How ebizframe brings about enhanced operational efficiency in real-life situations. Analysis the Impact of Enterprise Resource Planning Systems on Organizational Effectiveness.
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ERP Impact on Organizational Efficiencies
1.
2. OEM to Suzuki
60% reduction in the inventory management cost due to implementation of
barcode for material issue.
As job card is allocated automatically on basis of customer schedule and
mould cavity hence it’s gets easier for them to get the actual requirement of
raw material .
Fully automated excise register.
Implementation with e-nagare, saves dispatch time, reconciliation issues
3. FMCG Mfg. and Distribution organization
Receivables cycle down by 1 month, Financial Reporting time cut by 15
days,
Payroll generation time cut by 4 days.
Relocated 30 people
Dry Cell /Battery mfg. MNC
Financial Reporting time cut from 5 to 2 days with Reports in Indian and
Japanese formats
Easy inter-branch financial transactions and reconciliation with auto
inter-branch JVs generated by system, used to waste days for this
reconciliation
Inventory monitoring totally online with turn around time cut by 2 days
Payroll generation cycle cut to 1 day,
4. Fine Chemicals Company
Quarterly MIS reports used to take 20 days after the end of the Quarter,
available within 3 days of end of Quarter
Easy price list management saves huge time in creating new list every time
there is a change in policy, schemes or pack types
Multi-location Mining Company
Monthly Cost Reports used to take 25 days to compile – Accuracy was also
a problem, now available on 2nd
of every month.
C&F agents can get information about deliveries on-line
White Goods Mfg. Co
Spares requisitions used to take 20 days before an item reached the
service engineer while onsite - Cycle time cut from 20 days to 3 days
5. Auto Ancillaries Fastener Company
Fast Invoice Cycle: 5 persons involved in generating 125 invoices. Fast
Invoicing option allows 300 invoices in a day involving only one person.
Credit limit control at Group level: - Required involvement of both
marketing and accounts team to track credit limits and authorizing
dispatches. With group MCL, only two people are able to work efficiently
with group level credit limit check with no errors.
Reduction in M/c set-up time: - reduction in machine setting time from 18
min. to 13 min. with the help of Product wise specs set in “Process Control
Master”
Lower Inventory Carrying cost - D3 stocks reduced from 1.35 Cr to
approx. 35 lacs. Slow moving items reduced by 70% from stocks
6. Duty Free Retail Chain
Month end MIS as per statutory requirements reduced from 5-6 days to 4-5
hours with centralized integrated on-line system.
The processing time task which used to take 4-5 minutes for each customer
has reduced to 1 - 1.5 minutes now.
Complete control on various schemes, centrally controlled.
Special sales schemes and offers pop-up on screen for both sales person
and customer, more customer delight, no mistakes.
On-line Bill of Entry wise on-line inventory reports control pilferage and
result in easy compliance with statutory requirements.
Efficiency has increased 3 times today. It takes only 87.5 hours per day
against 233 hours for each location. For 60 location savings up to 8730
hours (5250 hours now to 13,980 hours) per day.
7. Large Multi-location Trading House
Group consolidation of Financial reports is now available in few minutes earlier it
used to take 1 week to prepare.
Preparing sales executive incentive calculation report used to take 1 week now
available in few minutes from the system.
They have been able to enforce proper control on damaged stock by
implementing re-bagging cycle.
Credit Limit to Customers – There was no control on credit limit before the
implementation of ebizframe resulting into huge outstanding. Now they have
been able to implement a full proof credit policy in ebizframe.
Selling Price – There was not much control on selling price earlier resulting into
loss of margin. With the system in place now they have a better control on
margin. They have auto generated minimum selling price from the system on the
basis of product costing with a fixed percentage as margin.
