Business improvement happens by proper decision making at proper time.
In Uttara ERP we proclaim a possibility of improving at least 10% on the gross profit in the first year itself by properly utilizing a host of Business Intelligence(BI) Reports and other utilities, especially in the following areas
Inventory Carrying Cost
In India average industrial inventory holding is more than six months of turnover, in US around one month and in Japan it is less than 15 days. India's average Inventory carrying cost as a percentage to the turnover is almost equivalent to the average net profit in percentage. In other words the net profit for a healthy industry can be doubled, if completely JIT concept is applied. While it is extremely difficult to apply JIT (just in time) concepts in Indian scenario, proper usage of MRP module in Uttara ERP paves way for JPT (just possible time) concept, which will bring down the average inventory holding to less than two months.
Obsolescence
Dead / non-moving inventory is like NPA in banking sector. It eats away the future profits. Rather the actual profit for any given year is less than what it is, if there is non-moving inventory not provided for. Accumulation of non-moving inventory is the first effect of obsolescence of any product.
While the factors causing the obsolescence of any product is definitely not in the control of any industry, the bad effect of obsolescence can be minimized by implementing the MRP, pull-in, push-out, Can-Build modules properly in Uttara ERP.
MRP, Pull-in and Push-out modules will reduce unnecessary pile of inventory, when there is obsolescence of any product.
Can-Build module helps in liquidating the dead inventory to the extent possible.
Supplier Credibility
Establishing credibility with suppliers helps in getting timely delivery of materials at best possible price. But achieving credibility with various suppliers is a challenging one.
Uttara ERP helps in achieving this thru Payment Planning Automation, Interactive correspondence with suppliers on payments and supplies, indication of bulk order placement, Pull-in and Push-out.
Price Fixing
Price fixing determines the level of gross profit. Fixing a price which is more than what the market can absorb will undoubtedly contribute towards more gross margin, but there is a danger of losing the order itself. Fixing a price which is below the competitor's price will help kill the competition but may push the price below the cost.
While cost is a fact, price is a policy matter. But proper costing has definite bearing on the price fixing. Proper cost absorption and allocation of various elements of cost to the products manufactured / dealt with, varies from one industry to another and needs full understanding of the product cycle and nature of business carried on by the industry. Uttara ERP provides a customized method for absorption of costing in a natural way while capturing various data. A host of BI reports provided in the Costing Module helps in fixing a proper price to achieve optimal gross margin on various products dealt by the company.
Optimizing Production
Optimizing production is crucial in reducing cost of production. The major factor in optimizing production, apart from making the right kind of material available at right time, is balancing of facilities. With implementation of PPc module, Uttara ERP provides right kind of information to decide on increasing / decreasing capacities of various facilities either by running over time, more number of shifts or less number of shifts, adding a new facility, as necessary, to achieve optimization of production.
Decision Making
It can be said that "The success of an organization depends on the number of proper decisions made by the people of that organization". Uttara ERP provides right kind of information thru various BI reports, to enable a person to make proper decision. More importantly, Uttara ERP enables shifting of mundane decisions to the system, so that the human errors and delay in making decisions are eliminated, and further allows the concerned to make more important decision. Such aspects can be observed in PO generation, Payment Planning, Pull-in, Push-out, invoice generation, application of inter-active letters for confirmation of balances, payment reminders, supply reminders etc., to name a few.
Performance
Most of the decisions are made based on the information derived from the BI reports. Hence it is vital that any necessary BI report is provided whenever required without loss of much time. In Uttara ERP most of the reports are generated in less than thirty seconds. Uttara ERP works on the principle "Minimum key input and maximum output". This can be observed in many places such as any information already stored is made available during data entry in every module, multiple groups in report printing etc. In addition to this the dash boards for items, customers, suppliers, employees and assets act as a
ready-reckoner to provide every information available in the database at a key stroke.
Deterrence
Dash board for CEO and project managers will act as a deterrent for those who do not perform. CEO's dash board provides important information, along with what is overdue in various areas.