The word ERP only brings the thought of a software in the common parlance but rather than being just a software, it is a software the helps you plan your resources - Enterprise Resource Planning. The resources that we use in any business are workforce, materials, services, and money right?
For using these resources very effectively efficiently and optimally we need a kind of information system which will help us to integrate information coming from each of these resources in such a manner that it aids the decision making process, for example maintaining Inventory.
A good ERP generates reports showing:
Let's take another example of say Production.
You have a certain line of production that is expected to give you a yield of say 96%. Which means you invest in a material of ₹100 you get finished product worth of ₹96/-
If you have an ERP in place, it can help you to verify whether there is optimum yield or whether the yield has gone down. You can control cost of production also you can control scrap in a very definitive manner.
Especially engineering industries, scrap is one of the biggest grey areas. If the management remains away from the production area how would you know how your supervisors or managers are handling this
• whether they are getting the right rate for the scrap
• whether only scrap is being sold or regular items are also being sold as scrap
All this information becomes available to you at the click of a button.
To have control of your operations without being physically present at the factory unit or at the office every single day, adopt every aspect of the ERP.
Today ERP software with cloud access are available at very reasonable prices. The real skill is to implement them right and in full.
For further guidance on choice of ERP and to know more, do connect with us.
Click here to watch our earlier business videos on our YouTube channel Maxentra
Links for all Business Articles: