Given the current economic landscape, small businesses must swiftly make data-based choices to stay competitive. To streamline and automate their operations and focus on strategic initiatives, Enterprise Resource Planning (ERP) software is helpful. With various ERP systems accessible in the market, it's crucial to select the best one to prevent frequent disruptions in your business and production processes. For this reason, we've compiled a list of the best ERP software available in India for your convenience. We'll evaluate the features and limitations of each tool so that you can determine which ERP software is ideal for your SME manufacturing business.
What exactly is Enterprise Resource Planning (ERP) Software and What Does It Do?
An Enterprise Resource Planning (ERP) software is a system that businesses use to manage and optimize their daily operations. It integrates key operational procedures, such as accounting, manufacturing, sales, purchasing, and in some cases, Human Resource Management, into a single software solution.
With the advancement of technology, ERP tools have evolved to incorporate business intelligence, providing firms with a competitive edge over their rivals and greater control over their operations. These software solutions streamline processes, automate repetitive tasks, and provide real-time data and analytics to help businesses make informed decisions. By consolidating and simplifying operations, ERP software allows companies to reduce costs, increase efficiency, and improve their overall productivity.
Best ERP Software In India:
● TranZact
● Tally
● Oracle
● SAP
TranZact:
TranZact is an efficient business automation tool designed to streamline the entire business process for small and medium-sized enterprises (SMEs). Its four core modules cover sales, purchase, inventory, and production, and it seamlessly integrates with Tally and other tools for easy accounting data flow. Unlike other ERP tools, TranZact is accessible through the cloud and requires minimal training to operate, making it ideal for SMEs in India where employees may not be comfortable with complex tools. The base solutions are available for free, and customers can upgrade and customize additional services as needed. TranZact's Business Intelligence dashboard offers visual analysis and enables users to generate over 70 reports across solutions. The tool runs on AWS cloud services, ensuring 100% data security for customers. Additionally, it provides GST compliant invoicing and documentation solutions. However, it is currently not suitable for large businesses.
Tally:
Tally Prime is a highly-regarded ERP software in India that is well-known for its robust accounting, stock control, reporting, and payroll functions. It is designed to meet the accounting and ERP needs of small-scale businesses globally, offering services such as cash flow management, reporting, payroll, and credit management. Tally Prime also provides credit and inventory management services. However, it is primarily an accounting software and is not integrated with materials planning and production planning modules. Additionally, it is a complex software that requires trained professionals to operate. The cost of operating Tally Prime is also considerably higher.
Oracle:
Oracle ERP software is a powerful cloud-based solution that automates core business processes and provides operational and financial visibility for global businesses. It offers modules such as Project & Risk Management, Compliance, Enterprise Performance Management, Supply Chain and Manufacturing, and solutions like big data, computing, risk management, and financial management. However, it is best suited for large-scale enterprises, and the costs involved in its implementation may not be reasonable for small and medium enterprises. Additionally, not all solutions are relevant to manufacturing enterprises, so it is not recommended specifically for SME manufacturing businesses.
SAP:
SAP is an all-in-one ERP software that is designed to work on both cloud-based and on-premise platforms. Its purpose is to streamline various business processes, including finance, sales, purchases, inventory management, and more.
Advantages:
● It provides solutions for accounting, financial management, and supply chain management.
● SAP has a global presence and caters to a wide range of industries.
● It offers human capital management and customer relationship management solutions.
Disadvantages:
● SAP is a costly software with high maintenance and upfront costs.
● Because of its complexity, it requires trained users to operate it.
● Implementing SAP software can be a time-consuming process.
Key Characteristics of ERP Software:
When searching for an ERP software for the manufacturing industry in India, it is important to consider key features such as integration, automation, data analysis and reporting, and accounting. Integration enables centralization of business data and promotes real-time sharing across various departments. Automation of repeatable tasks such as inventory planning, procurement, and invoicing, as well as automated data sharing, saves time and resources. Data analysis and reporting provide valuable insights to stakeholders for optimizing business operations. Additionally, an ERP software can also manage accounting activities such as accounts payable, accounts receivable, general ledger, and budgets.
The various modules in an ERP system include:
An ERP system comprises various modules that perform different functions. Some of the key modules include:
1. Procurement Module: This module helps businesses to purchase the items needed for manufacturing or selling goods efficiently. It allows tracking of purchases and ensures inventory is updated in real-time.
2. Order Management Module: This module tracks all orders from their quotation state to their delivery, preventing them from going off-schedule. It improves customer experience by managing all orders and boosting timely delivery rates.
3. Inventory Management Module: This module helps track the current and incoming inventory, plan purchases, and ensure sufficient stock availability. It also helps manage outgoing stock to deliver orders with high quality and without any delays.
4. Customer Relationship Management (CRM) Module: It stores all customer information and customer support mechanisms, helping to build and maintain customer relationships.
