Common ERP Myths

Common Myths of ERP (Enterprise Resource Planning):

There are a lot of ERP myths that surround the concept, infrastructure, implementation and practice of Enterprise Resource Planning. Very often people are not willing to adopt ERP because of these wrong notions. In this section we will see some of the most common myths about ERP and will try to demystify them.

ERP MEANS MORE WORK AND PROCEDURES

  • Properly implementing and managing an ERP system is not an easy task. The transition period from the traditional system or manual processing to ERP is difficult as new skills have to be learned; new procedures and processes have to be followed, and so on. Many employees think that ERP will add more work, make the work more difficult and will force unnecessary procedures. Transformation from the old system to the ERP system is a difficult process. However, if the management and the implementation team do their job properly, ensuring that the employees are told what to expect and given proper training, then the transition can be smooth. Once the employees get used to the new system, they will understand the potential benefits and the effort saved through automation of talks and jobs. Today’s ERP tools automate many of the repetitive, monotonous and tedious procedures, tasks and processes thus making the life of the employees a lot easier.

ERP WILL MAKE MANY EMPLOYEES REDUNDANT AND JOBLESS

  • Another popular misconception about ERP system is that its implementation will make many jobs redundant (because of the automation) and hence, many employees will lose their jobs. A properly implemented ERP system will automate many tasks in the organization. This does not mean that the ERP system will make people redundant. Yes, there will be changes in job descriptions and in the activities people used to do. Many tasks will be automated and this will make the people who were doing those jobs unnecessary. But ERP system also create new job opportunities and they very same people whose jobs were automated could be used to fill the new positions after giving them proper training on the new tasks. Hence, the amount of planning that goes into re-location and re-training of the employees by the management and the implementation team can go a long way in reducing the anxieties of the employees. ERP is a people system made possible by computer software and hardware.

ERP IS THE SOLE RESPONSIBILITY OF THE MANAGEMENT

  • Making an ERP system work is the responsibility of all the employees. It involves virtually every department and every person within the company. The company management is not responsible for the day-to-day operation of the ERP system. Their main job is to create an organizational environment in which ERP can thrive – give ERP the full backing of the management. They should also be involved in the development of ERP policies, usage guidelines, allocation of budget, package selection and appointment of competent professionals to implement and manage the ERP system. Only when the ERP team has the full backing and support of the management, they will be able to implement the system smoothly.
  • The management should monitor the implementation and operation of the system, review the progress and status periodically and should take necessary corrective action, if required. The management should also ensure that the ERP implementation team gets the support and co-operation of all the departments, But, thinking that the ERP system will succeed just because the management is fully committed to its implementation and operation is one of the biggest mistakes that an organization can make. In fact, it is the employees – the day-to-day users of the system – who will decide the fate of the ERP system. If the employees are not fully appraised, trained, satisfied and are not happy with the system and are not using it properly, then the ERP system will be a failure.

ERP IS JUST FOR MANAGERS OR DECISION-MAKERS

  •  The managers and decision-makers are the major users of the ERP system. They are the people who benefit the most from the properly implemented ERP system. They will have all the information they need at their fingertips for making informed decisions. The quality of the decisions and the speed with which the decisions are made are dramatically improved as the ERP systems provide high-quality, timely and relevant information. But every employee in an organization benefits from the ERP system. An ERP system gives the store clerk access to the inventory record and enables him to find out the exact quality of an item. It allows the production supervisor to plan his activities. It allows all employees to apply for leave, get loads approved, gets the travel expenses reimbursed and so on.
  • But for making the best use of the information processing power of an ERP system the users should be trained on how to make the best use of the various features available. If people are ignorant about these, they will find it useless and if they are not properly trained, they will find the experience frustrating and tedious. These people will not use the ERP system or if forced will use it but not to its fullest potential. They will see ERP as a waste of time and do it just because they are forced to do it. This hostility towards ERP can be eliminated if the users are properly educated and make aware of the benefits of the ERP system.

