CHAPTER -01

INTRODUCTION

1
ABOUTTHEAREA

Logistics is the management of supply and transportation to deliver the goods on time and in good shape.
Handling of operations is a part of the logistics industry, and the need to perform efficient and cheap operations
is of utmost importance in the modern competitive world. Logistics is the management of the movement of
resources, goods, and services from the point of origin to the point of consumption in order to meet customer
needs.

Managing a warehouse or warehousing means keeping track of inventory and making sure orders are filled. It
also involves managing warehouse infrastructure and processes, such as in a fulfilment centre where orders are
received, processed, and sent out (shipped to the customer). Most warehousing operations use software like
ERP to manage the warehouse efficiently. Warehousing as an industry is a part of the logistics industry.
Customs management, also called "global commerce management," is often thought of as a part of logistics
because of the paperwork that must be done at international borders and shipping ports to show that government
rules are being followed.

Artificial intelligence (AI) and driverless vehicle technology are expected to have a big impact on logistics in
the future. Some logistics companies are already using AI to improve package tracking and predict problems
based on their algorithms. With the use of modern algorithms, it is becoming possible to predict future problems
and solve the problems in advance.

Logistics is the process of getting resources, storing them, and moving them to where they need to go. Finding
possible distributors and suppliers and figuring out how efficient and easy to reach they are part of logistics
management. Logistics managers are called "logisticians."

When the word "logistics" was first used, it meant how the military got, stored, and moved equipment and
supplies. This phrase is now often used in business, especially by manufacturers, to discuss how resources are
handled and moved along the supply chain.

Even though delivering packages on time and in good condition has always been crucial to the supply chain, it
has become even more mission-critical in recent years. This has happened as Omni channel commerce has
become more prevalent, allowing customers to order customised products from their mobile devices and have
them delivered the same day to their homes or stores.

2
Suppliers, manufacturers, distributors, and retailers have all had to enhance their logistics procedures to
outsmart the competition and meet the requirements of the fast-paced world of logistics. To better understand
the supply chain, they have also had to streamline their operations and integrate all the processes and operations.
Simply expressed, the objective of logistics management is to have the correct amount of a resource or input at
the right time, get it to the right location in good condition, and deliver it to the right customer, whether they
are within or external to the organization.

Logistics is managing pipelines, vehicles, storage facilities, and distribution centers that handle oil as it moves
along the supply chain. A supply chain that works well and doesn't cost too much and good logistics are
important for keeping and improving efficiency while lowering costs. Logistics problems lead to late deliveries
and not meeting customers' needs, which hurts the company in the long run.

The idea of corporate logistics has changed since the 1960s. The need for supply chain logisticians has grown
because it's getting harder to get organisations the goods and resources they need and because supply chains are
becoming more global.

In the modern world, the growth of technology and the complexity of logistics procedures have led to logistics
management software and logistics-focused businesses that speed up the flow of resources through the supply
chain. Large online stores like Amazon have grown to take over the retail market partly because their supply
chain logistics are generally new and work well.

If it is more cost-effective, a manufacturing company may choose to have logistics handled by professionals
instead of their employees. Planning an invasion by the military is an example of logistics. Panning and
operation activities of the military are a fine example of logistics. The part of military operations deals with
getting supplies and people, distributing them, keeping them in good shape, and replacing them

3
LOGISTICS:

INVENTORY MANAGEMENT: Tracking the availability of items in a warehouse or store and making sure
there is enough stock for customer demand.

TRANSPORTATION MANAGEMENT: Planning and coordinating the movement of goods from one
location to another.

WAREHOUSING: Storing goods in a safe and efficient manner.

ORDER FULFILMENT: Picking, packing, and shipping orders in a timely manner.

FREIGHT MANAGEMENT: Negotiating rates and selecting carriers for the transportation of
goods.

REVERSE LOGISTICS: Managing the return of products for repair, replacement, or disposal.

SEVEN R'S

The Seven R's is a popular concept used to enforce best practices in logistics management which consists of the
following

1. RIGHT PRODUCT (including the right information about it)

2. (At) RIGHT QUANTITY

3. RIGHT TIME

4. RIGHT CONDITION

5. RIGHT PLACE

6. (To) the RIGHT CUSTOMER

7. (With the) RIGHT (financial) RESOURCE

TYPES OF LOGISTICS:

INBOUND LOGISTICS: The process of receiving and storing goods from suppliers and vendors.
OUTBOUND LOGISTICS: The process of selecting, packing, and shipping products to customers.
REVERSE LOGISTICS: The process of returning goods from customers and redistributing them toother
customers or back to the supplier.
THIRD-PARTY LOGISTICS: The outsourcing of logistics operations to a third-party provider

4
ERP

Enterprise resource planning (ERP) is one valuable tool for better managing your logistics when dealing with
wholesale or distribution trades. This integrated suite of business applications automates day-to-day operations
such as accounting, human resources (HR), and customer relationship management (CRM). Yet it can also
improve your company’s logistics through inventory and supply chain management.