8. NAME OF THE CUSTOMER Blow Moulding Mfr
BUSINESS TYPE REGION
YEAR 2004 2005 2006 2007 2008 2009
ANNUAL TURNOVER OF THE COMPANY 24,98,42,912.37 80,50,64,341.37 99,59,24,674.47 1,07,86,14,168.41 1,29,03,15,007.68
TOTAL NO. OF EMPLOYEES - - - - 440.00
NO. OF EMPLOYEES IN FINANCE DEPT. - - - - 15.00
NO. OF EMPLOYEES IN SALES DEPT. - - - - 10.00
TOTAL SALARY PAID IN THE YEAR - 3,87,43,175.42 5,67,07,576.78 5,88,97,794.13 6,84,14,863.62 9,41,31,531.74
TOTAL NO. OF COMPUTERS - - - - - 86.00
TOTAL NO. OF ERP USERS - - - - - 98.00
TOTAL NO. OF PRODUCTS - - - - - 2,009.00
TOTAL NO. OF CUSTOMERS - - - - - 596.00
TOTAL NO. OF SUPPLIERS - 788.00
TOTAL OUTSTANDING - - - - - 42,03,52,903.06
VALUE OF FIXED ASSETS - 15,42,37,621.81 18,42,37,621.81 21,04,65,551.69 21,04,65,551.69 33,58,08,510.46
VALUE OF NON-FIXED ASSETS (STOCK VALUE) - 20,96,14,756.00 21,26,14,756.00 21,61,14,756.00 21,36,14,956.00 18,76,37,632.00
NO. OF INVOICES PREPARED - 5,975.00 13,701.00 13,923.00 11,623.00 11,909.00
TOTAL AMOUNT OF INVOICES - 24,98,42,912.37 80,50,64,341.37 99,59,24,674.47 1,07,86,14,168.41 1,29,03,15,007.68
NO. OF PURCHASE ORDERS PLACED - 4,031.00 2,609.00 2,195.00 1,757.00 2,005.00
TOTAL AMOUNT OF PURCHASES - 60,40,90,281.84 55,06,38,748.05 63,31,23,121.97 83,35,39,142.74 77,68,45,812.87
Trend Analysis of efficiencies with ERP
9. Logistics Organization
Errors like two vehicles landing up at customer site to pick up consignments
eliminated.
Vehicle/ consignment tracking only available after vehicle reached
destination. Now web based ERP allows continuous monitoring and better
customer satisfaction.
Better control in driver payments, elimination of duplicate payments.
Paper Processing plant
Barcode based generation of packing list has increased productivity multiple
times.
Box number/pallet number tracking through system eliminated manual
checking and laborious process in picking the right material.
On-line stock reports help plan purchase better, reducing procurement time,
lower inventory carrying costs.
Better cash flow control with on-line receivable and payable control
10. NAME OF THE CUSTOMER Distribution Co
BUSINESS TYPE REGION
YEAR 2004 2005 2006 2007 2008 2009
ANNUAL TURNOVER OF THE COMPANY 555541894 653079170 822803229 1179101161 1106530861 1232900823
TOTAL NO. OF EMPLOYEES N/A N/A N/A N/A N/A N/A
NO. OF EMPLOYEES IN FINANCE DEPT. N/A N/A N/A N/A N/A N/A
NO. OF EMPLOYEES IN SALES DEPT. N/A N/A N/A N/A N/A N/A
TOTAL SALARY PAID IN THE YEAR N/A N/A N/A N/A N/A N/A
TOTAL NO. OF COMPUTERS 10 12 15 15 15 18
TOTAL NO. OF ERP USERS 10 12 15 15 15 18
TOTAL NO. OF PRODUCTS 2836 3348 3900 4564 4942 5845
TOTAL NO. OF CUSTOMERS 345 390 442 474 503 532
TOTAL NO. OF SUPPLIERS 189 234 280 332 365 398
TOTAL OUTSTANDING 175610 195829 1413818 3934984 1720621 320662252
VALUE OF FIXED ASSETS N/A N/A N/A N/A N/A N/A
VALUE OF NON-FIXED ASSETS (STOCK VALUE) 113590090 117279069 166224065 286064442 399284465 327660276
NO. OF INVOICES PREPARED 16806 20570 24422 27829 23705 26646
TOTAL AMOUNT OF INVOICES 555541894 653079170 822803229 1179101161 1106530861 1232900823
NO. OF PURCHASE ORDERS PLACED 16887 20650 24326 27811 23781 26577
TOTAL AMOUNT OF PURCHASES 370084592 480008117 518039306 679976645 828027771 909855009
Trend Analysis of efficiencies with ERP
11. Jewelry Mfr – Exporter
FOB Reports took1 month to compile with huge report sets of 7-8 reports
with detail of each invoice w.r.t. remittance etc. Now all reports on click of
mouse.
