Enterprise Resource Planning

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Croods Consolidates

Croods Consolidates is a global information technology solutions company offering progressive end-to-end software development, mobile application, enterprise portal, web application, ecommerce development, technical support, enterprise mobility, testing, data & analytic consulting solutions by combining our business domain experience.
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What Is ERP?

ERP stands for Enterprise Resource Planning. ERP is an enterprise-wide information system that facilitates the flow of information and coordinates all resources and activities within the business organization. Functions typically supported by the system include manufacturing, inventory, shipping, logistics, distribution, invoicing, and accounting. Some solutions now embed customer relationship management functionality. A wide variety of business activities including sales, marketing, billing, production, inventory management, human resource management, and quality control depend on these systems. The ERP system assists in managing the connections to outside stakeholders as well as enhancing performance management. It uses a centralized database and usually relies on a common computing platform. It provides the user a unified, consistent, uniform environment. ERP solutions evolved from applications focused on materials requirements and resource planning and computer integrated manufacturing. The Enterprise Resource Planning term came about when software developers were searching for a name that would more aptly describe these broader systems. These new solutions provided functionality that encompassed other applications in addition to manufacturing.

 

What Is ERP and Why Do I Need It?

Of all the software an organization can deploy, ERP has potentially the most direct impact on reducing costs. When asked in a 2010 survey conducted by the Aberdeen Group of Small and Medium Businesses (SMBs) what factors drove them to implement an ERP solution, nearly half cited the need to reduce costs to improve operating margins. Improving customer service was the second most cited reason.

 

Why Does the Small or Mid-Size Business Need ERP?

The best firms are hungry for proven methods to streamline operations and improve their customers’ experience to enhance their competitive position and drive growth – and the value of Enterprise Resource Planning (ERP) solutions is well established.

Competitive advantages arise to firms that can contain costs so that increased revenues translate into higher profits. A well-constructed and implemented ERP solution should reduce costs and increase productivity through improved operations. Standardizing business processes, which is required for the successful implementation of ERP, lays the groundwork for attaining improved efficiencies. An effective implementation of an ERP solution optimizes the use of capital equipment and manpower. This in turnincreases the importance of other ERP capabilities such as scheduling and resource planning.

 

The SMB sector, which has on average seen greater growth rates than its larger counterparts, is suffering the consequences of a disconnect between what they have in their legacy systems and what they need to compete effectively in a highly competitive and increasingly global environment. A tool that provides insights into how to gain more efficiency from the organization is invaluable.

Until now, most SMBs have struggled to squeeze the information they need for their operations out of a tangle of inadequate tools – for the most part consisting of stand-alone spreadsheets, accounting systems, desktop applications, and a patchwork of homegrown applications. These tools lack the horsepower, breadth, and necessary integration to provide the insight managers need to transform their businesses. Lacking an ERP solution, firms, especially manufacturers, find themselves struggling to compete and grow using applications that are functionally deficient, obsolete, and isolated from other applications and data. These shortcomings manifest themselves in many ways that adversely affect the organization, some include:

  • Inaccurate forecasts play havoc with inventory levels,
  • Insight into innovative design engineering is clouded,
  • Order tracking from acceptance through fulfillment is cumbersome – or non-existent,
  • The revenue cycle is obscured,
  • Capacity is underutilized – or overstrained,
  • Cost overruns and missed deadlines taint customer relations.

 

The Benefits of “Full-Function” ERP

Full-Function ERP solutions share certain characteristics that some of the lower products do not: · They have more than a dozen integrated modules that address the breadth of the organization’s needs.

  • They can scale to grow with the organization.
  • They contain a toolset that allows for user customization.
  • They rely on a sophisticated, relational database with open access.
  • The vendor has a solid understanding of the market’s wants and needs and is committed to
  • meeting them through its offerings.

One of the primary benefits of deploying a Full-Function ERP solution is the consolidation of often-dispersed data. The consolidation of data resulting from ERP use creates many organizational benefits:

  • No need to synchronize changes between systems.
  • Consolidates applications and brings more control to cross-functional processes for
  • manufacturing, finance, human resources, marketing, and sales.
  • Provides a real-time, enterprise-wide view of the business for faster and more effective
  • decision-making.
  • Shortens production lead times and delivery times.
  • Helps build a common vision throughout the enterprise.
  • Consolidates multiple permissions and security procedures into a single framework, which
  • reduces the risk of losing or exposing sensitive data.

The benefits of ERP have been proven by a number of studies. The Aberdeen Group found the following quantifiable benefits from best-in-class ERP implementations:

  • 22% reduction in operating costs,
  • 20% reduction in administrative costs,
  • 17% inventory reductions (for manufacturing and
  • distributing),
  • 19% improvements in complete and on-time delivery,
  • 17% improvements in schedule compliance (for manufacturing and distributing).

The study also found that best-in-class implementations combined strategy, organizational capabilities, and technology to:

  • Standardize and accelerate both back-office and customer-facing functions,
  • Offer real-time visibility throughout the quote to cash cycle,
  • Use exception reports to respond proactively to head-off potential problems.

Even the firms characterized as laggards realized significant benefits from their ERP implementations. These less than stellar performers realized:

  • 7% reduction in operating costs,
  • 4% reduction in administrative costs,
  • 9% reduction in inventory (for manufacturing and distributing),
  • 11% improvement in internal schedule compliance (for manufacturing and distributing),
  • 6% improvement in complete and on-time delivery.

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Prior to actual coding, we develops an overall product architecture and identifies individual modular components as well as existing our tools and third party tools to be used. For each component, a set of interfaces is defined. This approach reduces the overall development time, minimizes the integration process, and improves the product’s testability.

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