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

Expand Express Vol-1

Founder’s Note:

CEO - Expand Erp
A warm welcome to all our patrons and subscribers. 2019 is coming to an end and we would love to bid adieu to it on a sweet note. I am humbled to announce the launch of our monthly newsletter “Expand Express”. This will be a platform from our end to reach out to you with our latest technologies and innovations. It has been curated with useful news and information on cutting edge technology for business growth, innovations, industry insights and many more.
We are relentlessly working to create awareness about ERP and Cloud technology through various media of communication such as newsletters, blogs and social media posts to partner you in the path towards digital automation. At Expand ERP, our goal is to bring advanced technology at your doorstep to enable your business processes to become more competent and proficient. Hope our Expand Express will prove as a useful tool in your journey towards growth. Please send us your feedback if this issue has been of value to you. We would be obliged to receive your valued suggestions for our forthcoming issue. Please write to us at info@edominer.com
Wishing more power to you!
Vineet Bansal
CEO, Founder

Why Cloud ERP ?

This is the right time for you to deploy a Cloud ERP?

Advancement in technology evolved the concept of ERP and gave rise to Cloud ERP. In recent years, e-commerce and cloud migration have been two of the biggest innovations of ERP providers. Many business owners are satisfied with the little quirks of their business system they’ve grown accustomed to. But there comes a time when you must take a hard look at whether those little quirks are preventing your company from satisfying more customers. Your ERP should, at a minimum, support your company’s growth and not impede your extended reach into more markets. Staying competitive requires easy-to-use, real-time access that makes your sales team more valuable to their customers. 

 

Here are the top 4 irresistible reasons for you to adopt Cloud ERP:

  • Easy implementation in comparison to the traditional on-premise ERP
  • Cost effective as there is no upfront capital investment involved.
  • Flexible, accessible and easy to integrate
  • Enhanced security of database with secure encryptions.
  • Improved performances with increase in scalability. It runs on strict SLAs and standard procedures, leading to fewer downtimes and increased speed.

For real-time visibility of your business from anywhere, anytime upgrade to the best in class cloud ERP solution for manufacturers. With over 15 years of extensive R&D and market testing our home grown Expand ERP effectively takes care of all your business process needs. Expand ERP is a comprehensive, scalable, customizable, cloud-based ERP solution for fast growing manufacturers and exporters. We are the direct developers and implementers of the software and there is no third-party involvement. Thus, we ensure complete peace of mind. Initiate a smooth and hassle-free digital transition journey on cloud for your business with us. To know more about Expand ERP or to book a demo call: +91 9007026542

For The Love of Technology

“The only impossible journey is the one you never begin.”
-Tony Robbins

The journey to success was never a piece of cake for Vineet Bansal, CEO and Founder, eDominer. He started his career as an entrepreneur after quitting his well paid job in the U.K. Born in a business family, with qualifications of a Microsoft certified professional software engineer, added light to his career and entrepreneurship. He began his career in a U.K based software company, but brought back to the country the acumen of a Microsoft certified technocrat and innovations in the technology industry. His company eDominer Technologies, was the first to introduce ERP on the web and now for over 15 years, it is a trusted ERP solution provider pan India. Expand ERP pioneered the concept of web-based online ERP way back in 2008 and today it offers a complete suite of solutions to manage business processes from beginning to end.

 

EXPAND JOURNEY
The inception began in 2005. Internet was still farfetched. Overcoming challenges by lease lines, WAN and eDominer started providing useful web-based solutions to select customers. The software was re-launched as Expand ERP in 2008. It provided offline solutions, where access to the internet was limited.  15 years down the line, Expand ERP pioneers in Cloud based business Application on Microsoft Azure. It is designed and developed for fast growing businesses in the manufacturing & export sector. Expand ERP is expanding nationwide with Kolkata being the Head Office and the Development Centre. Other branches are in Delhi NCR and Bangalore. Our vision is to offer advanced digital technology to the mid-sized fast-growing businesses to enhance their growth.
We have successfully partnered with many organizations pan India in their digital transition. With real time visibility and complete control over the business through our Expand ERP, we have been instrumental in simplifying the complex business process and integrating the business on one single platform.

 

EXPERIENCE MATTERS
Expand is a comprehensible, scalable, customizable cloud ERP solution that supports your business all along as it grows. We are the OEM of this solution and with over 15 years of R&D and extensive market testing we have developed the best in class ERP software for your specific business needs. With Expand ERP the growth of your business becomes faster by stimulating real-time visibility and complete control of your organization.

 

FUTURE IS OURS
Passionate for innovation, our Biz-tech Experts, constantly strive to bring new concepts for the advancements in technology. We have recently introduced exhausted functionality on Omni Channel Sales and Warehousing. We are the only cloud-based platform to manage Online Sales, Market Places, BO Sales, B2B Sales, Retail POS Sales and Exports from a single system. With strong determination and unwavering love for technology we are partnering Indian mid businesses to make them future ready, one business at a time.

