The cost of ERP in India

Erp investment

Investing in Enterprise Resource Planning for your Business.

ERP- THE NEED OF THE HOUR!

 

It is January 2020 the onset of a new decade. With the changing times we all move forward and upgrade ourselves to the new. It is an affirmation that you are living your life and believe in growth as only dreams give birth to change. 

Like in many other fields, the global business processing is going through a renaissance where everyone speaks of automation and digitisation. An ERP streamlines daily business processing such as accounting, procurement, project management, risk management and compliance and supply chain operations. This system ties together a multitude of business activities and enables the flow of data between them.

We all know “Rome was not built in a day” and so can’t be for your business process digitisation. It involves a lot of research and strategies to make a major decision such as to choose your Enterprise Resource Planning solution provider. The most common factor that arises in our mind is the cost.

How much does it cost to implement ERP in India? 

For any business, budget and cost-effectiveness is the key to growth and success. Choosing a suitable ERP provider could make or break your organisation. The objective of this post is to guide you how to choose an ERP software that’s best fit for your budget and business type. Adopting an ERP solution is not an expense but a long time investment for your business. Investing in an ERP System is in most cases a one time decision and hence a little time spent in reviewing multiple software before making a choice is advisable.

Implementing ERP is NOT sky-high!

 

When implementing ERP solutions to expedite business transformation, the owner or the decision maker should have a clear insight of the needs of its business. If you are one of the entrepreneurs who have not yet created a checklist, it’s time you unwrap the implementation challenges that are unique to your business goals.

 

ERP solution providers like Expand ERP provide one to one consultation with customers who require in-depth knowledge regarding the software. We help businesses to understand the needs and customise the software completely according to the requirements. The authoritative members, project team members and stakeholders should be aware about the critical elements affecting an ERP implementation cost.

There are various elements that are to be considered for ERP implementation:

 

    1. Scalability: The cost of ERP increases with the number of users who will be using it in the company.Training costs of the users is also depending on the numbers.
    2. Licensing: Here, the choice is totally yours. It is not compulsory to invest in a software license outright.The ERP license can be paid by monthly subscription based model also. Depending on the budget and requirements,the ERP license may be temporary or perpetual. The maintenance agreement is charged as a percentage of the license.
    3. Totally customised: Every organisation is unique and ERP implementation requires a lot of alterations and transformations which should fit into the business structure. It is best to implement a totally customised software which caters to all your organization’s unique needs.
    4. Nature of Business: Depending on the type of business -small, mid-sized or large the ERP cost is determined. For micro/ small organisations the annual cost of ERP could be anything between 6000-10,000 INR, as it is mostly online and there is no investment cost involved. For mid-sized businesses (manufacturers and wholesalers), ERP implementation starts from Rs 1,20,000 a year. The large segment businesses need to consider a budget from Rs 5,00,000 onwards annually.

According to a report,only 23% of the companies implement vanilla ERP with zero customisations done.

  1. Cost of Infrastructure: According to the deployment option-(on-premise or on-cloud option) the cost of infrastructure is based. For the cloud-based option cost will be low as all data will be stored on cloud and no hardware needs to be purchased. Further, the cost will be lower as less IT technicians will be employed .
  2. Recurrent Cost: This varies from vendor to vendor as some solution providers charge less initially but increases the cost at renewal. On average the renewal cost of ERP is 10%-15% of the total software cost.There are always chances of upgradation charges which can vary from time to time.

SUPPORT IS THE KEY TO SUCCESS

Choosing the right ERP System for a business is not only a pricing decision. It is 80% about considering the after sales support and training abilities. Your vendor should provide training to new employees and also upgrade old ones. If you are a manufacturing business in India, Expand ERP has the advantage of Low pricing and Local support on Installation and training.

MONEY SAVED IS MONEY EARNED

Investing in an ERP for your manufacturing business can increase production efficiencies, reduces the time taken by the Customers to pay, avoids pilferage of Inventory and help you get the necessary data to make decisions quickly. Investing in the right software will increase your profitability and your ability to increase your production capacity phenomenally. With Expand ERP you can take your organisation to the next level even sooner than you imagine. If you want an accurate estimate for your project, be sure to accurately scope your project and account for some of the most overlooked costs. Our team members in Expand  can help you set realistic expectations that won’t scare executives nor get you fired for causing budget overruns.

What to keep in mind while scoping your business before ERP implementation?

