Blog Archive

GDPR 2024- What you need to know as an entrepreneur

From May 25, 2018, the General Data Protection Regulation (GDPR) will apply in all member states. Important for you to know: As a business owner, you must have already implemented the new regulations by then. The GDPR brings with it a number of changes. According to DGAP, companies will spend an average of eight hours a day searching through their databases in order to meet the new requirements. Around 60% of European companies are not sufficiently prepared for the new guidelines. Find out below what the GDPR will change in terms of data protection and what you should bear in mind to avoid expensive fines.

GDPR – what is it all about?

The GDPR is a regulation adopted by the European Parliament. You can read the exact wording of the regulation here. The aim is to ensure uniform data protection law and the protection of personal data. Personal data includes a person’s name, address, telephone number, date of birth, email address, income and account details as well as health information. However, it also includes the license plate number, IP address or purchasing, surfing and clicking behavior on the Internet. The GDPR regulates data protection law, i.e. how companies handle this data. The main elements of the current Federal Data Protection Act (BDSG) remain in place, but many regulations are also tightened. The GDPR applies to all companies within the EU and also to companies based outside the EU if they process the data of persons from the EU or have a branch in the EU. Every company that is active on the internet is affected.

What is changing?

If you have taken good care of your data protection up to now, you can breathe a sigh of relief. As an entrepreneur in Germany, you are definitely at an advantage, as the regulations were already quite strict. Many of the familiar principles will not change.

That remains

The main objective of the data protection regulation remains the same: The fundamental rights of every natural person should be protected. Personal data may still not be collected, processed or used unless you have explicit permission to do so. In addition, you may only collect and process as much data as you actually need. The data must be accurate, factually correct and always up to date. Furthermore, it may not be used for purposes other than those for which it was collected.

This is new

Order data processing (Art. 28 ff. GDPR)

In the case of commissioned data processing, personal data is processed by a contractor on behalf of the controller. For example, an external customer center or data center is used. According to the BDSG, only the client was previously responsible for data processing. In future, however, both the client and the contractor will be equally responsible. The contract does not have to be concluded in writing but can now also be concluded electronically.

IMPORTANT FOR OUR CUSTOMERS: Of course, this also affects our customers, because if assistance is provided via remote support (TeamViewer, Remote Desktop, etc.), we may gain insight into personal data (contact persons at customers/suppliers/interests, calendar or e-mail content or data on your employees). You will shortly receive an information mailing from our data protection officer explaining this to you. We also have ready-made contracts for our customers that cover the key points.

Consent (Art. 7 GDPR)

If you process personal data in your company, you must obtain the express consent of your customers. A preset tick in a checkbox on your website, for example, is no longer sufficient and does not constitute effective consent. Consent must therefore be given through a clear action and be voluntary. For example, a contract must not be linked to the processing of data that has nothing to do with the service or product. Furthermore, it must be possible to withdraw consent at any time. Withdrawing consent must be as easy as giving consent. In the case of minors, consent without parental consent is only effective from the age of 16. This limit can be lowered to 13 years by the member states.

Right to be forgotten (Art. 17 GDPR)

Upon request, companies must delete personal data if they are no longer authorized to use the data. The data must be deleted if the purpose for the data processing no longer applies, if it was unlawful or if the data subject has withdrawn their consent.

Data portability (Art. 20 GDPR)

Users can take personal data with them to another provider, for example if they move to another bank, a new employer or other social networks. However, it is still unclear how this will be implemented in practice.

Data security (Article 32 GDPR)

In order to protect personal data in the event of misuse or loss, data processors must take appropriate technical and organizational measures. The exact nature of these measures depends on the state of the art, the necessary implementation costs and the given circumstances. The controller is obliged to regularly review data security.

Notification obligations (Art. 33 para. 1 GDPR)

There are now specific deadlines in the event of a data breach. You must report any personal data breach to the competent supervisory authority within 72 hours if the rights and obligations of the data subject are at risk. As part of this, there will also be a documentation obligation for companies vis-à-vis the authority in order to verify the reporting obligation.

Data protection officer (Art. 39 GDPR)

From now on, there will be a data protection officer throughout the EU. Among other things, the data protection officer will be responsible for monitoring compliance with the regulation and providing training.

Simplified complaints (Art. 77 GDPR)

In future, it will be possible to lodge a complaint with the data protection authority in your own country, regardless of where the company in question is based. In future, associations will also be able to lodge complaints on behalf of consumers.

What needs to be done?

In order to meet the new requirements, you should make some preparations. But where is the best place to start? After all, there is not much time left before the new regulation comes into force. You should therefore check now what data protection measures are in place in your company and whether they comply with the GDPR. It is best to draw up a concept to inform and train your employees about the new requirements. The most important points are summarized below:

Structure and responsibilities

Does your company have a data protection policy and are responsibilities defined? Who has access to which data and who decides on data processing? It is best to appoint a data protection officer. If you work with special personal data, such as health data, you may be obliged to appoint a data protection officer, regardless of how many employees your company has. If you already have a data protection officer, you should register them with the relevant supervisory authority.

Adapt your contracts

If you work with service providers who process personal data on your behalf, you should adapt the contracts. The content will change with the GDPR. If the contracts are not complete, you could face a fine. Also check the contracts with other contractual partners, particularly regarding liability and data protection.

Transparency and information obligations

Transparency is one of the key principles of data protection law. You must inform the data subject about the processing as soon as the data is collected. This includes, for example, the purpose of use, duration of storage or the right of withdrawal.

Change your forms and consents

As described above, the GDPR imposes stricter rules on the handling of consent. With every consent, information must now also be provided about the withdrawal options. You must also observe certain restrictions if you wish to integrate consent into your terms and conditions or link it to another action, such as the conclusion of a contract. However, there are also simplifications: the written form is no longer required.

Adapt your data protection declarations

The GDPR significantly increases the information obligations towards data subjects. The person must be informed about every process in which you process their data. Each privacy policy must also contain the name and contact details of the website operator. If you have a data protection officer, their contact details must also be provided. You must also provide information on the legal basis and purpose of the processing.

Data protection violations

If a data breach occurs, this must be reported to the competent authority within 72 hours. You should ensure that a breach is also recognized immediately.