Online information including consignment wise profitability as compared to
consignment wise lot wise tracking of goods and sales done on
spreadsheet which was unreliable.
On-line consolidation of accounts at group level reduced quarterly result
generation from weeks to virtually on-line.
System generated Forex gain/loss account, inter-branch transaction with
internal JVs for auto-reco. a great saver.
Export remittance reports now system generated and the Loan accounting
gets settled as per the disbursement of actual entries made by Bank. Earlier
all this was manual.
Contractor manpower billing and TDS done automatically through ERP,
saving time and efforts.
12. Weighing scale and lab equipment MNC
Cash inflow time cycle reduced from 10-15 days to 5-6 days. Credit control
policies reduced cash flow problems.
Month end reports generation effort reduced from 5-6 days to 2 days now,
and without additional resource required for
Transportation expense booking and reconciliation took 1 day. With
automation the effort time reduced to 2 minutes. Pilferage and wrong billing
brought under control.
Monthly MIS presentation preparation with PPTs reduced from of 3-4 days
to 1/2 a day.
Eradicated the constant disputes between the sales and finance department
personnel due to discrepancies due to error free data in the system.
Sales incentive and commission distribution management resolved with
ERP with integration of sales invoices and accounts, transparent view of
reports resulting in happy employees.
13. Steel and Alloy products mfg and exports
Prior to ERP, Sales order use to take 3 days to process. It is now on-line.
Processing of sales invoice use to take 3 days, now online.
Receivables report would take 5 days to generate now online and on the
click of the button.
Lower rejections, better quality as Purchase bill passed only after QC
Heat number has helped in back tracking the material from the supplier
ensuring better customer satisfaction.
Finalization of accounts now takes 1 month prior to ERP it would take 2
months to finalize.
Easy implementation of ISO procedure thus saving major efforts of human
resources to adopt ISO.
14. Internet Service Provider
Customers with even zero credit used to avail the service this has now been
stopped and automatic deactivation of account is handled through ERP.
Activation & deactivation process used to be done manually, used to be difficult
to manage.
ERP implemented with many services hosted and controlled on the portal and
integrated tightly with back-end ERP
They had lot of problem in there manual scratch card concept which has been
resolved with ERP through auto- generation of pin from ebizframe on the
portal
Top management sitting outside can remotely monitor and control exact fund
position- bringing down misuse of fund
Company’s growth in terms of revenue has gone up by 30% whereas the total
man power has gone down by 10%.
15. Plastic Container manufacturing
Although Turnover increased by 55% in last 4 year inventory carrying cost
has reduced by 10% in this 4 year.
Number of purchase order has reduced by 80% year after ebizframe has
been implemented In last 4-5 year purchase order raising has reduced by
100%
Centralized server allows HO monitoring of accounts, inter-branch
reconciliation with no additional effort
Integrated debtor credit control across branches
Waste monitoring has resulted in lower wastage
Production department has transparent view of sales and purchase
functions for better management of production planning
16. Chemical Mfr. Exporter
Moving from nearly manual system to ERP reduced data entry efforts and
manpower for this by 60%.
Export related documentation creation cycle reduced from 6 days to 6
hours.
Remote location management issues resolved and sales and purchase turn
around time reduced from 2-3 days to 2-4 minutes
MIS reports related to Purchase, Sales, Inventory took 5-6 days, now
available at click of mouse.
Petrochem downstream chemicals
4 to 5 Trucks get loaded for dispatch and delivery as against 1 truck earlier
as approval process of sales is reduced from 4-5 days to 1 day with online
approval by senior managers.
17. Electronics Mfg. and Distribution
It can generate the MIS reports before 4th
of every month, previously they
took 15 days to give this reports to management.
All the reports of Sales, Purchase, Inventory and Finance module are based
on product brand.RAL can easily calculate brand wise the expense,
revenue and profit.