Patron’s Note

Happy clients are the best advertisements that money can’t buy!

Expand ERP is a complete customer-centric solution provider. Our victory lies in the growth of our patrons. For over last 15 years we have partnered with many clients across India.What one of our valued patrons, Mr. Navkaran Singh Bagga, Director Trishan Group of companies has to say about us. “Expand ERP allowed me a good foundation and platform to grow my business. It became easier for us to track multiple locations and to keep track of inventory and finances, payments, receivable and gave us everything in one single point. It doesn’t require too much technical training with regards to people who operate it. Expand is one of the most robust ERP software available in the market with real value for money.”
Mr. Navkaran Singh Bagga
Director ,Trishan Group of companies

Global Good News

Apps that are giving a voice to autistic kids

Such apps support or replace natural speech in children with autism, and other developmental disorders, with the use of images, icons and symbols, stored category-wise in folders, as visual cues. These are early intervention apps and their content can be customized according to individual needs. Diagnosed with autism spectrum disorder (ASD) when he was three years old, Sivaa Menon could only say a few basic words like ‘toilet’ by the time he turned 10. This frustrated him so much that he started having meltdowns. Traditional therapies didn’t work. But six months ago, his mother Preetha found Avaz, an augmentative and alternative communication (AAC) app, which has now given the 11-year-old a voice. He has now learnt to say 10 words.

Meet Cocoon, your family’s private Facebook!

On November 25, a new social network, Cocoon, made its appearance on Apple’s iOS app store just when the world needed it the most to stay closer and ‘in touch’. Cocoon’s co-founders Sachin Monga and Alex Cornell had raised $3 million for their Y Combinator-backed startup which led to the new social media buzz. For years, Sachin Monga said, he has been thinking about how to escape Facebook’s dilemma, putting your mom and best friend in the same social network as your most distant acquaintance. Cocoon is a social network for your family. It had been under development with select families and is now open to everyone on Apple iOS, Quartz reports. Just as the name suggests it will be your own private world of your family, a cocoon.

DID YOU KNOW ?

Expand ERP is the only cloud-based platform to manage Online Sales, Market Places, BO Sales, B2B Sales, Retail POS Sales and Exports from a single system.

ERP for Manufacturing Industry

erp for manufacturing industry

ERP – THE BEST WAY TO REDEFINE THE MANUFACTURING INDUSTRY!

KNOW HOW?

Way back in the olden days, business data and records were maintained in complex spreadsheets and files and voluminous folders. When businesses grew in scale, such antiquated systems also got obsolete. They were replaced by ERP systems which were more than just organising and scheduling modules for manufacturing enterprises. They combined the virtues of business planning and management, production scheduling, inventory control, customer relationship management and alignment of partners in the supply chain. The manufacturing sector is piled with competition and susceptible to an ever-changing market ecosystem. To remain at the top of the game, manufacturers need ERP systems that can be deployed and maintained off-site, are comprehensible, scalable, customizable, cost-effective and easy to use. Every industry has their own specific needs and processes. The ERP solution provider needs to understand the business well to define the scope of the software. Expand ERP has over 15 years of extensive R&D and market testing to make the solution robust and perfect, exactly for your specific business need.

According to an ERP Software Market Report published by Allied Market Research report, the global market is expected to garner $41.69 billion by 2020.

Still contemplating about adopting Cloud based ERP for your manufacturing industry?

Here’s why your manufacturing unit needs a modern ERP system:

From conception and design through to manufacturing and delivery, ERP is built to handle the complex needs of manufacturers that use engineering in the design and build of their products. ERP gives you complete visibility into your software processes to help integrate engineering activities, streamline operations, improve efficiencies, manage complexities and grow.

  1. Cost-effective:

    ERP software makes quality management easier. Quality of the product is assured with ERP, which reduces the number of finished goods that are discarded. You gain real-time business visibility with analytics and reporting. The predictive defect analysis made available with artificial intelligence provides deep, timely insights into all aspects of your business. This limits wastage, reduces cost and increases the profit margin for a manufacturer. As the old saying goes, money saved is money earned.
  2. Streamlines Processing:

    Manufacturing operations which otherwise seem complex and redundant, are automated by an ERP system and streamlined across departments. Users can navigate complex processes easily in less time. The result is improved efficiency and cost.
  3. Maintaining Accuracy in Inventory:

    An ERP solution can track your entire inventory in real-time, which makes every transaction and business activity extremely transparent. Shop floor advisors can cross check the quantity of each product. Having accurate inventory or stock list provides products and services that deliver immediate value to clients.
  4. Agility saves Time:

    ERP offers to extend productivity, security and access to information to mobile workers plus partners and customers, working anywhere, anytime on any device. Decision makers compare the system generated reports on regular intervals to analyze the varied market demands and capitalize on customers purchase trends.
  5. Profound Analytics:

    All the departments of a manufacturing business are unified and synchronized in a modern ERP solution. Consolidated reports can be generated using the same system resulting in accuracy in analysis and precise forecasting. For example, an Accountant who can readily access charts and reports can make decisions based on real values and figures.
  6. Optimize Supply chain:

    Fast growing businesses need strategies to boost productivity, improve quality and reduce costs. Supply chain management (SCM) in an ERP system smoothens the planning and execution of activities in the business. This monitors the supply of raw materials to meet the demands of the finished goods.

