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What is the reason for ERP market growth in India?

ERP market in India steadily growing for the last few years and the main reason for this enormous growth can be attributed to the inability of order system to manage the conversion to year 2000. There are also other factors such as industry best practices, easy and faster implementation and good cost predictions. Another factor behind the growth is that already existing clients acquire more licences and modules. The number of employees using the ERP system is increasing and the ERP clients who have started with the basic modules are going for subsequent applications. There is also a trend to replace customized system with standard application packages, like an ERP system. India is expected to present ERP suppliers an important marketplace as manufacturing companies are significantly investing in technology solutions to improve their manufacturing operations. According to observation made by some experts in the field, the ERP market started showing solid organic growth since 2004 as IT spending improved. The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2 during the period of 2004-2009. The market was $83 million in 2004, and is projected to be over $250 million in 2009, according to a research report. The report further clarifies that manufacturers in India are increasingly implementing ERP solutions to ensure that decision makers have the required information visibility across the value chain. Majority of Indian manufacturers are small by global standards, requiring easy-to-use ERP solutions to meet their specific process requirements, including localisation needs to address the continually evolving tax and statutory requirements. Small and medium enterprises across industry verticals and micro verticals, such as automotive, pharmaceuticals, and textiles, are leveraging ERP solutions to gain sustainable competitive advantages.

Finance Management
Irrespective of your business depth, whether it is stretched across the globe or locally focused, eresource ERP Financial Management module is tightly integrated all your business needs. Eresource ERP module comprises of material management to human resource to logistics. The financial module in eresource ERP provides financial functionality and analysis reports for different departments and cost centers. The financial module comprises of features such as Financial Accounting General Ledger Account Receivable Account payable Fixed Asset A/C Debut Note/ Credit Note/ Journal Entries Bank Reconciliation

Statutory & Regulatory Value added tax analysis & reporting TDS & service tax Excise

Enterprise Controlling Executive Information System Business Planning & budgeting Profit centre accounting

In addition, eresource ERP's financial accounting provides company-wide integration that is essential to strategic decision making. The financial accounting module in eresource ERP gives you the ability to centrally track financial accounting data within a single framework, of multiple companies, multiple branches and chart of accounts. Whatever the financial goals of your organization may have, the financial module of eresource ERP work hand-in-hand to improve the bottom-line. Finance Resource Management in eresource 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.

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. The major sub-system of plant maintenance module in eresource ERP comprises of: 1. 2. 3. 4. Preventive Maintenance Control Equipment Tracking Component Tracking Repair and spare parts maintenance warranty claim tracking.

The plant maintenance module in eresource ERP provides an integrated business reports. This reports help you to reduce the duration and cost of downtime. All maintenance tasks such as inspection, servicing and repair activities are saved in a historical database.

A module to improve your product quality

Quality Management
Quality Management in eresource ERP is 100% configurable module. This module allows a wide variety of characteristics and parameters to be specified in the stand inspection operation and maintain an extensive history to improve product quality and identify recurring problems. Eresource ERP Quality Management allows the quality department to define its own quality test cases required at different juncture of production, beginning from quality

check required during the inward of raw materials. Further Quality Characteristics, parameters and expected results, under each quality process check can be configured without any programming assistance. The material inspection sub system offers a wide range of capabilities for process supervision and control. These capabilities are fully integrated with the other modules such as purchasing, inventory management and shop floor control function to ensure that the right quality control procedures are followed. Capabilities include on-line maintenance of product specifications by production method and customer, event driven sample requests, sample log-in, test results entry; quality performance analysis and equipment calibration support is available in eresource ERP.

