ERP Application for Business Growth The latest reports shows that majority of the midsize organizations are using ERP to support a variety of business issues, including globalization, lean manufacturing, conducting e-business, consolidation, shared services, collaborating with suppliers and meeting the requirements of new customers. Further studies reveal that very few midsize companies that don’t already have an ERP implemented are facing numerous problems in their production and sales departments. For those businesses, the reasons to take a leap into ERP, which is largely considered necessary infrastructure for midsize companies, are many and compelling. Many midsize companies cited the availability of low-cost options; pressure from the parent company, suppliers or customers; “explosive” growth; compliance with regulatory requirements; and a “disastrous event” as factors convincing them of the value of ERP. Just implementing an ERP system alone wont’ do any miracles. To get the most benefits from an ERP application, an organization has to use it to its fullest capabilities. But surprisingly this is not happening with every case. Considering the expense of acquiring and deploying an ERP package, in most of the cases it is being underutilized. As per the available survey reports from the market, the average midsize company uses only about 11 out of 24 generic ERP modules, or approximately 72 % of the available functionality. Today the ERP market is sufficiently occupied with some effective and efficient ERP products apart from the more popular Oracle and SAP, that are dominating the market among large global companies. But it’s not an easy fight – several vendors that cater to the midmarket are entrenched, including Infor, Lawson Software, Epicor Software, QAD, Sage Software and Microsoft apart many others. On the other hand some of underplaying mid-market ERP vendors offers their business-management applications on a modular basis, so they usually can be deployed individually and integrated as more ERP modules are phased in. What is more important is the investment in ERP solution which should be planned efficiently. ERP is somewhat expensive, and the cost is highly variable depending on the organization. Company size, number of ERP users, the depth and breadth of purchased functionality, and the business benefits gained from the ERP deployment all contribute to the TCO (total cost of ownership) of an ERP package. As midmarket companies extend their reach into markets around the world, they require increasingly sophisticated systems to support and run their business. With ERP, they can use enterprise-grade technology as a competitive weapon, managing costs, introducing efficiencies throughout the supply chain and manufacturing processes, and streamlining and automating business processes across the organization. For some companies, ERP can mean the difference between success and failure. Also Read – Benefits of ERP Software in the pharma sector
ERP Selection How to select the ERP brand perhaps becomes difficult today. Most of the time budget was the main criteria for elimination round and then companies used to see the live customer list of ERP vendor. We can very well say that the ERP buying decision is like any other procurement decision. For example, when a buyer purchases bearing, normally he analyzes quality, cost, service and response time to choose the particular vendor. All these parameters were applied in ERP buying also. In fact, a few ERP vendors have come up with industry specific solutions, which, in the true sense, Is more of a marketing strategy than an operations specificity. Secondly, because of the very competitive environment and market saturation, ERP vendors have decreased their prices and hence the SME segment is also aspiring for such world-class solutions. While selecting the ERP brand, the focus should be the availability of the best practices or the world-class practices in the software. If we examine closely, we find various ERP products are strong in various functional modules. This strength could be in terms of availability of various planning opinions, tight control on orphan processes, excellent functions flow, easy and user-friendly reporting, graphical presentation, automatic routing through world-class valued added processes. The problem is how to know which ERP is strong where and how that will synergize the client’s business results. To solve the first question, to some extent, we can refer literature in the form of reports and articles. The commercial presentation of the ERP vendor and later discussions may help further. The commercial presentation of ERP vendor and later discussions may help further. The main question is which strength one should look for. This problem has to be handled with a detailed case study of the organization. From the strategic point of view, the organization has to understand the vital processes for the revenue impact as well as the bottom-line. Thus efforts should be directed to find the thrust area with proper reasoning. Accordingly, one can match the requirement with the strengths of ERP to proceed further. It is also observed that some clients go for multiple ERP products to get equipped with all the strengths available. ERP packages have different architectures, concepts and sets of functionality and they are designed to address a variety of user