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Web-based ERP can boost your business

Web-based ERP Software

Successful organizations are continuously modifying their methods in serving their clients which also increases their profit margin. To achieve this positive result, organizations have to intelligently integrate ERP system in their business management process. An effective ERP system gives the solid foundation to the supply chain which enables information; material and money automatically flow up and down the supply chain at high-speeds without any glitches.

Of late many of the organization consider Web-enabled ERP as their most important and strategic platform because it provides a solid foundation and information backbone for e-business. When a business application like an ERP system is enhanced with the e-business capability, i.e. making it a web-based e-business enabled ERP, they supercharge each other. e-business is the best vehicle to share business information with partners for creating major B2B synergies.

A fully integrated web-based ERP software will capture and create accurate, consistent and timely relevant data, and assist in intelligent business decision-making. The impact of ERP/e-Business integration is substantial, ranging from reduced inventory and personnel level to improved order and cash management. It also results in improved customer responsiveness, reduced IT costs and the availability for value-added activities.

A clear advantage of the web-based ERP software is that remote users like executives and sales representatives can access the company system with any browser, which is much more convenient than going through a laptop configured for Terminal Services. A quick and on-time implementation of the solution can be done on your existing configuration set up. That means you do not need to upgrade your network for Windows/Exchange Server and SQL Server database.

As you would have come across more suggestions on ERP, selecting the right one is crucial. The term “Hosted Solution” is rapidly catching up, on account of its own benefits. A web-hosted solution ensures a lower outlay and predictive spread of cost over time. You have a substantial saving in cost (on both the software and hardware, licensing) that can be better invested in your business process.

Web-based ERP removes your headache from the Investment made towards time and cost in the maintenance of the server & other hardware. When you go in for a web-based ERP, you can start using it from day one and can eliminate all trouble shooting and other related technical snags. Most of the hosted applications are like off-the-shelf software. The web-based ERP applications are available to you anywhere and at anytime from a simple browser.

Also Read – How construction ERP software is useful for civil work?

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Is your ERP system ripe for replacement?

What is the need of ERP software? Some may ask. The answer is not simple. Though we must understand that today there are lots of midsize companies face challenges specific to their industries. Businesses that make consumer product goods are concerned about regulations and reporting requirements, while public-sector organizations are worried about maintaining customer loyalty. Also, manufacturers are concerned about the commoditization of their products. A robust ERP package can help address these issues, as well.

Though some companies have already implemented an ERP there are still many who don’t have any of these systems. At the same time, it is also to be noted that many ERP implementations in the midmarket are quite mature and ripe for replacement.

Many midmarket companies must now also choose an ERP system on which to standardize after multiple systems were installed, perhaps through mergers, across the enterprise. Although it’s not necessary, midsize companies seem to prefer consolidating their business-management applications in one ERP package, at least in part to cut down on integration headaches.

Vendors are aggressively vying for customers, launching new ERP solutions designed to meet needs particular to the midmarket and pricing them to meet a midmarket company’s budget. To further entice midmarket customers, vendors are also developing vertical solutions that target certain industries, such as manufacturing, pharmaceuticals, fleet management and construction, with built-in functionality that cuts down on customization.

In an effort to simplify the notoriously difficult implementation process, vendors are also developing ERP systems that can be delivered in ways friendly to organizations with limited IT resources. Web-based ERP solution has become an ideal system for many of these mid-sized organizations as it is very cost-effective with easy implementation process.

There are some companies that may try to develop its own ERP system in-house. Since designing and implementing ERP systems is not the business of most companies, the systems developed by the team will never equal in quality, scope, functionality, or technology with those created by software firms. These software firms or ERP package vendors can produce sophisticated packages and provide their clients with products that allow them to maintain a focus on their own chief activities, thus improving revenues, profits and shareholder returns.

Thus, it always better to buy ERP packages ERP systems are getting better, bigger and have more features. Also, people who are specialized in developing such types of tools have developed them. Most of the tools would be customized to suit your needs. So unless and until your project or organization has a need that cannot be fulfilled by the available tools, it is better to buy the tools rather than make them.

Also Read – Live ERP Software Demo

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Live demo of ERP gives you a real picture

Benefits of Live demo of ERP Software Solution

The real picture of a proposed ERP product can become clear when the live demonstration of the product is given. The sincerity of the solution providers and efficiency of the product becomes evident in the live demonstration. The demo also makes it possible for both the parties to propose feasible modifications in the package. The credibility of the system can also be scrutinized here. Moreover, it acts as a cross check for the functionalities offered by the developers in the compliance of the product.

The top management and all the other people connected to an organization must realize that whatever be the reason for the changeover to an ERP system, i.e. technical or strategic, it is impossible to separate them, since they affect each other.

Also Read – Live ERP Software demo

Live demo of ERP is a better tool to understand the various integration/touch points and the participants could experience the different functionalities as well as they can also check for any shortcomings in the system which can be rectified as per their requirement.

It is usually better to get a brief about the product before seeing the demo, which can be obtained through the website of its developers. The time and method of the demo could be finalized by the demonstrator and let set their own sequence. Any doubts about the product can also be cleared in the demo stage. Demo scripts in the form of brochure or function details through the website are a better tool to present the demo as there is uniformity in the flow of the demo and the various integration/touch points among the different functionalities can be checked.

The workflow becomes clear during the demo, and users can have a feel of the proposed product at the demo itself. This will determine the acceptability of the product in the minds of the customer. The quality of the product also becomes clear at this stage.

Based upon the markings obtained in all the above-mentioned points, those products that cross the threshold mark get qualified to be evaluated. Before finalizing one more important point to be considered is the cost factor. Though all the products have its own price line, all developers may be willing to for a negotiation considering the competitive mindset existing in the market today. However, some developers of the product won’t alter the price tag, majority of them will agree to some climb down.

Once it has been agreed on technical and the terms and conditions in the financial front, a suitable product can be finally selected for the ERP implementation.

Also Read – What is the best ERP for the electronic manufacturing industry?

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Retaining customers makes perfect business sense

Customer loyalty has a powerful effect on the business bottom line. The dramatic economic power of customer retention is revealed when customers are viewed in terms of lifetime value. The value of retaining customers makes perfect business sense when one considers that a consumer retained for life is more cost-effective, requires less service, provides more business and contributes to new customer acquisition by offering positive referrals.

For the average business, studies indicate that repeat customers account for 70 per cent of total revenues. Thus, customer retention, creating longitudinal investment in customers, guarantees significant current and future economic benefit.

ERP integration enables businesses to better comprehend and thereby, better serve customers with each and every interaction. The ERP integration is not an easy task. The good news is that there are a growing number of solutions available. Before adopting a course of action there are a few common rules to follow. Firstly, make sure you understand the problem before you undertake the solution. ERP integration is a corporate-level problem requiring a corporate level strategy.

Also Read – ERP for civil engineering its role and benefits

Enterprises must consider the use of an ERP as an obligation instead of an option in order to be competitive. With old systems the information that comes from daily activities are difficult to handle. This will ultimately affect the relation the company has with its customers. Customer satisfaction is the most important element of a successful business and ERP plays an important role in fulfilling this commitment.

Everybody knows that communication improves relationship. Therefore it is important to understand that ERP can bring data from one area to another without any extra effort, and with almost no chance of mistakes. In addition to this, the information becomes available in real time. Therefore, by the time an order is entered, it can be prepared and invoiced at the same time. This helps a lot with customers as they always expect a quick response.

Organizations implementing ERP applications have to explore the areas of integrating these applications to the other enterprise applications. What approach to take will depend on the need for integration. Diverse tools and methods available in the market are evaluated and tested professionally before implementation. Organizations have to adopt very cautious approach while selecting these tools and methods to keep their leadership in the market.