ERP software can improve logistics in several areas, including:

 Inventory management
 Supply chain management
 Transportation and shipping
 Financial reporting

While some ERP options for logistics are developed and branded exclusively for companies under the logistics
software term, other options may include industry-neutral ERP solutions which can provide all the tools a
logistic company needs. It’s important to determine if the software you’re looking into only focuses on inventory
and/or supply chain management, or has the additional modules to streamline all your business processes.

An ERP in supply chain management helps businesses to manage day-to-day activities from manufacturing to
distribution of goods. Its implementation in the supply chain helps your business to ensure resource availability,
fulfil orders timely, reduce costs, optimum utilization of resources, etc.

Supply chain management is a complex business process that involves everything that comes between the
manufacturing and distribution of goods. It is the core of your business that is related to customer satisfaction.
The core of an ERP system is that it enables the integration of various business processes into a single platform
for better organisation. That is, it comprehensively connects various departments.

5
TYPES OF ERP SYSTEMS

There are three main types of enterprise resource planning software that function with different deployment
model options:

1. On-premise ERP
2. Cloud ERP
3. Hybrid ERP.

ON-PREMISES ERP SOFTWARE

On-Premise ERP software is installed and maintained on the company's computers and servers. Typically, this
type of ERP is used by large corporations who want complete control over the system and customize every
module and aspect of it according to business requirements. To do so, the company hires IT specialists to
maintain the software, ensure security, provide regular updates and backups, etc. The price of on-premises ERP
systems varies based on the company's size and the number of users. The company pays the full cost of the one-
time perpetual license upfront and also pays for periodic training, support, and updates.

CLOUD-BASED ERP SOFTWARE

Unlike on-premise ERP, cloud-based ERP software, also known as Software as a Service (SaaS), is hosted on
a vendor's servers and can be accessed over the internet. You don't have to hire IT specialists to maintain the
system, but you can't control and customize it as much as in on-premise ERPs.The cloud solution is the most
suited for small and medium-sized businesses that want to have:

 Continual customer support;

 Regular updates and backups provided by the vendor;
 The system protected by a team of cloud security professionals;
 Easy access to all the business information anytime and anywhere.

The up-front cost for cloud ERP is much lower than for on-premise one, but you have to pay a regular
subscription fee for access.

6
HYBRID ERP SOFTWARE

As the name implies, hybrid ERP software is a blend of cloud and on-premise ERP system solutions. It may be
suitable for those who want to migrate between delivery models or integrate functionality not available in the
existing implementation.

 It better supports such specific functions as CRM and provides the ability to access ERPfunctions from
mobile devices.
 It's cheaper to buy a different cloud ERP system for business groups than to extend asingle ERP system
across all business units.
 It's easier and faster to find the specific features business require in hybrid ERP than towait for corporate
IT to adopt a large, comprehensive company-wide ERP system.

OBJECTIVE OF THE STUDY

 To analyses the service outcome due to ERP

 To identify the constrains in using the ERP software
 To find out the consequences faced by employees
 To understand out the impact of ERP system used in FREIGHT CONSOLIDATORS
 To find out the ERP mechanism followed in FREIGHT CONSOLIDATORS.

LIMITATIONS

 There was a limited time given to analysis of the study

 The area covered in this project was limited and narrow
 There was very little interactions with the people as we were only limited within thearea
 The accurate decision cannot be taken by the information collected
 Were relocate while giving their personal information.
 The statistical analysis used may not be appropriate or may not account for all relevantvariables,
which could affect the accuracy of the results.
 The size of the sample used in the study may be too small to generalize the results to alarger
population.

