CHAPTER -01

INTRODUCTION

1
ABOUT THE AREA

Logistics is the management of supply and transportation to deliver the goods on time and in
good shape. Handling of operations is a part of the logistics industry, and the need to perform
efficient and cheap operations is of utmost importance in the modern competitive world.
Logistics is the management of the movement of resources, goods, and services from the
point of origin to the point of consumption in order to meet customer needs.

Managing a warehouse or warehousing means keeping track of inventory and making sure
orders are filled. It also involves managing warehouse infrastructure and processes, such as in
a fulfilment centre where orders are received, processed, and sent out (shipped to the
customer). Most warehousing operations use software like ERP to manage the warehouse
efficiently. Warehousing as an industry is a part of the logistics industry.

Customs management, also called "global commerce management," is often thought of as a

part of logistics because of the paperwork that must be done at international borders and
shipping ports to show that government rules are being followed.

Artificial intelligence (AI) and driverless vehicle technology are expected to have a big
impact on logistics in the future. Some logistics companies are already using AI to improve
package tracking and predict problems based on their algorithms. With the use of modern
algorithms, it is becoming possible to predict future problems and solve the problems in
advance.

Logistics is the process of getting resources, storing them, and moving them to where they
need to go. Finding possible distributors and suppliers and figuring out how efficient and
easy to reach they are part of logistics management. Logistics managers are called
"logisticians."

When the word "logistics" was first used, it meant how the military got, stored, and moved
equipment and supplies. This phrase is now often used in business, especially by
manufacturers, to discuss how resources are handled and moved along the supply chain.

Even though delivering packages on time and in good condition has always been crucial to
the supply chain, it has become even more mission-critical in recent years. This has happened
as Omni channel commerce has become more prevalent, allowing customers to order

2
customised products from their mobile devices and have them delivered the same day to their
homes or stores.

3
Suppliers, manufacturers, distributors, and retailers have all had to enhance their logistics
procedures to outsmart the competition and meet the requirements of the fast-paced world of
logistics. To better understand the supply chain, they have also had to streamline their
operations and integrate all the processes and operations.

Simply expressed, the objective of logistics management is to have the correct amount of a
resource or input at the right time, get it to the right location in good condition, and deliver it
to the right customer, whether they are within or external to the organisation.

Logistics is managing pipelines, vehicles, storage facilities, and distribution centres that
handle oil as it moves along the supply chain. A supply chain that works well and doesn't cost
too much and good logistics are important for keeping and improving efficiency while
lowering costs. Logistics problems lead to late deliveries and not meeting customers' needs,
which hurts the company in the long run.

The idea of corporate logistics has changed since the 1960s. The need for supply chain
logisticians has grown because it's getting harder to get organisations the goods and resources
they need and because supply chains are becoming more global.

In the modern world, the growth of technology and the complexity of logistics procedures
have led to logistics management software and logistics-focused businesses that speed up the
flow of resources through the supply chain. Large online stores like Amazon have grown to
take over the retail market partly because their supply chain logistics are generally new and
work well.

If it is more cost-effective, a manufacturing company may choose to have logistics handled

by professionals instead of their employees. Planning an invasion by the military is an
example of logistics. Panning and operation activities of the military are a fine example of
logistics. The part of military operations deals with getting supplies and people, distributing
them, keeping them in good shape, and replacing them

4
EXAMPLES OF LOGISTICS

INVENTORY MANAGEMENT: Tracking the availability of items in a warehouse or store and

making sure there is enough stock for customer demand.

TRANSPORTATION MANAGEMENT: Planning and coordinating the movement of goods from

one location to another.

WAREHOUSING: Storing goods in a safe and efficient manner.

ORDER FULFILMENT: Picking, packing, and shipping orders in a timely manner.

FREIGHT MANAGEMENT: Negotiating rates and selecting carriers for the transportation of
goods.

REVERSE LOGISTICS: Managing the return of products for repair, replacement, or disposal.

SEVEN R'S

The Seven R's is a popular concept used to enforce best practices in logistics management
which consists of the following

1. RIGHT PRODUCT (including the right information about it)

2. (At) RIGHT QUANTITY

3. RIGHT TIME

4. RIGHT CONDITION

5. RIGHT PLACE

6. (To) the RIGHT CUSTOMER

7. (With the) RIGHT (financial) RESOURCE

TYPES OF LOGISTICS

1. INBOUND LOGISTICS: The process of receiving and storing goods from suppliers and vendors.
2. OUTBOUND LOGISTICS: The process of selecting, packing, and shipping products to customers.
3. REVERSE LOGISTICS: The process of returning goods from customers and redistributing them to
other customers or back to the supplier.
4. THIRD-PARTY LOGISTICS: The outsourcing of logistics operations to a third-party provider

5
ERP

Enterprise resource planning (ERP) is one valuable tool for better managing your logistics
when dealing with wholesale or distribution trades. This integrated suite of business
applications automates day-to-day operations such as accounting, human resources (HR), and
customer relationship management (CRM). Yet it can also improve your company’s logistics
through inventory and supply chain management.

ERP software can improve logistics in several areas, including:

 Inventory management
 Supply chain management
 Transportation and shipping
 Financial reporting

While some ERP options for logistics are developed and branded exclusively for companies
under the logistics software term, other options may include industry-neutral ERP solutions
which can provide all the tools a logistic company needs. It’s important to determine if the
software you’re looking into only focuses on inventory and/or supply chain management, or
has the additional modules to streamline all your business processes.

An ERP in supply chain management helps businesses to manage day-to-day activities from
manufacturing to distribution of goods. Its implementation in the supply chain helps your
business to ensure resource availability, fulfil orders timely, reduce costs, optimum utilization
of resources, etc.

Supply chain management is a complex business process that involves everything that comes
between the manufacturing and distribution of goods. It is the core of your business that is
related to customer satisfaction. The core of an ERP system is that it enables the integration
of various business processes into a single platform for better organisation. That is, it
comprehensively connects various departments.

6
TYPES OF ERP SYSTEMS

There are three main types of enterprise resource planning software that function with
different deployment model options:

1. On-premise ERP
2. Cloud ERP
3. Hybrid ERP.

ON-PREMISES ERP SOFTWARE

On-Premise ERP software is installed and maintained on the company's computers and
servers. Typically, this type of ERP is used by large corporations who want complete control
over the system and customize every module and aspect of it according to business
requirements. To do so, the company hires IT specialists to maintain the software, ensure
security, provide regular updates and backups, etc. The price of on-premises ERP systems
varies based on the company's size and the number of users. The company pays the full cost
of the one-time perpetual license upfront and also pays for periodic training, support, and
updates.

CLOUD-BASED ERP SOFTWARE

Unlike on-premise ERP, cloud-based ERP software, also known as Software as a Service
(SaaS), is hosted on a vendor's servers and can be accessed over the internet. You don't have
to hire IT specialists to maintain the system, but you can't control and customize it as much as
in on-premise ERPs .The cloud solution is the most suited for small and medium-sized
businesses that want to have:

 Continual customer support;

 Regular updates and backups provided by the vendor;
 The system protected by a team of cloud security professionals;
 Easy access to all the business information anytime and anywhere.