Train your employees

In view of the upcoming changes, it is necessary to know why data protection is important and what the consequences are if it is not complied with. You should therefore sensitize all employees who work with personal data in your company, for example from customers or suppliers to the topic of data protection and familiarize them with the associated requirements. Ensure that data is not processed without authorization. According to Art. 39 GDPR, it is the task of the data protection officer to train employees. Failure to comply with the new regulations may result in a fine.

Fines for violations

The conditions for the imposition of a fine are described in Articles 83 and 84 of the GDPR. Violations are likely to result in greater sanctions than before. However, it depends on the type of infringement. For example, a distinction is made as to whether the breach was intentional or negligent or whether it was reported or otherwise known to the authority. Fines of up to EUR 10 million or, in the case of a company, up to 2% of the global annual turnover of the previous financial year are imposed for infringements. In the case of serious infringements, the supervisory authorities can impose fines of up to EUR 20 million or up to 4% of annual global turnover.

Further information

If you would like to find out more about the General Data Protection Regulation or the full range of TimeLine ERP functions, please send us a message using the contact form, write to [email protected] or contact our sales team on +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

Cloud computing – all about the data cloud

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Whether start-ups, small businesses, medium-sized companies or large and established corporations – the benefits of the cloud are becoming increasingly popular. More and more companies are outsourcing their business processes and data to external data centers. Gone are the days when you had to worry about broken hard disks, lost USB sticks or accidentally deleting your data irrevocably. The available bandwidths are getting higher and higher and are less and less of a problem these days. This makes it possible to access large amounts of data from anywhere and, above all, quickly. But what exactly is cloud computing? What exactly happens to the data? What are the advantages? And how can you as a company benefit from an ERP cloud computing solution in the future?

What exactly is cloud computing?

Many of the terms used to describe digital innovations are older than you might think. This is also the case with the cloud. The first attempts were made back in the 1950s, but the technical conditions for implementation were still lacking at the time. Today, the concept is much more mature. The basic principle can be explained like this: Various workspaces are no longer stored on your own hard disk or the company’s internal computer but are made available via the Internet. A service provider provides you with a server in the form of a virtual data center. You can then access various applications for a fee. These can be, for example, individual programs, entire software packages, storage space or computing power. You do not need to install anything on your own computer, tablet or smartphone, all you need is access to the internet.

What are the three forms of cloud computing?

Cloud services can be divided into three different categories. Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS).

Infrastructure as a Service (IaaS)

IaaS is the simplest form of service. It is provided and managed via the internet. The components of the infrastructure provided include, for example, servers, computing and network capacities, communication devices such as routers, switches or firewalls, storage space and systems for archiving and data security. Access is via private and public networks. You only use the services that you actually need. You can expand or reduce the resources of this IT-infrastructure as you wish.

Platform as a Service (PaaS)

PaaS is a complete development and provisioning environment. It builds on the infrastructure of IaaS and is also equipped with everything you need to develop new software. PaaS not only supports you in creating and testing an application, but also in managing and updating it.

Software as a Service (SaaS)

SaaS is a method of providing software applications via the Internet. It is provided on demand and usually on a subscription basis. You connect to cloud-based apps via the internet and can then use them. Common examples include email, calendar and office tools. The service provider manages the hardware and software and ensures the availability and security of the app and your data when you sign a contract. They also take care of all maintenance tasks, such as installing software upgrades and security patches. With SaaS, your company can provide and use an app with minimal investment costs. With all three versions, you usually pay a fixed fee to the provider, usually on a monthly basis.

What cloud computing models are there?

No two clouds are the same. There are different types, and you can choose between three models:

Public cloud

The public cloud is a service that is accessible to everyone via the internet. These are often software as a service, such as web-based email services, which are used by private end users. In the public cloud, you share a common infrastructure with many other users. However, with this model, you as a user have little influence on data protection and security aspects, as well as the location and type of data storage. In addition, network bandwidth and availability are limited by predefined service packages.

Private cloud

The private cloud is an internal, organization-related cloud that only makes its applications available to authorized users. In contrast to the public cloud, the private cloud cannot be accessed by the general public via the internet. This model relocates the cloud either to the company’s own computers or to servers from external providers. Access is either via the demarcated intranet or via a closed virtual private network (VPN). As this form of cloud computing does not have to be shared with other users, it offers a high level of data security, control and flexibility.

Hybrid cloud

The hybrid cloud is a mixture of private cloud and public cloud. It attempts to combine the advantages of both cloud models in a joint concept and can be used in a variety of ways. You can store sensitive programs and data on your own servers and use certain services via the internet with public providers to conserve your own resources. Which cloud model you should choose depends on your individual requirements. Above all, however, you should keep security and data protection in mind.

What makes cloud computing so popular?

There are many reasons to use the cloud. Three major advantages are listed below:

Reduced costs

Probably the biggest advantage of a cloud service is the cost savings. The usually costly purchase and maintenance of your own servers, as well as maintenance, backups and updates, are completely eliminated. Hardware which requires regular upgrades to keep it up to date with the latest technology, is a significant cost factor. If you use a cloud service, you can confidently leave this worry to the respective provider. The same applies to the required software. This does not have to be purchased or installed and maintained on all computers. Instead, you usually pay a fixed monthly fee to the service provider and can conveniently use their services. You can also save the costs and, above all, the time for support and administration. Your IT-team will thank you for it!

Flexibility

Flexibility is also an increasingly important factor in many business processes. Using the cloud also offers you several advantages here. The files you store in the cloud are always available and on all end devices. It doesn’t matter whether you are at the company or working from home, all you need is access to the internet. It is also no problem to work on a file with several people at the same time. The files are automatically synchronized so that you can access the latest version on any device. Even large amounts of data can be made available within a very short time and with just a few mouse clicks. You can expand or reduce your storage space at any time – depending on what you need at the time. This avoids bottlenecks and overcapacity.