 

  • Complications of your business: It is advisable to keep an unbiased analysis of how complex your business requirements are. Many businesses need an entire ERP software solution (human resource,supply-chain,inventory etc). Companies which have lesser complexities may require only point solutions such as CRM or Finance and Accounting.
  • Change managing activities: The focus should not remain in one direction but also on business process reengineering. Any change in your business process will add to your cost on ERP at a later stage.
  • Similar business overview: We recommend comparing and considering similar organisations ERP vendors and expenses and not set a benchmark to what a particular solution provider may have set for you.

 

The license fee and technician costs is just one side of the coin to view before implementation of ERP. You need to consider the broader aspects to ensure your software investment delivers value.

Some tips to control costs:

 

  1. Clear view and analysis of cost from vendor (ensure no hidden costs)
  2. Develop a project plan with detailed estimates
  3. Include change or unexpected costs
  4. Carefully strategies and wisely judge your vendor
  5. Prices can be negotiated

YOUR FRIEND IN NEED!

 

EXPAND ERP : FREEDOM PRICING

 

Expand Freedom Pricing has been created keeping your needs in mind. Our attractive pricing module gives absolute freedom to the fast growing manufacturers and exporters to take the decision of digital transition of their organisation with ease. 

    • Subscription based concept: Prices starting from INR 3300/- subscriber/month
      Freedom from all fringe costs.Subscription includes update,upgrade,service,remote support (phone support,ticket support,and screen share support), R&D and remote implementation.It also covers cloud service ,auto backup of data, data encryption all managed for you.

 

    • Concurrent User Advantage:
      Freedom of unlimited named user in multiple departments and amp; locations.All users in your organisation will have their own login credentials at no extra cost.

 

    • Freedom from Capex and Infrastructure investment so that you are at minimum risk exposure.Even for customisation it is billed only after customer satisfaction.

 

    • Freedom from any upfront cost.

 

  • Easy Pay- Freedom to choose from Annual (special pricing available) or quarterly subscription fee module on the first year.
  • Pay as you use Privilege: Freedom to pay as per your usage from the second year onwards.
  • Freedom to choose Implementation options (on-line/on-ground) and customisations as per your specific need and pay accordingly.

LIVE LIFE STRESS FREE!

 

Empower your organisation with Expand ERP and enjoy real-time visibility and complete control of your business. Grow your business to the next level with ease as our software does the hard work. With Expand ERP we guarantee you a complete stress free life. 

Please leave a comment below for any further enquiries or if this article has been of any value to you. To book a demo call…  (+91) 9007026542

Enterprise Resource Planning

business

Enterprise Resource Planning (ERP)

Expand ERP cloud provides you the best in its class ERP software to streamline your procure-to-sale processes. Expand ERP consists of Purchase Management, Sales and Billing Management, Customer Management, Vendor Management, Product Management, Financial Reporting, Account Management, Statutory Compliance and Inventory Management. Purchase Management automates key transactions and provides approval workflows. Sales and Billing Management helps you to eliminate bottlenecks and streamline your enterprise processes from sales quote to fulfillment, and timely invoicing to payment all in one ERP software. Customer Management helps to achieve short order cycle times, fast delivery, custom configurations, timely service, accurate invoices and hence a better Enterprise resource planning (ERP).

Vendor Management enables to efficiently manage supplier and vendor data to gain a competitive edge traditional ERP software. Product Management promotes integration and data exchange among all business users who interact with products. Financial Reporting empowers the finance department to record, organize, maintain and analyze data captured from all functional systems included in ERP. Account Management gives you a financial consolidation and reporting application which enables flexible, accurate and rapid reporting than traditional ERP software. Expand ERP Financials, a module within the ERP ensures that you make your tax submissions to the Indian government within statutory compliance’s.

Expand ERP offers a complete set of Inventory management that helps move inventory to the right place, time and cost all through one ERP solution. Expand ERP gives you an in-depth, real-time view into key supplier, inventory and shop floor performance indicators for better Enterprise resource planning (ERP).

When you add up these advantages, the value of Expand ERP is clear. With Expand ERP solution, employees have access to accurate information that enables them to make better enterprise decisions faster. ERP software also helps to eliminate redundant enterprise processes, lowering the overall business cost.

Because every company is unique, there’s no single indicator that says, “You need ERP now!” However, the companies that would benefit most from ERP software often face problems and frustrations.

