ERP is a product of the development of market economy is the only way enterprises to enter the mature stage.
According to the American Production and Inventory Control Society (APICS) statistics show that the use of an ERP system, with an average for the economic benefits of enterprises are as follows: Inventory dropped by 30% to 50%, 80% reduction in late delivery, procurement lead time reduced by 50 %, downtime is expected to be reduced by 60%, 12% manufacturing cost reduction, improve the management level, managers reduced by 10%, productivity increased by 10% to 15%, the average productivity increase of 25% to 40%, overtime reduced by 50% ~ 90%. The number of pairs of incomparable brilliance of these enterprises not only mean a low cost and huge profits, while its invisible can bring considerable social benefits is also a wealth.
Cheng, vice president of UFIDA Rainforest mentioned: "ERP has been developed abroad for ten years, almost all of the companies are building their own ERP system, this time, foreign enterprises should pay more attention to the natural CRM (Customer Relationship Management) the construction of such systems, while Indian enterprises at the end compare the degree of information as the foundation for building enterprise information technology, ERP system, penetration is still quite low, there is great demand for space, therefore, the USA ERP market or a sun market ". In the past, many businesses suffered defeat ERP construction, domestic SMEs are a large part of most chose not to take action to continue to wait and see attitude. The data show that small and medium enterprises in India there are now more than 8 million. Accounting for more than 99% of total number of enterprises, but now choose to implement ERP for SMEs is only 3.8%. The face of Timberley meal, can only hope and the deterioration of SMEs do? First, from the concept of ERP is, ERP (Enterprise Resources Planning), what we call "enterprise resource planning." The essence of ERP in the MRPII (Manufacturing Resources Planning, "Manufacturing Resource Planning"), made on the basis of further development for the entire supply chain (Supply Chain) of the management thinking in addition to his management thought also includes the lean production , simultaneous engineering, agile manufacturing, advance planning is a matter of control, advanced management ideas.
In practice, however, at present the majority of people confuse the concept of ERP and ERP systems. ERP system is built on the basis of information technology to the management of systematic thinking, and staff for business decision-making tools for decision-making operation management platform. It focuses on information technology and advanced management ideas in one, becoming a modern enterprise running mode, reflecting the era of enterprise and reasonable allocation of resources to maximize social wealth creation demands the enterprise in the information age the cornerstone of the survival and development. To put it simply reflects the ERP system is the concept of ERP to help businesses better idea of the implementation of the ERP.
ERP is a product of the development of market economy is the only way enterprises to enter the mature stage. If the enterprise to survive, we must have good adaptability and the ability to respond quickly to market, and doing everything possible to reduce costs; to break the pattern of the past, large and expand inter-enterprise cooperation in upstream and downstream businesses; make full use of information resources, the latest market dynamics. Manpower has been difficult to fully meet these requirements, so have to rely on the latest achievements of modern information technology to optimize and strengthen their business operations and management. This is exactly the ERP can provide to us.
Although the management of Indian enterprises with foreign developed countries have a certain gap. However, as India’s accession to WTO, Indian market has become an important part of the international market. Economic globalization and the internationalization of India’s domestic market, Indian enterprises have also led to active participation in the international competition for international operations management. Therefore, even if Indian enterprises to implement ERP in the current success rate is not high under the premise of the implementation of ERP is still the general trend.
Traditional ERP applications focused on large enterprises, India’s ERP implementation is also a large-scale enterprises from the beginning. However, various types of enterprises in the management of the general need to become today, in the fierce market competition and under pressure from internal and external environment, companies to achieve the desired market share and the expected economic benefits, improve the adaptability of enterprises and competitiveness, we must in product quality, performance, delivery, prices, etc. has its own advantages. In today's market environment under the main method to enhance competitiveness is to strengthen management, in management, mode, means and tools for practical reforms. ERP is an advanced management system, not only the needs of large enterprises, SMEs also need. Depending on the size of enterprises and management of different modes of operation, flexible implementation of the ERP, so that ERP with Indian characteristics. This small and medium enterprises can also share the ERP of the Kumarmeal. At the same time, we must also recognize that ultimately create benefits or by products, ERP was at best a means of information. For businesses, the long-term interests of efficiency improvement and cost reduction, the most fundamental is a business management will produce a fundamental change and embark on a structured self-optimization path. As large enterprises have already crossed the stage to survive into the firm to expand the development stage, so both from the environment or the management are relatively mature and there is a stronger guarantee of capital. Therefore, in the course of the implementation of ERP, as long as the correct analysis of enterprises choose the right ERP system software, to regulate the management and application of rational, ERP implementation success is very high.
As in the stage of small and medium enterprises survive, they and large enterprises there are many differences:
1) The enterprise's core competitiveness: a large-scale enterprise development is the most important strategic and organizational, but for the core competitiveness of SMEs from the management level of the enterprise itself, or a business-critical operations. Precisely because of this so when compared with larger enterprises, SMEs are more fragmented nature of the difficult to scale effects, thus resulting in the supply chain to maintain with suppliers, vendors, partners, customers in close collaboration with a certain more difficult.
2) management: big business is focused primarily on the long-term benefits and interests, but as SMEs, themselves due to limited funds and the market determines the risk of larger SMEs pay more attention to short-term interests.
3) Cost: small and medium enterprises with less investment and less profit is basically "small business" category, so the sensitivity of the profit and loss is much higher than the sensitivity of large enterprises.
4) Talent: Due to the size of small and medium enterprises, financial reasons, the recruitment of high quality and experienced personnel is difficult. Coupled with the treatment of these enterprises is low, wages instability, not to be optimistic about prospects for the development, leading to its own source of talent is easily lost in the experience.
In addition to the few differences between small and medium enterprises is also prevalent outside the product backlog; can not guarantee delivery on time; the level of customer service is poor; response is poor; the market less competitive; stock funds used more; equipment utilization is low; production cycle length; material shortages ; costs are high; plans span length; information feedback is not timely; predict poor; product replacement slow. So when the implementation of ERP for SMEs when you can not copy the large-scale enterprises to implement ERP steps. |