To Conclude:

Cloud ERP solution is a huge revolution in the manufacturing industry. Most business owners have either already implemented ERP or are in the process of implementing it. So why should you lag behind in this competitive market?

Upgrading to Expand ERP will give your business an added edge for optimum returns on investment. As a solution that is 100 % focused on the needs of manufacturers and distributors, Expand ERP functionality includes primary and alternate BOMS and routing, Material Resource Planning, Masters Production Scheduling, Shop floor execution, scheduling Workbench, Inventory and Warehouse Management and Quality assurance.

Focus on finding a solution that aids you to achieve these benefits. If you’re considering implementing a manufacturing ERP solution contact us to help you develop a digital strategy to meet your business needs.

Our cloud solution offers a comprehensive suite of application without the costly hardware requirements. With Expand ERP you are sure to reap all the benefits of a hosted cloud environment.

To Know More Book a Demo:

5 interesting facts to adopt Cloud ERP

5 interesting facts to adopt Cloud ERP

How to benefit from Cloud ERP?

“Water has memory”….and Cloud stores the memory.

Cloud! …sounds quirky?

Cloud is the data warehouse for multiple users over the internet, without directly managing or physically maintaining external servers. In technical terms, Cloud Computing is a network of remote servers hosted on the internet to store, manage and process data in place of a local server. The most commonly used cloud providers are Amazon Web Services and Microsoft Azure.

Most ambitious companies rely on ERP systems to help integrate and organize data that is spread across each of its independent departments. Traditional ERP solutions are often housed within a company’s own server infrastructure and require updating and servicing to stay updated. Cloud ERP, as the name suggests, is based in the cloud, like SaaS (Software as a Service.) Unlike traditional ERP software, Cloud-based ERP relies on the cloud rather than proprietary server infrastructure to help companies share information across departments. Cloud ERP software integrates some or all of the essential functions to run a business, e.g. accounting, inventory and order management, human resources, customer relationship management (CRM), etc. – into one complete ERP system.

Transiting from On-Premise to the Cloud

The term “moving to cloud” also refers to an organization moving from a traditional CAPEX model (own the dedicated hardware and depreciate it over a period of time) to the OPEX model (use a shared cloud infrastructure and pay as one uses it).

Patrons claim that cloud computing allows companies to avoid upfront infrastructure costs, and focus on projects that differentiate their businesses instead of on infrastructure.

The benefits of Cloud ERP are many. Essentially, an on-premise ERP system lives on company’s own servers and is customized according to its needs. It’s a system built for a single client and is typically maintained by the ERP vendor or partners with updates delivered maybe once or twice a year. On the contrary, public cloud ERP systems are standardized to meet the needs of a multitude of clients, though all the data are separated and secure, the application and intelligence layers are shared.

 5 BENEFITS of Cloud ERP :

  1. Cloud ERP is typically more affordable. It eliminates the expense of buying computer hardware and software. In cloud, there is no need to buy hardware.
  2. Updates are sent to everyone at once, which delivers a competitive advantage. You’re not left waiting around for a vendor to update your custom ERP system. This ensures vast amount of computing resources can be provisioned instantaneously.
  3. Thirdly, Scalability is a huge advantage as it is easy to scale up your cloud capacity as per the need of the hour.
  4. Accessibility of data anywhere with internet accessibility makes business process smarter and quicker.
  5. Security– with Cloud your data is stored in a centralized secure location which is encrypted in highly secured systems. Shifting to the cloud also often requires changes to a company’s internal workings — changes that often turn out to be enormously beneficial.

Looking for a secure and reliable Cloud-based ERP Solution?

Your search ends here.

With Expand ERP cloud-based solution, you are free to manage your business anywhere or on any device that is connected to the web. All cloud-based servers are protected with software and hardware firewalls, in addition to 2048 –bit SSL certificates for secure HTTPS transports. Seventy four percent of IT executives and CIO’s have cited cloud computing security as the top challenge preventing their adoption of the cloud services model. But with us your data security is our highest concern. Safety comes First. With our Sure Shield promise, we help you overcome such security threats with our 100% assurance of data security.


We at Expand ERP train your team and provide a robust ready FAQ for our software and 24×7 support.

Still not made the right move to Cloud?

