Top operational challenges faced by Railway contractors which can be solved with an ERP software.

This article was published on: 16/08/21 1:25 PM

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Top operational challenges faced by Railway contractors which can be solved with an ERP software.


To modernize the Railway Infrastructure, Contractors have played a significant role to make them possible. Providing the adequate materials to build the infrastructure within a deadline is a very challenging job to them. Like the other manufacturers they face the same kind of manufacturing challenges to run the production smoothly and efficiently. They produce the materials like sleepers, forged rail,fresh bolts,fish plates, turnouts etc as per Railways standards and those materials have to be certified by Railways recruited Inspectors. As partners or contractors of Railways they have a major social responsibility to supply the materials as per the standards mentioned by the Govt.


Apart from the normal operational challenges like Stock and inventory maintenance, Production and Finance, they have to face some specific and unique challenges which are mentioned below.


1. PVC Tracking in respect of Orders:-  Price Variation Clause in respect of specific order is a very challenging job to track the same efficiently. PVC shall be applicable only for contracts of value as prescribed by the Ministry of Railways through instructions/ circulars issued from time to time and irrespective of the contract completion period.


2. Security Deposit Tracking against Govt Sales Order:- For the Satisfactory job from the bidder or contractors Railways impose the Bank Guarantee as a security deposit through a Bank hypothecated by the depositor against the Contract value. So tracking the Security Value related to the specific contract is a very complicated work to perform for the contactors.


3. Free Rail Tracking Issued by Indian Railways:- Free Rails are issued to contractors by multiple railway zones like Eastern Railway, Southern Railways, Western Railways etc. for job work and that need to be tracked properly so that contactors have full visibility of their inventory of the free rails.


4. Multiple BOQ Management:- To track the multiple BOQ becomes very challenging if volumes are increased day by day. Contractors need to make a proper planning to manage the production and other operational work as per the BOQ.


5. Service Invoice Tracking :- To track the Service Bills raised by the contractors related to the Inspections becomes a very hectic job. Each and every bill needs to be tracked otherwise the contractor could not claim against the same services.


6. Percentage Wise Proportionate Despatch and Billing:- Contractor has to dispatch the materials proportionately during the project and need to raise the partial bill accordingly. So it becomes very much complex to track the invoice as per the despatch of materials.


ExpandsmERP has all the functionality to resolve all the operational challenges, already mentioned and will give you smooth business operations at ease apart from the standard industry challenges. It empowers you for real-time visibility and complete control over their business for faster expansion by simplifying complex business processes.


With over 15 years of extensive R&D and market testing, we have developed a software that seamlessly fits into Indian Business. We are the OEM of this solution. Further, specific fitment through customization and integration are made for the company’s unique needs. All measures are taken to fit seamlessly into the existing business processes to deliver the maximum benefit of our solution.


ExpandsmERP cloud software drives maximum growth and ROI to your business.Please leave a comment below if this article was of any value to you or for any further queries. To know more about ExpandsmERP and how it will transform your business operations please allow us to arrange for the best fitment test and product walkthrough by our BizTech Expert.


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