ERP IS JUST FOR MANUFACTURING ORGANIZATIONS

  • This assumption is basically due to the way in which ERP was historically developed from the methods of Material Requirement Planning (MRP) and Manufacturing Resource Planning (MRP II), which are relevant to manufacturing organizations. In the manufacturing industry, MRP became the fundamental concept of production management and control in mid 1970s. At this stage BoM (Bill of Materials), which is purchase order management that utilizes parts list management and parts development, was the prevailing trend.
  • And this concept unfolded from order inventory management of materials to plant and personnel planning and distribution planning, which in turn became MRP II. This incorporated financial account, human resource management functions, distribution management functions and management accounting functions and came to globally cover all areas of enterprise mainstay business and eventually came to be called ERP. But in reality the concept of enterprise-wide planning of resource is not limited to any particular segment of industry.

ERP IS JUST FOR ERP IMPLEMENTATION TEAM

  • The ERP implementation team usually consists of outside consultants, vendor representatives and select group of employees. But once the implementation and under training is over, the consultants and vendor representatives will leave. Then it is the responsibility of each and every employee of the company to use the ERP system properly and to make the best use of the new features and facilities.

ERP IS JUST TO IMPRESS CUSTOMERS

  •  It is true that a properly implemented ERP system can help in serving the customers better as it helps the organizations to react faster, respond better and deliver high-quality products and services at astonishing speeds. This improved efficiency and quality will go a long way in improving customer goodwill and customer relations. So with an ERP system you get more satisfied customers, but that is only one of the advantages of an ERP system.

ERP PACKAGE WILL TAKE CARE OF EVERYTHING

  •  ERP is not a silver bullet or a cure-all. Yes, a properly implemented, operated and maintained ERP system can dramatically improve productivity, automate tasks, reduce wastage and improve profits. But an ERP system needs people to operate, use and maintain it. If the employees are not interested in using the ERP system or are using it improperly, if managers are not making use of the decision-making capabilities of the system or if the system is not maintained properly, then the ERP will not deliver it promises.
  •  It is a fact that the ERP tools have evolved over-time and have now become very sophisticated. Today’s ERP tools automate most business function and processes thus making the lives of the users a lot easier. But thinking that the ERP tools will take care of everything can be a recipe for disaster. There are many business activities that need human intervention and judgment. While the ERP tools make these jobs easier, there is no substitute for human intelligence and decision-making.

Also Read – Construction Management ERP

ONE ERP PACKAGE WILL SUIT EVERYBODY

  •  There are hundreds of ERP tools available in the marketplace. These tools differ in features, capabilities, size, functionality, price, technical support, customizability, scalability etc. The organizations are also different from one another. Each has its own characteristics and identity. Assuming that one tool will be suitable for all organization is wrong. Selecting and purchasing an ERP tool without analyzing whether it is suited for the organization will have disastrous consequences.
  •  For an ERP implementation to be successful, the tool that is implemented should be compatible with organizational culture, practices and procedures. So when purchasing an ERP package proper attention should be given to the selection of a tool that is best suited for the organization.

ERP IS VERY EXPENSIVE

  • ERP packages come in all shapes and sizes. The sophisticated and high-end ERP tools are very expensive. ERP system needs people to manage it. Thus implementing and managing an ERP system is an expensive affair. But these expenses should be weighed against the benefits of the ERP system.
  •  An efficient ERP system will increase the productivity of the human resources, shorten development and change cycles, streamline the production process, reduce errors by automating the monotonous and repetitive tasks, enable the better management of projects by providing quality information, improve customer satisfaction by resolving problems quickly and so on. When the benefits of the ERP system are considered, it becomes evident that the money spend on ERP is well spent and the ERP system will pay for itself.

ORGANIZATION CAN SUCCEED WITHOUT ERP

  •  Before the advent of ERP, organizations were run manually. So, do we need ERP in order to succeed? If an organization is very small in size, caters to the niche market and has very limited scope, then it can sometimes succeed without ERP. But today’s organizations are becoming large and the products are becoming more and more complex in size, sophistication and technologies used. Also, a single group does not necessarily build the different components of a product.
  • This is the era of multi-site, distributed production, where different groups situated in different parts of the world develop the components of a system. In such a scenario, managing the activities of an organization is a very complex task. If proper control mechanisms and procedures are not in place, very soon the operations can get out of control and products and organizations can fail.