Given the fundamental benefits of cloud computing to businesses, it is no wonder that it is revolutionizing the industry, and is expected to grow further in the coming years. Hence, 93% organizations now use cloud-based IT services, 90% businesses plan to increase their cloud spending. Cloud computing allows businesses to ensure efficient collaboration across business locations and departments and effective sharing of information across third parties and contractors.

Some commonly sought after queries before moving to
Cloud computing are:

  1. What is the reason for the high demand in Cloud adoption?
    Over the years, the cost effectiveness of Cloud ERP was the most attractive benefit for changing business processing. The monthly subscription based payment module added to the leverage along with the elimination of managing software applications and investments in servers and external hardware. Besides, it also enhanced responsiveness, agility and promptness to act resulting in growth of business. It enables the users to access real-time information from various aspects of the business and utilize the data to make better decisions.
  2. What are the considerations for choosing between On Premise and Cloud ERP?
    The need for the deployment of new technologies in business is on a high. How and when to be transitioned is personalized to cater to the needs of the business for the optimum returns on revenue. A growing trend among organizations with on premise ERP is to start their cloud journey by adding specific cloud products (such as eCommerce or analytics) as satellites or complements to their core systems. extend? How will they enable you to achieve your growth goals?

Scalability is another unique characteristics of cloud ERP software. Being scalable, ERP can handle various business tasks irrespective of the size of the organisation. Technological advancements can bring new features and tools to make the ERP system more scalable and robust. From the aspects of convenience and cost-effectiveness, periodic upgrades of the ERP software are way better than replacing existing ERP systems. You can readily integrate the latest features and improve performance by updating the ERP version. It also contributes to bringing automation and digitalization to the business.

3. Is my business suitable for Cloud ERP?
Predominantly, business owners are often wondering whether digital transmission is apt for their organization or not. All kinds of organizations of every type, size and industry can use the cloud for variety of uses, such as data backup, disaster management, email, virtual desktops, software development and testing and customer –facing web applications. For example, healthcare companies use the cloud to develop more customized treatments for patients. Financial services companies are using the cloud to power real-time fraud detection and prevention.
It is necessary to choose the right ERP vendor who empowers rather than restricts. The key considerations should be Do the ERP solutions fit your business? Are they easy to use, deploy, and No matter how or when you choose to move your ERP solutions to the cloud, partnering with a reliable ERP vendor is crucial to adapt in the digital world.

At EXPAND ERP, we understand how important choosing the right ERP cloud service provider is for you. Our model-driven Innovation Platform promptly and efficiently helps to integrate all your business operations. With over 15 years of extensive R&D and market testing our home grown Expand ERP effectively takes care of all your business process needs. Expand ERP is a comprehensive, scalable, customizable, cloud-based ERP solution for fast growing manufacturers and exporters. We are the direct developers and implementers of the software and there is no third-party involvement. Thus, we ensure complete peace of mind as your business starts a smooth and hassle-free digital transition journey with us. To know more about Expand ERP or to book a demo call

Get a Demo:

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.

LGW

cotton

LGW

LGW Limited is an ISO 9001:2008, 14001:2004 & OHSAS 18001:2007 certified company. During the last three financial years the company achieved an aggregate sale of 100 million US dollars. This directly contributed towards the company being accredited with ‘Star Trading House’ which meant that as per EXIM policy they had an average FOB value during the preceding three licensing years, amounting to over 375 crore and a FOB value amounting to more than 560 crore during the preceding licensing year.

In the yarn industry raw material costs can account for 70% of the total costs. Therefore the purchase and procurement of cotton is one of the most important decisions a cotton manufacturer has to take. A substantial increase in demand for raw cotton from countries like Bangladesh enabled a raw cotton exporter like LGW to capitalize on the opportunities and achieve significant turnovers. This also meant that the volume of LGW’s business increased very swiftly over the course of just 10-15 years.

The growth and development which LGW had achieved during the past few years made the company come face to face with fresh challenges. No longer could they depend upon a simple accounting and reporting system to fulfill all their needs. They needed much more of a holistic approach towards finding a solution which would integrate each and every aspect of Export into a system which would simultaneously be user-friendly and also efficient.

CHALLENGE

Challenges with respect to Multiple Currencies and Exchange Fluctuations

 Export is ‘the’ most important business process having a direct relationship with LGW’s growth and development. With an increased volume of export sales there is significant increase in the number of financial transactions that the company has to deal with. Now most of these financial transactions related to export are in foreign currencies and these transactions had to be handled accurately and also with due respect to trading timelines. Imagine making an error in a transaction involving thousands of US Dollars which would hurt even more when converted to domestic currencies. It could result in a catastrophic financial disaster.