The up-front cost for cloud ERP is much lower than for on-premise one, but you have to pay
a regular subscription fee for access.

7
HYBRID ERP SOFTWARE

As the name implies, hybrid ERP software is a blend of cloud and on-premise ERP system
solutions. It may be suitable for those who want to migrate between delivery models or
integrate functionality not available in the existing implementation.

 It better supports such specific functions as CRM and provides the ability to access
ERP functions from mobile devices.
 It's cheaper to buy a different cloud ERP system for business groups than to extend a
single ERP system across all business units.
 It's easier and faster to find the specific features business require in hybrid ERP than
to wait for corporate IT to adopt a large, comprehensive company-wide ERP system.

8
SCOPE OF THE STUDY

 The study is aimed to find out the impact of ERP in CONCOR

 This research helps me to find out the ERP mechanism followed in CONCOR.

9
OBJECTIVE OF THE STUDY

 To analyse the service outcome due to ERP

 To identify the constrain feedbacks in ERP
 To find out the consequences faced by employees

10
NEED OF THE STUDY

The impact of ERP in logistics is an important area of study as it can provide valuable
insights into the benefits and drawbacks of this technology in supply chain management.
With the increased adoption of ERP systems by many organizations, understanding how these
systems impact logistics operations can help organizations make more informed decisions
about implementation and customization. By improving efficiency and providing a
competitive advantage, ERP systems can potentially offer significant benefits to
organizations. Additionally, studying the impact of ERP in logistics can identify broader
industry trends and best practices, benefiting both individual organizations and the logistics
industry as a whole. Therefore, this research can help organizations make informed decisions
about their technology investments and improve their supply chain management practices.
The implementation of an Enterprise Resource Planning (ERP) system can have several
benefits for logistics companies. One of the most significant benefits is improved efficiency.
By streamlining processes, reducing manual work, and increasing accuracy, ERP systems can
enhance logistics efficiency. Through research on the impact of ERP on logistics, specific
areas of improvement can be identified, and best practices can be recommended to further
enhance efficiency. ERP systems can also help logistics companies save costs. By reducing
errors, improving inventory management, and optimizing transportation, ERP systems can
provide significant cost savings. Through research on the impact of ERP in logistics,
companies can determine the potential cost savings and return on investment associated with
ERP implementation. In addition to cost savings, logistics companies that adopt ERP systems
may gain a competitive advantage. By improving their responsiveness, flexibility, and
customer service, they can differentiate themselves from competitors. Through research on
the impact of ERP in logistics, researchers can identify the key factors that contribute to a
competitive advantage and recommend strategies for achieving it

11
LIMITATIONS

 There was a limited time given to analysis of the study

 The area covered in this project was limited and narrow
 There was very little interactions with the people as we were only limited within the
area
 The accurate decision cannot be taken by the information collected
 Were relocate while giving their personal information.
 The statistical analysis used may not be appropriate or may not account for all
relevant variables, which could affect the accuracy of the results.
 The size of the sample used in the study may be too small to generalize the results to a
larger population.
 The sample may not be representative of the larger population, which could limit the
generalizability of the findings.
 The methodology used to collect data may not be robust or reliable, which could
compromise the validity of the results.

12
 CHAPTER -02

PROFILE &METHODOLOGY

INDUSTRY PROFILE
13
CONTAINER INDUSTRY

Nowadays, logistics industry plays an extremely important role in the development of the
economy and society and is one of the largest growing industries in the world. In order to
sustain in the highly competitive market logistics enterprises are forced to speed up their
processes, reduce their costs and improve their performance. Enterprise resource planning
(ERP) systems represent important information technology investment options and have a
huge potential to improve business performance. Therefore, our paper is focuses on
understanding the challenges and benefits of ERP systems applications in the logistics
enterprises. The main objective of our article is to investigate the impact of ERP application
on different aspects of business processes in logistics sector. In order to achieve this objective
a survey was carried out via a closed interview questionnaire across logistics services
enterprises in the Republic of Bulgaria. The results provide empirical evidence that the
application of the ERP systems in logistics has the most beneficial effect on the following
areas: transport management and documentation, accounting and sorting and distribution. At
the same time the ERP is considered cost-effective, and it could replace human effort of
approximately 60 to 80%. Based on the study, it was found that the application of ERP
systems leads to increased cost efficiency and respectively to better overall performance of
the logistics enterprises.

Nowadays, logistics industry plays an extremely important role in the development of the
economy and society and is one of the largest growing industries in the world. In order to
sustain in the highly competitive market logistics enterprises are forced to speed up their
processes, reduce their costs and improve their performance. Enterprise resource planning
(ERP) systems represent important information technology investment options and have a
huge potential to improve business performance. Therefore, our paper is focuses on
understanding the challenges and benefits of ERP systems applications in the logistics
enterprises. The main objective of our article is to investigate the impact of ERP application
on different aspects of business processes in logistics sector. In order to achieve this objective
a survey was carried out via a closed interview questionnaire across logistics services
enterprises in the Republic of Bulgaria. The results provide empirical evidence that the
application of the ERP systems in logistics has the most beneficial effect on the following
areas: transport management and documentation, accounting and sorting and distribution. At
the same time the ERP is considered cost-effective, and it could replace human effort of
approximately 60 to 80%. Based on the study, it was found that the application of ERP

14
systems leads to increased cost efficiency and respectively to better overall performance of
the logistics enterprises. Nowadays, logistics

15
industry plays an extremely important role in the development of the economy and society
and is one of the largest growing industries in the world. In order to sustain in the highly
competitive market logistics enterprises are forced to speed up their processes, reduce their
costs and improve their performance. Enterprise resource planning (ERP) systems represent
important information technology investment options and have a huge potential to improve
business performance. Therefore, our paper is focuses on understanding the challenges and
benefits of ERP systems applications in the logistics enterprises. The main objective of our
article is to investigate the impact of ERP application on different aspects of business
processes in logistics sector. In order to achieve this objective a survey was carried out via a
closed interview questionnaire across logistics services enterprises in the Republic of
Bulgaria. The results provide empirical evidence that the application of the ERP systems in
logistics has the most beneficial effect on the following areas: transport management and
documentation, accounting and sorting and distribution. At the same time the ERP is
considered cost-effective and it could replace human effort of approximately 60 to 80%.
Based on the study, it was found that the application of ERP systems leads to increased cost
efficiency and respectively to better overall performance of the logistics enterprises.

COMPANY PROFILE

16
CONCOR- THE MULTIMODAL LOGISTICS PROFESSIONALS

Ever since globalization transformed the transport sector, national boundaries have become
permeable to penetration by trade, creating the need for flexible transport solutions.
Intermodals and containerization were the by-products of this era and were poised to
metamorphosis transport of "general cargo", moving it 'seamlessly' through sea and land
arteries. Forty years ago, the physical process of exporting or importing goods was arduous.
Goods needed to be transported by lorry to the port, unloaded into a warehouse and then
reloaded into the ship 'piece by piece'.

Malcolm McLean's idea of containerization changed the basics of cargo transport by

standardizing the dimensions of the container and simultaneously improving the productivity
of ports by mechanizing handling of container-carrying 'cellular' ships and reducing their
handling to a few hours only. Unitisation helped elimination of multiple handling of cargo
and made transfers quick, cheap and easy. As containerization came to stand for 'cargo care',
it grew by leaps and bounds the world over.

