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Know the main ‘culprit’ and ‘worst’ planner

Know the main ‘culprit’ and ‘worst’ planner

Making ERP success: Identifying the right elements

In our last article we have discussed what makes a business grow. It was explained in details the basic qualities, applications and dedicated efforts are necessary to succeed in a business field. What we would like emphasis in coming series of articles are that just implementing ERP solution won’t make your business grow.

To make ERP implementation sensible, we have to consider some other elements along with its focusing styles and then formulate the overall plan of actions. Let us now get to know what the important elements of ERP are and how can ERP be used in a rightful manner that will contribute largely into the growth of an organization. There are five important elements that have been identified and these are analyzed in details in the following articles.

The Client: The first and foremost element

The client is, who suggests focusing on the organization’s main line of business. As ERP implementation is more of business strategy than IT strategy, one has to analyze the key business driver’s specific to the industry and also for the company. It is customary to redefine the business processes with proper synchronization of these drivers along with improved customer interactions. The term ‘customer ‘ includes internal as well as external. The organization must plan for leaving traditional functional set-ups and reconfiguring its resources across pull type process set-ups where every transaction has specified supplier, customer, and the activities known in all aspects.

What is happening in most of the Indian companies is that even after adopting ERP, the organization continues with traditional functional style of departmentalization. This is mainly because of the absence of customer driven strategic plan or its incomplete implementation. In such set-ups or typically in make-to-stock environment, we find the traditional atmosphere of rivalry between various functional departments. For example, Marketing is the main ‘culprit’ for the production planning inefficiencies because of the dynamic, non-standard requirements which do not make sense.

Similarly, production planning department is regarded as the ‘worst’ ever planner by the purchase department. The accounts department is the common enemy of all. Such culture is the outgrowth of the multi-hierarchy organization structure in which cohesive and common language for business performance is missing. The organization is operating with fragmented departmental optimum results and no orientation is observed for the integrated business strategies. ERP completely fails to address such environment the underlying reason being misunderstanding and lack of coordination between different departments. ERP cannot ‘fulfill’ the requirements of these users.

For example, a sudden change in released marketing plan without consent of planning and purchase will create complete nervousness in the organization. Also, the targets given to purchase will conflict with production and maintenance targets. Such local optimum objectives lead to overall fragmentation and underutilization of organizational resources. ERP never supports these practices and the corresponding deviation between the ERP concept and the organization practice will make ERP a costlier affair for the organization.

If the client is not able to switch over to lean products and still wishes to eliminate these problems, then S&OP (Sales and Operations Planning – will discussed in details later) must be followed sincerely. It is the only way out for the Indian companies to improve their existing ERP performance.

A few organizations already started this, but it should become a general feature across all sectors. The main idea of S&OP is to collaborate internally and find out workable and naturally optimistic plans for particular planning horizons. Participating regularly in such meetings will boost the morale of participants for driving ERP towards success. An important point to be noted here is that this recommendation is applicable to each and every industrial sector including manufacturing and service.

For more information kindly visit: http://www.eresourceerp.com/making-ERP-success.html

Please Contact us at:
TMA House, 1st Floor,Road No 16, Plot No. 6,Wagle Industrial Estate,Thane (West) 400 604, Mumbai, Maharashtra, India
Tel: +91 22 25827692
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+91 22 41118000 / 8049 (50 lines)

E-mail : info@eresourceerp.com


What is The Cost in The Pos System

What is The Cost in The Pos System

Printing paper and ribbon used in pos equipment, which are costing every day as material, also need to be taken into account when making choice.

In addition, seen from the perspective of use cost, it is better to choose equipment and facility easy to operate.

The mobility of cashiers is relatively high. If the operation of products chosen is too complicated, it will increase the difficulty and time to train green hand. Meanwhile, complicated pos hardware systems will decrease the efficiency of cash repository, causing customers to wait longer. And the working of cashiers will also become heavier.

Any mechanical products need to do some maintenance after a certain period of use. So it is necessary to consider the maintenance cost before purchase.

Generally speaking, the maintenance cost (international practice and labor cost) of foreign products is relatively high while that of domestic products being relatively low. The maintenance cost (materials and labor) for ordinary products accounts for about 8% of the purchase price in the second year, which will become 12% in the third year, and the total maintenance cost will be more than half the purchase price.

Stability is very important in the operation of pos equipment, whose crash may cause customers to wait for a long time. Therefore, we often choose products with low consumption to reduce the chance of computer crash.

Another reason for us to pay attention to the entire consumption lies in the fact that the operating environment for pos system hardware is usually relatively severe with bad ventilation. Hence, the heat dissipation design should be taken into consideration, especially those hot regions in the south.

The product cost includes purchase cost and use cost.

On the current international market, main pos system brands include IBM, NCR and Fujitsu. Besides, there are domestic brands like SED, Hisense, Post, Intentia, Kawada, Minconstar, and Partner, Fly Love, Po profit from Taiwan. The price of domestic products ranges from 9,000 to 12,000, with the imported between 15,000 and 30,000.

Those foreign products are of better quality then the domestic ones, but the gap is not very large. The fault of the pos system mainly appears in pos receipt printer, main board and keyboard. The printers now used in pos system are almost by EPSON and the quality is perfect; and the main boards, for the most part, are custom POS main board, with a relatively good quality.

It may be much more in the case of foreign products. So it is advisable for enterprises to have a full consideration about maintenance when buying complete pos system.

As an economical pos hardware manufactuer, Posright.com can supply complete point of sale hardware,pos hardware,pos equipment,touch screen posrestaurant pos, we will offer one-stop pos hardware solution for your purchase!