7
NEED OF THE STUDY

The impact of ERP in logistics is an important area of study as it can provide valuable insights into the benefits
and drawbacks of this technology in supply chain management. With the increased adoption of ERP systems
by many organizations, understanding how these systems impact logistics operations can help organizations
make more informed decisions about implementation and customization. By improving efficiency and
providing a competitive advantage, ERP systems can potentially offer significant benefits to organizations.
Additionally, studying the impact of ERP in logistics can identify broader industry trends and best practices,
benefiting both individual organizations and the logistics industry as a whole. Therefore, this research can help
organizations make informed decisions about their technology investments and improve their supply chain
management practices. The implementation of an Enterprise Resource Planning (ERP) system can have several
benefits for logistics companies. One of the most significant benefits is improved efficiency. By streamlining
processes, reducing manual work, and increasing accuracy, ERP systems can enhance logistics efficiency.
Through research on the impact of ERP on logistics, specific areas of improvement can be identified, and best
practices can be recommended to further enhance efficiency. ERP systems can also help logistics companies
save costs. By reducing errors, improving inventory management, and optimizing transportation, ERP systems
can provide significant cost savings. Through research on the impact of ERP in logistics, companies can
determine the potential cost savings and return on investment associated with ERP implementation. In addition
to cost savings, logistics companies that adopt ERP systems may gain a competitive advantage. By improving
their responsiveness, flexibility, and customer service, they can differentiate themselves from competitors.
Through research on the impact of ERP in logistics, researchers can identify the key factors that contribute to a
competitive advantage and recommend strategies for achieving it

8
 CHAPTER -02

PROFILE & METHODOLOGY

9
INDUSTRY PROFILE:

CONTAINER INDUSTRY

Nowadays, logistics industry plays an extremely important role in the development of the economy and society
and is one of the largest growing industries in the world. In order to sustain in the highly competitive market
logistics enterprises are forced to speed up their processes, reduce their costs and improve their performance.
Enterprise resource planning (ERP) systems represent important information technology investment options and
have a huge potential to improve business performance. Therefore, our paper is focuses on understanding the
challenges and benefits of ERP systems applications in the logistics enterprises. The main objective of our article
is to investigate the impact of ERP application on different aspects of business processes in logistics sector. In
order to achieve this objective a survey was carried out via a closed interview questionnaire across logistics
services enterprises in the Republic of Bulgaria. The results provide empirical evidence that the application of
the ERP systems in logistics has the most beneficial effect on the following areas: transport management and
documentation, accounting and sorting and distribution. At the same time the ERP is considered cost-effective,
and it could replace human effort of approximately 60 to 80%. Based on the study, it was found that the application
of ERP systems leads to increased cost efficiency and respectively to better overall performance of the logistics
enterprises.

Nowadays, logistics industry plays an extremely important role in the development of the economy and society
and is one of the largest growing industries in the world. In order to sustain in the highly competitive market
logistics enterprises are forced to speed up their processes, reduce their costs and improve their performance.
Enterprise resource planning (ERP) systems represent important information technology investment options and
have a huge potential to improve business performance. Therefore, our paper is focuses on understanding the
challenges and benefits of ERP systems applications in the logistics enterprises. The main objective of our article
is to investigate the impact of ERP application on different aspects of business processes in logistics sector. In
order to achieve this objective a survey was carried out via a closed interview questionnaire across logistics
services enterprises in the Republic of Bulgaria. The results provide empirical evidence that the application of
the ERP systems in logistics has the most beneficial effect on the following areas: transport management and
documentation, accounting and sorting and distribution. At the same time the ERP is considered cost-effective,
and it could replace human effort of approximately 60 to 80%.

10
COMPANY PROFILE:

FREIGHT CONSOLIDATORS LOGISTICS PROFESSIONALS

Freight consolidators rely on a team of dedicated professionals with diverse skill sets to effectively manage the
complex processes of coordinating and optimizing the movement of goods across supply chains. At the heart of
these operations are freight forwarders, who orchestrate the transportation of shipments by selecting appropriate
carriers, negotiating rates, and managing documentation. Logistics coordinators work meticulouslyto plan
routes, schedule shipments, and communicate with various stakeholders to ensure seamless execution. Supply
chain managers oversee the broader picture, synchronizing procurement, production, and distribution toachieve
optimal efficiency. Customs brokers navigate the intricacies of international trade regulations, facilitating
smooth customs clearance. Documentation specialists meticulously prepare and manage the numerous
documents essential for cross-border shipments. Cargo insurance specialists assist clients in safeguarding their
shipments through proper insurance coverage. Transportation planners strategically optimizeroutes, modes, and
schedules to balance cost and efficiency. Customer service representatives engage directly with clients,
providing updates and addressing concerns. Technology and IT specialists manage digital systemsfor real-time
tracking and visibility. Sales and business development professionals expand the client base and partnerships.
Compliance experts ensure adherence to trade regulations. Quality control and inspection specialists guarantee
the integrity of shipments. Risk management professionals identify and mitigate potential supply chain
vulnerabilities. This collaborative ensemble of professionals ensures that freight consolidators offer
comprehensive solutions, meeting the diverse needs of clients in the dynamic world of logistics and international
trade.