Also Read – ERP for packaging industry

eresource: A scalable, flexible and affordable ERP solution for SMEs

eresource: A scalable, flexible and affordable ERP solution for SMEs

FOR any organization, success depends on having the ability to keep pace with rapidly changing customer and industry demands and execute in a short amount of time, the ability to quickly seize new opportunities and the ERP flexibility to achieve sustainable business growth.

Today small and mid-size enterprises (SMEs) are facing greater competition than ever across diverse industries. With the increasing power of large rivals in some segments and the pricing pressure and they have a critical need to optimize business processes, cut operational costs and improve customer acquisition and retention rates.

With the complexity and global reach of today’s business environment, SMEs are also under increased pressure to monitor business processes and financial operations more closely. Stricter accounting and corporate governance requirements intensify this challenge thus, placing growing pressure on businesses of all sizes for greater transparency, timeliness and accuracy in reporting and managerial control.

Small and mid-size enterprises are recognizing integrated business management solutions as essential for growth, scalability and keeping up with competitors as the solutions become more affordable, easy-to-implement and adept at addressing industry-specific business processes.

While choosing their software solutions, SMEs must balance their long-term needs for innovative solutions to drive the next level of growth with their existing resources and short-term trends for quick return on investment, low-cost of ownership and minimum disruption to current operations. Many SEMs must also ensure integration into their corporate and partner/supplier ecosystems, often requiring the complete replacement of legacy systems.

eresource ERP solution for SMEs providing vertical and micro-vertical solutions has nearly half of its software implemented in the SME sector. Monitored through a highly qualified implementation team, eresource ERP solution is affordable, easy-to-deploy and proven business solutions to better meet the needs of customers across diverse industries.

The integrated and cost-effective eresource ERP solution allows small and mid-size companies to maintain, a low total cost of ownership and the scalability and the flexibility to support current and future business needs.

Also Read – ERP for electronics

Workshop on ERP to guide how to run a successful Business

Workshop on ERP to guide how to run a successful Business

We have, time and again emphasized the importance of having ERP system to run businesses in successful way in today’s competitive economic market. As there are number of big and small vendors in the Indian ERP market, selection of a proper system that suits your business needs are very important. To place the matter straight forward, what the decision makers must understand is having an ERP system just can’t help your business process. What is important is which system you have implemented.

A rightfully conducted ERP workshop could provide you the guidelines of what your requirements and expectations should be, including hands-on experience with the most successful ERP software in India available today.

ERP workshop can also empower CEOs, COOs, CFOs, accountants, controllers, business owners and key decision-makers with ERP technology concepts.

CRM or Customer Relationship Management, the backbone of any business has been integrated as an important module in the ERP system. Sales and marketing teams from companies can benefit from attending the workshop that will help them gain knowledge in marketing plans. The knowledge gained through from workshop can put into practice by the sales or marketing team with the approach to the customers that could help improve your revenue and market share growth and minimize expenses – all of which leads to higher profitability. The workshop will also debate on all areas of an ERP system, its advantages and disadvantages.

When it comes to benefits of ERP there are many arenas which are unknown to many. ERP expects boundary-less flat organization structure where every employee is a decision maker and not a mere follower. Secondly, the decision-making must be scientific than based on ‘gut feel’. Thirdly, ERP assumes that the user has an in-depth knowledge of the process he is associated with. He has to work in a team as a key resource element. The objective of the user is to pass maximum value to the customer than to create his own convenience. The user must be analytical in his thinking and be able to use information generated through data iterations for more effective and informed decisions.

ERP system will work successfully if the users are training to handle the system to the optimum usage. Proper training makes the users fully equipped with handling of the system independently and this will contribute the success of all the business operations.