Inventory Management and Orders


Efficient inventory management should be able to rapidly respond to customer requirements; at the same time should be flexible enough to undertake any corrections when required, and do the so without adversely affecting operational efficiencies. The eresource ERP Inventory Management module offers effective features to minimize warehousing costs and to optimize storage needs in line with the requirements at hand. The eresource ERP inventory management module offers a host of advanced warehousing features such as modification, balancing, transfer, and reverse operations. Many features including management of multiple storage centers and locations, specialised inventory management features (serial numbers, batch tracking, and special stock), which are part of a diverse capability in inventory management, are included as standard functionality within the eresource ERP Inventory Management module. Inventory management within the eresource ERP system provides a high degree of flexibility for handling complex storage needs, and assures continuous update of warehouse inventory through multiple inventory methods and different types of auditing. All materials input and output transactions are fully automated due to the seamless integration with other associated modules within the system. This also enables efficient, prompt and trouble-free inventory transactions within enterprises. Keeping track of your stock The high level of integration found within the eresource ERP system provides end-users with the highest level of visibility into materials transactions within their enterprise, and assures the accuracy of the data relating to the inventory within the warehouse. Inventory management assumes significant importance in a highly integrated supply chain and the module facilitates accomplishment of organizational objectives including cost efficiency and enhanced customer loyalty by rendering superior visibility and streamlined processes

Purchasing Management

Eresource ERP is a flexible ERP solutions that match the way your business works. In today's world of globalization and price pressures, it is imperative that your ERP systems offer business-specific solutions with industry experience built in. This is true for discrete and process manufacturers and well as for distributors. Eresource ERP is an advanced, web-enabled Supply Chain Management and Execution solution. It is designed to reduce supply chain costs, reduce inventory and increase operational efficiencies. It delivers significant return on investment (ROI) by increasing supplier visibility, enabling inter-enterprise communication, and providing a high level of systems integration. Just reaching the supply chain isn't enough - taking advantage of the procurement methodology that best fits each commodity is a must. Eresource ERP gives you total flexibility to control each commodity based on how it is utilized and consumed, including discrete purchase orders, standard forecast, shipping schedules or supplier managed inventory.

A pill for growth

ERP for Pharmaceutical


With the introduction of cGMP compliant ERP solution, eresource ERP has been armed with highly regulated ERP solution for Pharmaceutical industry. With eresource ERP it has become easy to manage your business more effectively. You are aware that for any Pharmaceutical ERP, compliance with GMP & FDA requirement considered as prime importance. Though 21 CFR Part II has been launched, many companies yet to tackle its practical implementation. User-friendly Eresource ERP is compliant to all statutory regulation and it is quick to implement.

PHARMACEUTICAL ERP MODULES DEMO


Pharmaceutical Industry has been categorized under Batch Process Manufacturing. eresource ERP makes the process of forecasting simple. It is a powerful end-to-end business integration solution.

Benefits at a glance
It improves GMP compliance: SOP adherence, operator skill set qualification, activity dependency, less operator errors, accurate batch documentation It reduces operational costs and saves time: o o o o o o o less time is spent on entering, reviewing & approving data lower cycle times (less quarantine time) less on-hand inventory is needed with less inventory, less storage space is needed less time is needed to archive & store batch records less product waste is generated higher yield are obtained.

o it improves asset utilization (return on investment) o alerting capability helps to fix problems quickly It lowers paper archiving requirements: less storage, less people It improves product quality: by enabling people to respond more quickly to problems, the process control limits can be tightened; this enables the manufacture of drug ingredients or products more consistently (with less waste & higher yields) It enables people to focus on process improvement, not on compliance issues: people now have the opportunity to be empowered with continuous improvement or lean manufacturing initiatives It enables better decision-making: managers have visibility to real-time & accurate information (integration of all data into a common framework) Extensive reporting, workflow and online real-time capabilities Increased Operational Effectiveness & Productivity Timely and target information feedback system for decision support Improved Customer Support Improved batch tracking management

Efficiency
Eresource ERP is designed with operation efficiency in mind. Operational efficiency requires a system that addresses every aspect of your business. It helps to cut costs, enables quick market presence of the product, improve customer relation and comply with regulations.

Quality
Quality tops the priority list as far as any pharmaceutical company is concerned. Keeping this in mind, eresource ERP has been designed in unique style. Quality Control department with its integrated sophisticated Quality Control / Module which not only monitors quality by control plans in purchasing and production but also provides real-time process capability index for quick review.

