Monday, July 25, 2011

Can organizations succeed without ERP system

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.

ERP training and education

All users of the ERP system should be trained properly in using the system to its fullest. Different groups of people in the company will have different training needs. Managers need more focus on the decision-making and analysis features of the system while the clerical staff need more focus on how to perform their jobs. But all the users must be trained in the ERP basics, overview of the system and its working, how an action by an employee triggers a host of events throughout the organization, how automation will help, what processes are changed and so on.

Educate everyone so that they understand what is going to be achieved with the new system. Additional education should include total quality management and change management strategies. Also the training sessions should be used to gain acceptance for the ERP system by dispelling the myths about ERP. When the employees do not understand what the new system is and what is supposed to do and how to operate it, they will not use it or use it incorrectly. This can lead to failure of the system. Best option is to train department managers in how to use the system and have them train the users.

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How accurate are sales forecasts

ONE should understand that the sales forecast is not exact but should be as accurate as one could reasonably expect for the business he/she is in and that, through measurement and correction of errors, the sales forecast accuracy is improving on a product by product basis.

It is mainly the job of planning, purchasing and production departments to be able to meet the sales forecast given this expected level of accuracy. However, it is not necessary to have an accurate forecast to plan and control your business; you do need everyone to work to an agreed forecast that is updated regularly with any significant changes.

Forecast accuracy also will depend on the historical business background you are in. If you are in a mature and stable business you should expect a reasonably accurate forecast. If the business is new and growing, the forecast will be less accurate. In either case the way to determine what your forecast accuracy should be is to start with the accuracy you have achieved in the past. This is the minimum starting point for forecast accuracy. If you do not have a formal forecasting process at the moment, you should start now.

Forecast accuracy should be measured in units of production not value unless there is no sensible unit of production (a company selling a service for instance). An important reason to measure forecast accuracy is to be better able to plan the future supply chain and value adds in factors such as selling price and even exchange rates into the forecast accuracy which do not affect the supply chain. Average selling price and exchange rate should be forecast as a separate exercise for financial planning.

Once you are measuring sales forecast accuracy, the next stage is to improve it. This is achieved by investigating any forecast errors outside the historical accuracy of the forecast.

Finally, the sales plan should be the date and quantity of shipments you expect your customer may require. If your customer requests products in line with the plan, but you are unable to ship that product, it is still a hit as far as plan accuracy is concerned. On the other hand, if your customer requests shipments on a different date from the plan it is a miss even if you could have shipped it according to the forecast plan.

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How ERP systems improve company's business performance

Enterprises Resource Planning (ERP) solution enables the task involved in performing a business process quickly and efficiently.

With ERP, when a customer service representative takes an order from a customer, he or she has all the necessary information to complete the order. Everyone else in the company sees the same computer screen and has access to the single database that holds the customer's new order. As and when a department completes their work with the order, it is automatically routed via the ERP system to the next department for the next process.

The order can be tracked any time of point by any department by logging into the system. The order process moves so quickly through the organization, and customers get their orders faster and with fewer errors than before. ERP can extent that application to the other major business process, such as employees' benefits or financial reporting.

The entire gamut of ERP activities are summarized below:

•ERP facilitates a company-wide integrated Information Systems covering all functional areas such as manufacturing, sales and distribution, accounts, payables, receivables, inventory, human resources. Etc.
•ERP integrates and automates most business processes and share information enterprise-wide in real-time, thereby improving customer service and the corporate image.
•ERP provides complete integration of the system not only across departments but also across companies under the same management.
•ERP bridges information gaps across a company and focuses on key issues such as productivity enhancement, customer service, cash management, inventory, quality control and prompt delivery. Etc.
•ERP is the solution for better project management.
•ERP provides business intelligence tools like decision support system, executive information system, reporting, data-mining, early-warning system, enabling people to make better decisions and improve business processes.
•ERP not only addresses the current requirements of the company but also provides an opportunity for improvement and refinement in the business process on a continuous process.

For more information kindly visit:

Please Contact us at:
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Why Indian ERP system best suited for Indian industries

Enterprise Resource Planning (ERP) Solution software should address all the needs of an enterprise within the social context of the country in which the enterprise operates. This would imply that the local accounting practices, locally applicable taxation laws are fully adhered to in implementing the various business processes.

Many imported ERP software systems must incorporate India specific features before implementation as per the specifications of its client, where as an Indian ERP solution has already been programmed to take care of the national industry's interest.

Another feature of an India-made ERP like eresource ERP software system is its design. It has been designed to cater the need of the Indian users with fully knowing their working environment and requirements.

Industries also consider easy accessibility to their solution providers while choosing the right ERP for their enterprises. It also to be noted that eresource Infotech serves all our customers equally, unlike some overseas vendors who have a strategy to serve only large clients.

Cost factor also stands as one of the reasons why Indian ERP solution is best suited for Indian industries. Many a time the huge cost involved in it scares away industries from implementing ERP solution, depriving the benefits the system could offer. To overcome this precarious scenario, eresource ERP has introduced an affordable ERP, keeping in mind the Indian industries, specially the small and medium scale enterprises.

For more information kindly visit:

Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Maharashtra, Tel: +91 22 25827692/+91 22 25828775/+91 22 65130234

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