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Over 80 percent mid-size firms do not use advance ERP

New Delhi, Sep 27, 2010 (Calcutta Tube) The government and business associations should encourage mid-size companies to use advance Enterprise Resource Planning (ERP) system to increase efficiency and cut cost, say technology experts.

‘Less than 20 percent mid-size companies use mature ERP products. It’s use should be encouraged by regulators as well as industry associations,’ Vinay Singh, chief executive officer of Vital Wires, a SAP solutions and consulting firm, told IANS.

He said smaller firms were generally conservative in their approach on shifting to new technology and business methods.

‘It can cut operating costs of manufacturing companies by almost 10 percent,’ said Singh, adding ERP system substantially improves the efficiency and reliability of companies.

He said growth in the adoption rate of mature enterprise resource planning system was around 25 percent. ‘Growth is good, but sheer number of companies not using the system is quite high.’

Enterprise Resource Planning is an integrated system that helps in ensuring accuracy of information, productivity, efficiency, scalability and reliability.

It facilitates the required collaborative effort for various departments of an organisation such as marketing, sales, production, quality management, materials management, logistics, financial accounting and financial control.

‘For a company that is past Rs.50 crore turnover, cost of the best ERP solution can be recovered from the material handling efficiency itself,’ said Mahesh Taneja, Assistant Vice President Finance and Information Technology at Munjal Showa Ltd.

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