Security

Another major advantage is that you no longer have to worry about whether your data is secure. You don’t need a backup strategy or your own server. As a user, you also don’t have to worry about licenses or software updates. The backup is off-site, and your data is securely encrypted. The 3-2-1 backup rule is often used in this context to prevent your data from being lost. In a nutshell, the rule states that three copies of your data are created – primary storage, backup and off-site copy. Two different storage technologies are used for this and one of them is stored off-site. This distribution of risk across different technologies minimizes data loss due to system-related errors. So, if external circumstances such as flooding, theft or a fire render the data unusable, it can be ensured that there is another copy and the data is not lost.

The ERP cloud computing solution from Timeline ERP: the next step for your company

As you have read, you benefit from numerous advantages of a cloud – this is all the more true if you opt for an online ERP (Enterprise Resource Planning) solution. With ERP cloud computing you can easily control and analyze all your processes within your company (not just in the area of production) online and in real time – with the proven benefits of a cloud solution. As an experienced cloud ERP provider, Timeline ERP provides you with the necessary ERP software in the private cloud. Alternatively, a database can also be set up on your own server (on-premise). This allows you to quickly find the best option when implementing your ERP cloud computing. We will also be happy to advise you on your choice of cloud ERP software.

We clarify all questions about your new ERP cloud computing system

If you would like to find out more about ERP cloud computing or all TimeLine ERP products and functions, please send us a message using the contact form, write to [email protected] or contact our sales team on +49 212 230 35 200. We look forward to hearing from you! In our blog you can also discover more exciting background articles on the topic of ERP and how our ERP solutions can take your company to the next level.

22. April 2024

ERP and DMS – a perfect match

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In the age of digital technology, documents play an important role. Almost every business receives a flood of emails, letters and receipts every day. Because each document can contain important information, they are processed and then archived. The accumulated documents are usually stored in folders. It is not uncommon for filing cabinets in the office or archive to be overflowing. When an employee needs a specific document, he or she must first go to the filing cabinet to find the right folder and the document he or she is looking for. This process takes a lot of time. But even digitally stored data is not automatically better organized. Scattered across hard drives, floppy disks, and email inboxes, it can be easy to lose track of what you have. A Document Management System (DMS) is one way to bring order back to the filing system. Used correctly, a DMS software can help you keep track of your documents and make better use of your time. An Enterprise Resource Planning (ERP) system with integrated DMS offers even more benefits.

Global data volume will increase tenfold to 163 zettabytes by 2025

The mountains of data continue to grow. This is certainly related to today’s “we store everything” mentality. Every day, we generate and share countless amounts of data. IDC’s „Data Age 2025“ white paper, published in 2017, predicts that the amount of data worldwide will grow to 163 ZBytes by 2025. To give you a better idea: A zettabyte is a billion terabytes. Many organizations believe they can solve this problem by moving to cloud-based storage. However, if done incorrectly, this will only shift the problem to another location as many employees become more careless with data and its storage.

30 percent of work time spent searching

Searching for the right documents takes up a large portion of daily work. The increased administrative and staffing burden naturally translates into high costs. As a business owner, you need quick and easy access to relevant information to make timely decisions. The issue of data storage is therefore becoming increasingly important. With the help of DMS software, a document is quickly and easily available without having to search for it. But what exactly is it?

How does DMS software work?

DMS software is a database-driven system for managing, controlling and archiving documents of all types. First, all paper-based documents, such as accounting records, are scanned and digitized. The software uses metadata on the one hand and the so-called user or primary data, which is the actual document, on the other hand. Metadata is all the information that accompanies a document. This includes information about the author, the type of document, the customer number, the creation date, or even the person responsible. Metadata is used to uniquely identify and manage a document. File metadata is stored in a database and is usually entered by the user in the appropriate screens when creating a document.

You can easily find the document you are looking for by entering a search term or invoice number in a text field. Finding a document takes only a few seconds. All incoming documents are stored in a central archive and only filed once. There are no multiple versions in different storage locations. The familiar folder structure is maintained, so you can organize documents the way you are used to. Multiple people can view and edit a document, depending on their access rights. Older versions are not overwritten, so you can always revert to a previous version if a problem occurs.

DMS can do more than just archive

The use of DMS software has many advantages on many different levels. After all, it is not just about filing data, but about managing, storing and organizing documents for the user so that they can be retrieved quickly and easily. Evaluations, reports, time records, notifications – important documents are archived securely and transparently in the software. In addition, work processes become more efficient and communication within the company is improved. When planned and implemented correctly, the software can significantly improve workflows, increase quality and reduce costs. Key benefits at a glance:

Centralized, secure and organized document storage
Easy to capture and use
High time savings: processing time and search for a document are significantly reduced
Reduced costs for storage space and paper
Anywhere, anytime access to documents
Improve collaboration within the organization
Increased productivity
Processes are traceable and transparent
Reliable archiving reduces risk of data loss
Audit-proof and GoBD-compliant storage

ERP and DMS – a coupling with many advantages

The integration of ERP and DMS has several benefits. The DMS software can capture and verify both electronic and paper documents. This makes it the perfect solution for streamlining data with ERP systems. Documents you create in an ERP system can be automatically archived in the DMS software and merged with other documents. This process is called electronic file creation. These files then contain all the information about a customer, for example. All information stored in the file is automatically indexed and tagged with metadata. This makes it very easy to search for a specific document.

Data protection

When you archive a document in the DMS software, you can set access restrictions. You can decide which people or groups can access the document and at what level. It is also possible to grant editing and reading rights. If you share a document as a link, you can also specify whether it is view-only or downloadable.

Audit-proof storage

The tax authorities place high demands on a document archive. In Germany, every company must store its documents for up to 10 years and sometimes longer. The legislator has established a series of rules and requirements. The principles for revision-safe archiving are laid down in the GoBD (principles for the proper keeping and storage of books, records and documents). The GoBD mainly refer to the storage of tax-relevant documents in electronic form, including an electronic archive or storage as digital documents in DMS software. According to the GoBD, documents must be stored in an audit-proof manner. Audit-proof basically means the “unchangeability” of documents. All documents and receipts that are archived after processing may not be changed from that point on. It is also important to note that documents created electronically must also be archived digitally.

If you would like to find out more about DMS software or the full range of TimeLine ERP functions, please send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

Corporate ERP training – is it worth it?