Within the realm of documentation, specialists meticulously prepare the array of paperwork required for
international shipping, from bills of lading to certificates of origin. Cargo insurance specialists offer peace of
mind by expertly tailoring insurance coverage to safeguard shipments from potential loss or damage during
transit. The contributions of transportation planners are crucial, as they leverage their expertise to chart the most
efficient routes, modes, and schedules, effectively minimizing costs and transit times. Customer service
representatives engage directly with clients, offering real-time updates on shipment statuses and addressing any
concerns that may arise. In parallel, operations managers oversee the day-to-day functioning of the company,
ensuring that shipments are handled with precision and adherence to established protocols.

11
In an increasingly digital landscape, technology and IT specialists implement and maintain sophisticated
software systems that empower clients with real-time visibility into their shipments, fostering transparency and
trust. Sales and business development professionals play an essential role in expanding the company's reach by
forging new client relationships and nurturing existing partnerships. Compliance and regulatory experts remain
vigilant in monitoring and interpreting the dynamic landscape of international trade regulations, ensuring that
shipments adhere to legal requirements. For industries with stringent quality control needs, quality control and
inspection specialists meticulously examine goods, ensuring that they meet prescribed quality standards prior
to shipment. Lastly, risk management professionals identify potential vulnerabilities within the supply chain
and devise strategies to mitigate them, bolstering the resilience and reliability of the freight consolidation
process. Together, these professionals form a comprehensive team that drives the success of freight
consolidation operations while offering invaluable expertise to clients and stakeholders.

Moreover, within the container industry, where timing is often of the essence, freight consolidators excel in
synchronizing shipments and minimizing transit times. They meticulously plan routes, select appropriate
shipping lines, and coordinate intermodal transfers, all while keeping a keen eye on various time-sensitive
factors. In addition to their logistical prowess, freight consolidators within the container industry are well-versed
in navigating the complex realm of customs regulations and documentation. They handle the intricacies of
paperwork, declarations, and compliance, ensuring that shipments smoothly pass through customs checkpoints
without delays or issues.
Furthermore, the container industry is inherently susceptible to risks such as damage, theft, and logistical
disruptions. Freight consolidators adeptly address these challenges by offering cargo insurance solutions and
comprehensive risk management strategies. This ensures that clients' valuable cargo is adequately protected
throughout its journey, from origin to destination. In a rapidly evolving digital landscape, technology plays a
pivotal role in container logistics, and freight consolidators leverage advanced tracking and communication
systems to provide clients with real-time visibility into their shipments. This transparency fosters trust and
allows for timely decision-making based on accurate information.

In summary, freight consolidators are indispensable players within the container industry, driving the
optimization of shipping processes, enhancing efficiency, mitigating risks, and fostering seamless coordination
across the global supply chain. Their multifaceted expertise ensures that goods are transported safely,
efficiently, and cost-effectively in the standardized containers that underpin modern international trade.

12
FREIGHT CONSOLIDATORS OBJECTIVES:

Freight consolidators, also known as freight forwarders or shipping consolidators, play a crucial role in the
logistics and transportation industry. Their main objectives revolve around optimizing the movement of goods
across various modes of transportation and through different supply chain networks. Here are the key objectives
of freight consolidators:
Cost Efficiency: One of the primary objectives of freight consolidators is to achieve cost efficiency for their
clients. They consolidate smaller shipments from multiple shippers into larger, more cost-effective shipments.
This allows them to take advantage of economies of scale and negotiate better rates with carriers.
Optimized Routing and Mode Selection: Freight consolidators aim to find the most efficient and cost-
effective routes and modes of transportation for shipments. They consider factors such as transit time, distance,
transportation modes (road, rail, sea, air), and any necessary intermodal transfers.
Reduced Transit Times: By leveraging their expertise and industry connections, freight consolidators work to
minimize transit times and ensure timely deliveries. This is especially important for time-sensitive shipments.
Risk Management: Freight consolidators often offer cargo insurance and risk management services to protect
their clients' shipments against loss, damage, or theft during transit. Mitigating these risks is a key objective to
ensure the security of the cargo.
Documentation and Customs Compliance: Navigating international trade regulations, customs procedures,
and documentation requirements can be complex. Freight consolidators assist their clients in preparing accurate
and complete documentation to ensure smooth customs clearance and compliance with legal requirements.
Inventory Management: Consolidators often provide inventory management services, helping clients optimize
their inventory levels by coordinating shipments to align with demand patterns and supply chain strategies.
Customer Service: Providing excellent customer service is crucial for freight consolidators. They aim to keep
clients informed about shipment status, address concerns promptly, and provide personalized solutions to meet
specific shipping needs.
Tracking and Visibility: Freight consolidators use technology and tracking systems to provide real-time
visibility into the status and location of shipments. This transparency helps clients monitor their cargo and make
informed decisions.
Supply Chain Optimization: Consolidators contribute to overall supply chain optimization by streamlining
processes, improving visibility, and identifying opportunities for improvement in transportation and logistics
Environmental Considerations: As sustainability becomes increasingly important, freight consolidators may
strive to minimize the environmental impact of transportation by optimizing routes, modes, and load capacities
to reduce carbon emissions.

