Workflow: The Daily Definition

 In Best Practices, Inventory Management, The Daily Definition

What is workflow?


Workflow is the defined path a transaction document (such as a sales order, a transfer, or an invoice) moves through until it is considered completed or fulfilled. This path typically includes different “batches” that represent each stage in the workflow process. 

An example:

Another way to describe workflow is as the sequence of steps involved in moving from the beginning to the end of a working process. 

Let’s go through a simple workflow for margin approvals on sales documents. Step one is creating the sales document. Step two is identifying that this document needs margin approval. Next is step three, which is sending the document to an “awaiting manager approval” queue. Step four is management approval (or rejection), and step five is fulfilling the order. 

If following these steps requires working outside of your ERP solution, you run the risk of making a mistake along the way. And if you aren’t using any sort of digital method to following your workflow, well, it’s high time to update your processes.

Our two cents:

We love workflows! Establishing a clearly defined path for each document means increased efficiency. And by creating rules that documents must meet before moving on to the next step, fewer errors occur. Workflows are even better when automated.

All companies have some kind of process in place for managing their day-to-day operations. Some are clearly defined, and others are entirely based on employees’ memory. And they may not all be good process. You may already have experienced the effects of a poorly implemented process, but creating a good workflow is one of the best ways of improving your internal operations. 

Your workflow management method should be built into your ERP solution. This makes everything in your workday much simpler, and it will improve your company’s overall efficiency. The advantages of workflow functionality built directly into your ERP solution are almost endless. We encourage you to explore your options, even if that means implementing a new ERP software. Trust us — you won’t regret it.

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