What is Shared Services ERP?
Definition
Shared Services ERP refers to a centralized enterprise resource planning system designed to consolidate and optimize business processes across multiple units or regions. By centralizing functions such as finance, procurement, and HR, organizations can achieve operational efficiency, standardizedActivity-Based Costing (Shared Services View), and improved financial oversight while reducing redundancies.
Core Components
The fundamental components of Shared Services ERP include:
Centralized Process Management: Consolidates functions likeShared Services Expense Management andShared Services Credit Management under a unified ERP platform.
Automation Tools: IncorporatesRobotic Process Automation (RPA) in Shared Services to streamline repetitive tasks and enhanceAutomation Rate (Shared Services).
Vendor and Supplier Controls: Ensures effectiveVendor Governance (Shared Services View) andShared Services Vendor Management.
Capacity and Budget Oversight: IncludesCapacity Planning (Shared Services) andShared Services Budget Governance to optimize resource allocation and cost management.
Risk and Compliance Management: IntegratesOperational Risk (Shared Services) andBusiness Continuity (Shared Services) to mitigate operational and compliance risks.
How It Works
Shared Services ERP centralizes transactional and operational data from multiple business units, providing a single source of truth. Standardized workflows inShared Services Continuous Improvement ensure consistent processes across regions. Real-time dashboards monitor metrics such as expense approval times, vendor compliance, and credit management efficiency, enabling proactive decision-making.
Practical Use Cases
Centralizing invoice processing and payment approvals to reduce cycle time and improveActivity-Based Costing (Shared Services View).
LeveragingRobotic Process Automation (RPA) in Shared Services to automate routineShared Services Expense Management.
Monitoring vendor performance throughShared Services Vendor Management dashboards to strengthen procurement decisions.
UsingCapacity Planning (Shared Services) to balance workloads across multiple regional centers, enhancing efficiency.
ApplyingBusiness Continuity (Shared Services) protocols to ensure uninterrupted operations during disruptions.
Advantages and Best Practices
Implementing a Shared Services ERP offers multiple advantages:
Standardized processes andShared Services Continuous Improvement across the organization.
Reduced operational costs through centralized management andAutomation Rate (Shared Services).
Enhanced financial control withShared Services Budget Governance andActivity-Based Costing (Shared Services View).
Improved compliance and risk mitigation viaOperational Risk (Shared Services) andBusiness Continuity (Shared Services).
Greater visibility into vendor and supplier operations usingVendor Governance (Shared Services View) dashboards.
Worked Example
A multinational corporation centralized its finance and procurement functions through a Shared Services ERP. By integratingRobotic Process Automation (RPA) in Shared Services for invoice approvals andShared Services Vendor Management, the company reduced processing time by 35%, improvedShared Services Expense Management accuracy, and achieved cost savings of $4.2M annually.
Summary
Shared Services ERP enables organizations to centralize, standardize, and optimize business processes across units and regions. ThroughActivity-Based Costing (Shared Services View),Shared Services Continuous Improvement, andRobotic Process Automation (RPA) in Shared Services, companies can improve financial performance, enhance operational efficiency, and strengthen compliance while reducing operational complexity.