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The right ERP vendor has been found and the new system has been successfully installed. It almost seems as if you can now check the “ERP project” box and move on to other tasks. Unfortunately, it’s not quite that simple. The most important thing is still to come: training the staff. What might seem like a trivial formality often turns out to be the biggest and most important challenge. To get the most out of the software, the goal should be to get employees on board and prepared for the changes ahead. After all, much of the working environment is changing. The following article explains why ERP training makes sense, how best to implement it, and the benefits it brings.

Why ERP training matters

Many companies still believe that implementing an ERP (Enterprise Resource Planning) system is just an IT project that, once completed, will automatically lead to improved processes. However, implementation is routine for the ERP vendor and rarely leads to problems. If they do, they can usually be resolved quickly. What is often overlooked is that even the best system is of no use to the business if it is operated by an unsuspecting employee. Especially if you are using ERP software in your company for the first time, everyone will have different levels of knowledge. It is at this point that you should pick up the staff and bring them up to the same level. This is the only way to integrate the system into day-to-day operations and reap the benefits.

This may sound like a lot of work at first. Try to think of the training as a valuable investment rather than a necessary evil. Experience has shown that it always pays to invest in your own people. Every employee has their own potential, and if you nurture it, both parties will benefit in the long run. But how do you successfully implement ERP training?

Successful ERP Training Implementation

In general, ERP training can be divided into two phases. One is basic training and the other is employee training. Both take place at different stages of the implementation and serve different purposes. Basic training is about training the key users and giving them the capability to train their colleagues. They are responsible for the project from the beginning and are selected by you in advance. Whether you choose one or more people for this position depends on the size of the project.

Basic training provided by the ERP vendor

Basic training for key users is usually provided by the ERP vendor. In return, you receive regular training and support. This means that the training does not take place on a fixed day, but throughout the implementation period, long before the technical implementation begins. The goal is to give key users an overview of the system so that they can pass on their knowledge to their colleagues once the system is implemented. The key users are the interface between the software and the business processes. Of course, this assumes that they are experts in both areas. Ideally, you should choose someone who is both a good communicator and has a good technical understanding of the system’s functionality. Once the key users have been trained and the system has been implemented, the next step is to train the actual users.

Employee training preparation

Typically, employees are trained by the key users after implementation; the ERP vendor rarely does this itself. The advantage to you, of course, is that the cost is much lower because you only have to pay the ERP vendor to train the key users. In addition, the distance between key users and employees is often smaller because of the collegial relationship. A trusted colleague knows which features are important to the business and is better able to allay employee fears than an external coach. This allows you to better tailor the ERP training to the team and reduce potential resistance. Many employees are often skeptical of new ERP software because they fear it will replace them. The downside is that the workload for key users may increase during the implementation phase. At this point, you may want to consider whether it would be helpful for that employee to delegate key tasks to other colleagues during this time.

The following organizational considerations should be made prior to ERP training:

What content is being trained? Is it a basic workshop on how to navigate the system and maintain master data, or is it advanced courses on specific topics such as financial accounting, bookkeeping, or financial statements?
When and where will the training take place? How long will it take?
For which employees is the insight relevant? Can anyone attend?
Who will conduct the training?
What documents or other materials will be needed? Also, create training materials that can be used later as a resource to help train further employees.

Benefits of ERP Training

From a business perspective

ERP training for your own employees always pays off. Use your potential and train your employees to become specialists. Due to a shortage of skilled workers, more and more mid-sized companies are dependent on the performance of their employees. The more qualified an employee is, the more he or she can contribute to the company’s success. A trained employee not only uses his knowledge in his daily work, but also automatically passes it on to his colleagues. In short, more knowledge flows into the company. This makes you more competitive and your company’s goals more likely to be achieved. It also makes you a much more attractive employer. A potential employee is more likely to choose you if there are opportunities for professional development. This also intuitively motivates them to perform better.

Employee motivation

There are different types of motivation. The most common types are extrinsic and intrinsic motivation. Extrinsic motivation is always triggered by external stimuli. Classic examples are financial incentives or the desire for rewards. In contrast to intrinsic motivation, tasks are not performed for their own sake or initiative, but with the prospect of money or recognition. Extrinsic sources of motivation are quick to motivate, but also quick to dissipate. ERP training provides the opportunity to think outside the box. Learning, understanding and being able to apply new things is more likely to encourage people to perform a task because they find it interesting. The result is a high level of learning, which in turn has a positive impact on the engagement, quality and success of your organization.

Transparency and streamlined processes

In addition to personal development, transparency and process optimization have a positive impact on employee motivation. Transparent processes make people aware of their role in the team. They show each employee how his or her work affects the success of the company as a whole and give meaning to his or her own contribution. Streamlined processes reduce workload by automating repetitive tasks. However, if you use the benefits of process optimization to reduce headcount and costs, you will create resistance to the new ERP system. Why should your employees support something that threatens their place in the company? The implementation of ERP software can increase motivation if it is successful, but it can also have the opposite effect if it fails. The focus should always be on the human factor. It is the key to a successful ERP project.

Benefits for the employees

An ERP training program benefits not only the company, but also the individual employee. On the one hand, additional qualifications increase your chances on the job market, but on the other hand, they also secure your job in the company. Getting an additional qualification not only boosts your self-confidence, it also automatically sets you apart from the competition. Internally, you will also receive recognition from colleagues and management, especially if you can apply what you have learned in your day-to-day work. Well-paid positions are also highly coveted by internal competitors. In addition, an increase in skills and education usually leads to an increase in income. One of the most important factors, however, is that the sense of togetherness in the team improves significantly when, for example, several employees attend and complete an ERP training course. This automatically leads to a more relaxed working atmosphere and a more productive day. Many employees also see training opportunities as a form of recognition, as it signals a long-term commitment to the company.

Conclusion

No matter what industry you operate in or what applications you plan to use it for: An ERP system can either make your job a lot better or a lot worse. If you do not take ERP training seriously, the success of the ERP project is at risk. Failure to adequately prepare employees for the changes ahead can lead to team dissatisfaction and high support costs. However, for both the implementation and the ERP training to be successful, both sides need to be prepared. When this is achieved, both you as the business owner and the entire workforce benefit – a classic win-win situation.

If you would like to learn more about ERP training in your company or the full range of TimeLine ERP functionality, please send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

ERP and CRM – an ideal match?