The solution provider must pay attention while providing training to the user in the right manner. To become a good user, one has to get trained and trained well, and later self trained. But what is the disappointing factor is most of the ERP training in India is more of software training rather than going deeply into the functionality and technicality of the ERP system. Normally the user is shown various screens of the ERP system and taught how to enter what he was doing previously.

The trainer must explain to the user why he should enter there, what are the repercussions of his entries in other modules, how to use the best out of multiple settings, why a particular setting is made like that, etc. In fact, the reality that every entry is the financial entry and ultimately gets posted into General Ledger and posted in turn into Profit & Loss Account or Balance Sheet is never realized by the user during training or even after implementation. This feel of responsibility is extremely essential for the user to become a mature ERP user.

To enhance the interest of users Indian ERP companies must make a point of user training, focusing on ERP functionalities and not merely on tools for ERP. Ideally, the training session should be designed to cater to individual needs and hence carefully planned. ERP workshop will have a separate session to discuss and elaborate the training method of ERP extensively.

Also Read – Construction erp in uae

eresource Tracks Business Activities across the Organization

It is common for all vendors and consultants to say that their products are the best. But when eresource makes such a claim it holds a concrete evidence to support that claim. The commendable feature of web-based ERP is that employees enter information only once and that information is then available to all systems company-wide. Business activities across the organization is tracked or triggered by the eresource ERP are also automatically captured in the enterprise’s general ledger, without the risk of re-entry errors. This means everyone in the company can make decisions based on accurate, real-time information.

eresource ERP system manages everything from order capture to accounting and procurement to warehousing. eresource makes timely changes in their modules with the requirement and its functionality has grown in both breadth and depth to suit small to large scale industries. As companies integrate business units through consolidation, shared services, or global operations, their IT ability also to be stretched to support these changes. With eresource ERP’s broad functionality, any organization can replace much of their legacy systems. eresource ERP is capable of providing better support for these new business structures and strategies.

An efficient and completely integrated web-based ERP system like eresource ERP could capture and create accurate, consistent and timely relevant data, and assist in intelligent business decision-making. The effect of ERP/e-Business integration is will be clearly visible. The result will be reflected in every level of operations, ranging from reduced inventory and personnel level to improved order and cash management. It can also result in improved customer responsiveness, reduced IT costs and the availability for value-added activities.

Also read – ERP for Plastic industry

Benefits of eresource ERP

With eresource ERP customer orders can be handled easily and efficiently on a time-bound basis. Like when a customer service agent receives a phone call from an existing customer the agent can quickly locates the customer’s account, records the order details, prices the order, and checks the availability date. The customer confirms the order details and the agent books the order. That single entry triggers everything from allocation of the finished product against the order to delivery and billing. That is, based on existing demand and allocation rules, eresource ERP system will determine whether the product should come from current finished goods in a warehouse, in-process goods, scheduled production, or new production. It will set the order up for shipment based on information from either the customer or the customer master record, and, once the order is shipped, prepare an invoice and an accounts receivable entry.

However, along with efficient customer handling method, organizations must also have operational efficiency to succeed in business process. Because just keeping customers happy and offering personalized service will not have any effect if the operating efficiency of the company is poor. In order to improve efficiency and to have better information integration, companies should have an effective Web-enabled ERP system in place. There is no doubt that an efficient and well-implemented ERP system like eresource ERP can raise the productivity to unprecedented levels.

Also read – construction erp software in uae

eresource penetrates Indian ERP market

Indian ERP Market

eresource ERP helping many small and medium business enterprises in India gain maximum benefits from its ERP implementation and also edge over their competitors by successfully integrating its key business operations.

eresource ERP system links the sales, purchase, manufacturing, order, inventory, supply chain and warehouse management modules in an enterprise for fast and accurate information access to every single person. This is because every single operation and action taken at any place by any person depends on consistent and updated information. Whatever a person required can be immediately accessed by him provided he has the legitimate access to the system.

ERP Modules at a glance

The integration of the business processes improves coordination between bodies, streamlines workflows and processes and benefits them in terms of retaining and satisfying customers by delivering their orders ‘on dot’. eresource ERP also helps keeping the customer informed about their orders’ current status rather than keeping them waiting for information. eresource ERP makes an organization more time-sensitive.