Indian Railway's strategic Initiative to containerize cargo transport put India on the multi-
modal map for the first time in 1966. Given the continental distances in India (almost 3000
km from North to South and East to West), rail transport could be the cheaper option for all
cargo over medium and long distances, especially if the cost of inter-modal transfers could be
reduced. Containerized multi-modal door-to-door transport provided the ideal solution to this
problem. It was this idea that saw the Indian Railways entering the market for moving door-
to- door domestic cargo in special DSO containers starting in 1966.

Though the first 150 marine container had been handled in India at Cochin as early as 1973, it
was in 1981 that the first ISO container was moved inland by the Indian Railways to India's
first Inland Container Depot (ICD) at Bengaluru, also managed by the Indian Railways.

Expansion of the network to 7 ICDs by 1988 saw increase in the handling of containers, and
along the way, a strong view had emerged that there was a need to set up a separate pro-
active organization for promoting and managing the growth of containerization in India.

17
Container Corporation of India Ltd. (CONCOR) was incorporated in March 1988 under the
Companies Act and commenced operation from November 1989 taking over the existing
network of 7 ICDs from the Indian Railways.

From its humble beginning, it is now an undisputed market leader having the largest network
of 61 ICDs/CFSs in India (59 terminals and 2 strategic tie-ups). In addition to providing
inland transport by rail for containers, it has also expanded to cover management of Ports, air
cargo complexes and establishing cold chain. It has and will continue to play the role of
promoting containerization in India by virtue of its modern rail wagon fleet, customer
friendly commercial practices and extensively used Information Technology. The company
developed multimodal logistics support for India's International and Domestic
containerization and trade. Though rail is the main stay of our transportation plan, road
services and also provided to cater to the need of door-to-door services, whether in the
International or Domestic business.

CONCOR is committed to providing responsive, cost effective, efficient and reliable logistics
solution to its customers. It strives to be the first choice for its customers. CONCOR is a
customer focused, performance driven, result oriented organization, focused on providing
value for money to its customers.

CONCOR MANAGEMENT's STATEMENT OF MISSION AND OBJECTIVES

CONCOR CORPORATE MISSION

The mission of the Company is

 To join its community partners and stake holders to make CONCOR a Company of
outstanding quality.
 To provide responsive, cost effective, efficient and reliable logistics solutions to its
customers through synergy with community partners and ensuring profitability and
growth.
 To be the first choice for our customers, the Company remains firmly committed to its
social responsibility and prove worthy of trust reposed in it.

18
CONCOR- CORPORATE OBJECTIVES

 To be a customer focused, performance driven, result oriented organization, focused

on providing value for money to its customers.
 To maximize productive utilization of resources, deliver high quality services and to
be recognized for setting the standards for excellence.
 To look constantly for new and better ways to provide innovative services. It will aim
for customer convenience and satisfaction, learn from its competitors and constantly
strive for excellence.
 To set measurable performance goals to support the objectives and mission of the
organisation and work as a professional, competent and dedicated team for the
organisation to achieve excellence in all areas of business and operations
 To follow highest standards of business ethics and add social value for the community
at large by discharging social obligations as a responsible corporate entity.
 To maintain absolute integrity, honesty, transparency and fair play in all its official
dealings and strive to maintain high standards of ethics.

19
1.1 ORGANIZATIONAL STRUCTURE

20
RESEARCH METHODOLOGY

Research methodology is the systematic, theoretical analysis of the methods applied to a field
of study. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge. Research methodology is a way to systematically
solve the research problem. This research work is descriptive in nature and mainly based on
primary data. Both the primary and the secondary data have been used.

The primary data were collected directly from the customers through the questionnaire
method. A structured questionnaire which includes both open-ended and close-ended
questions was administered to collect information from the respondents. Personally, the
copies of the questionnaire were given to the sample respondents selected from CONCOR.
The secondary data were collected from other sources such as journals, magazines,
newspapers, published research paper and websites

RESEARCH DESIGN

Research design is a logical and systematic plan prepared for directing a research study. This
is the program that guides the investigator in the process of collecting, analysis and
interpreting observations. A plan specifies what information marketers will collect and what
type of study they will do. A research design is based on a framework and provides a
direction on the investigation being conducted in the most efficient manner.

DESCRIPTIVE RESEARCH

Descriptive study is a fact finding investigation with adequate interpretation. It is designed to

gather descriptive information and provides information for formulating more sophisticated
studies. Descriptive aims at elucidating the data and primary characteristics about the object
or situation or concept under study. Research design constitutes the blueprint for the
collection, measurement and analysis of data. In this study the researcher has adopted
Descriptive Research design.

SAMPLING

Sampling allows concentrating upon a relatively smaller number of people and hence, to
devote more energy that the information collected from them is accurate.

21
NON –PROBABILITY SAMPLING

Non-probability sampling is a sampling method that uses non-random criteria like the
availability, geographical proximity, or expert knowledge of the individuals you want to
research in order to answer a research question. Non-probability sampling is used when the
population parameters are either unknown or not possible to individually identify. In non-
probability sampling, each unit in your target population does not have an equal chance of
being included. Here, you can form your sample using other considerations, such as
convenience or a particular characteristic.

(A) CONVENIENCE SAMPLING

Under this method, the units are selected according to the convenience of the researcher such
as nearness, easy availability of data etc. This is non-probability sampling. Convenience
sampling method means selecting whatever sampling units are conveniently available. The
researcher selects the easiest population members to obtain information.

POPULATION OF THE STUDY

A population is all the organisms of the same group, which live in a particular geographical
area. The collection of elements or objects that possess the information sought by the
researcher and about which inferences are to be made. Population refers to any group of
people that the subject of study in particular research.

SAMPLE:

A segment of the population was selected for marketing research to represent the population
as a whole. A population subset was used to estimate the characteristics of the entire
population.

SAMPLE SIZE

Sample size refers to the number of individuals or items that are included in a sample in a
research study or survey. The sample size is an important consideration in research design, as
it can impact the validity and reliability of the findings. A larger sample size generally
provides more accurate and representative data, but it also requires more time and resources
to collect and analyse.

95 Employees

22
TOTAL POPULATION – 120 employees

PERIOD OF THE STUDY- 40 DAYS

DATA COLLECTION

PRIMARY SOURCE

Primary sampling unit refers to sampling units that are selected in the first (primary) stage of
a multi-stage sample ultimately aimed at selecting individual elements. In selecting a sample,
one may choose elements directly; in such a design, the elements are the only Sampling units

SECONDARY SOURCES

In the social sciences, a secondary source is usually a scholar book, journal article, or digital
or print document that was created by someone who did not directly experience or participate
in the events or conditions under investigation. Secondary sources are not evidence per se,
but rather, provide an interpretation, analysis, or commentary derived from the content of
primary source materials and/or other secondary sources.

DATA COLLECTION INSTRUMENT –

A questionnaire is a research instrument that consists of a set of questions or other types of

prompts that aims to collect information from a respondent. A research questionnaire is
typically a mix of close-ended questions and open-ended questions.

