We have installed ERP system at our manufacturing and trading facilities since 01/04/2010. We started the process with the vendor in Jan-10 and gradually incorporated all the modules like purchase, sales, stores, accounts, inventory, planning etc in phase wise and have gone live since 1st April 2010.
“I can easily excess my group companies’ daily and monthly update by a single click, which I used to get in physical report of 100 odd pages without keen analysis from my team. Even my secretary can excess the customised details and prepare a simple report for me in just 60 seconds”
About Enterprise Resource Planning (ERP) System:
- Which circumstances turned Team Rajiv to implement ERP system?
There was indeed a need of ERP system to integrate all business management functions, including planning, inventory/materials management, engineering, order processing, manufacturing, purchasing, accounting and finance, human resources, trading, exporting and more.
The management surveyed by discussion the ground level team of whole Rajiv Group and found that at all layer, a real time data integration is required to smoothen the processes.
- What was the biggest challenge faced by Team Rajiv while thinking to install ERP system?
Compatibility of Team Rajiv’s existing employees with a new proposed ERP system was more time consuming process. Challenge was to train according the new modules of the system and keep track of any misfortune of whole system.
- What difference Team Rajiv was looking to make with an introduction of structured IT system?Real time stock management, real time trading update, keep track on arbitrage sales loss/opportunity, manage customer profiles and their preferences etc.
- Is your ERP system catering internal as well as external management information? How? Example please.More of internal operations are covered under ERP system currently. We will look forward to integrate with our long term prestigious clients and agencies after extensive experience of new system.
Earlier Team Rajiv’s marketing and manufacturing forecasts were not matching each other. Manufacturing used to claim that marketing division is over committing to the clients to achieve the targets but not considering the manufacturing capacity. Those problems are now totally solved as marketing people know what is happening in back-yard and manufacturing people sets the order as per the ERP system only.
- What sort of customization is available in the ERP system which was not possible or tough before? Maintaining customer profiles and their preferences are helping us to know the buying pattern and specific demand growth if any. This helps us to understand our clients and we could try impulse marketing in the right way.
- Name the main businesses in Team Rajiv that are growing because of ERP. Please elaborate by giving few more information?A flagship company of Team Rajiv – Rajiv Petrochemicals Pvt. Ltd. having total turnover of Rs. 380 crore in 2010-11 is taking a continuous pace of growth in comparison to last two years. Our sale for the polypropylene and polyethylene has gone high in Gujarat State. We could manage our orders and supplies with zero error and that added more trust and reliability into our agency partner.
- How much time took to migrate the old data into ERP system? Any challenges faced which increased the cost of implementing the ERP? If yes, how much was that?We had chosen two phases to implement the whole system. In phase I, we collected and put all data streamline. We managed even the missing links to compile the whole back support database. Then we started implementing it from both the ends, lower management and top management as a taste drive. It took us around 4 months to make it live after we gave training to staff into phase II.Challenges mainly faced were giving training to the old age staff was cumbersome due to lack of basic system knowledge. No major cost increased due to delay of implementation.
- Is ERP saving time and cost? How and how much so far? Yes of course, we could save time and energy of marketing people by matching two ends as one is manufacturing which is very important. Around 6% operating cost was saved in manufacturing division by following ERP system.