Exporters & Distributors of Books
Sales Order Processing became faster by 30 to 40%
Able to track booked order till dispatch to customer.
Automation of the export documentation.
18. Tire & Auto parts Dealer & Retailer
One of the largest business group on Kenya. Hybrid system – 3 branches
on-line on central server, 4 off-site with data replication
With central data repository, misuse of credit limits by customer stopped
totally
Online inventory visibility and controls from HO
Distributor, Trader of white goods, Kenya (Hypermart)
Excellent control over supply chain. ERP generated procurement system
with monthly cover takes sales trends into account to recommend timely
purchase as imports take 3 months to arrive.
Key product wise, customer wise, department wise, region wise sales and
margin and contribution monitoring, ranking optimized profits.
19. Plastic Pipe Manufacturing Industry
The cycle time from order to Invoice time has reduced by 50%
Reduction in number of staffs in sales invoicing process.
Sales yield report is now possible to get in 2 minutes which used to take longer
time earlier.
The system enables them to generate cost of production which was not available
earlier.
Stock valuation report used to take more then a month earlier now available with
the click of a button.
It used take a month to prepare P&L. Now available on a real time basis.
They could reduce Production wastages - various reports like stock ledger with
even detailed information on shop floor stocks available for control and monitoring
purposes
Better usage and recycling of the shop floor wastages to produce new product.
20. Sugar Mfg. & Plantations
26000 farmers grow sugarcane on contract with the company
Planning for cane harvesting and lifting with age wise cane maturity report
through ERP and use of fleet management module.
Weigh bridge integration with fleet management and farmer accounting has
ended accounts manipulation, misappropriation of funds, cheating of
farmers.
Multiple payments for same account to farmer or transporter no more
possible.
Commodity Trading & FMCG Distributor
Distributed system, data synchronized at day end
Data on consumer behaviour and sales available nearly on-line
Procurement based on demand analysis, JIT and inventory carrying cost
reduced.
Logistics system provides clear view of the fleet’s activity, expense control
and dispatches.
21. Projects & Services
Enable to arrive at project profit at any given day
Also customer can review project related all review in one shot through
project management Information System from a single screen -
a) Manpower
b) Project Summary
c) Expense Details
d) Work done material consumption
e) Contractor Details
f) Labor Details
g) Labor Purchase
h) Bill Details
22. White Goods MNC – Services division
Reconciliation of Loan outstanding of Sales Force – increased from 14 Lac
annually 67 Lac annually
Purchase planning based on MSL and actual consumption from earlier no
planning
Major reduction in stock buffering/storing – reduced from 6 crores to 2.5
crores
Control on cannibalization of FG - 85 lacs to 44 lacs
Just in Time availability of spares - from32% fill ratio to 78% fill ratio.
Track of spares kept with engineers – from No tacking to Complete Tracking
23. Printing and Packaging Industry
Job estimation process used to take 30 Minutes with 60% Accuracy, Now
can be completed within 5 Minutes with more than 90% accuracy.
Production coordinator can now generate reports for Jobs for design,
design to Pre-Press and reprint Jobs prior to ebizframe it used to be a
daunting task planning all these
Prior to ebizframe, multiple way bill generation for a single job used
require at least 4-5 resources. Now it is available on click of a button.
In case of Job Ticket cancellation due to improper Quantity/Quality of
Paper-used to take 4-5 hrs just to inform concerned departments to stop the
process. Resulting into production losses. Now can be done in 5 Minutes.
Reducing wastages.
Quarterly Sales Executive wise enquiry report used to take 10-15 days,
Now available on a real time basis
24. Printing and Packaging Industry
Statement of accounts is now available easily otherwise it used to require 2-
3 personnel to prepare. Accuracy used to be a problem
Prior to ebizframe, overtime calculation used to be error prone. Now
available in few seconds with 100% accuracy.
Payroll processing time has got reduced from 2-3 days to ½ day.
Complete control on the cost of CTP and Normal Plates now, prior to
ebizframe calculating cost of CTP Plates associate with various jobs used
to be difficult to calculate.
Easy availability of paper/plate price list has saved huge amount of time in
the Job estimation process.