STRUCTURE OF QUESTIONNAIRE -

 Objectives of the study

 Number of open-ended questions
 Number of close-ended questions
 Number of Likert rating scale questions
 Rank order

TOOLS FOR ANALYSIS -

 Percentage analysis

23
REVIEW OF LITERATURE

 Dimitar Koleva and Anna Otsetova focused on investigating the impact of ERP
application on different aspects of business processes in logistics sector. The study
found that the application of the ERP systems in logistics has the most beneficial
effect on transport management and documentation, accounting, and sorting and
distribution.

 Salih Zeki Imamoglu examined the impact of ERP systems and supply chain
management practices on firm performance. The study found that the successful
implementation and integration of ERP systems and SCM practices provide
advantages in planning, decision-making, execution, and increase the performance of
firms.

 Untung Rahardja researched the implementation of ERP in Indonesia to increase the

significant impact of management control systems. The study found that ERP
implementation is significantly influenced by the Management Control System.
However, there are several compromises in implementing an ERP system in
Indonesia, such as staffing issues.

 Iris A. Junglas and Chen-Huei Chou developed an integrated model of ERP success
that links contextual variables of the organisation with the critical implementation
decisions affecting the managerial and technical execution of the project, leading to
tactical and strategic measures of ERP success.

 Shikha Singh, Smriti Singh, and Subhas C. Misra investigated the post-
implementation challenges of ERP systems in pharmaceutical companies. The study
aimed to identify the challenges encountered by pharmaceutical firms during the post-
implementation of ERP systems.

 Krzysztof Kotowski, Jeremi Ochab, Katarzyna Stapor, and Werner Sommer focused
on the importance of ocular artifact removal in single-trial ERP analysis. The study
aimed to assess the impact of ocular artifact removal on the single-trial N250 ERP

24
analysis of face learning in individual participants.

25
 CHAPTER -03

THEORETICAL BACKGROUND

26
INTERNAL AND EXTERNAL FACTORS AFFECTION ERP INTERNAL FACTOR

1. MANAGEMENT STRUCTURE AND STRATEGY

With ERP schemes, failure during ERP acceptance can crash harmfully on the performance
of the organization. The failure to organize over project teams may occur as a result of
decentralization in making conclusion processes which will be followed by unsuccessful
support of decisions. Forming a project group and assigning decision to particular people
with specific awareness and abilities is a common practice. However, a lack of proper
monitoring and enough controls over this increased responsibility to project managers and the
project team in organization processes may impose a potential business risk

2. USER INVOLVEMENT AND TRAINING

Partially the ERP projects do not attain the preferred profit because managers underrate the
efforts involved in transforming the management the latest amendments which an ERP
system may come up with can bring unenthusiastic result such as confrontation. Other threats
associated to users acknowledged in the literature are unsuccessful communication;
inadequate training; users are not capable to comprehend the profits of the new ERP system;
inadequate human resources commitment; inadequate compassion to user resistance; failure
to highlight reporting to users

3. SKILL MIX

The implementation of an ERP needs particular ability during and after implementation. A
project team with expertise including modified management, business process restructuring
(BPR), risk management and technical skills are frequently necessary (Grabski et. al., 2001);
inadequate training and lack of skill; shortage of internal knowledge; inadequate business
analyst who is skilled; incapable of recruiting and retaining qualified ERP professionals; and
disappointment in mixing internal and external expertise successfully can hamper the
implementation

4. TOP MANAGEMENT SUPPORT

The most important factor when adopting and implementing ERPS is the top-level
management’s commitment to the strategic direction itself. Hammer (2008) believes that
reengineering must be driven from the topmost level. The primary ingredient for project

27
success is top leadership, either the CEO or someone in a position to compel the compliance
of all parties involved in reengineering. Line responsibility is said to be the key, and
reengineering is top-down, autocratic rather than through a democratic process. This is
undoubtedly a prerequisite for strategy implementation. Therefore, top managers must
demonstrate their willingness to give energy and loyalty to the performance management
implementation process

5. ERP COST ELEMENTS AND PROJECT COMPLEXITY

Considering that ERPs are expensive (Yang et. al., 2010) and SMEs undergo financial
limitation the operational and economic threat are clear evident than the compensations.
Straight expenses are those that are openly connected with the implementation of a system
The other cost element recognized in the literature is the implementation cost. That contain
the initial cost of the, customization costs; costs of migrating data from the old system to the
new ERP system; costs of integrating different modules; annual maintenance costs of the
ERP system; and vendor project management

6. RISKS OF IMPLEMENTING AN ERP SYSTEM

When organization case is needed to work on greatest and terrible cases it takes into account
the best case only and not thinking in a manner of any risks coming on the way. On the other
hand if any terrible circumstances take place both cases needs to be considered, The possible
danger of adopting ERP is identified described risk as a susceptibility to elements which
hinder a project from some or gaining all of the predictable profits that was caused by
unsuitability between the chosen software and hardware; implementation costs which go
beyond the financial plan; and technological systems which perform below standard

EXTERNAL FACTORS INFLUENCING ERP SYSTEMS IMPLEMENTATION

There are few research studies that focus on the ERP business case which are in the
significance of business case in IT assets. Besides that, studies that focus on the field of Small
to Medium- sized Enterprises (SME) ERP business cases are insufficient and therefore,
sustain the need for this research. Suggests that IT infrastructure comprise the essential
requirement for ERP implementation. ERP cuts across several functions, including the
internal operations of the company itself and its suppliers, customers, banks, etc. The
reliability of the whole infrastructure is essential to facilitate complete value chain
management enabled by ERP.

28
1 .ORGANIZATIONAL FIT

Managerial threats initiate from the environment in which the system is implemented bring
about that the acceptance of a standard Enterprise Research Planning scheme may put into an
inflexible arrangement on a company and intimidate the flexible nature of many SMEs.
SMEs require reacting faster to the alterations of the environment to obey the rules to the
necessities of customers and suppliers. An Enterprises Research Planning system does not
work well with the business processes of an SME. And if they happen to work together the
SMEs must transform their business processes to fit the ERP system or make the necessary
transformation to the ERP system to suit the organization’s business processes

2. BARGAINING POWER OF SUPPLIER

Most SMEs use raw materials as well as labour, components, and other supplies. This
requirement leads to buyer-supplier relationships between the industry and the firms that
provide the raw materials. ERP vendors in this case form part of the supply chain given that
they engage in the supply of ERP systems. Suppliers, if powerful, can therefore exert an
influence the implementation of ERPs, such as selling them at a high price to capture some of
the industry's profits. Additionally, other suppliers apart from ERP vendors engage in the
supply of supporting facilities like cheque books, furniture, stationeries, among others can
give the same analogy. If indeed such supplies are not availed in good time then the
implementation of ERP systems will become a challenge.

3. GOVERNMENT POLICY AND REGULATION PRESSURE

Government can limit or even foreclose entry into industries with such controls as licensing
requirements and limits on access to raw materials. Influencing major political decisions is
part of corporate strategy as long as this is done openly and with integrity. SMEs do not take
account of the history and momentum of politics ignores an essential element of the
environment

29
BENEFITS OF ERP SYSTEM

1. INFORMATION INTEGRATION :

The most important benefit is promotion of integration. It is because it has the ability to
update data between related business functions and components. Also the people involved in
a project are interlinked to each other, thus it help in improvement of productivity.