requirement. The marketing literature from ERP vendors will no doubt give the impression that their tool is just as good as any other. Such literature is valuable for giving the reader an overview of functionality and a glimpse at the differentiator for that vendor’s offering. But, if you compare the literature or listen to a vendor’s presentation, it would be very difficult to evaluate which package is the best or which would be most suitable for your organization. So if you go by what is written in the product brochure or what the salespeople say, you will find it very difficult to make a decision and might end up with the wrong choice. So ERP package selection is something that should be done on a systematic and scientific manner. While studying the history of ERP packages and finds out how each package evolved, it becomes evident that every ERP package grew out of the experience or opportunity of a group of people working in a specific business who created systems that could deal with certain business segments. It is generally accepted that most ERP packages are stronger in certain areas than in others and each one is trying hard to add functionality in areas where they have been lacking. So after the decision to go for an ERP package is taken, the company needs to develop the ERP selection criteria that will permit evaluation of all the available packages on the same scale. To choose the best system, the company should identify the system that meets the business needs, matches the business profile and identifies with the business practices of the company. It is impossible to get a system that will perform, exactly as the company does business, but the aim should be to get the system that has the least number of differences. Also Read – Best ERP Software In India
Businesses all around the world are increasing their reliance on ERP systems as a cost efficient alternative to their software applications. However, high cost involved in deployment of this marvelous technology prevents the small/mid size organizations enjoy the tremendous benefits of ERP. Since the introduction of an affordable, low-cost ERP from eresource ERP, many of the midmarket organizations also started to administer their businesses effectively using this latest technology. An ERP package should provide an organization with a solid foundation, incorporating all of the fundamental aspects of running a business. Expectations run high when an organization deploys an ERP package – if the solution is a good fit for the company, the company stands to gain tremendous cost savings and service improvements across the enterprise. Manual processes are automated, production scheduling is more efficiently managed and inventory is more accurately assessed. Also, business performance can be measured in a much more holistic fashion than ever before. This gives executives real-time visibility into all business processes, enabling them to make better strategic decisions. In short, with the right ERP package, a midmarket company can compete more aggressively in global markets. According to a survey an ERP implementation can reduce costs in three primary categories: inventory costs, manufacturing operating costs and administrative costs. The survey’s best-in-class respondents reported a 21 percent decrease in inventory costs, a 17 percent decrease in manufacturing operating costs and a 16 percent decrease in administrative costs. The average respondents’ reductions were 11 percent, 8 percent and 9 percent, respectively. Because an ERP solution has its fingers in all aspects of running a business, its benefits are myriad and go beyond tangible cost reductions. It can improve an organization’s customer service and response time when solving issues. It can solve issues of interoperability among multiple manufacturing locations. It can standardize and accelerate manufacturing processes in all of a company’s manufacturing sites. It can streamline a manufacturer’s order-fulfillment processes. It can facilitate connecting with ‘partners’ and ‘suppliers’ enterprise systems. ERP can even help an organization maintain compliance with government regulations, from hiring practices to environmental laws. Case studies done on specific ERP implementations reveal a variety of different business-specific benefits. One of the case studies revealed that by replacing legacy systems with an integrated ERP package, one travel-accessories manufacturer reduced its inventory levels by 30 percent, reduced its warehouse space requirements by 38 percent, improved its month-end close process by five days, reduced its DSO (Days Sales Outstanding) by 44 percent and increased sales by 100 percent without hiring new employees. Also Read – Best ERP Software for Construction Industry