13
ORGANIZATIONAL STRUCTURE

14
RESEARCH METHODOLOGY

Research methodology is the systematic, theoretical analysis of the methods applied to a field of study. It
comprises the theoretical analysis of the body of methods and principles associated with a branch of knowledge.
Research methodology is a way to systematically solve the research problem. This research work is descriptive
in nature and mainly based on primary data. Both the primary and the secondary data have been used.

The primary data were collected directly from the customers through the questionnaire method. A structured
questionnaire which includes both open-ended and close-ended questions was administered to collect
information from the respondents. Personally, the copies of the questionnaire were given to the sample
respondents selected from FRIGHT. The secondary data were collected from other sources such as journals,
magazines, newspapers, published research paper and websites

RESEARCH DESIGN

Research design is a logical and systematic plan prepared for directing a research study. This is the program
that guides the investigator in the process of collecting, analysis and interpreting observations. A plan specifies
what information marketers will collect and what type of study they will do. A research design is based on a
framework and provides a direction on the investigation being conducted in the most efficient manner.

DESCRIPTIVE RESEARCH

Descriptive study is a fact-finding investigation with adequate interpretation. It is designed to gather descriptive
information and provides information for formulating more sophisticated studies. Descriptive aims at
elucidating the data and primary characteristics about the object or situation or concept under study. Research
design constitutes the blueprint for the collection, measurement and analysis of data. In this study the researcher
has adopted Descriptive Research design.

SAMPLING

Sampling allows concentrating upon a relatively smaller number of people and hence, to devote more energy
that the information collected from them is accurate.

15
NON –PROBABILITY SAMPLING

Non-probability sampling is a sampling method that uses non-random criteria like the availability, geographical
proximity, or expert knowledge of the individuals you want to research in order to answer a research question.
Non-probability sampling is used when the population parameters are either unknown or not possible to
individually identify. In non- probability sampling, each unit in your target population does not have an equal
chance of being included. Here, you can form your sample using other considerations, such as convenience or
a particular characteristic.

CONVENIENCE SAMPLING

Under this method, the units are selected according to the convenience of the researcher such as nearness, easy
availability of data etc. This is non-probability sampling. Convenience sampling method means selecting
whatever sampling units are conveniently available. The researcher selects the easiest population members to
obtain information.

POPULATION OF THE STUDY:

A population is all the organisms of the same group, which live in a particular geographical area. The collection
of elements or objects that possess the information sought by the researcher and about which inferences are to
be made. Population refers to any group of people that the subject of study in particular research.

SAMPLE

A segment of the population was selected for marketing research to represent the population as a whole. A
population subset was used to estimate the characteristics of the entire population.

SAMPLE SIZE

Sample size refers to the number of individuals or items that are included in a sample in a research study or
survey. The sample size is an important consideration in research design, as it can impact the validity and
reliability of the findings. A larger sample size generally provides more accurate and representative data, but it
also requires more time and resources to collect and analyses.

16
TOTAL POPULATION – 120 employees

PERIOD OF THE STUDY- 30 DAYS

COLLECTION:

PRIMARY SOURCE

Primary sampling unit refers to sampling units that are selected in the first (primary) stage of a multi-stage
sample ultimately aimed at selecting individual elements. In selecting a sample, one may choose elements
directly; in such a design, the elements are the only Sampling units

SECONDARY SOURCES

In the social sciences, a secondary source is usually a scholar book, journal article, or digital or print document
that was created by someone who did not directly experience or participate in the events or conditions under
investigation. Secondary sources are not evidence per se, but rather, provide an interpretation, analysis, or
commentary derived from the content of primary source materials and/or other secondary sources.

DATA COLLECTION INSTRUMENT:

A questionnaire is a research instrument that consists of a set of questions or other types of prompts that aims
to collect information from a respondent. A research questionnaire is typically a mix of close-ended questions
and open-ended questions.