2. REDUCTION OF LEAD-TIME :

Lead-Time is the elapsed time between placing an order and receiving it. By reducing Lead-
Time organization should have an efficient inventory management system, which is
integrated with the purchasing, production planning and production departments

3. ON TIME SHIPMENT :

ERP system are designed to help your company to reduce data transfer time, reduce errors
and increase design productivity. By using steps of ECO i.e. Engineering Change Order, ERP
system automatically implements change in production database. Thus by using these, an
ERP system ensures on time delivery of goods to customers.

4. REDUCTION IN CYCLE TIME :

It is time between the placement of order and delivery of product. There are two types of
situations; one is make-to-order and second one is make-to-stock. In both cases cycle time
can be reduced but more time is saved in make-to-order case because in this ERP system save
time by integrating with CAD/CAM systems.

5. BETTER CUSTOMER SATISFACTION :

ERP system is capable of producing goods in a flexible way with consideration of time and
cost management. It means will get individual attention and get services without spending
more money or waiting for long period.

6 .INCREASED FLEXIBILITY:

Product flexibility is type of ability of the operation to efficiently produce highly customized
and unique products. ERP system not only improve flexibility of manufacturing operations,
but is also improve flexibility of organization.

30
ADVANTAGES OF ERP

COMPLETE BUSINESS MANAGEMENT SOLUTION

Business process management software, such as ERP, allows businesses to manage all
aspects of their business, such as accounting, production, sales and marketing, logistics,
project management, and more. ERP integrates all important information about a business,
tracks business resources efficiently, facilitates information flow, manages communications,
and ensures the accuracy of transactions.

COST-SAVING

Integrating ERP with your business operations can significantly improve efficiency while
reducing the probability of errors. Another significant advantage of ERP software is it
reduces paperwork and repetitive tasks, thus saving time and money. Hence, it cuts expenses
for administrative needs. Also, this resource planning software makes it easier for businesses
to keep a tab on product shortages and overcome logistical problems. Therefore, efficient
utilization of the right resources can save a lot of money.

IMPROVES SCALABILITY AND FLEXIBILITY

One key advantage of ERP software is its ability to modify as per the increasing scale of the
business. For example, if the business is scaling and adding new products resulting in more
people and production expansion, the ERP system can be modified as per the changing needs.
Flexible ERP software enables seamless integration of even the smallest changes in business
management and operations. The changes can be as routine as the addition of new inventory,
the hiring of employees, the expansion of production, and other departments. Thus, leading to
a more efficient and streamlined business process.

BETTER TRANSACTIONS ACCURACY

A company can find it simpler to maintain precise records of its financial transactions with
the help of an ERP model. Thus, it helps you to keep track of the money you have received
from customers, payments to suppliers, and expenditures. You will not miss any records and
will be able to improve your business transactions with time.

CENTRALIZES INFORMATION

Another benefit of an ERP system is that it streamlines all the information in one place, from
various departments, such as manufacturing, sales, suppliers, or customers. Thus, it will

31
reduce

32
the need for regular inspection while eliminating the duplicity of data. It also helps in better
decision-making through transparency of business data.Also, the installation of ERP can help
you improve the supply chain and inventory management. It will further optimize
performance at all organizational levels and make it easier for your business to access
personnel or process information from any relevant department.

IMPROVED CUSTOMER SERVICE

Superior customer experience is paramount for every business. Hence, it is significant that
companies adopt the right tools and technology that can help them boost customer support.
One of the biggest advantages of an ERP system is that its customer relationship management
(CRM) module helps to manage and enhance issue resolution with customers and improve
their satisfaction levels. It will help you analyse data about customer behaviour patterns,
which further contribute to preparing sales strategies and improving customer service.

BETTER COMMUNICATION AND COORDINATION

The use of an ERP system enhances communication and collaboration between business
departments. It can hold all data relevant to the business in one place. Thus, a company can
implement ERP software to reduce communication lags and increase productivity. It
improves communication with other departments and encourages good teamwork.

NETWORKING AND SECURITY

ERP systems are an ideal tool for companies to improve their information security. It can
help to store critical financial data and customers’ personal information safely and securely.
Businesses can use ERP software to share information about customers, suppliers, and
financial transactions. Companies can also store non-sensitive data on their external servers.

HIGHER MANAGEMENT PERFORMANCE

By installing ERP software, companies can manage all key aspects of business operations,
such as production, sales, customer support, inventory, human resources, and supply. It works
as a data centre where businesses can efficiently handle and automate all data types.ERP
solutions' importance is reducing paperwork and the requirement for regular data entry. It
will also decrease human errors, which can disrupt production and supply chain management.

33
DISADVANTAGES OF ERP SYSTEM

HIGH INSTALLATION AND MAINTENANCE COSTS

One of the limitations of ERP is that it can be challenging for businesses to install and
maintain an ERP system independently unless it’s designed in that way. Businesses may need
the assistance of a professional ERP solution provider for maintenance and to solve any other
issues that may arise. They may also require routine updates that could add to the cost. While
these investments will eventually pay off with increased business efficiency, it’s important to
assess the value of these costs and how frequently are they going to be incurred.

INVESTMENT IN STAFF TRAINING

One more limitation of ERP solutions is that they may require staff training to understand
complex functionalities. Another disadvantage of ERP is that new hires need to be given
complete training about the company's ERP system from scratch when experienced ERP
users leave. To avoid these challenges it's important to ensure that the ERP system is very
easy to use by all team members and does not involve highly complex features.

COMPATIBILITY ISSUES

The ERP systems are as effective as the software they run on. However, all the company's
existing software and applications may not be compatible with the new ERP system. It could
result in mistakes and information loss, making it challenging for a company to carry out its
business operations. Therefore, you should ensure that the ERP software you adopt, is able to
integrate easily with your existing business tools and applications.

REQUIRES SPECIFIC ADJUSTMENTS

When ERP software is installed, it demands careful and exact adjustments, ranging from
major customization to fine-tuning. On all management levels, ready-to-use solutions must be
customized and adjusted to meet the company's management structure. You should configure
the features and modify ERP software to suit your company's requirements.

COMPLEXITY

With so much functionality and capabilities that ERP systems provide comes their substantial
complexity, which some users find hard to deal with. It’s now uncommon for organizations to
consider it necessary to properly plan and prepare for ERP implementation, which leads to
wasted money and time. Your organization will need considerable time and effort to master

34
all

35
the ERP solution functionality. Also, when experienced users of the ERP system leave the
company, the newcomers who fill their positions must spend a lot of time learning it from
scratch instead of getting started immediately.