5. Accounting Module: This module manages the general ledger, accounts payable, and accounts receivable. It enables bookkeeping status gauging and predicts future business activities.
6. Manufacturing Module: This module ensures that everything needed for production, such as raw materials, equipment, and other supplies, is readily available. It tracks goods-in-progress, diverse production stages, and supply with respect to the forecasted demand.
7. Warehouse Management Module: This module guides employees on how orders must be handled from materials planning to packaging. It also helps in labor planning as per expected order volumes, enabling faster delivery of orders.
ERPs may also cover other modules such as payments and finance, supply chain management, human resources, e-commerce, service resource, and marketing automation modules. For small and medium-scale manufacturing companies, they can opt for a full-fledged manufacturing and ERP software like TranZact, which is designed specifically for them with all the functions of an ERP and more.
Types of ERP Systems:
There are different types of ERP systems that cater to the specific needs of enterprises, businesses, or industry requirements. Here is a breakdown of the different ERP software types based on their distinct features:
1. Cloud-based ERP software:
Managed by a software vendor and runs on an external secured server, a cloud-based ERP centralizes all business data and can be accessed via the internet. This type of ERP offers ongoing assistance, upgrades, training, and adaptable customizations. It's best for those who seek fast implementation, have a small or medium-sized IT team, and don't want to spend a higher amount.
2. On-premises ERP software:
Unlike cloud-based ERP, on-premises ERP software runs on a company's own servers, providing higher control via company-owned IT infrastructure. This type of ERP is preferred by companies with strong and in-built IT infrastructure, operating from a single location, or unable to store data on the cloud due to regulatory reasons.
3. Hybrid ERP software:
This type of ERP offers the best of both worlds, combining both on-premise and cloud ERP environments. Organizations are always free to upgrade their ERP software and convert it to a hybrid model. It's ideal for those who need to add cloud features to their existing on-premise ERP software, have branches at other locations with one centralized location, or need to integrate their ERP software with web-based services.
The benefits of an ERP Software:
An ERP software can provide numerous benefits for a business by facilitating digitalization and streamlining operations. Implementing an ERP software on the cloud can expedite end-to-end processes, leading to significant cost savings and high returns, especially for SME manufacturing businesses.
Some of the benefits of an ERP software include:
● Boosting productivity: Automation of various business processes reduces manual work, saves time, and minimizes errors, resulting in increased productivity.
● Reducing operational costs: Although installing a generic ERP software can be expensive, businesses can save significant costs in the long run. Affordable ERP software like TranZact can be implemented within seven days, resulting in a reduction of operational costs by an average of 23%.
● Integrating end-to-end information: An ERP software gathers and integrates information from various departments, making coordination between teams more effortless and enabling better decision-making.
● Providing a competitive edge: An ERP software enhances business intelligence, enables real-time data analysis and seamless adaptation to changing demands, resulting in competitive advantage.
● Ensuring compliance: An ERP software helps businesses manage compliance with regulatory standards by making data audit-friendly and automatically alerting non-compliance issues.
● Generating reports: An ERP software helps identify patterns and generate insightful reports without extensive IT resources, improving strategizing abilities.
● Securing data: A trusted ERP software ensures data security by collecting data on secure servers and safeguarding all access points.
● Enhancing customer service: An ERP software improves customer service by providing access to customer details on one platform and monitoring user behavior patterns.
● Scaling business faster: An ERP software provides exceptional flexibility to add new capabilities, virtual teams, and modules, preparing for potential challenges.
● Operating business on mobile: Mobile ERP software enables employees to track business activities on-the-go, without being heavily dependent on computer systems.
● Improving collaboration: ERP software improves collaboration between teams by facilitating a centralized data system, resulting in proactive support and improved productivity.
Obstacles to Implementing an ERP System:
The implementation of an ERP system can completely transform how an SME operates, but it is not without its challenges.
Let's explore some of these challenges:
1. Choosing the right ERP vendor: The primary challenge is selecting an ERP vendor who understands your industry and business needs. The best option is an ERP tool that includes value-added services and is trusted by other SMEs.
2. Implementation time: ERP implementation is a time-consuming process, which can take anywhere from 6 to 9 months. It's crucial to align the implementation time with your business goals and opt for a modern ERP tool with a shorter and more efficient implementation time.
3. Inadequate testing: Failure to test the software properly can result in wasted time and money. It's essential to test the system across different use cases to ensure it works for your business.
4. Resistance to change: Employees and decision-makers may resist the changes that come with implementing an ERP system. Convincing everyone of the benefits of ERP software is crucial to successful implementation.
Overall, while ERP implementation can be challenging, choosing the right ERP vendor, aligning implementation time with business goals, proper testing, and addressing resistance to change can help ensure a successful transition.
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