STRUCTURE OF QUESTIONNAIRE

 Objectives of the study

 Number of open-ended questions
 Number of close-ended questions
 Number of Likert rating scale questions
 Rank order

17
REVIEW OF LITERATURE

Dimitar Koleva and Anna Otsetova focused on investigating the impact of ERP application on differentaspects
of business processes in logistics sector. The study found that the application of the ERP systems in logistics
has the most beneficial effect on transport management and documentation, accounting, and sorting and
distribution.

Salih Zeki Imamoglu examined the impact of ERP systems and supply chain management practices on firm
performance. The study found that the successful implementation and integration of ERP systems and SCM
practices provide advantages in planning, decision-making, execution, and increasethe performance of firms.

Untung Rahardja researched the implementation of ERP in Indonesia to increase the significant impactof
management control systems. The study found that ERP implementation is significantly influencedby the
Management Control System. However, there are several compromises in implementing an ERP system in
Indonesia, such as staffing issues.

Iris A. Junglas and Chen-Huei Chou developed an integrated model of ERP success that links contextual
variables of the organisation with the critical implementation decisions affecting the managerial and technical
execution of the project, leading to tactical and strategic measures of ERP success.

Shikha Singh, Smriti Singh, and Subhas C. Misra investigated the post-implementation challenges ofERP
systems in pharmaceutical companies. The study aimed to identify the challenges encountered by
pharmaceutical firms during the post-implementation of ERP systems.

18
 CHAPTER -03
THEORETICAL BACKGROUND

19
INTERNAL AND EXTERNAL FACTORS AFFECTION ERP INTERNAL FACTOR

1. MANAGEMENT STRUCTURE AND STRATEGY

With ERP schemes, failure during ERP acceptance can crash harmfully on the performance of
the organization. The failure to organize over project teams may occur as a result of
decentralization in making conclusion processes which will be followed by unsuccessful
support of decisions. Forming a project group and assigning decision to particular people with
specific awareness and abilities is a common practice. However, a lack of proper monitoring
and enough controls over this increased responsibility to project managers and the project team
in organization processes may impose a potential business risk

2. USER INVOLVEMENT AND TRAINING

Partially the ERP projects do not attain the preferred profit because managers underrate the
efforts involved in transforming the management the latest amendments which an ERP system
may come up with can bring unenthusiastic result such as confrontation. Other threats
associated to users acknowledged in the literature are unsuccessful communication; inadequate
training; users are not capable to comprehend the profits of the new ERP system; inadequate
human resources commitment; inadequate compassion to user resistance; failure to highlight
reporting to users

3. SKILL MIX

The implementation of an ERP needs particular ability during and after implementation. A
project team with expertise including modified management, business process restructuring
(BPR), risk management and technical skills are frequently necessary (Grabski et. al., 2001);
inadequate training and lack of skill; shortage of internal knowledge; inadequate business
analyst who is skilled; incapable of recruiting and retaining qualified ERP professionals; and
disappointment in mixing internal and external expertise successfully can hamper the
implementation

4. TOP MANAGEMENT SUPPORT

The most important factor when adopting and implementing ERPS is the top-level
management’s commitment to the strategic direction itself. Hammer (2008) believes that
reengineering must be driven from the topmost level. The primary ingredient for project

20
success is top leadership, either the CEO or someone in a position to compel the compliance
of all parties involved in reengineering. Line responsibility is said to be the key, and
reengineering is top-down, autocratic rather than through a democratic process. This is
undoubtedly a prerequisite for strategy implementation. Therefore, top managers must
demonstrate their willingness to give energy and loyalty to the performance management
implementation process

5. ERP COST ELEMENTS AND PROJECT COMPLEXITY

Considering that ERPs are expensive (Yang et. al., 2010) and SMEs undergo financial
limitation the operational and economic threat are clear evident than the compensations.
Straight expenses are those that are openly connected with the implementation of a system The
other cost element recognized in the literature is the implementation cost. That contain the
initial cost of the, customization costs; costs of migrating data from the old system to the new
ERP system; costs of integrating different modules; annual maintenance costs of the ERP
system; and vendor project management

6. RISKS OF IMPLEMENTING AN ERP SYSTEM

When organization case is needed to work on greatest and terrible cases it takes into account
the best case only and not thinking in a manner of any risks coming on the way. On the other
hand if any terrible circumstances take place both cases needs to be considered, The possible
danger of adopting ERP is identified described risk as a susceptibility to elements which hinder
a project from some or gaining all of the predictable profits that was caused by unsuitability
between the chosen software and hardware; implementation costs which go beyond the
financial plan; and technological systems which perform below standard

EXTERNAL FACTORS INFLUENCING ERP SYSTEMS IMPLEMENTATION

There are few research studies that focus on the ERP business case which are in the significance
of business case in IT assets. Besides that, studies that focus on the field of Small to Medium-
sized Enterprises (SME) ERP business cases are insufficient and therefore, sustain the need for
this research. Suggests that IT infrastructure comprise the essential requirement for ERP
implementation. ERP cuts across several functions, including the internal operations of the
company itself and its suppliers, customers, banks, etc. The reliability of the whole
infrastructure is essential to facilitate complete value chain management enabled by ERP.

