Implementing RPA in ERP Systems for Transformation

Introduction to RPA in ERP Systems

An ERP (Enterprise Resource Planning) system unites business processes and automates them, such as extracting user’s data, apply operations on that data, schedule the operations, and keeping records of the data or user actions. In contrast, RPA is one of the most widely Explored areas by the industry because of its strength to transform traditional business processes on various parameters. This software bot replaces human efforts to perform repetitive tasks. So, Here below is how can we use RPA in ERP Systems?


Why do we need RPA in ERP Systems?

RPA (Robotic Process Automation) robots work the way a person completes the task. No necessary modifications in the process. RPA can fulfill the space between Cloud ERP and legacy application, recalling the legacy operation’s value and adding the cloud’s capabilities. It helps to efficiently pass the Cloud ERP selection obstacles, unloading companies to benefit from the latest technology. RPA in ERP Systems helps businesses make these time-consuming projects less costly and less labor concentrated. This affects developers’ workflows and saves developers’ time to focus on other essential responsibilities. RPA is a perfect tool to assist as the middleman between legacy software and ERP applications, letting you maintain the traditional software’s industry benefits while leveraging the performance additions completed by the RPA implemented ERP.


As long as ERP-based automation is confined to the automation of processes embedded in ERP applications, the ERP world will lag behind next-generation digital transformation.

Source: Digital Transformation Isn’t About ERP, It’s About Automation


What are the Steps to follow while Implementing RPA in ERP Systems?

While Automating the Business process using RPA with the ERP systems, we need to keep several things in mind:-

What to Automate?

First, we need to identify which operation we want to automate. First automate the activities such as sending emails, create consumer reports, automatically run the process for a particular data/user. So, it can help reduce the time consumption of the operation. The RPA bots can understand the logic behind implementing such specific jobs and then automatically execute them without interruption.

Mapping and Optimization of Processes.

Building a process plan is essential to ensure the concept is clear to you and each action that needs to follow to complete the process.

This is an excellent opportunity to improve the process plan and remove disorganizations in the process or other steps that should be added.


What are the RPA solutions to the various business challenges?

Given below are the Robotic Process Automation solutions for challenges in various Business Functions.

RPA in Supply Chain

In Supply Chain, RPA can automate the results’ predictions and handle complicated decisions and help the employees by executing the robotic tasks.

By implementing RPA industry can automate several business processes in Supply Chain as:

Vendor Selection & Procurement

While implementing ERP in the Supply chain, this process needs human interaction or decision to finalize the vendor. Still, RPA can automate vendor selection and procurement by selecting procuring vendors and transport material, analyzing vendor documents, running a credit check, and finalizing the vendor selection. RPA can improve the cycle time and the processing time by automating such tasks.

Status Communication

The other process that requires human interaction is status Communication, in which the employee needs to check the status of the process from the shipment record/Email and then fill that Status in the ERP. In contrast, RPA can process the shipment record and provide that Status to the customers.

HR Management

There is a need to implement RPA in HR Management to reduce the business function’s time consumption to complete. So, the necessary automatic modules are:

  1. Employee Management: While working with ERP, this task was manual and needed human interference to select an employee based on his/her skills or know about the employee’s experience. Still, the software robots can perform this process without any human interaction and decide whether the candidate is selected. It can process the documents and fill in the data by itself. This reduces the time consumption and human dependency on this process.
  2. Payroll: Payroll requires the whole worked days of an employee and then calculate the total amount to be paid. ERP needs the whole working day to enter and calculate the amount. Still, in the case of RPA, it can work on verification of employee data consistency over various systems or platforms and get and process payments RPA can automate paycheck productions, performance, profits, and compensations. Profits can process payment-related activities from end-to-end to evade failures and delays.

Explore about Acquainting with the Top RPA Open Source Tools Wholly


What are the Benefits of RPA in ERP Systems?

Below given are the key benefits of RPA in ERP Systems.

  • RPA reflects human actions and the technology in which interactions come with various data types in the portrayal levels of applications and platforms. In this, enterprises will not require modifications to pre-existing legacy systems when executing RPA throughout. It is beneficial as it permits enterprises to implement RPA or non-disruptive manner.
  • Enterprises with the ability to remotely schedule modern monitoring of RPA software robots’ deployment serve considerably from the centralized management platform. It allows for analytics and auditing to occur concurrently and in one location. RPA will enable enterprises to achieve enhanced governance by fixing certain conditions within automation rules.
  • It isn’t easy to achieve the benefits of automating back-office tasks. RPA uses its automation abilities by allowing businesses to give the consumers immense quality assistance in a repetitive manner.
  • It allows for faster subjective reporting, onboarding, and other activities.

How RPA is transforming ERP Systems?

RPA produces profits like Less expense in developing, testing, and maintenance, faster in delivery of the solutions, and many more. As RPA in Financial services, The RPA works in the following manner:

Economic Planning

It includes processing and merging financial reports from multiple functions in an Economic Planning & Analysis system that can be automated and make the process faster.

Bank Statement Reconciliation

Extraction of data from bank statements to reconcile records and compare them against the company’s records was laborious via complex spreadsheets. The critical point to pay attention to is that rules-based automation could break when the company changes the banks it is working. It is best practice to test the bots’ primary outcomes after the corporation changes its banking assistance providers.

Daily P&L Preparation

Financial service companies, especially those in the trading business, track P&L and risk exposures daily as some companies have changed it by automating these processes. Some companies still rely on excel, other various tools, and manual effort to complete these reports.


Read more about RPA in Supply Chain – Reimagining Your SCM with RPA Bots


What are the Challenges in RPA Implementation?

Automation of a business process and plenty of benefits may attract organizations to adopt RPA for the business processes. Still, there are several challenges that an organization have to face while its implementation, such as:

Restricted Application

If there is a handwritten document from which we need to get the data, it will be simple for ERP because an employee will enter the data, but in RPA, it can’t extract the actual data from a handwritten document.

Unfit Unification and Dependent functions

In ERP, the whole process can be executed in a single flow, but in RPA, different processes require different processes requiring different types and numbers of robots. What if the job executed by robo1 triggers the job that needs to be executed robo2? In some scenarios, implementations need more resources and execution time than expected, especially in large organizations.

Improvement in Process after Automation

If there is an improvement or any change is required in the Business process, make it before automation. Otherwise, it will not be feasible, and the automation won’t be because it will need a lot of maintenance that will add up the cost.


Click to explore 3 Best RPA Tools for Right Robotic Process Automation


Summary

In this blog, we discussed the need for RPA in ERP Systems and Why a business should Follow RPA steps to automate the business process in ERP, the challenges occurring during the implementation of RPA in ERP. Handle the challenges in a proper manner, to implement the RPA tool for better productivity. RPA is the solution for reducing the cost and time consumption of a process. Organizations are adopting this technology because it helps them survive and perform better in the Industry.



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