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ERP and CRM systems are among the most widely used business solutions today. Their popularity is growing, and not just among large enterprises. Used correctly, they can help you and your employees simplify your daily work and make business processes more efficient. This is important because competition is becoming increasingly fierce. Not surprisingly, every company wants to look their best and be a step ahead of the competition. Once you win a new customer, you want to keep them and not lose them to the competition. If you know what your customers want, understand their needs and can respond to them individually, you have a good chance of winning the game and staying in the fast lane. But what does it take to win a customer over for the long haul?

What is a CRM system?

CRM stands for Customer Relationship Management. Essentially, CRM software provides a standardized and organized platform for managing your customers’ and prospects’ information. All the information you have about a customer is organized in one place. You can view and organize it at a glance. All interactions can be easily documented and analyzed.

The benefits at a glance

CRM software is often used when it is particularly important for a company to maintain and strengthen its relationship with its customers. All information related to a customer is displayed in a clear history.

Contact management

Every phone call, document, note, and other correspondence, as well as information about past conversations, negotiations, agreements, and long-term developments, is recorded in the software. For scheduled meetings, for example, you can create a calendar entry or view past and upcoming appointments. Orders, complaints or change requests are also stored in the software. All data is summarized in a structured user interface and can be tracked by the entire team. As a result, every employee can respond to customer inquiries competently and well-prepared, whether or not they are the actual contact person.

Enterprise collaboration across teams

With a CRM system, you can work in a more progressive, modern and effective way. Because data is stored in a central database, every employee, regardless of department, always has the most up-to-date information. When customers have problems or complaints, it is easier to deal with them because they do not have to go from department to department explaining their concerns over and over again. This is a very positive experience for the customer, which can trickle down to potential customers. Ultimately, this is how you build a good reputation, especially as a small business. The CRM system has a number of advantages, especially for internal collaboration within the company. For example, the software always knows what sales phase you are in.

Thanks to a clear sales pipeline, you can see at a glance which tasks require your immediate attention and which can be dealt with later. Reports on sales figures can also be used to improve sales strategy. For example, by analyzing all interactions with a customer, sales reps can determine the best time to contact the customer about a new product. It is also possible to develop targeted marketing strategies. For example, the customer base can be divided into different segments, such as by location or sales stage. You can then send individual messages to each segment. Project management also benefits, as structured and synchronized data allows project managers to better track processes. The CRM system also provides information on company performance. It provides real-time data, reports, graphical dashboards, and productivity metrics.

Customer satisfaction improvement

Regardless of your business or industry, whether you are a sole proprietor, a big or a small business, a CRM system will help you stay in touch with your customers, improve and positively influence your customer relationship, and build long-term customer loyalty. Customers expect more than a quality product or service. They want to feel understood. Knowing your customers’ needs will help you meet them better. Building good relationships and following up with prospects and customers is critical to winning and retaining customers. Customers who remain loyal to your company increase your revenue.

ERP and CRM system – what’s the difference?

The two systems are very similar in many ways. However, they do differ in important details, which is why they are not directly comparable. First and foremost, both systems are designed to make your day-to-day work easier. The big difference, however, is where they are used and in what areas of the business they are used. With the ERP (Enterprise Resource Planning) system, the focus is clearly on business processes and the workflow that takes place behind the scenes. It is all about structuring and streamlining workflows and efficiently handling operational processes in the background. CRM software, on the other hand, focuses on the customer and the relationship with the customer. Increasing customer satisfaction and retaining customers over the long term, as well as managing and maintaining the customer base, play a key role. The goal is to reduce operating costs and increase revenue over the long term.

ERP or CRM – which is the better choice?

To answer this question, you should first consider what is most important to you in your day-to-day operations and what your long-term goals are. An ERP system is often used in industrial companies that manufacture products and want to increase productivity and track, control, and improve internal processes. CRM systems are mainly used when customer relations and new customer acquisition are a priority for the company. You can also maintain customer information in an ERP system. ERP solutions often include CRM functionality, but lack advanced features such as analytics, reporting, or customizable cockpits.

If you are not sure which system is the best solution for you, ask yourself if you and your employees are satisfied with the functionality of most business solutions. If so, CRM software is probably good enough for you. If not, a more comprehensive ERP system may be a better choice for you. It is also possible to combine the two systems. Linking the ERP and CRM systems can bring you many benefits, and CRM software can be easily integrated with most modern ERP systems.

Benefits of linking ERP and CRM

Linking ERP and CRM software has many benefits. Perhaps the most important is a single database for the entire company. All relevant data is available to all employees in the most up-to-date form. This allows you to respond quickly to customer requests because all important data is readily available. This increases customer satisfaction. You have a clear customer base, an overview of all previous orders, current orders and delivery times, as well as insight into outstanding payments or reminders. With information about customer ordering habits and preferences, you can develop targeted marketing strategies. It is also possible to flag key customers in the system and give them preferential treatment, for example, in terms of service and order processing.

Are ERP and CRM software a good combination, then?

The ERP system and the CRM software can be linked via an interface. It is important that the two systems are well coordinated. If they are not, you are wasting valuable potential. Here is an example to illustrate this: Suppose one of your customers wants to change a previously placed order. The data from the conversation is recorded in the CRM system. Running them in parallel without integration would result in each system having a different level of information. Employees working with the ERP system would not have the changed order. As a result, data would have to be entered and reconciled multiple times. This creates a lot of extra work, and errors can easily creep in. In the worst case, this can lead to misunderstandings with the customer.

Conclusion

Unfortunately, there is no one-size-fits-all advice on which system is right, or whether a combination of the two makes sense for your organization. You have to decide for yourself which of the many options on the market is best for you and your employees. This requires patience and a sense of your company’s needs.

If you would like to learn more about linking ERP and CRM systems or about the full range of TimeLine ERP functions, please send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We will be happy to advise you!

22. April 2024

Achieve the highest level of customer loyalty with CRM

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Depending on the industry, the number of returning customers can quickly reach 80 percent or more – provided you use the support of a good CRM system. With increased transparency, price-driven customers are quick to place single orders. But with a good CRM system, you can call them back at the right time, improve interaction and communication – and build a strong and loyal relationship. In this article, we will show you how you can effectively increase customer loyalty with TimeLine ERP.