Cloud technology an enabler in Manufacturing- Impact and Usage

industry
We are close to witnessing the next big industrial revolution, with prominent companies taking the major leap towards automation by implementing manufacturing ERP software. It is now becoming the mainstream where it is evaluative to deal away with limitations in IT structure once and for all; it signifies a rapid transformation of the manufacturing unit processes. Propitiously, cloud technology enables us to utilize the on demand computing power in scalable and flexible manner. Needless to say cloud technology in manufacturing cannot be treated as an option but an opportunity to explore.
Why cloud technology an enabler in manufacturing?
Cloud technology is not a panacea, but an enabler to enact other panaceas that were traditionally required for heavy computing. Today the inexorable advanced march of technology introduced us to cloud models specifically software for manufacturing industry with inbuilt services, infrastructure, and platform. Here manufacturers can select solution of their choices, further strategize migration in various stages, undoubtedly this is making cloud technology convenient and flexible option for the manufacturers. This enables the synchronization of data from multiple channels into one dashboard, eliminating the manual data transferring from multiple systems. Cloud technology improves synchronization of data by designating one point as the channel of information and enables access to it through smart devices.
Scepticism  vs. hesitancy 
Although cloud technology has gained massive tractions, out there is equally consistent hesitancy as well. Many surveys conducted on SaaS adoption namely in manufacturing and other industries follow the stated insights:
=> In general, 65% of the interviewee is unable to differentiate between single & multi-tenant SaaS architecture.
=> Within a decade SaaS based applications anticipate a growth of 20%-25% on manufacturing as well as distribution software.
=> A prominent advantage this incorporates is providing customers to quantify control over upgrades, consistent support for worldwide operations, and support for frequent and rapid upgrades.
Besides, there are people who are sceptic about the costs involved and perceived benefits in moving to the cloud. Overall, there is also hesitancy among the non technical people about the process of cloud implementations and the scope of manufacturing.
Clarity to eliminate hesitancy
As we know whenever there is hesitancy there is a scope of clarity, the manufacturers may need to transit the entire business operation processes, to go by the advice for cloud migration. This calls for ERP specialist for the smooth run. ExpandERP is one of the companies who offer extensive cloud technology for manufacturers.
Benefits of cloud-based ERP:
=> Instant data access globally.
=> Single platform to manage field services, sales, finance, operation and more.
=> Unique mechanism to capture high volumes of data.
=> Customized integration for business requirements and more.
However, 90% of manufacturers are using the cloud, more than 70% of cloud users stated that cloud technology has conclusively impacted their ability to meet customer demands across the globe, 45% says that cloud is a significant contributor to product introductions. If you think survey reports are not that important for you to take up, consider the following:
1. Deliver on Demand:
To meet your demand efficiently you will require an accurate anticipation of it. Taking a look at order history and further using it to create the forecast, here the forecast depends on demand and capacity planning- here the gap is can be easily noted. With cloud technology, you can share the same across the departments for necessary adjustments.
2. Control Shop Floor: 
Above real-time visibility, all manufacturing activity is captured in one database for preparing analysis across the globe. Regulating production is real-time refers to data driven quality management and high resolution traceability, thus allowing customers to better shop floor control and visibility of process alongside production.
3. Connect business:
Connected manufacturing is quite beneficial as it not only connect the devices, machines etc. on the shop floor but also to the top floor. This further allows the people in the unit to access data in order to improve their decision making scenarios.
Many manufacturers agreed that they sometimes failed to capture operation data, manufacturing ERP software enabled them to do so within the cloud. For some this has been the most scalable transformation in their business in how they work with suppliers, control their inventory, design products, manage quality, and deliver product on demand. This agility, control, and flexibility have seen the real game changer.

The Essential Features of an ERP for Manufacturing Industry

manufacturing industry

In case you are on the verge of taking a call on whether to implement an ERP system for your business or simply thinking in terms of up gradation of existing systems, it is easy to be bewildered by the plethora of options available. This holds true especially for ERP for Manufacturing Industry as this segment is catered to by a number of players.
 
 But all things not being equal, it is only natural that some ERPs will tend to suit your business activities more than others specifically when you consider particular fields in which the activity of manufacturing takes place. You need to pay attention to how the ERP looks after the control of production, how it enables adherence to stringent levels of quality. It should also effectively manage inventory and materials. Comparatively larger business may have a number of plants and operate from several sites. Do consider process manufacturing vis-à-vis discrete manufacturing. Your ERP needs to effectively govern all of these.
 