Set targets and Budget Before ERP Implementation 1. Phased approach: It is important to break as ERP project down to manageable pieces by setting up pilot programs and short-term milestones. Depending on the IT experience, some organizations choose the easiest piece as the pilot project, while others may implement a mission-critical application first. The pilot project can both demonstrate the benefits of ERP and help gain hands-on ERP implementation experience. 2. Data conversion: Second generation ERP systems use relational database management systems (RDMBS) to store enterprise data. If large amounts of data are stored in other database systems or in different data formats, data conversion is a daunting task, which is often underestimated in ERP implementation. A two-hour data conversion task could be turned into a two-month effort as a result of the DBA group’s lack of technical experience and the management’s incompetence or ignorance. Also Read – Why is ERP system important for solar industry 3. Organization commitments: The involvement of ERP implementation goes far beyond the IT department to many other functional departments. The commitment and smooth coordination from all parties is the key to the success of ERP project. The commitments come from the understanding of how ERP can benefit each functional department. For example, if the warehouse staff is not completely sold on the benefits of the inventory control module, they may not input the kind of usage data that is essential to the project’s success. 4. Create partnership between your software vendor and your stakeholders: While this concept may seem obvious, it has been found that the vendor-client relationship is often contentious and sometimes outright hostile. This fact is particularly true if the organization is severely divided regarding the choice of vendor software. As problems arise during implementation, and they will arise, the blame game often begins. Before long, the project evolves into a standoff with neither vendor nor client willing to admit fault. A third-party project director or manager is often the best solution for this dilemma. This person can usually serve as an objective mediator to bring the parties together, finding solutions, rather than allowing the project to slow down to a crawl. Also Read – How ERP software is beneficial for pipe manufacturing industry 5. Sell, sell, and continue to sell the ERP to your stakeholders: Implementing ERP systems are extremely complex and take months or even years, to implement it. If your stakeholders understand the long-term benefits of the system, they are much more willing to accept any perceived temporary steps backward. 6. Build and leverage process expertise: Process focus is if anything, more important after going live since the company now has an even greater core of process expertise. Successful companies fully capitalize on this expertise and the power of ERP-enabled process. One way is by sending process experts from the implementation team back into the organization, or by having some serve at centers of excellence, some as key process performers and some as business managers. Successful companies never forget the point of the integrated enterprise – that it is not about ERP so much as it is about people involved in ERP-enabled processes. 7. Adequately resource your project: Ensure that replacements are in place to release key team participants. The people who do the daily work of running functional departments are the same people who will be essential to implementing an ERP system. No surprise. The people with the most knowledge will be needed for the majority of the project. Priorities will conflict between the demands of the office and demands of the project. The most effective solution we have seen is hiring or contracting with additional resources to serve as back-fill for key office personnel. Admittedly a new resource cannot do everything that an experienced resource normally does; however, the replacement can handle routine work and coordinate with the experienced person for critical decision. Also Read – How can ERP system help the cosmetic manufacturing process? 8. Define metrics and manage them: ERP systems are capable of producing dramatic productivity improvements if successfully implemented and properly operated. But expecting ERP to perform miracles will be asking for trouble. The management and employees should be made aware of the benefit so that there are no over expectations. If ERP is touted as a panacea, then there will be dissatisfaction and disappointment about it, which can lead to failure of the system. 9. Communicate and manage expectations at go-live: Many stakeholders in the organization expect the ERP to be an ‘everything for everybody’ solution. Even in the best-case scenario, this is rarely true. And inevitably, some functionality must often be re-scheduled into a post “go-live” phase. All of this combined could crate disillusionment with the new system. If the project teams are struggling to meet deadlines, they may have to make decisions on the functionality that needs to be delayed in order to meet the original “go-live” date and avoid delays. These decisions must be communicated and “sold” in the stakeholders to ensure expectations are effectively managed. The organization needs to know what will be in place at “go-live” and when they can expect the additional functionality. Read More – ERP Software In India