SLOW IMPLEMENTATION

Implementing a new enterprise resource planning system is a complex and lengthy process
that can take up to two years. This is one of the main reasons why you need to prepare well
and plan the transition process to avoid disruptions and save yourself from failure. Allocate
time to learn the new ERP platform post-implementation, as even the tech experts need time
to understand the system thoroughly

SLOW DATA MIGRATION

When you first use an ERP system, you will have to enter existing data into a new format.
Depending on your industry, the data migration process can take a long time to complete,
especially if done manually. Even digitized data isn't an exception here. You'll need to
double- check that data is not duplicated or lost during the migration. Fortunately, many ERP
systems are compatible with existing data storage software for easy uploading and
organization

IT TAKES TIME TO SEE RESULTS

As the previous disadvantages show, using EPR systems with maximum efficiency and ROI
will take a long time. The lengthy implementation process, system customization, data input,
and staff training are all time-consuming and require patience.

You'll also need time just to get accustomed to new features and processes and learn how best
to use what the system offers.

THE CUSTOMIZATION PROCESS

Customization is one of the best aspects of ERP software, but it can easily and quickly get out
of hand. Customizing your software takes a lot of time, effort, expertise and money. But too
often, businesses underestimate how many resources are needed and either don’t finish their
customization or go way over budget. Customization can diminish the best practices built into
the system and make it more difficult to upgrade in the future

36
 CHAPTER -04

DATA AND INTERPRETATION

TABLE NO 4.1 SHOWING AGE OF THE EMPLOYEE

37
 PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
20-25 years 8 9%
25-30 years 27 28%
30-35 years 32 33%
40-45 years 13 14%
Above 45 years 15 16%
Total 95 100%
Source: Primary data

CHART NO 4.1 SHOWING AGE OF THE EMPLOYEE

35%
33%

30%
28%

25%

20%
Percentage of

16%
15% 14%

10% 9%

5%

0%
Age of the employee

INTERPRETATION

From the above chart we would conclude that 33% of the employees working there would be
aged above 30-35 years and 28% of the employees would be age with 25-30 years 16%
would be aged above 45 years, 14%would be between 40-45 years 9% would be aged
between 20-25 years

38
 TABLE NO 4.2 SHOWING GENDER OF THE EMPLOYEE

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
MALE 75 78%
FEMALE 20 22%
TOTAL 95 100%
Source: Primary data

CHART NO 4.2 SHOWING GENDER OF THE EMPLOYEE

22%

78%

INTERPRETATION
From the above chart we can conclude by saying 78% of the total population are male and
22% of the total employee are female

TABLE NO 4.3 SHOWING EXPERIENCE OF THE EMPLOYEE

39
 PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS

1-2 YEARS 15 16%

2-4 YEARS 13 14%

4-6 YEARS 32 33%

6-8 YEARS 27 28%

MORE THAN 8 YEARS 8 9%

TOTAL 95 100%

Source: Primary data

CHART NO 4.3 SHOWING EXPERIENCE OF THE EMPLOYEE

33%
35%
28%

30%

25%

20%
16%

15% 14%
Percentage of

10%

5%

0%
Experience

INTERPRETATION

Out of the total respondents 33% of the employees would have an experience of 4-6 years
28% of the employees would have an experience of 6-8 years, 16% of the employees would
have an experience of 1-2 years, 14% of the employees would have an experience of 2-4
years While only 9% of the employees would have an experience of more than 8 year

40
 TABLE NO 4.4 SHOWING YEARS OF WORKING WITH THE ERP
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
O-2 YEARS 15 16%
2-4 YEARS 13 14%
4-6 YEARS 32 33%
6-8 YEARS 27 28%
MORE THAN 8 YEARS 8 9%
TOTAL 95 100%
Source: Primary data

CHART NO 4.4 SHOWING YEARS OF WORKING WITH THE ERP

35%
33%

28%
30%

25%

20%
Percentage of

16%
14%
15%

10% 9%

5%

0%
Years of working

INTERPRETATION

Out of the total respondents 33% of the employees would have an experience of 4-6 years
28% of the employees would have an experience of 6-8 years, 16% of the employees would
have an experience of 1-2 years, 14% of the employees would have an experience of 2-4
years While only 9% of the employees would have an experience of more than 8 years

41
 TABLE NO 4.5 SHOWING SERVICE EXPERIENCE WITH ERP IN THE
ORGANIZATION

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
HIGHLY SATISFIED 20 21%
SATISFIED 21 22%
NEUTRAL 32 33%
DISSATISFIED 14 15%
HIGHLY DISSATISFIED 8 9%
TOTAL 95 100%
Source: Primary data
CHART NO 4.5 SHOWING SERVICE EXPERIENCE WITH ERP IN THE ORGANIZATION

35% 33%

30%

25%
22%
21%
20%
Percentage of

15%
15%

10% 9%

5%

0%
Service exoerirnce with ERP

INTERPRETATION

The table and the chart says that 33% of the respondents would be neutral to the service of
the ERP and 22% of the respondents would be satisfied to the service of the ERP,21% of the
respondents would be highly satisfied to the service of the ERP ,9% of the respondents would
be highly dissatisfied to the service of the ERP and 15% of the respondents would be
dissatisfied to the service of the ERP

42
TABLE NO 4.6 SHOWING CHALLENGES FACED WHILE OPERATING THE ERP

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
LACK OF USER ADOPTION 30 31%
HIGH IMPLEMENTATION AND USER 15 16%
COST
DATA MIGRATION CHALLENGES 25 26%
RESISTANCE FROM EMPLOYEES 19 20%
OTHERS 6 7%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.6 SHOWING CHALLENGES FACED WHILE OPERATING THE ERP

35%
31%
30%
26%
25%
20%
20%
16%
percentage of

15%

10%
7%

5%

0%
Challenges faced

INTERPRETATION

The table shows that 31% of the respondents reported a lack of user adoption as the most
significant challenge they faced. Data migration challenges were the second most commonly
reported issue, with 26% of the respondents reporting this challenge. Resistance from
employees was reported by 20% of respondents, while 16% of respondents reported high
implementation and user cost as a challenge. Other challenges accounted for 7% of the
responses

43
 TABLE NO 4.7 SHOWING TECHNICAL PROBLEMS FACED WERE ENCOUNTERED
DURING AND AFTER THE IMPLEMENTATION
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
INTEGRATION WITH 20 21%
EXISTING SYSTEM
INTEGRATION WITH NEW 37 38%
BUSINESS
DATA MIGRATION 20 21%
CUSTOMIZATION 10 11%
SECURITY 8 9%
TOTAL 95 100%
Source: Primary data

CHART NO 4.7 SHOWING TECHNICAL PROBLEMS FACED WERE ENCOUNTERED

DURING AND AFTER THE IMPLEMENTATION

40% 38%

35%

30%

25%

21% 21%
Percentage of

20%

15%
11%
10% 9%

5%

0%
Technical problems

INTERPRETATION

Out of the 95 respondents, 38% reported integration issues with new business, while 21%
reported integration problems with existing systems. Another 21% of respondents reported
data migration issues, while 11% reported customization problems. Security issues were
reported by only 9% of respondents.