The particular scenario which stood out to be a primary area of concern, with respect to dealing with foreign currencies is when Export Invoices are negotiated. Let us consider an example of LGW exporting raw cotton to Bangladesh. They receive an order of 3000 kgs of raw cotton amounting to USD 9000. After the general procedure of Export documentation like receiving a copy of the Letter of Credit and preparing the Proforma Invoice, the final Export Invoice needs to be prepared. During the preparation of this Export Invoice, the exchange rate between US dollars and Indian rupees has to be duly noted. The reason being that the Export Invoices are negotiated with banks in exchange for funds to ensure continuity in the business process. This negotiation of the Export Bill results in the existence of an Export Bill Discounting account.

Now as and when the customer transfers funds to the bank the Export Bill Discounting has to be set off. When the customer transfers the funds to the exporter’s bank it is most definitely at a date much later to than that of the Invoice date. Hence usually a gap exists between the exchange rate on the invoice date and the exchange rate on the date the money is received. This gap is called the Exchange Fluctuation and it results to a foreign exchange gain or loss on export bill discounting. The gain or loss has to be taken into account so that Financial Statements such as the Profit and Loss and Balance Sheet remain accurate.

Passing separate journal entries to account for the foreign exchange gain or loss was slowly becoming impractical and painful with the significant increase in the volume of export sales. LGW look towards finding a solution which would make the procedure less stressful for the user and at the same time account for every aspect of the mentioned scenario.

SOLUTION

The availability of several scenario specific features in EXPAND helped LGW find answers to most of their questions with respect to handling of foreign currencies and dealing with foreign exchange fluctuation.

Firstly, since LGW carried out trade with multiple International customers, they had to deal with individual currency preferences. EXPAND offers a feature whereby the preferable currency of a particular customer could be defined in the Customer master itself. Therefore any documents prepared linking that customer would automatically be in the currency which was defined from the master.

Secondly, entering the financials related to the negotiation of an Export Bill can be carried out in EXPAND through a single section. This helped in giving an organized structure to the Export Bill Discounting procedure. Under this section the user is just required to link the Export Invoice and tag the bank account as and when funds are transferred from the customer. The accounting entries related to foreign exchange gain or loss is passed automatically the moment the details of the transfer of funds are entered and saved.

Thirdly, along with the provision to enter the details of funds transfer this section also hosts a number of other fields such as the provision to enter Trade Acceptance Date, Interests and Handling Charges. The section even has the option to adjust any PCFC adjustments where user generated PCFC vouchers can be adjusted against the receipt of any fund.

Therefore LGW was able to achieve a sense of organization that they were looking for by finding solution through a unified integration of the Export negotiation procedures provided by EXPAND. Also since there was internal linkage between all the aspects, reports with respect to Negotiation pending and Swift Pending were easily customized.

Challenges with respect to Units of Measurement used in the Cotton Industry:

One of the very first areas of concern for LGW Limited was the implementation of the various units of measurement used in a cotton industry and also integrating them into an accurate inventory management system. After studying and analyzing the various scenarios presented to us by LGW, we could draw a clear picture of the problem at hand.

LGW maintained their inventory in Kilograms (kgs), which is a standard unit of measurement. However during the purchase process of raw cotton a couple of other units of measurement had to be taken into account. Firstly during the verbal negotiation phase, the rate at which the purchase price is fixed usually in units of ‘Candy’ and ‘Maund’. These are the different types of units of measurement which are local to the cotton manufacturer from whom the cotton is bought. The implication of these units of measurement is subjected only to the purchase process and did not play any role in either sales or export.

Secondly, another unit of measurement called ‘Bales’ is used primarily for the purpose of packaging both in the purchase and sales. Now weight of each ‘Bale’ is not fixed and this presented with additional hurdles establishing relationship with ‘kg’ which is used for inventory management.  For example, sometimes a single ‘Bale’ could weigh 90kgs while at other times a ‘Bale’ could weigh 170kgs.

LGW followed an ‘item Specific’ approach to inventory management. This meant that a certain number of ‘Bales’ (usually 100) is given a specific batch number and is put together as a ‘LOT’. At any given point of time a ‘LOT’ portrayed three major characteristics – the unique lot/batch number, quantity of bales present in the ‘LOT’ and the weight of the particular ‘LOT’ measured in terms of Kgs. Again, during export LGW usually sells raw cotton in Pounds (lbs). In other words, the unit of measurement which is used in all the export documents is in terms of lbs. However stock from inventory is reduced in terms of Kg. Keeping track of the individual ‘LOT’ numbers manually in terms of Bales and kgs was proving to be a painstaking process, ignoring the fact that no check existed in the consumption of quantities in terms of ‘Bales’.

