The Indian milk producer’s federation has recognised the need for innovation and technology and have turned to SAP implementation partners in India for their support with organisational and accounting issues.
The ERP software provides the dairy industry to manage their milk production with innovative simulation, planning, balancing and controlling instruments. It enables you to co-ordinate the process right from milk procurement to processing of milk and its various products to finished products being produced at various stages and being distributed to the retailers and whole sellers.
It was becoming difficult to record the data related to the dairy farmers and their submissions. There were organisational complications, lack of paying system, lack quality standards from different working practices. The SAP implementation partners India got involved with the problems and needs accompanied by the farmers and their experiences. After a complete analysis and findings appropriate SAP software and design of required application was brought into practice.
SAP has enabled dairy industry to set up flexible and integrated planning process. It has covered all important aspects of dairy business including fresh/white, cheese/yellow, raw material planning and drying.
It has increased its efficiency and helps prevent material loss along with flexible raw material and production planning in all manufacturing areas.
The software has streamlined and optimized the dairy production process along with dairy plant operations which includes standardized reports and robust user interfaces. It has enables the plant to operate at its maximum efficiency.
It has made losses and disruptions transparent immediately through the controlling of the department of raw material, services and ingredients on daily basis.
With the implementation of SAP, there has been a total control of the process cost. In addition a detailed and integrated financial controlling tool has been set up for the dairy costing. It also enables dairy specific variance analysis and financial forecast simulation.
SAP enables transparency into results, costs, targets and potentials for the whole dairy process.
The introduction of SAP in dairy management has brought many changes in their process.
- It has brought transparency and improved the raw material utilisation.
- The materials, labour and equipments are being utilised more efficiently and effectively.
- It has reduced the cost and optimised the production process.
Thus, from the above we can conclude that SAP implementation connects processes of the industry by integrating horizontal lines of the business with industry specific solutions.
Fixed asset management is so industries something that is required by all kinds of industries across the globe. For service providers it takes the form of office equipment and furniture and for manufacturers it takes the form of factory tools and machinery. All of these come under the fixed asset (long term) head and are not a core part of the trading. However, fixed asset are equally important as any of your other inventories. SAP Business One makes managing these fixed assets easier wherein even depreciation can be calculated using SAP Business One Addon. It was till the B1 8.8 version of SAB Business One that this Addon was lacking. However, businesses today have been adopting it across the industry verticals, the reason being the Addon.
The SAP Business One 9.0 in fact is making fixed asset management a core product offering and consequently has been promoting a variety of functionalities for end to end management. Starting off with SAP Business One is easy and only requires enabling the administration module. Once the fixed assets module is activated, the menus will automatically show up, thereby allowing you to manage several types of GL accounts.
Once you have completed the initial setup for fixed assets management, you need to work on the fixed assets master data with SAP Business One Addon. Most of the fixed asset transactions are in fact facilitated by the financial module except the sales and purchase figures. After this, all fixed asset related transactions could be carried out using the SAP B1. Again, two transactions, namely, ‘purchase of fixed assets’ and ‘sales of fixed assets’ are the same as the general purchases in SAP B1 correspondingly.
It is also vital to note that the capitalization of fixed assets will be carried out through purchase of new assets or by working with old assets in a later stage of SAP B1. Capitalization of new assets done by purchases is also reflected automatically in the document type. Retirement is just the opposite scenario carried out by the sales and document/transaction types.
SAP Business One Addon also provides several self-explanatory features including ‘asset revaluation’, ‘depreciation run’ and others. These would be required for the standard fixed asset management. SAP Business One Addon also comes with a high quality SAP Business One Support that makes life easier for its users. Businesses all across the globe have been relying heavily on SAP Business One Support to streamline their asset management.
The Brand Guys
These are the self-appointed brand ambassadors of the company (even if the marketing hates it!) From clothes to pen to tissues, they carry everything with an..err..logo. They carry a sense of pride about their company and work. While, all of them may not be great performers, yet they are likely to nurture strong bond with the company and its people.
From washrooms to the colour of the walls, they are always on a complaint mode. This type is an HR nightmare as they keep thronging their cabins with complaints. They have a very pragmatic association with the company, are not very social types and just keep themselves to their work, until they find the next thing to complain about. Their attitude is contagious and they can take people down with them in no time!
