The document outlines key factors for selecting an ERP system for manufacturing companies, emphasizing industry-specific functionality, integration capabilities, scalability, and total cost of ownership. It also details critical considerations for evaluating ERP vendors, including industry experience, product fit, and support services. Additionally, it addresses managing employee resistance during ERP implementation in retail organizations through clear communication, stakeholder involvement, and ongoing support.
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The document outlines key factors for selecting an ERP system for manufacturing companies, emphasizing industry-specific functionality, integration capabilities, scalability, and total cost of ownership. It also details critical considerations for evaluating ERP vendors, including industry experience, product fit, and support services. Additionally, it addresses managing employee resistance during ERP implementation in retail organizations through clear communication, stakeholder involvement, and ongoing support.
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PGDM IV SEMESTER
Session 2024-25
PGDMOM04 – Sales & Operations Planning
MINI CASE REPORT
ON “Enterprise Resource Planning”
Submitted By:
Date of Project Activity:31stMarch,2025 Date of Submission: 4thApril2025
Submitted to: Submitted by:
Dr Richa Sharma Sumit Chaudhary ABS/PGDM/23/232 Q1: Key Factors When Selecting an ERP System for a Manufacturing Company When choosing an ERP system, a manufacturing company must consider multiple critical aspects to ensure operational efficiency and future scalability. 1. Industry-Specific Functionality The ERP must support core manufacturing features such as: o Production planning and scheduling o Inventory and warehouse management o BOM (Bill of Materials) handling o Quality control and compliance o Supply chain and logistics modules 2. Integration Capabilities The ERP should easily integrate with existing software: • CRM, HRM, procurement, and legacy systems. • Smooth data flow prevents duplication and improves decision-making. 3. Scalability & Flexibility As the company grows or diversifies, the ERP must: • Support multi-site and multi-currency operations. • Accommodate changing business models or processes. 4. Total Cost of Ownership (TCO) Consider not just the upfront license fee but: • Implementation, customization, training, upgrades, and ongoing support costs. • Aim for value, not just the lowest cost. 5. User-Friendliness A simple, intuitive interface ensures: • Quicker adoption by employees. • Reduced training costs and higher productivity. 6. Vendor Reputation & Support Evaluate the vendor’s: • Experience in manufacturing ERP solutions. • Customer service quality, support availability, and update policies. 7. Data Security & Compliance The ERP must provide: • Role-based access controls. • Data encryption, audit trails, and adherence to local/international compliance standards. 8. Deployment Options On-Premise: Full control, higher upfront cost. Cloud-Based: Lower capex, faster updates, scalable. Hybrid: A mix of both based on business needs. Prioritization Order: 1. Industry Fit 2. Integration Capabilities 3. Scalability 4. User-Friendliness 5. Vendor Reliability 6. Cost 7. Security & Compliance 8. Deployment Model
Q2: Critical Factors in Selecting an ERP Vendor & Evaluating Their
Capabilities Choosing the right ERP vendor is just as crucial as the software itself. Here’s what to consider: 1. Industry Experience • Has the vendor successfully implemented ERP systems for similar manufacturing companies? • Request industry-specific case studies and references. 2. Product Fit Evaluate whether the ERP: • Matches your business processes out-of-the-box. • Requires minimal customization. 3. Implementation Services Check if the vendor offers: • Project planning and timeline management. • Data migration support and system testing. • Dedicated implementation consultants. 4. Training & Change Management Vendor should provide: • Comprehensive role-based training. • Resources like manuals, e-learning, and on-site sessions. 5. Technological Strength Ensure the platform is: • Cloud-ready, mobile-accessible, modular, and regularly updated. • Compatible with AI/IoT or advanced analytics if needed. 6. Support Services & SLAs • 24/7 technical support, ticketing system, escalation matrix. • Well-defined Service Level Agreements (SLAs) for uptime and issue resolution. 7. Pricing & Licensing • Transparent and predictable cost structures. • Flexibility in user-based or module-based pricing. 8. Client Satisfaction & References Evaluate the vendor’s reputation by: • Speaking with existing clients. • Assessing online reviews and success metrics. Vendor Evaluation Tools: • RFP Process: Collect structured proposals for objective comparison. • Scorecards: Rate vendors on functionality, service, pricing, and support. • Product Demos: Test real-life scenarios with your data. • Site Visits: Visit current clients to see the ERP in action.
Q3: Managing Resistance During ERP Implementation in a Retail
Organization Employee resistance is a common barrier in ERP projects. Effective change management is essential to ensure smooth adoption. 1. Communicate the Vision Clearly • Explain why the ERP is being implemented.
Emphasize benefits like:
• Better customer service. • Streamlined operations. • Reduced manual work. 2. Involve Stakeholders Early Include users from different departments in: • Requirement gathering. • Testing and feedback. • Pilot phases. 3. Identify and Empower Change Champions Select respected team members to: • Promote the system internally. • Provide peer support and feedback. 4. Provide Practical, Role-Based Training Customized training for: • Sales teams, store staff, warehouse, finance, etc. • Use hands-on simulations and simple job aids. 5. Address Concerns and Feedback • Help desks, Q&A sessions, anonymous feedback channels. • Weekly meetings to address resistance or confusion. 6. Start with a Phased Rollout • Implement ERP in stages (e.g., inventory first, then finance). • Allows users to adapt gradually and troubleshoot early. 7. Incentivize Adoption Recognize early adopters with: • Rewards, public appreciation, or small bonuses. • Celebrate milestone achievements. 8. Provide Ongoing Support Post-Go-Live • Internal champions or “super users. • Continuous learning sessions and updates.