SOLUTION

After a thorough analysis it was identified that ‘Bales’ was as important of a unit of measurement as kgs. Therefore through Expand, LGW started to maintain their inventory in two units of measurement. The primary unit of measurement being ‘Bales’ while the secondary unit of measurement being kgs. This was possible due to the fact that Expand has the provision of having multiple units of measurements.  While defining the product master for raw cotton two relationships between units of measurements were established, one between ‘Bales’ and kgs to facilitate the purchase process and another between ‘Bales’ and lbs to be used in the export process. Since the exact weight of 1 Bale is indefinite, a tolerance percentage was used along with an approximate conversion of one bale to both kgs and pound.

For example in the product master it was specified that 1 Bale of raw cotton = 150kgs with a tolerance of 20%. It meant that the user was given a relaxation of 30kgs per bale while preparing a document. Therefore while preparing a Purchase Order a user was required to specify the LOT number, the number of bales say for example 100 and its weight which could be anywhere between 12000kgs – 18000kgs according to the tolerance specified in the product master.

Similarly a relationship between ‘Bales’ and lbs was established using the tolerance percentage which facilitated the export process.

Since inventory was maintained in two different units of measurements, a check always remained on the stock consumption both in terms of kgs and ‘Bales’. The availability of a user configurable standard conversion from ‘Kg’ to ‘lbs’ meant that although stock was reduced from the inventory in Kgs and Bales yet it could be easily reflected in terms of lbs in the export documents.

All the reports including reports on stock listing, stock movement and stock valuation was available in both Kgs and Bales.

How to Improve Productivity in Manufacturing Industry

How to Improve Productivity in Manufacturing Industry

How to Improve Productivity in Manufacturing Industry

As the old adage goes, time is money. The more production you can squeeze out in a period of time, the more money you make, right? As per the old saying, ‘time is money’; however, with improve productivity in manufacturing industry, it is inversely proportional to one another. The higher the production in a stipulated frame of time, the more one gets to make it and manufacturers, across the world are in a continuous process to pursue efficiency in production through consistent increase in machine output, thereby meeting newer profitability heights and maintaining competitiveness.

And productivity in manufacturing is dependent on a number of factors – it is a combination of skilled employees, competent equipment and resourceful processes. To increase throughput without the need for sacrificing quality involves a detailed scrutiny of the existing practices, making adjustments, however minor, to systems, constant skill upgradation for employees and enhancing the efficiency of equipment that are used for the generation of parts and components.

The fundamental nature of enhancing manufacturing productivity can be engaged through:

Information: the accurate capture of information through the identification of losses
Focus: the identification of priorities through the use of that information
Action: ensuring action that is deliberate, methodical and sustainable for the long-term

Blurb starts

The total productive maintenance is the most crucial element for lean manufacturing, and includes an useful efficiency metric – the overall equipment effectiveness, thereby measuring the percentage of planned production time to indicate the ratio of quality throughput, as quickly as possible, without any down-time.

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There are a number of alternatives today that could help to reorganize the way you work by reducing the struggle of improving productivity, increase incentives that could drive up numbers. These have been variously explained, below:

• Examine the existing workflow
• Update business processes
• Invest continuously into the skill upgradation of employee skills
• Establish realistic expectations
• Procure smarter equipment tools
• Ensure an organized process
• Encourage team work

A significant initiative that could ensure effective business management at the manufacturing level is the effective implementation of a robust Enterprise Resource Planning (ERP) system. Some of its operative areas include: sales, finance, e-commerce, warehouse management, purchase, HRMS, CRM and inventory management.

The implementation of ERP with the objective of improving manufacturing productivity is a vital requirement in the industry, today. To ensure the enhancement and seamless business management through advanced ERP systems are sure to provide invaluable benefits to manufacturers who seek cost reductions, growth management, enhanced efficiency and robust process that are streamlined with the objective to gain a competitive business advantage. Some of the benefits of implementing an effective ERP system that are aligned to the business goals are as follows:

• Stay ahead of competition
• Save money
• Enhance productivity
• Increase growth
• Improve people skills
• Ensure mobility
• Augment business intelligence

Despite the benefits of implementing robust ERP tools for the effective business management, the simple deployment of ay software won’t lead to the achievements of organizational goals. There are a lot of research and dedication that needs to go into ensuring right software for the business. And once the right ERP tool is integrated, the results are sure to follow.

Know How ERP and CRM Are Different Yet So Important for Businesses

erp and crm

Know How ERP and CRM Are Different Yet So Important for Businesses


In India, usage of CRM and ERP solution is soaring high and for good reasons. CRM and ERP are usually separate but, so connected that CRM cannot work alone effectively without constant update from ERP- from placing orders, sales and logistics to deliveries.  While CRM manages company interactions, ERP Software Company in India offers an integrated administrative application system.