In small organizations every department has its own needs, and they ask technical department to provide software capable of matching them. Sometimes this is provided from the outside through vendors, and it might not even exist. This is a common mistake happening with many small and mid-sized organizations. For an effective business process and customer relation management, it is necessary to have an efficient ERP system deployed in the organization and it must be done professionally to achieve the expected result in the terms of functional, technical and economical.

Also Read – How ERP system useful in pharmaceutical manufacturing industry?

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Adopt global best business practices

Adopt global best business practices

Best practice is the process of finding and using ideas and strategies from other companies and industries to improve performance in any given area. Business has used best practice bench marking over the decades and realized billions in savings and revenues in all areas of business operations and sales.

‘As-Is’ best practice addresses or includes the present practice followed by the specific company which is planning to implement the changes required to keep itself in the league of other top companies in the industry. This is done in all functional areas like HR, Operations, Finance, and Maintenance. etc.

‘To be’ best business practices are generally the best practices which exist in the industry and have been refined over a period of time. Companies should aim at adopting their industry specific best practices for their future benefit. Preventive maintenance, activity-based costing etc. are considered as best practices.

‘To be’ best practice includes some of the practices which are already adopted globally and are taken as industry standards for swiftly operating businesses in a competitive global scenario.

Also Read – Significant changes in business after using cloud ERP software

Some of the best practices that can be adopted are as follows:

Information Liquidity

Much like cash liquidity, the liquidity of information is a measure of business success. In a successful company, data flows smoothly and information is transformed into economic value. Information liquidity is obtained by integration of processes and systems at all levels. Integration should be the driving force behind design, methodology, development and deployment of all IT systems.

Availability

As most companies become more and more dependent on IT, it is very important to ensure the maximum availability of the eservices. This does not mean that all IT systems have to be absolutely flawless and foolproof, but good through has to be given to what could be the consequences for the company if all or part of the IT services are temporarily unavailable, and what can be done to minimize these consequences.

Agility

Market changes constantly and so does legislation and technology. It is said that the product life cycles and their time to reach the market are getting shorter and shorter. As a consequence, IT systems have to be built for maximum agility. Cross-compatibility, reuse and lightweight functionality are the ideas to be considered.

Costs

Especially in times of economic slowdown, the costs of IT are under constant scrutiny. Unfortunately, it is very difficult to quantify the benefits of IT in terms of money and it is relatively meaningless to approach IT investments singularly from an accountant’s point of view. These costs also have to be related to non-quantifiable benefits for the company.

Also Read – How ERP software is beneficial for pipe manufacturing industry

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ERP growth is skyrocketing

ERP growth is skyrocketing

Demand for Enterprise Resource Planning (ERP) solution growing day by day. Experts are forecasting a huge growth of demand for ERP mostly in mid-sized organizations. The demand is due to the specialty of an ERP system to manage the increased customer service, efficient distribution system and reduced operational costs. Majority of CEOs/Senior managers share the same view that ERP is an important tool to achieve competitive advantage.

The number of employees in an organization using the ERP system is increasing and organizations that have started with the basic modules are now expanding their system with subsequent applications. This is also another reason for the ERP growth. Another factor for the growth is many organizations replace customized system with standard application packages.

Most of the medium ERP vendors are targeting the mid-sized organizations. This is because many of the mid sized organizations are working with applications which are non-integrated and on disparate technology architectures, built in-house. This has resulted redundant technology, loss of support, non availability of critical information at the right time resulting in overall business loss. ERP vendors in India have found it an ideal market by exploring the SME segment. There are lot of demand persisted in this market, which on the other hand helped to growth the ERP market in substantially.

Also Read – How web based ERP software helps remote workers

Knowing that majority of Indian manufacturers are small by global standards and requiring easy-to-use ERP solutions to meet their specific process requirements, ERP vendors in India have come out with ideal solutions which can not only match their needs but also their budget. Now almost all small and medium enterprises across industry verticals and micro verticals, such as pharmaceuticals, chemicals, fleet management, automotive, modular kitchen, construction, infrastructure, and textiles, are leveraging ERP solutions to gain sustainable competitive advantages.

