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ERP - For <br />MANUFACTURING INDUSTRY<br />VELCOM ERP IT SOURCING PVT LTD<br />An Independent ERP Consulting & Talent Sourcing Company<br />1<br />

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ERP MODULES - OVERVIEW<br />Financials<br />Sales & Receivables<br />Purchase & Payables<br />Inventory & Warehousing<br />General Ledger<br />Fixed Assets<br />Cash Management<br />Budget & Forecast<br />Cost Accounting<br />Inter-Company & Consolidation<br />Receivables<br />Invoicing<br />Order Management<br />Return Order Management<br />Pricing & Discounting<br />Tax<br />Payables<br />Invoicing<br />Order Management<br />Return Order Management<br />Pricing & Discounting<br />Tax<br />Stock Keeping Unit & BOM<br />Substitution & Cross Reference<br />Item Tracking & Cycle Counting<br />Logistics – In & Out Bound<br />Multiple Locations<br />Barcode<br />HRMS<br />Planning<br />Production<br />CRM<br />Marketing Automation<br />Telemarketing<br />Sales Force Automation<br />Sales Management<br />Service Management<br />Email Integration<br />R&D<br />Supply Planning<br />Capacity Planning<br />Finite Loading<br />Demand Planner<br />Production Order<br />Bill of Material<br />Routing <br />Shop Floor Control<br />Lean Manufacturing<br />Recruitment<br />Performance Management<br />Compensation<br />Training & Development<br />Attendance System<br />Payroll<br />Add-on’s<br />Web Portal<br />Analytics<br />Administration<br />Projects<br />Quality<br />Enterprise Asset Management<br />Balance Scorecard<br />Travel<br />Compliance & Governance<br />Industry Solution<br />Employee<br />Customer<br />Sales Person<br />Vendor<br />Consultant<br />Business Analytics<br />Business Intelligence<br />Report Builder<br />User Management<br />Configuration Tool<br />Business Connectors<br />Backup / Restore<br />2<br />

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MANUFACTURING INDUSTRY – KEY CHALLENGES<br /><ul><li>Achieving Growth & Profitability while meeting customer expectations against competition

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Continually strive for following to grow & be profitable

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Reduce Production & Supply chain costs

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Improve Process efficiencies & Product quality

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Satisfy an avalanche of Customer demands & Regulatory requirements

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Drive to optimize manufacturing processes in order to increase agility & to ride the efficiency curve to serve the customer better

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Other Key Challenges

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Better Customer Service

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Business Integration

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On-time Delivery</li></ul>3<br />

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ERP BENEFITS<br />Automate & Streamline Business Processes with Greater Adaptability<br /><ul><li>Align key business processes in planning, design, development, procurement, inventory, manufacturing, sales & delivery

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Match overall supply with demand and manage all resources & assets along the entire value chain</li></ul>Respond quickly to Changing market conditions<br /><ul><li>Use integrated, real-time sales & operational information to accurately anticipate, plan for & respond to orders and new demand, as well as reduce forecasting errors

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Model production capabilities, quickly share engineering information & adjust product mix for changes in demand to capitalize on new opportunities

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Support compliance with regulatory requirements, including safety & environmental regulations, by quickly validating manufacturing processes while conforming to individual markets requirements</li></ul>Decision Making on Strategic Business Insight<br /><ul><li>Rich out-of-the-box analytical performance measurement tools hone the strategic planning & monitor the overall health of the organization

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360-degree visibility on accurate forecasts, effective budgets, proper resource allocation & goals

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Combine operation & financial analyses to optimize day-to-day operation</li></ul>4<br />

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ERP BENEFITS<br />Enhance Customer Satisfaction<br /><ul><li>Delivering products on time with high quality

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Faster time to market, higher-quality products & accurate information provided to customers</li></ul>Improve Productivity<br /><ul><li>Collaborate across business functions to consolidate information, align strategies & standardize operational processes

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Increase information worker productivity through realistic, appropriate business roles

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Increase adaptability to process changes by enhancing existing skills & assets with real-time information</li></ul>Fuel efficiency & Reduce risk across the entire organization<br /><ul><li>Standardize processes & easily share best practices

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Support multiple manufacturing modes & a hybrid or mixed-mode environment

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Reduce time across the Order Process Cycle (Quote-Order-Delivery) there by reducing the loss risk</li></ul>Gain insight into Costs & Process efficiency<br /><ul><li>Analyze & manage production schedules with reporting tools & “what-if” scenarios, including capacity loading, shop floor activities & production costs

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View real time client, contract & project details for an accurate accounting of profitability</li></ul>5<br />

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ERP BENEFITS<br />Manage Demand Pro-actively<br /><ul><li>Trace expected to actual sales & forecast future sales while taking into account seasonal & promotional effects

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Use simulations, demand models & error analysis to determine optimal stock levels for better profit & operations margins</li></ul>Expand Sales Success<br /><ul><li>Monitor market demand & meet margin objectives through effective promotions

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Increase capacity to evaluate product turnover in response to campaign & align production & inventory accordingly</li></ul>Improve Customer Service<br /><ul><li>Enhance the security & reliability of deliveries with the global available-to-promise (ATP) view, which provides delivery alternatives in the event of unexpected disruptions

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Automate sales & purchasing processes, track & locate inventory items quickly & help ensure accurate pricing & discounts to improve customer satisfaction

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Deep visibility & control over the supply chain, increase order fill rates, reduce risk of stock out or inventory excess & enhance overall responsiveness to customers</li></ul>6<br />