eresource ERP 360 – an Enterprise Solution that can take you to new business heights eresource ERP, one of India’s leading and award-winning Enterprise solutions is a web-based business software that is designed to benefit the entire workforce in your organization to work together smoothly and efficiently with one integrated system. eresource offers both Off The Shelf and industry-specific customisable applications to meet the exact requirement of customers’ business process and terminology. You can request for a LIVE DEMO of this economical, powerful and easily implementable web-based ERP system and feel how this application can be helpful to your organization. eresource, a ERP 360 system provides a lot of working freedom to organizations. Many major organizations as well as as small and medium companies are in our clients’ list. These companies have implemented eresource ERP system as a cost effective alternative to their manual procedures or their piecemeal software applications. Under-performed legacy system and cost-factor involving the customization of existing outdated ERP systems in many companies are making the business process a time consuming exercise and, in many cases, impractical. Also Read – ERP for Plastic industry Keeping with our practice of moving ahead with the changing technology environment, eresource applications are getting updated on on regular intervals. Our aim to provide industry-specific ERP system for every Industrial verticals are getting fulfilled with introduction of eresource Xcel, eresource nfra, eresource Life Science, eresource e-Trade, eresource 3GL and eresource WMS etc. We have also recently developed exclusive system for Accounts and Finance, HRMS, PMS and Excise etc. that are the products that have been placed under our Off The Shelf option. All our systems have been incorporated with triggers, alerts and workflow procedures that ensures operational efficiency for any business. Being a web-based ERP system, implementation is not a cucumbersome process like in many other ERP packages. All customer-specific functionality has been included in the system effectively. Although eresource ERP systems have been developed in keeping with the Small and Medium Enterprises in mind many large-scale organizations in India and in Middle Eastern countries are opting for eresource today. Also Read – How cloud based erp software help the construction industry? The prime reason why eresource is concentrating more on SMEs is that the SME segments are the ignored sector by the large players in the ERP market. However this attitude of big ERP players towards SME segment has helped ERP firms like eresource Infotech realise the need of an economical and reliable ERP system for this sector. And the result is the birth of one of the most flexible and affordable ERP software in India — that is eresource. It must be admitted that developing such a package was not easy. As everyone knows that meshing the specific needs of thousands of customers into a single coherent package was not that easy. But eresource’s top quality expert to sift through this mature package, incorporating a massive volume of functionality processes as required by the customer. Being a web-based ERP solution, eresource has simplified the implementation process and it brings efficient operational methods and return on investment (ROI). Also Read – ERP for automotive In spite of its benefits one of the most important factor to be remembered is that ERP is not a just another software application in your organization. The system involves every internal process and must be preceded by a reevaluation of every section together with its functions. It is also important to note that the ERP system will not change the management functioning on its own. You must keep in mind that it is an important and decisive tool, but in order to obtain a correct development you will have to decide carefully who is going to command it, as well as the way in which the data will be saved and how information will flow. Just implementing an ERP system alone won’t help the organization make any success. Though the effectiveness of an ERP system could be measured by the improvement in the ROI, the goal of measurement is not to measure; rather, it is to improve performance and processes are the point at which this can be best accomplished. A well-performed ERP system can be maintained till about 15-20 years. In the later stages the package will have old architecture. It will become very difficult to make changes in the program code without inflicting hazardous damage to the system’s stability. It is possible to give older systems a ‘facelift’ with modern tools. Also Read – Key benefits of ERP software for the food and beverage industry? Though those ‘facelift’ can extend the life cycle of the package for some years, they will certainly speed up the appearance of the useless codes. If your ERP system is under-performing, it is better to go for an overhaul of the system. Do the right evaluation as per your requirement and implement a suitable ERP system that could take your business success to new heights. As the saying goes – It is better late than never. Mail Us at sales@eresourceinfotech.com for Live ERP Software Demo