The manufacturing enterprises can also benefit of better marketing opportunities through eresource ERP.  It also penetrates section-wise to addresses solutions to many shortcomings existing in an organization.

eresource ERP also further enhance the decision making by highlighting future projections about sales during a certain period of a certain product. It helps the management take appropriate decision on the production plan and also helps the executives to introduce new value added features to the existing product. This way the product quality could be checked on time which will enhance the sales process.

Listing of benefits from eresource ERP also includes reduced inventory costs by better planning and forecasting of requirements. Ultimately eresource ERP system helps getting higher return on investments (ROI) quickly.

Finally, there are no two opinions that ERP system has a great importance and it has become the need of the hour for the survival of organizations especially in the manufacturing sector. Irrespective of their strength, whether they are the big players in the field or the SMEs, their success will depend on the way they are dealing with the current business process environment. With this note we would like to remind them that an ERP system is part and parcel of that successful formula.

eresource ERP for Manufacturing industry consists of following modules.

Sales and Distribution Management

This Module comprises of Contact Management and Sales Order Processing Management. It is an integrated solution comprising of marketing and sales activities. Organization can act immediately to improve sales, service and marketing effectiveness by using this Module. eresource Sales Management module is all about retaining customers, improving customer loyalty and gaining customer insight

Purchase Management Module

Purchase Management module in eresource ERP streamlines procurement of required raw materials, packaging material, sub assembly and other non-inventory materials. It automates the processes of identifying potential suppliers, Supplier Evaluation, Supplier Quote Evaluation, awarding purchase order to the supplier, and billing processes. Purchase module is tightly integrated with the inventory control and production planning modules.

Manufacturing, Planning and Control

Manufacturing, Planning and Control Module in eresource ERP optimizes the utilization of manufacturing capacity, parts, components and material resources using historical production data and sales forecasting.

Total Quality Management Module

eresource ERP Quality Control Module not only monitors quality by control plans in purchasing and manufacturing but also provides real-time process capability index for quick review. Quality Control in eresource facilities are versatile and offer support for every phase of your operations, from receipt and acceptance of raw materials, through production of intermediates, to inspections of finished goods before shipment to customers.

Inventory and Material Management

Inventory Management Module in eresource ERP provides a powerful and flexible set of features to help you manage and report your inventory information. eresource Inventory Management facilitates processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory control involves in identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.

Plant and Machine Maintenance

The time has changed, machine breakdown and idle repair is no more accepted practice. The plant maintenance module in eresource ERP provides an integrated solution for supporting the operational efficiency. The plant maintenance module covers all equipment / machines of the plant.

Excise Management

The Excise module in eresource ERP will enable the organization to ensure Excise compliance to manage all transactions of Sales, Purchase, Production, Warehouse Transfer etc., This module will help the organization fulfill its statutory requirements according to latest government regulations.

Human Resource Management

Human Resource module in eresource ERP streamlines the management of human resources and human capitals. It comprises of four broad sections, mainly Training, Recruitment, Payroll and Attendance. HR module in eresource routinely maintains a complete employee database including contact information, salary details, attendance, performance evaluation and promotion of all employees.

Finance Resource Management

Finance Resource Management in eresource ERP gathers financial data from various functional departments and generates valuable financial reports such as Balance Sheet, Trial balance, General Ledgers, Quarterly Financial Reports, Account Statements, Gross Profit Analysis, Cost Center wise Analysis, Branch wise Profit Analysis, profitability report, Asset and Depreciation Management, Tax Management, ABC Analysis and many more.

Also read – erp for trading company

eresource ERP implementation and Return on Investment

ERP implementation and ROI it is not only the successful implementation of ERP is the prime objective of eresource project management team, but also to help achieve a return on investment (ROI) in the shortest possible time. Return on investment does not just imply in terms of financial gain. It can be in terms of the growth in productivity, efficiency, or in terms of overall improvement in the performance of the company or even to the extent of better transparency in the operations being carried out by the firm and of course, the satisfaction of the users.

eresource ERP implementation also results in bringing together various sections of the organization like personnel, material and processes. This may help change the organization’s working culture.