The manufacturing sector in India is projected to reach the US $1 trillion by the year 2025. It is expected that 25 to 30 % of the GDP of the country would come from manufacturing and would create about 90 million jobs. So, manufacturing is a sector that has a largepotential for your business. And to optimize your operations you need an ERP. Here are the essentials you want in such a software.
 
Shop Floor Control or Management
 
By virtue of shop floor control, you get a database of all the activities going on,on the shop floor in real-time. Such activities are inclusive of new work or work in progress and work that has already been completed. Throughout the variety of processes undergone during the manufacturing, you get real-time feedback that enables you to respond promptly to emerging issues.
 
MRP or Materials Planning and Costing
 
This lets you forecast or schedule products. It comes up with a comprehensive material plan which gives you detailed information on the quantity and the delivery schedule of all the necessary components.
EDI or Electronic Data Interchange
 
This digital process facilitates the invoicing processes, order entry and even goes to the extent of looking after the shipping notice process with granular precision. Conventional filings and forms in the paper medium are made obsolete. Transmission of data is made instantaneous rather than through the mail.
Management of Quality
 
By management of quality, manufacturers are able to keep an eye on the quality of products produced by the process of manufacturing.
 
Kanban or Lean
 
These terms refer to the system of communication that regulates the shop flow and keeps the production levels and customer demand in sync with each other.
 

Manufacturing ERP modules have numerous features that cater to the diverse needs of a manufacturing business. The list of features above does not form a comprehensive overview but only formthe barebone must-have features. It is quite probable that your manufacturing niche absolutely needs a feature not mentioned above. Do your own research and remember the keyword of Caveat Emptor or Let the Buyer Beware.

The Key Takeaways from Manufacturing ERP Software


As far as technological tools are concerned manufacturing ERP software is one of the foremost priorities for businesses engaged in this sector. This is due to a host of reasons but primarily because the manufacturing landscape is full to the brim with competition. This forces business concerns to build, design and deliver the products that are only of the highest quality that too keeping strict time frames in mind without having your manufacturing costs blown out, so that you may acquire new customers and retain existing ones.

But the challenge that lies in front of manufacturing firms too is considerable. You have stay on top of the game in the various processes of production, distribution,and sales.With the right ERP for manufacturing industry firms can take advantage of the advanced functions and features it offers and improve the facets of their diverse operations be it engineering, procurement and sourcing, production, testing the quality of products up to final delivery.
Modern manufacturing ERP software lets companies do the following:
  • Better their visibility
With an ERP in place, all the respective departments have all of the information necessary for the optimal execution of their tasks in real time at the click of a mouse. And this data remains consistent throughout the various processes of the business. Coordination between the various teams and departments within an organization is thus made as smooth as possible and all procedures along with processes may be executed in a far better way.
  • Boost their efficiency
 ERPs meant for manufacturing sector lets firms track the entire activities going on in the supply chain that too in minute detail right from the word go till where the procedure ends a task not thought possible earlier. Bottlenecks and problems may thus be identified with ease and corrective action taken in order to ensure efficiency.
  • Deliverwithin stipulated time frames
 All of the benefits of a good modern ERP contribute towards improving delivery times keeping in mind the stipulated time frames for the same delivery. This is a crucial metric used to gauge performance in the manufacturing industry as it is today.
  • Better quality of products
 By putting into use an ERP meant for the manufacturing industry, it becomes easier for firms to monitor defects and problems in products and pinpoint with accuracy the place where the design or production flaw is exactly occurring. Then they are free to take corrective measures and ensure product quality. This will lead to an increase in the sales of the firm, ensure satisfied customers and peg up profits.
  • Reduction of costs
ERPs reduce costs in manufacturing as well as other industries. The productivity of workers in boosted. Precision in production results in a reductionof scrap and re-work that can quickly exhaust the available financial resources of an organization. Components of goods and finished products turnovers can be tracked in more detail. Demand planning is made more accurate and excess inventory is minimized. Improved visibility results in pinpointing the areas where more savings may be made. All of this reduces the cost of goods to the company.
  • Better collaboration
ERPs enable a company to sharetheir data with not only employees but with suppliers, vendors and distributors as needed and to the extent needed. Communication between the varied parties involved is enhanced and coordination reaches an optimum level.