Let’s dig deeper to know where these two are similar and where not-
What is ERP? 
ERP is designed for business administration. It aims at consolidating business data that can be accessible for main operations across the enterprise. It’s a one-off integrated software package that facilitates business process management with real-time update to all concerned departments. For an instance, if a product is out of stock hence the shipment is cancelled, then the status would be sent through the channels to the concerned parties authorized to access the data. This allows departments to regenerate new plan for the issues before it actually makes things difficult within the organization.  ERP offers smooth method for streamlining business process.
What is CRM?
It is a storage database that keeps all the information of related to interaction with customers. CRM process includes categorization customer interactions, collecting and sharing data. CRM method is highly standardized which can be easily shared throughout the network. This smart system can be used by different office executives to create sales projections, representatives can use this to monitor contacts with clients and verify them by sending to shipping clerks. The main focus of CRM is to provide comprehensive customer data that can be used to create plan for client retention and sales improvement.
CRM or ERP: Which one do businesses need the most?
A business may need both the systems but it depends majorly on the integrities involved into the mode of operation. Nowadays, even a small business relies upon CRM system for better and accurate data collection. This is much more clutter-free and easy than collecting data from papers and numerous emails.
ERP is an important business essential that helps streamline business processes. Many large to even small scale industries are relying on ERP Software Company in India as well as abroad to gain better control of their businesses.  Having a single cloud platform integrated with CRM and ERP provides unified view that you can keep control over it from anywhere anytime.
The last note:
When you expect enhanced business growth there must be two things you need to obtain- one is more sales and second is fewer expense. Incorporating ERP and CRM let you enjoy both of them with ease. While CRM brings more clear data on customer interactions and more revenue insights, ERP system keeps the overall operation cost low.

Continue reading “Know How ERP and CRM Are Different Yet So Important for Businesses”

Top Technology Trends to Look for in 2018

technology

The technology landscape today is fast changing and the pace is faster than you think. Changes occur before you can apprehend, your needs are answered before you realize the potential solutions, and all our manual chores are completed in much smarter way. Yes, we are talking about Augmented Reality, Artificial Intelligence, IoT, automation, and machine learning, which will continue to rock the world in 2018. Here, we discuss some of the hot trends that inspire us for a better life with lesser manual operations.

Artificial intelligence

Artificial intelligence or AI, as it is commonly known as is the latest technology trend. It encompasses a whole lot of things (like writing Google algorithm or driving a car). Driven by automated robots with human-like characteristics, AI aims at performing regular manual tasks as well as coming up with suggestive instructions for a specific problem. While the first one is an example of narrow AI, the latter is an example of general AI or strong AI. IBM Watson which comes up with ready legal advice or solutions on entering an issue or problem is another example of strong AI. In the coming days, AI will become more refined in robot integration to perform more complicated tasks such as welding, automated transportation or climate change.

IoT

IoT or Internet of Things is another hot technology trend. Operating everything by Internet or wireless technology to reduce human efforts and make our lives easier, is the need of the day. Smart Homes or Smart Cars, the most common example of IoT, makes use of Zigbee, Z-Wave, Bluetooth or Wi-Fi.

Smart Homes, readily make use of Canary or Piper, as home security solution. Canary is a remarkable combination of video, audio, motion detection, night vision, a siren, and air quality, temperature, and humidity sensors put into a single device. It can be operated from mobile and runs on Internet. Piper, a similar device, has all of these features, plus, a home monitoring system and a speaker that lets you keep a watch on home when you are away or speak to someone staying at home, over wireless. Future applications of IoT include Smart Cities and Connected Cars.

Automation
Automation, an older player in the technology sphere, operates by chatbots to perform human-exclusive tasks. The primary purpose of automation was to simplify everyday tasks without human intervention. Everyday tasks like coffee maker, air conditioner, ice makers or Amazon Alexa. Automated air conditioners sense room temperature and make adjustments accordingly. Amazon Alexa allows to save a pre-defined grocery list and make minor adjustments to it, every time, you need to add or remove a few items from the list and order online. You do not need to remember the list of necessary items. You can simply place your order and chill.

High end applications of automation include automated journalism or editing. You get systematic reporting of events like football tournaments or quarterly earnings results.

Machine Learning

Machine Learning, also known as ML, is populating suggestions for performing an activity or predict a situation, based on previous observations. Some of the most common applications of ML traffic predictions, ridesharing, school and office applications. How nice would it be to get an accurate prediction of the traffic status, using your mobile location info, before you are stepping out for work? Share rides like Uber have pop-up suggestions when you are booking a cab. You are asked if you want to book a sedan if a micro or mini cab is not available. Your location may also be saved as favorite, based on your nubile phone location, which means you do not have to choose a location, every time, you are booking a cab.

Virtual Reality

The term “Virtual Reality” implies viewing the virtual space as augmented reality. Technology makes use of computer-generated sensors to interact with another computer. The biggest advantage of virtual reality is ensuring near-life experiences and reduced computer expenses. What started as an alternative to 3D vision and working with a virtual computer for better storage and efficiency, has come a long way and ensures such things as 3D scene reconstruction, 3D mapping, accurate gesture tracking, and advanced telepresence.