Also Read – Construction ERP Software in UAE

Issues in ERP implementation

Every organization has its own cultural or organizational structure. In this situation, it is natural for them to be sceptical about ERP, since it is felt that their businesses are unique, organizations varying and cultures different. However, there is no need of such concern as eresource ERP package has been designed and is being continually upgraded to incorporate the best industry practices to suit most industry segments.

With thorough and dedicated BRP study and adapting those changes in the business process well before implementing the eresource ERP shall help make things smoother. It is therefore recommended that this methodology is followed; otherwise there is chance that most of the time users are left frustrated. This leads to poor participation and costly delays.

It is important to understand that an ERP packages not necessarily fit in completely with the existing business practices of most organizations and hence, the onus is on the users to appreciate this fact and to work with the implementation consultants in trying to adapt to the package. In doing so, they don’t have to feel that they are compromising on their business effectiveness; rather, by accepting the package, they are adopting the best of breed business practices and ensuring the successful implementation of new system.

Also Read – ERP Software Company in India

The other important factor is that the users do not expect a reduction in their workload immediately after the implementation of ERP and should not look for a miracle to happen. An ERP package is only an enabling tool and improves the flow of information and formalizes all the business processes and workflow that exists in an organization. It helps users to do their jobs better, which may call for additional efforts.

If one has to have more information in a system, it entails more work for more users, but the benefit is that this information is properly stored and can be fruitfully uses by other users in making better decisions. As the flow of information throughout the organization improves, the company starts performing better and this in turn benefits the users who have collectively improved their way of working. The package design and the architecture facilitate the availability of information to all authorized users in a useful way.

Also Read – Manufacturing ERP Software in UAE

Complex payroll software made easy

eresource ERP Payroll Software:

eresource ERP for Human Resource Management is a suite of integrated solution, designed to facilitate HR operations by reducing time-intensive administrative tasks and lowering costs by deploying self-service applications.

This module equipped with a complete payroll solution. This simple to use, web-based ERP package can handle complex payroll requirements. eresource ERP payroll software consists of Salary management, statutory reporting and attendance management for salary calculation.

eresource ERP solution offers many different sub-systems under the HR module. Listed below are some of the most common sub systems.

  • Personnel Management: The personnel management comprises of HR master-data, personnel administration, recruitment and salary administration.
  • Organizational Management: Organizational management includes, organizational structure, staffing schedules & job description.
  • Payroll System: Salary management, statutory reporting, attendance management for salary calculation.
  • Time Management: Time management includes shift planning, time recording, absence & leave management.
  • Personal Development: This section comprises of training and event management, additional training determination and training assessment.

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Indian ERP market sees high growth

Indian ERP Market growth – ERP has changed the way businesses were conducted in India. More and more organizations are implementing ERP solution. Integrated ERP solutions optimize resource utilization by providing up-to-the-minute information on demand for quick decision making.

Industries that successfully implement ERP can enjoy an overall cost reduction for business, an increase in per capita productivity, quick response times, lower inventory levels, and better customer orientation, all of which lead to higher customer satisfaction.

ERP implementation has also helped many organizations in India achieve great improvement in their management and operational control. ERP, which is much more than computer software, has changed functioning of the business environment in India and ERP solution is becoming indispensable in today’s business set up.

India’s economic growth, in terms with the country’s exposure to intense global competition, has demanded the necessity for the implementation of ERP; of course, certain operational, financial, and psychological resources are required to satisfy these needs. Earlier, the majority of ERP systems have been focused on larger establishments. It was due to the high cost involved in the implementation of ERP system.

With the introduction of low-cost ERP systems such as eresource ERP the smaller organizations also started benefiting from the advantages of this enormous business solution.

As the Indian market seems to be very encouraging for ERP implementation, the organizations must pay attention to the time-frame deployment. The structured implementation programme can speed up system deployment and return on investment. (Read: eresource ERP’s On-Time Implementation).

