An enterprise resource planning (ERP) system is a packaged business software system that enables a company to manage the efficient and effective use of resources (materials, human resources, finance, etc.) by providing a total, integrated solution for the organization’s information-processing needs. It supports a process-oriented view of the business as well as business processes standardized across the enterprise.
In ERP systems, the data is processed on real time basis and reflected in reports online. For example, posting of a goods receipt updates Purchase Order against which goods were ordered; it updates inventory record of relevant Item codes in 'inventory module'; it generates posting in financial accounts; and it also updates inventory and clearing account balances in Balance Sheet.
ERP system have emerged as the changing face of industry in the last few years. Business managers, both functional and technical, working in trade and industry for long, have witnessed the importance these systems have gained over a period of time, as a driver to optimize resource utilization and profitability.
This article attempts to summarize comparative strengths of ERP systems, challenges of Pre & Post Implementation , benefits arising out of ERP post implementation , considerations relevant to their implementation and in the future where are these systems headed in practical perspective of implementation experience in Dabur Nepal Private Limited . This article is only a synopsis of the whole new world that ERP systems have given rise to in Dabur Nepal . It is intended to give a flavor of how the story went on in the implementation in DNPL .
Back Ground of the Implementation
Traditionally, Electronic Data Processing (EDP) was considered a backdoor function in Dabur Group. Programmers, System Analysts and Executive Managers in EDP took up system development work based on requirements of individual departments. Functional departments prepared documents in desired templates and Data Entry Operators punched the data into the system. Until ERP dawned on the horizons of business, Pay Roll, Inventories, Accounts Receivable and Payable, Fixed Assets, etc. were the applications close to the heart of a finance manager; Bill of Materials, Route Cards, Production Orders were the usual applications for operations managers. Sales management used to be concerned with printing of sales invoices based on input feeds by data entry operators. These used to be standalone applications and these records would not have any interface with other functions. Customer accounts were not being updated when sales invoices were raised on customers and system did not generate accounting entry to provide for liability or credit to cash or bank when goods receipt was posted. Data for given applications used to be punched at a time and their printed output sent to the departmental managers. During late nineties , however, Dabur Group started taking an initiative towards integration of some of these applications. Integrated applications like Material Requirement Planning (MRP) or integrated financial accounting involving General Ledger (GL), Accounts Receivable (AR) and Accounts Payable (AP) started becoming common. However, coverage of those systems from integration perspective was not very comprehensive. With the perceived benefits from ERP , Dabur Group decided to implement ERP business solution and SAP was selected as the ERP Business Solution for the group. After successful implementation of SAP in Dabur India , the group headquarters decided to roll out the SAP solution to its 100% owned subsidiary Dabur Nepal .
Need For Enterprise Resourse Planning ( ERP ) Implementation in Dabur Nepal
The modern day Enterprise Resource Planning (ERP) system , SAP , encompassed all activities and functions carried out in a business...