All the information you need at your fingertips

As soon as a call comes in, TimeLine ERP compares the phone number with existing contacts for all business partners. A pop-up window immediately opens, allowing you to jump to the business partner’s information. In addition to the open items, you can view all related call histories and documents for customers, prospects and suppliers to help you communicate.

Eine neue Aktivität in der CRM-Software erfassen

Berichtet der Geschäftspartner etwas Neues, zum Beispiel wann welches Produkt wieder interessant für ihn oder sie wird? Oder erwähnt der Ansprechpartner vielleicht, dass er demnächst auf der Messe ist, die ihr bereits seit Monaten plant? All diese Informationen sind wertvoll und sollten als Aktivitäten eingetragen werden. Bei jeder Aktivität können Dokumente hinterlegt werden, sowie ein Bearbeiter, ein Ansprechpartner und ein Wiedervorlagedatum. Zeitgleich kann ein Geschäftspartner einem Verteiler zugeordnet werden, dessen Definition euch selbst überlassen ist.

Create a new activity in the CRM software

Does the business partner report something new, such as when a product will be of interest again? Or perhaps they mention that they will soon be attending the trade show you have been planning for months? Information is key, so every lead should be tracked as an activity. For each activity, you can store documents, an editor, a contact person, and a follow-up date. At the same time, a business partner can be assigned to a distribution list that you define.

Automatic Reminder

Activities that involve resubmission appear in your existing calendar. This means that no follow-up is forgotten and the customer, prospect or supplier receives a reminder – or perhaps even an offer – in time. The telephone link from the business partner information can be used again for this purpose. Just double-click on the contact’s phone number to initiate a call. At the same time, quotes or even orders can be created directly from the module. In the cockpit you will find all follow-ups, calendar entries and to-dos in a single module. This is clearly displayed as a list and you can react to actions at any time.

Mail merge in CRM

Once customers have been assigned to appropriate distribution lists, a serial mailing could be a good strategy. Especially for industry-specific mailings or personalized company newsletters, it makes perfect sense for customer loyalty and can be easily accomplished with a CRM. Use integrated campaigns that can be limited to a specific postal code, business partner or mailing list, to strengthen customer retention in a targeted manner.

Location-independent and mobile

Access to customer data is essential for management, field service, and sales, regardless of location. In most cases, however, not only the most important sales figures are required, but also internal documents, drawings or emails. This is where the integrated document management system comes to the aid of the CRM – and also makes all documents available in our iPad and iPhone apps. This data can also be managed completely offline. To do this, the desired customer data only needs to be made available offline once in advance. Any changes made to the customer, supplier or prospect can then be synchronized back at any time. This makes it possible to work at locations without Internet access!

Want to maximize customer loyalty with CRM?

Would you like more integration options, ways to increase customer retention, or are you missing features? Let us know by leaving a comment! All features have been developed in cooperation with our customers, from the field, for the field. For better customer satisfaction – and better success for your business.

Want to learn more about CRM or the full range of TimeLine ERP features? Send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We look forward to hearing from you!

22. April 2024

ERP Systems: Meaning and Functionality

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The somewhat different attempt to explain an ERP system

It is said that a good professor can explain the basics of theoretical physics on a beer mat. We look at a similar example, but replace the physics with an ERP system and the beer mat with a supermarket store. This blog post plays the role of the professor. We will take you on a journey through the vastness of the supermarket shelves and begin a slightly different kind of explanation.

At the beginning of any attempt at explanation is a curious person. If you are a die-hard connoisseur of ERP software, an ERP sommelier so to speak, you can skip this blog post and move on to the next entry – or you can stay and get your daily dose of confirmation. This blog post is for those for whom ERP is (still) a green field.

Stepping Through the Sliding Glass Door

Getting started with an ERP program should be as easy as going to the supermarket, but you shouldn’t rush into it. In our example, this can be easily explained with the equation

The decision for or against should therefore be well considered and not rushed, otherwise it will crash. To help you decide, we don’t send out food or fragrance samples, but we do offer a free demo download.

The Sales Floor

Imagine your company as a sales floor in a supermarket with many products. The ERP system represents the shelves and allows you to store your products in a traceable and organized way. Is there not enough jam on the shelf? Is the rigatoni out of stock again? The ERP system provides you with information at an early stage and allows you to plan the organization of your articles. Whether with serial or batch numbers, First In – First Out (FiFo) or Last In – First Out (LiFo), the ERP system is not only a genius but also a master of chaos. For the particularly curious, here is a short additional detour on inventory management.

At the meat counter

Cordon Bleu is on your shopping list. As you know, it is French and means “blue ribbon”. Sounds impressive, but what about its ingredients? This is where we build the bridge to the production planning processes within an ERP system.

Goods are processed, refined and, if necessary, assembled from different components. This is also the case with our cordon bleu. To continue our metaphor, the ERP system provides the platform for managing and controlling all production processes. It shows me the ratio of ham, cheese and schnitzel, and gives me the breading directly in the bill of materials. Thanks to production planning, it is possible to transparently control and track what (Cordon Bleu) is, has been or has to be produced, where (at meat counter 2) and by whom (butcher Smith). Still have questions about the digital meat counter? Read more about production planning and ist applications.

Behind the scenes

Supermarkets generally operate on a “FeFo” (First Expired – First Out) basis, meaning that products are sorted by perishability. ERP systems offer the possibility to organize the storage according to personal taste – including the inventory of the storage contents.

The procurement of new items is constantly monitored so that you are not left out in the cold. Whether jam or rigatoni, material requirements planning (MRP) makes it easy to determine purchasing and/or production requirements for minimum inventory levels, customer orders, and batch sizes agreed upon with suppliers in the ERP system. This means that the warehouse is only filled with what is actually needed.

Back to the meat counter. Butcher Smith wants to take a vacation during the European Championship. To ensure that he does not have to stand at an unmanned counter, the ERP system has a personnel planning function (PEP). Holidays, illness, shift work – PEP ensures that everything runs smoothly. So that barbecuing with friends is saved.