44
TABLE NO 4.8 SHOWING BENEFITS EXPERIENCED SINCE IMPLEMENTING THE ERP
SYSTEM
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
BETTER ORDER 9 10%
PROCESSING
IMPROVED CUSTOMER 20 20%
SERVICE
IMPROVED DECISION 28 29%
MAKING
IMPROVED LOAD TIME 5 6%
BETTER DATA ACCURACY 35 35%
TOTAL 95 100%
Source: Primary data
TABLE NO 4.8 SHOWING BENEFITS EXPERIENCED SINCE IMPLEMENTING THE ERP
SYSTEM

40%
35%
35%

30% 29%

25%
20%
Percentage of

20%

15%

10%
10% 6%

5%

0%
Benefits of ERP

INTERPRETATION

The data collected from 95 respondents indicate that the highest percentage of benefits were
related to better data accuracy, with 35% of the respondents reporting this benefit. Improved
decision making was the second-highest benefit, with 29% of the respondents reporting it.
Improved customer service was reported by 20% of respondents. Better order processing was
observed by 10% of respondents, and only 6% reported an improved load time

45
TABLE NO 4.9 SHOWING IMPLEMENTATION OF THE ERP DOES IT HAD SEEN
COST SAVING IN ANY AREA
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
INVENTORY MANAGEMENT 8 9%
TRANSPORTATION 17 18%
MANAGEMENT
WAREHOUSE MANAGEMENT 30 31%
SUPPLY CHAIN 35 36%
MANAGEMENT
OTHERS 5 6%
TOTAL 95 100%
Source: Primary data
CHART NO 4.9 SHOWING IMPLEMENTATION OF THE ERP DOES IT HAD SEEN COST
SAVING IN ANY AREA

40%
36%
35%
31%
30%

25%

20%18%
Percentage of

15%

10% 9%
6%
5%

0%
saving cost

INTERPRETATION

The table shows that out of the 95 respondents, the highest percentage of cost savings was
observed in supply chain management, with 36% of the respondents reporting savings. This
was followed by warehouse management, with 31% of the respondents reporting savings.
Transportation management had 18% of respondents reporting cost savings, while inventory
management had the lowest percentage of respondents reporting savings, with only 9% of
respondents reporting savings in this area.

46
 TABLE NO 4.10 SHOWING ERP USED IN THE ORGANIZATION ARE THEY USER
FRIENDLY
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
HIGHLY SATISFIED 30 31%
SATISFIED 25 26%
NEUTRAL 20 21%
DISSATISFIED 10 11%
HIGHLY DISSATISFIED 10 11%
TOTAL 95 100%
Source: Primary data
TABLE NO 4.10 SHOWING ERP USED IN THE ORGANIZATION ARE THEY USER
FRIENDLY

35%
31%

30%
26%
25%
21%
20%
Pencentage of

15%
11% 11%
10%

5%

0%
ERP user friendly level

INTERPRETATION

From the above data 31% of the respondents are highly satisfied with the ERP which is been
implemented in the organization while 11% of the employees are highly dissatisfied with
the ERP which is been used in the organization

47
 TABLE NO 4.11 SHOWING THE ERP SYSTEM HELPED IMPROVING DATA
ACCURACY AND REDUCING ERRORS
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
HIGHLY SATISFIED 35 36%
SATISFIED 20 21%
NEUTRAL 10 11%
DISSATISFIED 10 11%
HIGHLY DISSATISFIED 20 21%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.11 SHOWING THE ERP SYSTEM HELPED IMPROVING DATA

ACCURACY AND REDUCING ERRORS

40%
36%
35%

30%

25%
21% 21%
Percentage Of

20%

15%
11% 21%
10%

5%

0%
Data accuracy

INTERPRETATION

Out of the total respondents, 36% were highly satisfied with the ERP system, while 21%
were satisfied. 11% were neutral, meaning they neither agreed nor disagreed with their level
of satisfaction.

48
 TABLE NO 4.12 SHOWING ARE YOU SATISFIED WITH THE INFORMATION
SHARING WITHIN THE ORGANIZATION DUE TO ERP SOLUTION IN THE
ORGANIZATION
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
HIGHLY SATISFIED 40 41%
SATISFIED 10 11%
NEUTRAL 10 11%
DISSATISFIED 15 16%
HIGHLY DISSATISFIED 20 21%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.12 SHOWING ARE YOU SATISFIED WITH THE INFORMATION

SHARING WITHIN THE ORGANIZATION DUE TO ERP SOLUTION IN THE
ORGANIZATION

45%
41%
40%

35%

30%

25%
Percentage of

21%
20%
21%
15%
11% 11%
10%

5%

0%
level of Implementation

INTERPRETATION

Based on the given data, it appears that 41% of the respondents are highly satisfied with the
information sharing within the organization due to ERP solution implementation, while 21%
are highly dissatisfied. Additionally, 11% are neutral, 11% are satisfied, and 16% are
dissatisfied. Overall, it seems that there is room for improvement in terms of information
sharing within the organization.

49
TABLE NO 4.13 SHOWING THE IMPLEMENTATION OF ERP IN ORGANIZATION
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
HIGHLY SATISFIED 20 21%
SATISFIED 30 31%
NEUTRAL 10 11%
DISSATISFIED 15 16%
HIGHLY DISSATISFIED 20 21%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.13 SHOWING THE IMPLEMENTATION OF ERP IN ORGANIZATION

35%
31%
30%

25%
21%
21%
20%
Percentage of

16%
15%
11%
10%

5%

0%
Implementation level of ERP

INTERPRETATION

We can see that 52% of the respondents are satisfied or highly satisfied with the effectiveness
of the ERP solution in improving the work processes within the organization. However, 37%
of the respondents are dissatisfied or highly dissatisfied with the effectiveness of the ERP
solution in improving the work processes. Additionally, 11% of the respondents are neutral.

50
 TABLE NO 4.14 SHOWING IS THERE ANY COMPLAINTS FACED BY THE
EMPLOYEES IN ERP ON A DAILY BASIS
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
REGULARLY FACED 20 21%
PERIODICALLY FACED 35 36%
NEUTRAL 30 31%
RARELY 5 6%
NONE OF THE ABOVE 5 6%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.14 SHOWING IS THERE ANY COMPLAINTS FACED BY THE

EMPLOYEES IN ERP ON A DAILY BASIS

40%
36%
35%
31%
30%

25%
21%
Percentage .of

20%

15%

10%
6% 6%
5%

0%
Complaints Faced

INTERPRETATION

This data represents the frequency of technical problems faced by employees due to the
implementation of ERP in the organization. Out of the total 95 respondents, 21% face
technical problems regularly, 36% face them periodically, 31% are neutral, 6% face them
rarely, and 56% do not face any technical problems. This indicates that a significant portion
of employees face technical problems due to ERP implementation, which needs to be
addressed to improve the overall satisfaction level of employees.

51
TABLE NO 4.15 SHOWING IMPLEMENTATION OF THE ERP DOES IT HAD SEEN
COST SAVING IN ANY AREA
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
INVENTORY 35 36%
MANAGEMENT
TRANSPORTATION 20 21%
MANAGEMENT
WAREHOUSE 5 6%
MANAGEMENT
SUPPLY CHAIN 30 31%
MANAGEMENT
OTHERS 5 6%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.15 SHOWING IMPLEMENTATION OF THE ERP DOES IT

HAD SEEN COST SAVING IN ANY AREA

40%
36%
35%
31%
30%

25%
21%
Percentage of

20%

15%

10%
6% 6%
5%

0%
Cost saving Area

INTERPRETATION

This data shows the percentage of respondents who indicated which area of logistics
management was most impacted by the implementation of ERP in the organization. The
majority of the respondents 36% indicated that inventory management was most impacted,
followed by supply chain management 31% transportation management 21%, warehouse
management 6% and others 6%.

