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.
