each was designed. They play different roles in the organization, so that one does not replace the other. ERP offers broad functionalities for business management, covering the departments it encompasses. Its scope can include inventory control, order processing, payroll, accounting to CRM (Customer Relationship Management), among others.
On the other hand, MyABCM focuses on specialized functionalities for cost analysis, profitability calculation, product and service pricing, strategic decision-making, and financial simulations.
Its detailed approach allows companies to deeply understand their costs and profitability, how they relate to each product, service, customer, or sales channel, providing insights to enhance resource usage and business performance.
Cost and profitability management in ERP is quite limited. This is because such systems cover costs primarily from fiscal, tax, statutory, and accounting perspectives, rather than focusing on managerial decision-making regarding costs and profitability. Thus, in ERP, the analysis of costs is more geared towards meeting fiscal requirements than optimizing the organization’s profitability.
In this context, one of the major bottlenecks in cost management in ERP is the imprecise allocation of indirect costs. This type of system employs basically volumetric allocations instead of allocations with criteria that make sense and truly identify how resources are consumed.
Another important limitation is that in an ERP, the focus of costs is only on Product (in the case of manufacturing companies) or Service (in the case of service organizations). However, for efficient cost management, there is often a need to cost other analysis dimensions such as Channels, Segments, Customers, Regions, Businesses, etc.
In a scenario where margins have historically been tightening for organizations across all segments, driving a growing need to ascertain costs for decision-making, companies have two options: try to customize or adapt the ERP (an expensive, complex, and time-consuming solution that requires the support of consultants, integrators, and various experts) or resort to Excel spreadsheets to support these managerial needs.
In contrast, MyABCM was specifically developed to fill these gaps, with features that allow for the calculations and managerial appraisals, eliminating the need for spreadsheets, while integrating with any ERP on the market.
ERPs have a longer implementation period, which can extend for months and require several adjustments to meet the specific routine of each company. This varies according to the complexity of the system and its implementation model.
In contrast, MyABCM has a much quicker implementation, which can take from a few days to a few weeks, depending on the needs of each organization. The implementation team has blueprints and accelerators that speed up the process, making the system available more quickly.
Both systems are capable of generating reports, but the nature and depth of these reports differ significantly. While the reports from an ERP are comprehensive, offering an overview of the company’s operations, in MyABCM, the reports are more specific, providing deep insights into the costs associated with certain areas. This allows for more precise decision-making in terms of financial management of the company.
The system performs a detailed tracking of all costs involved in the activities of the organization. This includes direct and indirect costs, fixed and variable, enabling:
In summary, while ERPs play an important role in the daily management of companies, MyABCM stands out by offering more advanced functionalities for meticulous analysis of costs and profitability, allowing greater financial control and enabling safe decision-making supported by data. Thus, even if a company already has an ERP, investing in MyABCM is a step further to enhance understanding of costs and optimize financial strategies, providing a competitive edge.
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