Dear by the production engineer who can start the

Dear Uncle, congratulations on the success of your business. I am
writing this letter to inform you of the shortcomings I noticed in the
business. I heard from aunt that she manages all the book-keeping, payroll,
taxes, etc. manually. Hence, I propose to implement an ERP solution to manage
the business as it grows in the future.

Manual
orders lead to product, quantity, and price mismatches due to typos and
spelling errors. When ERP is implemented as a book-keeping method human error
and the time taken to perform complex manual price calculations are eliminated,
including varying predefined discounts (can be input using this system), real-time
data manipulation and customer data history 1. The data entered by
the planner can be read by the production engineer who can start the production
without waiting for the planners consent and hence the manufacturing lead time
is reduced. ERP helps with inventory control 2 by planning
replenishment orders, surplus inventory management, inventory turnover
tracking, demand forecasting, production planning in turn reducing wait times,
cycle times, lead times, product delivery times, unscheduled and planned
maintenance times, and increases revenue 3. The sales order number
generated through ERP tracks reverse supply chains, helps in returns and
managing expired material inventory 4. The ERP system has no
barriers against global exchange rates hence the present manual purchase order
and sales order creation can be eliminated. Accounting through ERP saves a lot
of time in decision-making like make or buy raw materials, transactions
considering the customer credibility, quicker approvals of trade online, track
return on investment and managing the budget through profit analysis. 5

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ERP systems are
available as on-premise and cloud-based. An on-premise system software is very
expensive and not economical for a small business but cloud-based ERP systems 14 have become
popular in recent years, especially in small to mid-sized companies because it
is cheap. Cloud-based ERP is priced under a monthly subscription of around $150
per user (17)
and it varies provider to provider. Since our company has five operational
departments, the total expense would be around $750 per month.

 

Bell and
Company, an Industrial and Marine Supply Company, shifted to ACUMATICA, an ERP
software, because it has tighter integration between sales and purchase orders,
unlimited user pricing, automated communications with the customers thereby
improving customer service, reduced accounting costs by bringing AP in-house
and has mobile access to increase employee productivity and moreover it is very
easy to use and highly configurable. ACUMATICA improved access to resources
such as customer information, technical documents etc.

 

So, I would
recommend implementing ACUMATICA to improve the overall management of the
business. Our goal should be to expand our business to global markets and then
we may implement the on-premise ERP system with many users.

 

Regards,

Sandeep Sairam