Google Cardboard, Oculus Rift, Samsung GearVR and Epson Movario are some of the major players in the Virtual Reality space. Among the new entrants, Meta, Avegant Glyph, Daqri and Magic Leap are fast gaining popularity with new levels of usability.

As we get ready for another change, let us make use of what is already available. This also means that the services that we require will be available on an on-demand basis. This will not redefine our quality of living, but also help us re-think our needs. We will concern ourselves with more critical needs, relating to innovative thinking in medical research, mass welfare, education, and international security.

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Hot Trends in ERP

ERP Software
 

The ERP landscape is fast changing with our growing needs. Our intense desire to refine automation practices have led to the recent spurt in AI and IoT, both of which will continue to rock our life, in the next ten years, according to Gartner’s Top 10 Strategic Technology Trends for 2017 published in October, 2017.

Today, we have technology solutions for storing massive amount of datasecurely without requiring any manual supervision, smart apps at play for recognizing your needs and finding relevant answers, automated appliances that can communicate with each other for better resource utilization and lesser energy consumption. What we need is the right time and the right state of mind to put them into use. Here, we discuss some of the emerging trends in ERP.

See it in the Internet of Things

The Internet of Things or IoT, as it is more commonly known as these days, is the hottest trend in ERP. According to a recent study by IDC, by 2020, 40% of all data will be machine-generated, with 20 to 50 billion devices driving that growth. A lot these machine-driven activities will make life easier and better for us.

IoT represents seamless convergence of data collection and objects. Objects are embedded with microchips to report vital data such as their location, stock status, performance, delivery status, and error messages. The Internet of Things goes a long way in helping product engineers track performance and solve bugs of products once they are in market. The systematic bug identification and performance management, one of the primary features of Internet of Things, is very much in use in the manufacturing industry. It is also largely used in several ERP applications, for getting sales projections, to gain insight into operations, and to assess productivity.

Some of the other successful implementation of IoT in ERP are Smartphone-based check-ins at airports or hotel rooms, phone apps enabled with photo printing options through Social Media, and Wi-Fi and internet-enabled vehicles, etc.

Getting the Big Data

Big Data is the next big thing in ERP. Gone are the days when companies had to spend a huge sum of money on their own dedicated data centers for storing large volumes of data. Needless to say, only industry big shots could afford the costly traditional database warehousing. The smaller companies were always at a risk of losing their data or overspending on data storage.

Now, even smaller or mid-size companies can afford to harness the power of Big Data through cloud ERP solutions. It allows you to connect multiple computers or devices to cloud solutions, and thus, amplifying the power and speed of processing. All you need is high speed data connection from a good service provider.

Data which flows into the organizational database from various sources, comes from various sources, in structured and unstructured form. While structured data, in the form of numerical data coming from known sources may be stored with appropriate labels, metatags, and authorization or rules assigned, unstructured data (which might comprise of text documents, email, video, audio, stock ticker data or financial transactions) requires additional processing for summarization, lineage, auditability, and privacy.Big Data which operates through cloud-based solutions, takes care of these complexities. It reduces cost and saves your time for new product development and smart decision making.
 
It’s all in the Cloud

Cloud has opened up endless opportunities for companies to optimize productivity, improve performance, and reduce operational cost. Prior to the cloud era, companies have spent humongous amount of money, for buying on premise productivity software. In addition, they had to bear the onus of purchasing, housing, and software maintenance. Cloud-based ERP software solutions, on the other hand, operate on a much lower upfront costs, because now computing resources are leased on a need-basis, contracts renewed or revised, if required, unlike one-time investments for on premise data center operations. Cloud-based ERP solutions have proved to be a boon for small and medium enterprises. They now have access to full-function applications at a reasonable price.

Wearable Technology

How often have you dreamt of counting every step you walk towards your fitness goal? Or taking a conference call on the go, hands free? Or having the freedom to watch a movie every time in 3D? Well, wearable technology has not only made your dreams come true, but made it even better. Today you can wear fitness bands on your wrist that monitor heart rate and steps, every time you are stepping on the treadmill or going for a squash match with your buddy. You have wristband watches that synchronize with smartphones to receive email and text messages. Bluetooth devices carefully perched on your ear allows seamless conversations. Wear Google Glasses or virtual reality goggles to discover a whole new world of entertainment.

It is believed that our needs drive us to strive for solutions. ERP, which operates through cloud, AI, Big Data, and several other means delivers what we want as solution to our day-to-requirements. Instead of mere feeding the machine with a set of pre-defined instructions to work, isn’t it wonderful, to make it think and act accordingly? Guess what, that’s where we are all moving. We want the machine to observe our actions, and come up with suggestions or solutions we might be looking for; perform activities on our behalf, which we wish to complete, might have overlooked or forgotten about.

Watch out for more updates on ERP in this space.