ERP in India
SOME of the first Indian companies to have adopted ERP practices are HLL, ONGC, ESSAR, Godrej Soaps, Cadburys, BASF, Telco, Maruti Udyog Ltd., Century Rayon, Citibank, ACC, ANZ Grindlays, German Remedies, Blue Star, Mahindra & Mahindra, Rallis India, Sony India Pvt. Ltd., Ceat Ltd., Indal, Ford Motors, Kirloskar, Knoll Pharmaceuticals, and Glaxo. First tier companies (those with a turnover greater than Rs.10 billion) implement ERP to increase internal efficiency and external competitiveness. Once ERP is established at this level, these large companies begin to desire similarly increased efficiency from their suppliers. Hence, second tier companies are pressured to implement ERP, and a trickle-down effect ensues. Powered by the axiom that a chain is only as strong as its weakest link, Indian industry quickly has recognized that in order to work at maximum efficiency, ERP must be implemented at all levels. Initially, the majority of ERP solutions have been marketed to companies with greater than Rs. 2 billion, and generally, according to industry reports, the total cost of deploying ERP has ranged between 1 and 2 percent of companies' gross sales. Lower cost solutions are available for comparatively smaller sized companies. Though the market seems to be very encouraging for ERP implementation, the time-frame for deployment may be an issue. However, since many companies that have not yet implemented ERP are leaders in their markets, it reasonably can be assumed that they will go for it within next five years. In fact, the ERP market should grow at a rate somewhere near the industrial growth rate.

Some industry categories, such as Automotive, Steel, Consumer Durables, Engineering, and Textiles have shown a very high ERP penetration. This means that these categories represent the greatest potential markets in next two years - other industries will follow. Figure 1 illustrates the market across various industries. Survey of Industry ERP Implementations ERP implementations completed between 1995 and 1998 in India can give a sense of specific hurdles that companies may encounter in ERP deployment. Several companies were surveyed, and numerous ERP professionals were interviewed in order to assess the state of ERP in India. The results indicate that Indian companies are moving forward with ERP implementation primarily in response to thrusts from parent collaborators, to revamp in order to meet increased load, or to reduce lead times and inventory levels, and improve customer satisfaction. Resistance to change - in the form of fear of the unknown, reluctance to learn new techniques, or IT department reluctance to change due to attachment to its product - was a major hurdle faced during many ERP implementations. Additionally, the duplication required in the initial stage, and the intense pressure exerted on manpower proved to be problematic, as did the level of customization necessitated by disparities between company requirements and solutions offered by ERP software. This problem is diminishing due to advances in the software facility models. Cost overruns also proved to be a pervasive problem with ERP implementations. Since most consultants charge on a man-hour basis, project time overruns substantially inflate incurred costs. To avoid this problem, top management must develop the necessary commitment to ERP, and all employees should be prepared for the change before the ERP implementation process is started. This model should help to eliminate needless project time and cost ballooning. ERP in the Service Sector Transportation, medical care, hospitality, courier service, telecommunication, banking and financial services, and entertainment represent the major components of India's service sector, and on probing into the various needs of these groups, it becomes apparent that the courier, transportation, and entertainment industries do not have specific current needs for ERP. Banking and telecommunication each have very specialized requirements that the manufacturing-inclined software solutions on the market would not effectively address. The same holds true for the medical care and hospitality industries. The service sector has the potential to become an important ERP market within a few years. At this time ERP implementation in the services sector is very limited - only a few hospitals and banks have done small-scale experiments. New software and processes will need to be developed to meet the specific demands of the service industries, so ERP players should begin now to prepare themselves for the tremendous potential of this future market. Assessment The Indian economy has reached a level of maturity that demands advanced technology. Although the Indian agricultural sector has not yet mechanized and there is little potential need for agriculturebased ERP in the foreseeable future, the services sector offers a largely untapped potential. With the pace of developments in the services sector continuing at 7 percent, there is a large scope for ERP in these markets. Many Indian industries already have realized the need for ERP solutions, and the industry-related market growth should match the expansion of the sector as a whole. The maximum potential growth of the ERP market rests with companies that have a greater than Rs. 2 billion turnover, with smaller companies positioned to follow directly. India is developing its infrastructure, ERP manpower requirements can be met, and the Indian mindset is changing with the times. Certainly, if the national railways could computerize operations, ERP does not seem an insurmountable challenge. In fact, the Indian ERP market looks very much like a $7.5 billion opportunity that has decided to take the plunge.

ERP Concept
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 MRPII offers the "answer" to the economic and productivity troubles of manufacturing and service enterprises. Thus, the ERP system has become very popular as an enterprise management software tool. 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 software 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.

ERP Benefits: ERP helps 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.