25. NAME OF THE CUSTOMER Stationery & Printing Co
BUSINESS TYPE REGION
YEAR 2004 2005 2006 2007 2008
ANNUAL TURNOVER OF THE COMPANY 1,07,31,19,391.62 1,47,97,33,040.41 1,60,80,45,803.94 1,63,62,41,678.01 1,75,66,11,763.76
TOTAL NO. OF EMPLOYEES - - - - -
NO. OF EMPLOYEES IN FINANCE DEPT. - - - - -
NO. OF EMPLOYEES IN SALES DEPT. - - - - -
TOTAL SALARY PAID IN THE YEAR 1,64,01,918.09 4,08,65,848.05 5,26,68,147.52 6,54,25,615.80 8,42,45,867.89
TOTAL NO. OF COMPUTERS - - - - -
TOTAL NO. OF ERP USERS - - - - -
TOTAL NO. OF PRODUCTS - - - - -
TOTAL NO. OF CUSTOMERS - - - - -
TOTAL NO. OF SUPPLIERS - - - - -
TOTAL OUTSTANDING - - - - -
VALUE OF FIXED ASSETS 48,57,47,024.35 52,66,11,733.28 64,23,84,435.63 66,06,81,760.64
VALUE OF NON-FIXED ASSETS (STOCK VALUE) 17,06,84,748.69 35,81,19,151.54 33,55,25,292.43 1,02,33,23,333.47 47,52,69,919.12
NO. OF INVOICES PREPARED 18,909 24,538 27,370 26,751 27,111
TOTAL AMOUNT OF INVOICES 1,07,31,19,391.62 1,47,97,33,040.41 1,60,80,45,803.94 1,63,62,41,678.01 1,75,66,11,763.76
NO. OF PURCHASE ORDERS PLACED 663 1,359 1,636 1,865 1,940
TOTAL AMOUNT OF PURCHASES 1,21,05,25,064.10 1,27,07,69,280.23 79,56,55,045.09 44,23,58,129.94 38,14,51,214.95
Trend Analysis of efficiencies with ERP
26. Large Steel Manufacturing Company
All branch related transactions used to be entered at the Head office. This process
used to done on every Sundays involving 1-2 personnel. Now with the central
server in place all branches are online with the system, management can generate
any report any time.
Easier to track various types of charges paid for every import consignments helped
them in analyzing all overheads with every shipments.
Bank reconciliation is now done very easily unlike earlier manual time consuming
process.
LC opening and payment process automated in ERP, saving huge time and effort
and good tracking of historical data
For the Francophone country branch all statutory reports are available with click of
a button in French as well as in English like VAT, Trial Balance, Sales register.
Earlier they used to be done manually by an accountant.
27. Super Market Chain
Used to take around 7 days with 5 people to process 1200-1300 employee’s
salary in the previous system. With ERP within 2 days with 3 man power
salary is processed now.
It used to be nearly impossible making payments against specific order
earlier, now within 1minute user can check payment detail, creditor ledger and
ageing report.
Tax reports, overtime details, bank salary report, salary slip (detailed and
summary) are available with just click of a button now. In the previous system
they used to do prepare all these reports on excel. Data accuracy was also a
problem.
Price change/revision process takes few minutes even for huge number of
SKU’s at one go, as compared to time consuming and error prone shop wise
system earlier.
Destruction of expired item has been reduced by 40%.
28. Super Market Chain (continued)
Verification and adjustment of stock is online from HO, while earlier it had to be
done shop to shop, saving time and money
Improved customer management for all kind of customers like regular customer,
VIP customer, Special Card Customer.
Management of schemes with multiple options has become easy and takes care
of misuse of schemes, resulting in reduction in pilferages
At a glance stock report displays complete item history like item name, pack size,
reorder level, price, warehouse stock, shop stock, requested stock, all purchase
order of selected item and costing in just one click. In Previous system all these
information at one go were not available.
29. Retail and Distribution company in UAE
Calculating and assigning sales targets to the sales executive reduced
from 5-6 days to 2 days.