With the advent of on-demand deployment of ERP software and also web-enabled ERP solution, the user can access the software through license as a Web-based service. The increasing popularity of the web-based applications account for the ERP growth, as the enterprise resources are maintained by a service provider.

Growth factor also includes the competition prevailing in Indian ERP market. With the entry of international companies in the local market, the local vendors also steadied their products which are going to be a good sign as far as mid-sized organizations are concerned. Now they can find a wider market with ERP product suitable to their needs also in their limited budget. As the market is getting more competitive reliability and compatibility about the smaller players are unwanted. Today SMEs can choose the right ERP at their will with confidence which is, indeed a good sign.

Also Read – What are the future trends for a construction ERP software?

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Make your business process more efficient

Make your business process more efficient

Organizations must realize that after the implementation of an effective ERP system all of its process becomes more efficient. ERP system will help all the major decision making including retaining a client. However, the organization that plans to implement an ERP system must be well prepare to integrate the system effectively.

Organizations are advised to seek the help of an external consultant to find out how suitable is the organization when it comes to working with an ERP system. The external consultants are capable of evaluating and they identify the effective needs of the moment.

It is a good idea if the decision about an ERP project could be carried out by a team of professionals from both internal and external for a more adequate design. This is because the main aim is not just about purchasing software, but to order all the pieces to match with it. In most cases some internal processes need to be redesigned before implementing an ERP. In addition to this, software is often modified to fit the ERP according to the enterprise objectives and activities. The combination must be as perfect as possible.

Also Read – Top ERP Software solution for food industry

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 an ERP 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 solution 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. 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. There are numerous efficient ERP systems available in the market. 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”.

Also Read – The best ERP system for trading distribution business

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Selection of right ERP holds key to success

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 for Construction Industry

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ERP benefits the midmarket businesses

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

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Concept of ERP

Concept of ERP

In today’s competitive world many major companies have decided to use a popular tool that has evolved over the past few decades. ERP, the descendant of MRP II offers the “answer” to the economic and productivity troubles of manufacturing and service enterprises. Thus, understanding the basic concept of ERP software is very important.

In order for a software system to be considered ERP, it must provide an organization with functionality for two or more systems. While some ERP packages exist that only cover two functions for an organization (QuickBooks: Payroll & Accounting), most ERP systems cover several functions.

The term ERP originally referred to how a large organization planned to use organizational wide resources. In the past, ERP systems were used in larger more industrial types of companies. However, the use of ERP has changed and is extremely comprehensive, today the term can refer to any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost any type of organization – large or small.

ERP systems today can cover a wide range of functions and integrate them into one unified database. For instance, functions such as Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions were all once stand alone software applications, usually housed with their own database and network, can now fit under one umbrella

As in any integrated System or Unit, the performance of each one of the parts of an Enterprise has an impact in his cumulative performance results. Specifically, we can say that a 95% performance in independent vital enterprise elements (Item master, Bills of Materials, Production Master Schedule Adherence, Inventories Accuracy, Production Orders Accuracy and Purchase Orders Accuracy), will reflect a cumulative 75% in a ERP environment. This means a percentage of failure possible in productivity terms. Here is where we should support and combine this useful tool with a business strategy based on the desired administration tendency or theory.

On this sense, it is vital to note the point on administration before deciding which ERP solution is the one you will be using, you need to have solid administration principles (no matter which administration tendencies you decide to choose) and strong knowledge of ERP methodology.

This will translate into synergy between areas that will allow organizations to have highly effective processes with a continuous success. Only by creating a deep understanding of this philosophy you will have the certainty of obtaining the best results, as well as being in position to face and take proactive actions for any obstacle you could find in the road. If you have not this reference point, your efforts will deliver the wrong results.

Also Read – Best ERP Software for Manufacturing in India