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ERP BENEFITS<br />Increase Revenue<br /><ul><li>Higher profit margins by automating & streamlining all business processes resulting in reduced operations costs through adherence to better business practices

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Improved cash flow by more efficient & accurate billing procedures, lower inventory levels & quick turnaround

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New opportunities identified through continuous, real-time monitoring of KPIs

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Opening up new sales channels like e-commerce</li></ul>Reduce Operating Costs<br /><ul><li>Decreased overall operating costs by converting time-consuming manual processes into automated, streamlined, real-time business process management

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Lower transportation costs through consolidated orders & combined shipments

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Reduced warehouse costs from optimized utilization of resources & assets

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Reduced cost of sales from use of profitable sales interaction channels

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Sustained cost savings for all spend categories due to a standard approach to both strategic & operational procurement

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Reduced IT costs because administration & usability have been improved, fewer interfaces are used & IT resources have been freed up to focus on value-adding strategic projects

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Lowered TCO (total cost of ownership) by leveraging technology for facilitated exchange & interoperability with non-ERP systems</li></ul>7<br />

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ERP BENEFITS<br />Increase Visibility & Simplify across the Supply Chain Process<br /><ul><li>Empower users with real-time data through a user-friendly interface & Role centre that provides access to tasks & critical Business Intelligence data such as KPIs & custom reports

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Exchange data across multiple systems & gain visibility into business processes to improve decision making & control at every level of the supply chain

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Connect inventory, production, purchasing & sales processes to gain accurate, real-time view of the entire supply chain.

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Improve collaboration with trading partners with support for a wide range of predefined XML business documents</li></ul>Reduce Cost by optimizing supply chain processes<br /><ul><li>Improve productivity, adapt internal processes quickly to meet new demands & optimize processes across sites in the supply chain</li></ul>Better Collaboration with all Supply Chain Partners<br /><ul><li>Enhance collaboration among departments, customers, suppliers, business partners for a significant improvement

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Integrate partners of all sizes to release data throughout the chain that’s accurate, complete & available up to the minute

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Costs reduced, processes speed up & smooth flowing operations throughout the supply chain</li></ul>8<br />

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ERP BENEFITS<br />Demand Driven Supply Chain Approach can help<br /><ul><li>Maintain competitive edge

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Integration of supply chain processes with other business processes e.g. Sales & Operations

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Respond effectively with a comprehensive, cross-functional view of the company, better understanding of customer needs through downstream data analysis & effective collaboration between trading partners</li></ul>Control & Streamline Inventory<br /><ul><li>Use powerful inventory management tools to improve forecasting & planning, match supply with customer demand

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Create sales & purchasing forecasts based on specific items & time periods</li></ul>Meet Complex Inventory requirements<br /><ul><li>Create multi-dimensional inventory records & track items throughout the supply chain for online & accurate inventory status

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Enhance Material & Product Traceability

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Implement effective recall procedures & maintain complete forward & backward traceability of any material

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Track materials from purchase through production & sale with lot & location control</li></ul>9<br />

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ERP BENEFITS<br />Integrate Design innovation into Manufacturing<br /><ul><li>Shorten time to market for product innovation by integrating design & manufacturing processes & collaborating effectively with suppliers, partners & customers</li></ul>Support a wide range of Manufacturing processes & Business models<br /><ul><li>Tailor the solution to serve make-to-stock, make-to-order, assemble-to-order, configure-to-order, & engineer-to-order environments

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Manage items from design through assembly, testing, shipping, installation & maintenance

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Meet specific customer needs by configuring build-to-order items easily & effectively

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Help efficiently produce & deliver products that follow custom formulas or recipes & take full advantage of manufacturing & supply chain capabilities

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Empower to streamline, monitor & control the entire production cycle</li></ul>Improve Project management for customized orders<br /><ul><li>Create estimates & quotes quickly & accurately

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Forecast machine & resource requirements for strategic scheduling & precise delivery times by analyzing project cost & order processing time</li></ul>10<br />

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ERP BENEFITS<br />Increase Productivity with a Role-Based Solution & Centralized Information<br /><ul><li>Provide empowering self-service & role-specific information that increase user productivity

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Personalize portal to meet business users specific needs

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Manage centrally the critical documents (e.g.) BOM, routing data, CAD designs, recipes, project plans & item information</li></ul>Streamline Integration with Web services<br /><ul><li>Improve integration within & Outside the organization by using a flexible Web services framework

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Maintain high production levels & on-time delivery rates by sharing portal-based, real-time information about specifications, order status & quality control testing among key departments & trading partners</li></ul>11<br />

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ERP – CONSTRAINTS<br /><ul><li>ERP Customization is limited or expensive

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Business Process Re-engineering to fit the "industry standard" prescribed by the ERP may lead to a loss of competitive advantage

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ERP is sometimes too rigid or difficult to adapt to the specific workflow & business processes

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Many integrated links need high accuracy in other applications to work effectively. This should be done on a phased manner for smooth transition.

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Once established, ERP switching costs are very high

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Resistance in sharing sensitive internal information between departments can reduce the effectiveness of ERP

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ERP once implemented is the lifeline of the business and downtime costs are very high & impact the business critically</li></ul>12<br />

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ERP IMPLEMENTATION – KEY SUCCESS FACTORS<br /><ul><li>Top Management Commitment

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Clear Goal Setting & Budget Planning (TCO)

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Business Process Re-Engineering

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Change Management

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Effective Project Management

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Good Project Team - Client & Vendor

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High Communication Standards

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Scope Creep Management

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Data & Approvals on Time

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Education & Training</li></ul>13<br />

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THANK YOU! <br />14<br />