Final spurt at the checkout

The cash register represents sales within an ERP system. Quotations, orders, delivery notes, invoices or credit notes – an ERP system provides comprehensive support for the daily sales processes. Open items and their settlement by the customer’s payment can be accessed at any time.

Did you know that the receipt is both an invoice and a delivery note? This is called direct invoicing. This saves time and money, but it does not prevent you from regularly fishing your predecessor’s receipt out of your shopping cart. To make sure you don’t lose track of your own receipts, you could use a budget book at home. The digital document management system (DMS) in the ERP system ist he solution. A quick scan and you have all relevant documents at your fingertips – ordering can be that easy.

Want to know more about ERP systems, their meaning or special features?

The purchase is paid for, your head is full, and you slowly realize that this blog post would hardly have fit on a beer mat. The exit comes just in time! If all went well, you are no longer standing on a greenfield site and know everything about ERP systems, their meaning and functionality.

If you would like to learn more about ERP or the full range of TimeLine ERP functions and how implementing different modules can improve the efficiency of your business, please send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

ERP for small companies – how to get rid of stand alone solutions

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Nowadays, almost all large companies use ERP software with integrated ERP functions. ERP for small companies or SMEs, on the other hand, are not yet as established. Instead, many different programs are used to organize processes and day-to-day-business. We are talking about so-called stand alone solutions. You may be familiar with this: you use Word to write quotations, external tools as “vacation planners” and carry out calculations in Excel or Project – which involves a lot of manual effort. Such stand-alone-solutions are often an integral part of a company’s IT landscape and are generally sufficient in the beginning. Finally, many of these programs are available free of charge and are easy to use. However, as the size of the company increases, other factors come to the fore that can no longer be served by such a software mix.

ERP for small companies: Handle business processes more efficiently

Complete ERP solutions are indispensable and much needed these days. Business processes are optimized, organizational workflows and structures improved and adapted to corporate and market changes ever faster. More and more companies are relying on this and striving for a standardized, economical and, above all, more efficient IT infrastructure. The use of business software also offers a whole range of advantages for medium-sized companies and their projects. Modules such as merchandise management, accounting, document management and other business processes are not only mapped in a single system, but also offer integrated ERP functions without additional interfaces.

ERP solution instead of stand alone solutions: an overview of the range of functions

An ERP system normally maps the following functions of a company:

procurement
production
materials management
customer relationship management (CRM)
human resources
finance and accounting
controlling

A major advantage: all processes, machines and programs are connected via a common database and communicate with each other. Communication and control are made possible at all levels of the company.

Without interfaces, data loss and duplication of maintenance: ERP for small companies

In practice an ERP system for small companies reduces your IT costs because only one software is used instead of various different programs. Above all, however, an ERP solution is easy on your employees’ nerves and makes collaboration much more efficient. Everyone involved has access to the data – regardless of department or location. The data only has to be entered once and is always up to date. The information flow of a business process is therefore significantly optimized. Nothing is lost, nothing is forgotten – a smooth operational process is guaranteed. The same advantages apply to working with data backup, updating and maintenance.

One tailor-made business software, one license model, one maintenance process

Especially as a small business, you should not spend your manpower and capacities on the constant maintenance of various programs. If you opt for ERP for small businesses, implementation and maintenance are reduced to one central solution – instead of a lot of stand alone solutions. Time and costs will be greatly reduced for you. Thanks to regular updates, you always work with the latest version of the ERP software and automatically benefit from new ERP functions. Last but not least, an ERP system for small companies offers you a tailor-made solution for your company size that can be continuously adapted to your growth and needs.

The right time to get rid of stand alone solutions

You should consider implementing an ERP solution in your company right from the start. Although most processes are still manageable in the initial phase, they become more complex as they grow and then require more and more effort. Our recommendation: run your data in a central system with ERP functions at an early stage in order to maintain an overview and control right from the start. ERP for small companies is worthwhile from just two PC workstations. Start with master data maintenance at an early stage and create a good basis for your company’s growth.

Put an end to stand alone solutions – get started now with ERP for small businesses!

Would you like to find out more about stand-alone solutions or the full range of TimeLine ERP functions to better help your clients? Then send us a message using the contact form, write to [email protected] or contact our sales team on +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

ERP application in daily business – an ERP system example

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ERP systems date back to the 1970s. Initially, they were used only by large industrial companies for business processes. It was a standardized inventory management system for planning purchasing and production. This ensured that products were completed on time. Since then, ERP applications have changed and improved dramatically. However, many small and midsize businesses wonder why they should use an ERP system. But the question should no longer be “why” do you need an ERP system, but “which ERP system is right for you?

Your business is growing and things are changing. There are new challenges: Tasks are becoming more complex and departments are growing. In the course of significant growth, it is often necessary to reorganize your own structures and processes. More and more companies are already benefiting from the use of ERP solutions. Especially with limited resources, you can benefit from easy data maintenance and react quickly to market demands.

ERP applications pay off

If you want to stay on top of things, an ERP (Enterprise Resource Planning) system is the key. Today, a company can use a single ERP system to cover all areas of its business, from supply chain management, to manufacturing to day-to-day operations to accounting. This makes it possible to monitor, plan and control processes faster and more effectively. They are constantly being modernized and developed. Processes that used to be done manually are automated by an ERP system. But what is behind the use of ERP? Many companies wonder if it is worth buying and implementing an ERP system. Why is that? Because of the high license costs. However, a small amount of time saved can result in a large amount of money saved, as the following example of an ERP system shows.

Ms. Jones is an employee of your company. Ms. Jones spends two hours a day placing and tracking orders. She creates the order in a Word file, prints it, and faxes it. She then checks to see if the order has been received. Each order takes about ten minutes of her time. This means that Ms. Jones sends out twelve orders in two hours. The average salary of an administrative assistant is between 1,959 and 2,645 euros per month*. Let’s assume an average of 2,302 Euros per month and a working week of 40 hours. This means that Mrs. Jones has an hourly wage of 13.28 Euros**. Mrs. Jones spends two hours working to place the orders. If you multiply this by her hourly wage, your company incurs a cost of 5,312 Euros for 200 working days.

Why is using an ERP system useful?