The most commonly found lot around. Right from day one, they get on to their network building spree. Work can ofcourse wait! They are the types who believe that intra- company connections are essential for survival. Sadly, the KRA misses that point!
They are the most frequent visitors to the cafeteria or the coffee machines. From meetings to calls to ideation, everything happens over a snack. Even during a super packed day, they always find time to snack up!
Oh you meet them everywhere! They are strong personas and do everything to make their presence felt. The attitude runs super high and they are ready to crush the competition and you (if you don’t agree with them) anywhere, anytime. Their strong will to succeed may take them to the top ranks (mostly), however they are not the most popular managers.
Yeah, these are the tough rocks, mostly found in senior positions. They know how to work with the system and in the system. Extremely calculative and cautious, this breed does not believe in taking risks and jump stone to stone very cautiously.
And of-course there are many more. Managing such a variety of people can be quite a task for the HRs. What do you do to synchronize your workforce in the right direction?
To cloud or not, is a critical question which businesses face while considering an ERP. On one side is the scalability and flexibility offered by the cloud, and on the other side is complete ownership of on -premises. Here is a point by point comparison of cloud and on-premises ERP to help you decide better!
What’s the difference?
The basic difference between on premise ERP and cloud ERP is that an on premise ERP solution would typically be set up locally on your IT infra – all hardware and server components would be managed by your staff, locally. While in the cloud model, the infrastructure is offered as a service. All the required hardware and servers are managed by the vendor.
Cloud based ERP:
|Cost||• Lower upfront cost
• No fixed asset investment in hardware or servers.
|• Businesses may eventually end up spending more money depending on the lifecycle of the system and the number of users.|
|Security||• Data security is completely controlled by the vendor.||• Data security is in the hands of the vendor. While vendors pledge strict data security standards, some organizations might not have total peace of mind with this arrangement.|
|Customization||• Customization is frequent and comparatively cheaper as the vendor takes care of all necessary updates and upgrades.
• Businesses can also decide what customizations they want to opt for.
|• Less customizable in general|
|Implementation||• Shorter implementation cycle||• Since customization is limited, implementation cycle is also shorter.|
|Cost||• License driven one-time costs.||• Heavy upfront investment for hardware and other required IT infrastructure.|
|Security||• Business has the complete control over data security.||• Businesses need to be well versed with all security protocols.|
|Customization||• Can be customized to a large extent to match even very niche needs.||• Customizations come at the cost of longer implementation cycles.|
|Implementation||• Organization has more control over the implementation process||• Implementation process can take significantly longer|
SMEs are the backbone of the Indian economy. As of 2013, SMEs collectively employed at least 42 million people in India. They are not only helping in growing more employment opportunities but also substantially growing Indian economy. The contribution of individual SMEs may seem small but collectively they have emerged as powerful players in the growth of the Indian economy. As the SMEs continue to grow, here are three key trends that are likely to have a strong impact on the growth of the Indian SME Sector in the coming years.
- Availability of Financial Credit
- Impact of Ecommerce
- Job Creation
Financial Credit to SMEs
The financial institutions are focusing on making loans available to SMEs required for their growth. Let’s talk about some of them:
- SIDBI is one of the financial sectors whose vision is to meet financial and developmental needs of SME sector to make it more dynamic and effective.
- On the other hand, the private financial institutions are also slowly and steadily showing faith towards SMEs and are coming up with new financing schemes. The best example would be EXIM Bank of India expects to do around 2,000-crore SME refinancing in 2013-14 (April-March), compared with 685 crore last year.
- ICICI bank is also offering several schemes for SMEs and empowering them to make their business more profitable and efficient by utilizing their existing resources.
Impact of e-Commerce
E-Commerce platforms can help SMEs reach a pan-Indian customer base. Their products can be showcased without the need to invest highly in any distribution networks. Studies show that SMEs that have incorporated e-commerce as part of their sales model, are seeing higher revenues.
KPMG has collected the following facts from various sources that proves that e-commerce players are also focusing on SME growth. The e-commerce players are helping SMEs across Indian states connect to a larger and global audience.
