Multi Company ERP System in UAE | What is it and Why should you go for it?

There are a few factors that make StackFX ERP stand out from other systems present in the UAE market. One of these is the flexibility it offers to let you run many companies through a single system. This multi-company function is based on two factors: centralized management of all the companies and branches managed by the parent company and decentralized management or independent management of each of these branches or children companies.

Why choose a Multi-Company ERP System for your UAE Business?

Centralized management of a holding company

A multi-company approach is based on a structure where one of the companies or branches is in a dominant position and manages or subordinates the other entities operating within an associated group of companies. In Multi-Company ERP, a parent company might control all the activities or it might operate as a centralized manager for all the subordinate companies.

Independent management of each of the companies

As we can understand, a multi-company ERP system allows users to manage each of the companies separately and independently through one system. This lets you own separated data for every field of activities of all the companies you operate. For instance, sales, accounting, logistics, finances, CRM, etc. A company or an entity will have access to data that concerns the entity unless specified by an admin otherwise.

Let us understand how it works: Suppose there are two companies operating under a parent company, these two companies are running two different types of businesses. Company A is into selling auto parts, whereas Company B operates in building materials. Both A & B maintain their books and perform sales, and logistics operations independently through a single system, and the data or transaction of one company is not accessible or visible to another.

Flexible linking 

Holding companies usually have distinct links between their companies. Multi-company ERP responds to this need by offering the possibility of linking these companies within business activities that are common. For example, a common list of products, common warehouses or customers.

Suppose Company A sells beauty items, and company B is into pharmaceutical products. Both A & B are using the same warehouse. The pharmaceuticals and beauty items are stored in one place. A & B also share common customers in the system.

Automation of processes and Business Intelligence

Multi-Company ERP helps in reducing a holding company’s operating costs by automating the business processes taking place among the companies.

It works like this: A and B entities work under a holding company. A has bought the goods from B. While generating a sales invoice, the ERP will automatically create a purchase invoice for B. This streamlines the transaction between the companies.

Using ERP Business Intelligence tools, a holding company can make informed and effective decisions after considering all companies from a bird’s eye view.

Here, a holding parent company acquires and maintains all the data on its subordinate entities and comprehensively analyzes their operations and activities. Business intelligence lets the holding company keep a track of Achieved sales targets, analyze the cause of operating expenses, debts of the companies, predict the growth of the whole organization, and more.

Group data exchange made easy

StackFX ERP combines, analyzes, and reports on multiple business departments, companies, and countries. Boosting collaboration between the companies, systems, and using business intelligence to gather financial information across multiple entities is another advantage of multi-company ERP.

Multi-company accounting allows sharing of centralized data, which facilitates billing and reporting. It offers an easy and streamlined intercompany communication chain in all modules through a single database.