21
1. ORGANIZATIONAL FIT

Managerial threats initiate from the environment in which the system is implemented bring
about that the acceptance of a standard Enterprise Research Planning scheme may put into an
inflexible arrangement on a company and intimidate the flexible nature of many SMEs. SMEs
require reacting faster to the alterations of the environment to obey the rules to the necessities
of customers and suppliers. An Enterprises Research Planning system does not work well with
the business processes of an SME. And if they happen to work together the SMEs must
transform their business processes to fit the ERP system or make the necessary transformation
to the ERP system to suit the organization’s business processes

2. BARGAINING POWER OF SUPPLIER

Most SMEs use raw materials as well as labor, components, and other supplies. This
requirement leads to buyer-supplier relationships between the industry and the firms that
provide the raw materials. ERP vendors in this case form part of the supply chain given that
they engage in the supply of ERP systems. Suppliers, if powerful, can therefore exert an
influence the implementation of ERPs, such as selling them at a high price to capture some of
the industry's profits. Additionally, other suppliers apart from ERP vendors engage in the
supply of supporting facilities like cheque books, furniture, stationeries, among others can give
the same analogy. If indeed such supplies are not availed in good time then the implementation
of ERP systems will become a challenge.

3. GOVERNMENT POLICY AND REGULATION PRESSURE

Government can limit or even foreclose entry into industries with such controls as licensing
requirements and limits on access to raw materials. Influencing major political decisions is part
of corporate strategy as long as this is done openly and with integrity. SMEs do not take account
of the history and momentum of politics ignores an essential element of the environment

22
BENEFITS OF ERP SYSTEM

1. INFORMATION INTEGRATION:

The most important benefit is promotion of integration. It is because it has the ability to update
data between related business functions and components. Also, the people involved in a project
are interlinked to each other, thus it helps in improvement of productivity.

2. REDUCTION OF LEAD-TIME:

Lead-Time is the elapsed time between placing an order and receiving it. By reducing Lead-
Time organization should have an efficient inventory management system, which is integrated
with the purchasing, production planning and production departments

3. ON TIME SHIPMENT:

ERP system are designed to help your company to reduce data transfer time, reduce errors and
increase design productivity. By using steps of ECO i.e., Engineering Change Order, ERP
system automatically implements change in production database. Thus, by using these, an ERP
system ensures on time delivery of goods to customers.

4. REDUCTION IN CYCLE TIME:

It is time between the placement of order and delivery of product. There are two types of
situations; one is make-to-order and second one is make-to-stock. In both cases cycle time can
be reduced but more time is saved in make-to-order case because in this ERP system save time
by integrating with CAD/CAM systems.

5. BETTER CUSTOMER SATISFACTION:

ERP system is capable of producing goods in a flexible way with consideration of time and
cost management. It means will get individual attention and get services without spending more
money or waiting for long period.

6. INCREASED FLEXIBILITY:

Product flexibility is type of ability of the operation to efficiently produce highly customized
and unique products. ERP system not only improve flexibility of manufacturing operations,
but is also improve flexibility of organization.

23
ADVANTAGES OF ERP

COMPLETE BUSINESS MANAGEMENT SOLUTION

Business process management software, such as ERP, allows businesses to manage all aspects
of their business, such as accounting, production, sales and marketing, logistics, project
management, and more. ERP integrates all important information about a business, tracks
business resources efficiently, facilitates information flow, manages communications, and
ensures the accuracy of transactions.

COST-SAVING

Integrating ERP with your business operations can significantly improve efficiency while
reducing the probability of errors. Another significant advantage of ERP software is it reduces
paperwork and repetitive tasks, thus saving time and money. Hence, it cuts expenses for
administrative needs. Also, this resource planning software makes it easier for businesses to
keep a tab on product shortages and overcome logistical problems. Therefore, efficient
utilization of the right resources can save a lot of money.

IMPROVES SCALABILITY AND FLEXIBILITY

One key advantage of ERP software is its ability to modify as per the increasing scale of the
business. For example, if the business is scaling and adding new products resulting in more
people and production expansion, the ERP system can be modified as per the changing needs.
Flexible ERP software enables seamless integration of even the smallest changes in business
management and operations. The changes can be as routine as the addition of new inventory,
the hiring of employees, the expansion of production, and other departments. Thus, leading to
a more efficient and streamlined business process.