eresource Xcel ERP: The best ERP system for the manufacturing sector Manufacturing companies must address several critical strategic concerns if they wish to compete successfully in this rapidly evolving business climate. Manufacturers are under tremendous pressure from global competition to lower product costs while enhancing product quality and all other facets of customer service. The goal of eresource ERP is manufacturing excellence. Lean operations, just-in-time (JIT) manufacturing and materials control, engineer-to-order, configure-to-order, make-to-stock, and make-to-order are just a few of the manufacturing processes that are supported by embedded support and visibility throughout the operation. Why do we call it a next-generation ERP System? A Low Code/No Code ERP system with real-time data access, interactive and collaborative capabilities like online customer support and real-time analysis, and open access for all internal and external users are all features of the Xcel ERP system. Quicken the Production Process To meet the needs of every department and expedite all business activities, the system unifies all departments and functions inside a company into a single computer system. Minimal Outlay; Maximum Gain The system is involved in every facet of business operations, and its advantages extend beyond observable cost savings. An organization’s customer service can be enhanced by eresource Xcel. Benefits at a glance Modules that make your work easy ERP for construction: eresource Nfra An exclusive ERP for the infrastructure development sectors of architecture, construction, EPC, MEP, oil and gas, and others Low Code/No Code, Cloud-deployed web-based and compatible with all browsers, eresource nfra is a contemporary ERP solution built on the newest technological platform. Additionally, this application does not rely on any particular technology. As part of offering unique ERP solutions for different project-based industries, eresource nfra ERP has been developed. For the past two decades, eresource Infotech has provided its most dependable and effective ERP solution to all of the key industrial verticals. We now have an exclusive Low Code/No Code ERP package for project-based businesses, namely construction, infrastructure, EPC and MEP contractors, architects, oil and gas, and engineering automation firms, thanks to our recently established infrastructure. Project estimation is made easy Based on the corresponding quantities, separate estimates can be produced for every task. Activities that are prompted by the system help with estimation. Every activity can be classified as a distinct assembly. Each assembly has a bill of quantities, labour costs, and a completion timeline. Key Benefit eresource nfra has been incorporated into modules according to what best suits the technical capabilities and particular requirements of the centred-around projects business. Modules that make your work easy COMING UP: A periscope view of eresource ERP products (II): eresource eTrade and eresource 3GL FOR MORE INFORMATION and LIVE DEMO: Get in touch with us now: sales@eresourceinfotech.com Recent Posts-
ERP Application for Business Growth The latest reports shows that majority of the midsize organizations are using ERP to support a variety of business issues, including globalization, lean manufacturing, conducting e-business, consolidation, shared services, collaborating with suppliers and meeting the requirements of new customers. Further studies reveal that very few midsize companies that don’t already have an ERP implemented are facing numerous problems in their production and sales departments. For those businesses, the reasons to take a leap into ERP, which is largely considered necessary infrastructure for midsize companies, are many and compelling. Many midsize companies cited the availability of low-cost options; pressure from the parent company, suppliers or customers; “explosive” growth; compliance with regulatory requirements; and a “disastrous event” as factors convincing them of the value of ERP. Just implementing an ERP system alone wont’ do any miracles. To get the most benefits from an ERP application, an organization has to use it to its fullest capabilities. But surprisingly this is not happening with every case. Considering the expense of acquiring and deploying an ERP package, in most of the cases it is being underutilized. As per the available survey reports from the market, the average midsize company uses only about 11 out of 24 generic ERP modules, or approximately 72 % of the available functionality. Today the ERP market is sufficiently occupied with some effective and efficient ERP products apart from the more popular Oracle and SAP, that are dominating the market among large global companies. But it’s not an easy fight – several vendors that cater to the midmarket are entrenched, including Infor, Lawson Software, Epicor Software, QAD, Sage Software and Microsoft apart many others. On the other hand some of underplaying mid-market ERP vendors offers their business-management applications on a modular basis, so they usually can be deployed individually and integrated as more ERP modules are phased in. What is more important is the investment in ERP solution which should be planned efficiently. ERP is somewhat expensive, and the cost is highly variable depending on the organization. Company size, number of ERP users, the depth and breadth of purchased functionality, and the business benefits gained from the ERP deployment all contribute to the TCO (total cost of ownership) of an ERP package. As midmarket companies extend their reach into markets around the world, they require increasingly sophisticated systems to support and run their business. With ERP, they can use enterprise-grade technology as a competitive weapon, managing costs, introducing efficiencies throughout the supply chain and manufacturing processes, and streamlining and automating business processes across the organization. For some companies, ERP can mean the difference between success and failure. Also Read – Benefits of ERP Software in the pharma sector