Though there are many big companies yet to implement ERP system, it can be assumed that that they will go for it in a near future. That will surely lift the Indian ERP market growth rate somewhere near the industrial growth rate.

Automotive, Steel, Consumer Durables, Engineering and Manufacturing industries have shown a very high ERP penetration, which shows that these industries represent the greatest potential market in the coming days and we are optimistic that others will follow.

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Changing Indian ERP Scenario

ERP Market in India

ERP Market growth in recent times, the ERP scenario in India is witnessing a rapid growth. A number of manufacturing firms, automotive, steel, oil, textile and pharmaceutical companies have already been implemented ERP solution thus making ERP dominating the overall picture in these organizations.

For the early adopters of ERP solution, Finance and Accounting, Sales and Distribution, Materials Management/Purchase, and Manufacturing are the most popular ERP modules implemented. In recent times Plant Maintenance, HR, Transportation and Service modules are also growing in popularity.

We find different industrial sectors like cement sector, power sector, and food sector are going for ERP solutions. The construction or project companies have also implemented different ERP solutions suitable to their needs.

Currently, the SME segment in India has been one of the most aggressive adopters of ERP software. In fact almost 60 per cent companies in the SME segment have already implemented ERP. This substantial increase in the penetration level in the SME segment is attributed to the introduction of low cost ERP solutions such as eresource ERP which also caters the country-specific localizations and availability of large pool of skilled functional and technical talents.

The primal objectives that the SMEs have for switching to ERP is to get aid in smooth inventory management, timely scheduling of production cycles and shipment of goods, managing human resources and online data communication.

According to estimates, the ERP market in India has witnessed a growth rate of 70 per cent in the last decade. As a result, the market has leapfrogged over the years to a tremendous volume in terms of monetary gains. There were many reports which underlined the tangible quantitative benefits accrued by Indian companies in post-ERP implementation era.

Most of the time these benefits are difficult to prove on statistical grounds as soft benefits like comfort in work life, maturity in planning, attitude changes, transparency, visibility etc are either practically impossible to measure or correlate such improvements to ERP implementation. Companies are supposed to set their objectives prior to implementation followed by measuring of the achievements after implementation, and only then should they conclude about the effects of ERP.

Call +91 77389 72222 or Email us at info@eresourceinfotech.com for FREE Online ERP Software demo!

Demand grows for ERP solution

Demand grows for ERP there is no doubt that the Enterprise Resource Planning (ERP) systems are in great demand today. Industry analysts are forecasting growth rates of more than 30% for at least the next five years. According to a study conducted on ERP solution, corporate growth has been indicated as the most compelling driver for adoption of ERP amongst senior management respondents.

Improved customer service, efficient distribution system, and reduced operation expenses are some of the other important business imperatives that are driving top management to implement ERP solutions. Majority of CEOs/Senior managers share the same view that ERP is an important tool to achieve competitive advantage.

Following are some of the major factors of ERP popularity.

  • ERP enables improved business performance through cycle time reduction. Cycle time is the time available at each station for the performance of the work allocated or the time elapsing between completed units coming of an assembly line. It also helps in increased business agility, inventory reduction and order fulfillment improvement.
  • ERP supports business growth requirements through new products/product lines, new customers, global requirements including multiple languages and currencies.
  • ERP provides flexible, integrated, real-time decision support in improving responsiveness across the organization.
  • ERP eliminates the limitations of the legacy system such as fragmentation of data and process, inflexibility to change and insupportable technologies.
  • ERP takes advantage of the untapped mid-market (medium size organizations) through increased functionality at a reasonable cost.

These are some of the reasons for the explosive growth rate of the ERP market. As more and more companies are entering into the market, the ERP solutions providers are facing a competitive market which brings out the best in them.

Initially the huge cost involved in the implementation of ERP solution has kept many medium scale industries away from it. However, with the introduction of affordable ERP solutions like eresource ERP, which is basically intended to serve the small and big players in the field alike, is bringing good benefit for Indian SMEs. This also contributed to the growth of ERP demand in the Indian market.

Also Read – ERP system for Construction Industry