Brand wise targets for each executive are automatically calculated based
on previous trend which can be increased or decreased based on a %. Top
management used to spend 2-3 days in each branch for this. Now it has
been reduced to 1 day for finalization.
Company was not able to track the sales done without the invoice.
After Ebizframe ERP, a report generated showing the discrepancy between
the item scanned and invoice finally saved, reducing the possibility of theft
at the sales counter.
Data replication from various branches across the GCC countries was a
nightmare and above all possibility of data loss was too huge. Due to fully
automatic data transfer, the data reaches the head office the next day
with out any possibility of data loss.
30. Retail and Distribution company in UAE (contd.)
Delay in cash moving from sales counter to banks as process was manual,
But ERP, cash flow is managed online thus reduced the delay in cash
movement.
With centralized ERP, the promotions and schemes are fully
controlled and monitored by the head office. Thus reducing the possibility
of giving fast moving items under promotion.
There was possibility of selling many items under cost. With ERP a full
fledge control is in place where by user will not be able to sell the product
below cost until and unless approved from head office.
31. Retail and Distribution Company -
Multi-country garments chain
Stock taking use to take 2-3 days for each showroom and another 2-3 days to take
2-3 days for adjusting the system stock. With ebizframe ERP stock taking using
PDA has reduced the stock taking of each showroom is finished within 5-6 hours
including adjusting of stock in the system.
No control in terms of promotions and schemes, it was left open to the branch
manager or showroom manager. After a centralized ERP, the promotions and
schemes are fully controlled and monitored by the head office.
After the ebizframe ERP, a full fledge control is in place where by user will not be
able to sell the product below cost until and unless approved from head office.
Managing the wholesale customer was difficult, specially when the number of
customer are more. Each customer needed a dedicated sales executive writing down
the product code from the various samples placed at various places in the showroom.
After ERP, each customer is provided with a cordless scanner which has
reduced the number of sales executive in the wholesale division.
Above all time taken for each customer is reduced drastically.
32. Logistic & Procurement Services/Clearing Agent
Sales quotation cycle reduced from 2 days to 2 hrs.
Payroll processing time has been reduced by 4 days.
Major problem in cash management and in customer billing system. Multiple
cash issuance against same file and billing manipulation used to be a common
affair earlier now the same have been controlled and substantial cash gain
observed in the company.
Poor tracking of Import documentation resulted in company losing actual
projected margin in many occasions. This has been reduced substantially by
controls through various MIS reports and online usage of ebizframe by top
management even from outside the country.
33. Plastic bottles and Poly packaging – Injection & Blow Molding
Managing actual production consumption used to be difficult earlier, with the
implementation of ebizframe it has become much easier to manage e.g. for a
sales order of white bottles with green caps, many times white bottles with black
caps used to get manufactured due to lack of integration which is now controlled
by BOM and MRP cycle.
Complete control on Inventory specially spares parts which were difficult to
manage earlier. Reduction in multiple ordering of spares.
Product Costing is now done by the system by defining BOM which helps in
deciding and adjusting the selling price of products. If there is any increase in
direct & indirect mfg. cost, selling price can be adjusted accordingly.
34. Cosmetics & Perfume Manufacturer
Import documentations used to take 2 days now it takes 1 hour.
Achieved good control on wastage by implementing auto checking of balance
mix at shop floor which was not controlled prior to ERP. For every job card
fresh material used to be issued without considering balance mix.
Reduction in time in attendance data feeding and payroll processing from 3
days to 2 hrs- Automatic interface between attendance machine and
ebizframe has made the operation easier and hassle free
35. Brewery - Beer and Energy Drink Manufacturer
Better control on returned waybills and accountability of empty bottles.
There have been reduction of bad debtors, accounting of which was difficult
earlier, now controlled through receipts and sales order linking.
They have good control on customer outstanding through customer statement
with complete details on full (liquid) and empty bottle balances.
Better control on transporter payment as the system can generate auto debit
notes in case of short supply or breakage of bottles through empty bottle return
entry cycle.
Reduced payroll report generation from 3 days to ½ day.
36. It is an ever growing list of immense benefits that
ebizframe can deliver!
Thank You
www.essindia.com/ebizframe-erp-software