- A study by market research firm KPMG and Snapdeal, an Indian e-commerce entity claims that e-commerce sector in India is projected to cross $80 billion by 2020.
- The study finds 85% of SMEs already using e-commerce believe it is a cost-effective channel for sales growth.
- It also claimed that SMEs actively practicing e-commerce benefit from 51% higher revenues and 49% more profit.
- They also have a 7% broader consumer base than SMEs who are still offline.
SMEs Creating Jobs
SME sector’s ability to create jobs, especially in the rural sectors, is a key positive trend for the Indian SMEs who are estimated to add over 1.3 million jobs per year. The SMEs are contributing to an impressive manufacturing (18% YOY) and service (34% YOY) sector growth rate.
SME sector is expected to contribute towards GDP growth by adding more jobs and augment industrialization in rural India helping create a balanced socio-economic growth for Indians. It will be interesting to see its growth in the next 5 years.
A small and growing organization can only do as much. To be able to focus on business growth and stability, it is essential for the SMEs to outsource some of their business operations. Here is a list of some of the key IT operations that an SME can consider outsourcing.
ERP and Infrastructure: As businesses grow, they need processes and robust platforms to support their growth. This also means a huge investment in hardware and resources to manage this. Outsourcing this means a huge saving on expensive hardware configurations. Outsourcing implementation of ERP softwares like SAP Business One also means that small businesses get a dedicated team of experts to manage their systems seamlessly. All your processes and systems are kept up and running, while you focus on your critical business goals.
Payroll: Now this is a very tricky piece. As the company expands, there are tons of statutory compliances and taxation norms that you need to take care of. How do you ensure that you file all your computations correctly and on time? Simply, outsource it! There are multiple companies that provide complete payroll solutions and can become your extended arm to keep your performances sorted.
Customer Support: As SMEs continue to gain more customers, it becomes increasingly important to keep all of them happy. Setting up an in-house team can become quite a task in terms of time and money. How about giving it out to a service center that is available 24X7 for your customers?
Cloud Hosting: While cloud computing is a cost effective technology when it comes to use, setting it up can cost a fortune. Hosting a cloud system internally also poses data security risks. Outsourcing cloud services means that you get to enjoy all the benefits of cloud (anywhere, anytime, any device access) in almost one third (or lower) the cost!
Outsourcing these services have some clear benefits for the SMEs:
Cost Effective: You save money. Period.
Better Expertise: When things are run by experts, you get better quality and experienced supervision.
Flexibility: There are no fixed / permanent costs. You can expand or reduce your outsourcing services according to business requirements.
Focus in Priorities: No more operational distractions. You can focus in what’s important for you!
What other services can a SME outsource? Share your thoughts with us!
Some enabling initiatives are on the cards, in sync with the Make in India program. Here’s a quick dekko at what the small businesses can expect in this Union Budget.
In a recent post (The New Age SMBs In India Are Ready To Embrace Technology) we had mentioned that the SME industry in India is a very interesting case. The industry employs a major chunk of the total workforce in India (40%), and yet its contribution to the Indian GDP is meagre (17%). With programs like India Aspiration Fund and Make In India, it would be exciting to see how the SME industry shapes up in the coming years. There is a lot of speculation about what would be allocated to the SMEs in the Union Budget to be announced later this month.
Here is our list of what SMEs can expect:
- Investment towards skill growth: Increased monetary incentives are likely to be given under the Skill India program. This would help small scale businesses to give required trainings to their workforce.
- More power to technology: A large chunk of capital is likely to be infused into the Technology Acquisition and Development Fund (TADF) to enable SMEs to acquire relevant technologies and support mechanisms.
- Loan Reimbursements: The Cabinet has already approved a whopping 3,000-crore Mudra Credit Guarantee Fund (CGF). This aims to support small enterprises reeling under loans ranging between 50,000 to 10-lakh.
- Job Creation: With the SMEs already employing a large chunk of the workforce, greater focus is likely to be given to technology start-ups and traditional businesses, as employment generators.
If one man can do a task well, two can do it better. Three can give ideate even better. And a team can execute it exceptionally well. But it is very important that everyone in the team works towards the same goal. Continue reading