For example, you decide to implement an ERP system in your company. After a short time, the ERP applications begin to pay off. With TimeLine Neo, you pay a one-time license fee of 1,490 euros per PC workstation. You have access to the full range of functions from the first workstation. Maintenance is optional and costs 20 percent of the license fee per year, or $298. Training for the program usually takes one working day for all employees. A fee of 800 euros is charged for eight hours. The price is significantly reduced for group training or multiple licenses. The cost of the license together with the maintenance and training fees is $2,588 for the first year. In the second year, only the maintenance fees are due.

With TimeLine Neo, Ms. Jones can create an order in about two minutes and send it by e-mail. For example, she can use a screen to see which orders are still open. She no longer needs two hours to complete twelve orders, but only half an hour. Calculated over 200 working days, her annual expenditure is reduced from €5,312 to €1,328. With access to the ERP system, Ms. Jones is able to focus on her core business.

After five years with an ERP system, your company has saved 16,140 euros. The purchase paid for itself in the first year. The administrative workload is reduced and you save space on shelves and office supplies – electronic document storage is also integrated. Saving time is also a competitive advantage for your business. If you are faster and more flexible, you will overtake slower competitors.

Additional benefits of ERP applications

This example of an ERP system is just one of the many benefits of ERP software. The same can be done for estimating or production, for example. Why is that? Many companies still organize their production on paper or analyze important data using only programs such as Excel. You have to make important – and financially significant – decisions based on instinct when it takes a long time to compile important data, such as incoming and outgoing orders, inventory levels, or order margins. Without real-time process data, you won’t know how your business is performing until the annual report is published.

Still unsure and want to try it first?

Try TimeLine ERP for 90 days free of charge and without obligation, simply download our demo version. The data entered in the trial version can be seamlessly transferred to your system after a purchase decision. Do you still have questions? Or would you like to find out more about the full range of TimeLine ERP functions and what they have to offer for your project or your industry? Then send us a message using the contact form, write to [email protected] or contact our sales team on +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024

ERP developments enable new production technologies

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The roots of Enterprise Resource Planning (ERP) go back several decades. In the 1970s, the first versions helped large companies with material requirements planning. Material Requirements Planning (MRP) is the forerunner of today’s modern ERP systems. In the 1980s, systems began to add production planning and control capabilities. As a result, their use was no longer limited to the industrial sector. It was not until around 2000 that the ERP system we know today was created. Sales, accounting and human resources modules are integrated. The term “ERP” was coined by Gartner, the well-known provider of market research and analysis. But what ERP developments can we expect in the near future?

Although there are still companies that use many different applications – so-called isolated solutions – according to a Bitkom survey, one in three German companies uses ERP software. Another 21% are even planning to introduce it. Today, ERP systems are true everyday heroes, whether in small or large companies. As the backbone of information technology, they have become indispensable in many companies. Consisting of various modules linked by a common database, they enable better collaboration. ERP provides visibility, handles routine tasks, and optimizes operational processes. Real-time information allows better decisions to be made and customer needs to be met.

ERP developments in the coming years

The development of new ERP software is both more feared and more necessary than ever. On the one hand, intervening in a complex system is always risky. On the other hand, evolution is important because business processes change over time. To remain useful, ERP must be able to keep pace with these changes. The market and needs change quickly, so staying current is not easy. Here are the top ERP developments.

Industry 4.0 and the Internet of Things as key challenges

Digitization is becoming increasingly important. In this context, we hear the term Industry 4.0 all the time, but what does it really mean? After mechanization (Industry 1.0), mass production (Industry 2.0) and automation (Industry 3.0), Industry 4.0 marks the beginning of the fourth industrial revolution. New technologies are boosting production for companies, creating growth opportunities and competitive benefits. The basic idea behind these developments is the creation of “smart factories”. Automation is optimized by intelligent machines that communicate and exchange data independently.

Industry 4.0 goes hand in hand with the Internet of Things

The Internet of Things (IoT) is a logical evolutionary step. Up to now, it has been mainly us humans who have exchanged information with each other. In the future, however, machines and inanimate objects that are not normally connected to the internet will independently exchange data with each other. When connected to a network, they will be able to communicate with other systems in the chain. The IoT is the bridge between the physical and digital worlds and is an integral part of many Industry 4.0 projects. According to the study “Wettbewerbsfaktor Analytics im Internet der Dinge” by the University of Potsdam, 43.5% of the companies surveyed stated that they have actively addressed the issue of the Internet of Things. 15% have integrated IoT applications into their existing processes to increase efficiency, with the main area of application being process monitoring. The great potential of the Internet of Things can be seen in the manufacturing industry.

Big data from the Internet of Things

Imagine a machine that can send its performance data directly to the manufacturer via the Internet. If, for example, a component or value is not working properly, the machine could inform the operator and send a message to the manufacturer, whereupon an employee would deliver the specific spare parts. Smart factories are an evolution of this basic idea. For example, a manufacturing plant could start production automatically when it receives an order. However, the global volume of data is also growing in line with these ERP developments. In the context of Industry 4.0, data is generated in particular by machines, transport equipment, workpieces and products. It is often measurement and sensor data that is collected automatically. There are two aspects to big data. One is the ever-increasing volume of data, and the other is the IT solutions that help companies manage this data.

What role does ERP play in this development?

Until now, most ERP systems have tended to be used within the company. The need for complete and transparent data is growing. The ERP system serves as a central hub and will become even more important as an integration platform. Customer information and product data will be linked with production and logistics data from the manufacturing level. The Internet of Things is becoming an additional source of data. As the number of applications grows, so does the need for interfaces. The ERP system also plays an important role in smart factories. Almost all business processes can be supported and external systems and platforms can be integrated. Important company data is managed and stored appropriately. It is not yet clear to what extent these developments will be adopted by companies. A custom, unified database is particularly important to ensure that all processes run hand in hand. Without an intact IT infrastructure, the ideas cannot be realized, as there are many business processes that need to be managed.

ERP grows beyond itself – grow with it!

If you would like to learn more about ERP developments or the full range of TimeLine ERP features, please send us a message using the contact form, write to [email protected] or contact our sales team at +49 212 230 35 200. We look forward to hearing from you and will be happy to advise you!

22. April 2024