52
 CHAPTER -05

FINDING, SUGGESTIONS& CONCLUSION

FNDINGS

53
 1. The majority age of the employees working there would be 30-35 years
2. The maximum number of employees working there would be men 75(78%)
3. The analyse say that the maximum member of years of work experience would be 4-6
years
4. The maximum number of years the employees working with the ERP would be 4-6
years which has (36%)
5. The service experience of the ERP system used is quiet manageable by the employees
6. Data migration option is the complicated process
7. The integration of new business is the technical problem faced by ERP
8. The analyses says that the decision making power was increased due to
implementation of ERP in the organization
9. There is a maximum effect on supply chain management which had significantly
leased the cost
10. The analyses says that there are many employees who are satisfied with the ERP
11. The maximum number of respondents feels that the data accuracy is improving and
data’s are safe because of the ERP
12. The majority of the employees feel the information shared in the organization
regarding ERP is accurate and reliable
13. The majority of the employees are satisfied with the implementation of ERP in the
organization
14. The employees feel that the ERP has complaints which is been faced periodically
15. The implementation of ERP had saved the cost in many Areas

SUGGESTION

54
 1. The majority of employees at the organization are between the ages of 30-35.
2. 78% of employees at the organization are men.
3. The analysis shows that the maximum number of years of work experience is 4-6 years.
4. 36% of employees have worked with the ERP for 4-6 years.
5. Employees find the service experience of the ERP system to be manageable.
6. Data migration is a complicated process.
7. Integrating new business is a technical problem faced by the ERP.
8. The implementation of ERP has increased decision-making power in the organization.
9. The impact on supply chain management has significantly lowered costs.
10. A majority of employees are satisfied with the ERP system.
11. Proper measures should be taken to improve the data accuracy and errors
12. The information shared should be accurate and presided in order to avoid barriers
13. Proper action plan should be taken in order to have control of ERP in the organization
14. There should be continuous checking of ERP software and the computers in order to
avoid miss working
15. There should be proper training to the employee given in order to given his efficiency
to maximize the cost

CONCLUSION

55
In conclusion, the impact of Enterprise Resource Planning (ERP) systems in logistics
operations is significant. ERP systems provide a centralized platform for managing various
functions such as inventory, procurement, and transportation. By integrating these functions
into a single system, ERP enables organizations to optimize their logistics processes and
improve overall efficiency.

The benefits of ERP in logistics include improved inventory management, better demand
planning, increased supply chain visibility, and enhanced customer service. Additionally,
ERP systems can help organizations reduce costs by streamlining processes and reducing the
need for manual labour.

However, implementing an ERP system can be complex and requires significant investment
in terms of time and resources. Organizations need to carefully evaluate their needs and
choose an ERP system that aligns with their business goals.

Overall, the impact of ERP in logistics is positive, and organizations that successfully
implement an ERP system can benefit from improved efficiency, reduced costs, and
enhanced customer satisfaction.

BIBILIOGRAPHY

56
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Hoboken, N.J.: John Wiley.

ANNEXURE

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QUESTIONNAIRE ON IMPACT OF ERP IN LOGISTICS WITH REFERENCE WITH
CONCOR

1. NAME
2. MOBILE NUMBER
3. AGE
4. GENDER
5. DESIGNATION
6. DEPARTMENT
7. EXPERIENCE
8. SINCE HOW MANY YEARS ARE U WORKING WITH THE ERP
O 0-2 YEARS
O 2-4YEARS
O 4-6 YEARS
O 6-8 YEARS
O MORE THAN 8 YEARS
9. PERIOD OF IMPLEMENTATION OF THE ERP
O 0-5 MONTHS
O 5-9MONYHS
O 1 -2YEARS
O 2-3YEARS
O MORE THAN 3 YEARS
10. RATING THE EXPERIENCE WITH ERP IN THE ORGANIZATION
O HIGHLY SATISFIED
O SATISFIED
O NEUTRAL
O HIGHLY DISSATISFIED
O DISSATISFIED
11. IS THERE ANY COMPLAINTS FACED BY THE EMPLOYEES IN ERP ON
A DAILY BASIS
O REGULARLY FACED
O PERIODICALLY FACED
O NEUTRAL
O RARELY
O NONE OF THE ABOVE
12. DO U FEEL ERP USED IN THE ORGANIZATION IS USER FRIENDLY

58
 O HIGHLY SATISFIED
O SATISFIED
O NEUTRAL
O HIGHLY DISSATISFIED
O DISSATISFIED
13. THE IMPLEMENTATION OF ERP IN ORGANIZATION, HOW FAR IT IS
FACILITATING IN LOGISTICS OPERATIONS
O HIGHLY SATISFIED
O SATISFIED
O NEUTRAL
O HIGHLY DISSATISFIED
O DISSATISFIED
14. CHALLENGES FACED WHILE OPERATING THE ERP
O LACK OF USER ADOPTION
O HIGH IMPLEMENTATION AND USER COST
O DATA MIGRATION CHALLENGES
O RESISTANCE FROM EMPLOYEES
O OTHERS
15. TECHNICAL PROBLEMS FACED WERE ENCOUNTERED DURING AND
AFTER THE IMPLEMENTATION
O INTEGRATION WITH EXISTING SYSTEM
O INTEGRATION WITH NEW BUSINESS
O DATA MIGRATION
O CUSTOMIZATION
O SECURITY
16. BENEFITS EXPERIENCED SINCE IMPLEMENTING THE ERP SYSTEM
O BETTER ORDER PROCESSING
O IMPROVED CUSTOMER SERVICE
O IMPROVED DECISION MAKING
O IMPROVED LOAD TIME
O BETTER DATA ACCURACY

17. HAS THE ERP SYSTEM HELPED IMPROVING DATA ACCURACY AND
REDUCING ERRORS

59
 O HIGHLY SATISFIED
O SATISFIED
O NEUTRAL
O HIGHLY DISSATISFIED
O DISSATISFIED
18. ARE YOU SATISFIED WITH THE INFORMATION SHARING WITHIN
THE ORGANIZATION DUE TO ERP SOLUTION IMPLEMENTATION IN THE
ORGANIZATION
O HIGHLY SATISFIED
O SATISFIED
O NEUTRAL
O HIGHLY DISSATISFIED
O DISSATISFIED
19. WHAT DO YOU THINK ABOUT THE WORK LOAD IN THE ORGANIZATION
AFTER THE IMPLEMENTATION OF THE ERP SYSTEM
O HIGHLY SATISFIED
O SATISFIED
O NEUTRAL
O HIGHLY DISSATISFIED
O DISSATISFIED

20. IMPLEMENTATION OF THE ERP DOES IT HAD SEEN COST SAVING IN ANY
AREA
O INVENTORY MANAGEMENT
O TRANSPORTATION MANAGEMENT
O WAREHOUSE MANAGEMENT
O SUPPLY CHAIN MANAGEMENT
O OTHERS

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