BETTER TRANSACTIONS ACCURACY

A company can find it simpler to maintain precise records of its financial transactions with the
help of an ERP model. Thus, it helps you to keep track of the money you have received from
customers, payments to suppliers, and expenditures. You will not miss any records and will be
able to improve your business transactions with time.

CENTRALIZES INFORMATION

Another benefit of an ERP system is that it streamlines all the information in one place, from
various departments, such as manufacturing, sales, suppliers, or customers. Thus, it will reduce

24
the need for regular inspection while eliminating the duplicity of data. It also helps in better
decision-making through transparency of business data. Also, the installation of ERP can help
you improve the supply chain and inventory management. It will further optimize performance
at all organizational levels and make it easier for your business to access personnel or process
information from any relevant department.

IMPROVED CUSTOMER SERVICE

Superior customer experience is paramount for every business. Hence, it is significant that
companies adopt the right tools and technology that can help them boost customer support. One
of the biggest advantages of an ERP system is that its customer relationship management
(CRM) module helps to manage and enhance issue resolution with customers and improve their
satisfaction levels. It will help you analyse data about customer behaviour patterns, which
further contribute to preparing sales strategies and improving customer service.

BETTER COMMUNICATION AND COORDINATION

The use of an ERP system enhances communication and collaboration between business
departments. It can hold all data relevant to the business in one place. Thus, a company can
implement ERP software to reduce communication lags and increase productivity. It improves
communication with other departments and encourages good teamwork.

NETWORKING AND SECURITY

ERP systems are an ideal tool for companies to improve their information security. It can help
to store critical financial data and customers’ personal information safely and securely.
Businesses can use ERP software to share information about customers, suppliers, and financial
transactions. Companies can also store non-sensitive data on their external servers.

HIGHER MANAGEMENT PERFORMANCE

By installing ERP software, companies can manage all key aspects of business operations, such
as production, sales, customer support, inventory, human resources, and supply. It works as a
data centre where businesses can efficiently handle and automate all data types.ERP solutions'
importance is reducing paperwork and the requirement for regular data entry. It will also
decrease human errors, which can disrupt production and supply chain management.

25
DISADVANTAGES OF ERP SYSTEM

HIGH INSTALLATION AND MAINTENANCE COSTS

One of the limitations of ERP is that it can be challenging for businesses to install and maintain
an ERP system independently unless it’s designed in that way. Businesses may need the
assistance of a professional ERP solution provider for maintenance and to solve any other
issues that may arise. They may also require routine updates that could add to the cost. While
these investments will eventually pay off with increased business efficiency, it’s important to
assess the value of these costs and how frequently are they going to be incurred.

INVESTMENT IN STAFF TRAINING

One more limitation of ERP solutions is that they may require staff training to understand
complex functionalities. Another disadvantage of ERP is that new hires need to be given
complete training about the company's ERP system from scratch when experienced ERP users
leave. To avoid these challenges it's important to ensure that the ERP system is very easy to
use by all team members and does not involve highly complex features.

COMPATIBILITY ISSUES

The ERP systems are as effective as the software they run on. However, all the company's
existing software and applications may not be compatible with the new ERP system. It could
result in mistakes and information loss, making it challenging for a company to carry out its
business operations. Therefore, you should ensure that the ERP software you adopt, is able to
integrate easily with your existing business tools and applications.

REQUIRES SPECIFIC ADJUSTMENTS

When ERP software is installed, it demands careful and exact adjustments, ranging from major
customization to fine-tuning. On all management levels, ready-to-use solutions must be
customized and adjusted to meet the company's management structure. You should configure
the features and modify ERP software to suit your company's requirements.

COMPLEXITY

With so much functionality and capabilities that ERP systems provide comes their substantial
complexity, which some users find hard to deal with. It’s now uncommon for organizations to
consider it necessary to properly plan and prepare for ERP implementation, which leads to
wasted money and time. Your organization will need considerable time and effort to master all

26
the ERP solution functionality. Also, when experienced users of the ERP system leave the
company, the newcomers who fill their positions must spend a lot of time learning it from
scratch instead of getting started immediately.

SLOW IMPLEMENTATION

Implementing a new enterprise resource planning system is a complex and lengthy process that
can take up to two years. This is one of the main reasons why you need to prepare well and
plan the transition process to avoid disruptions and save yourself from failure. Allocate time to
learn the new ERP platform post-implementation, as even the tech experts need time to
understand the system thoroughly

SLOW DATA MIGRATION

When you first use an ERP system, you will have to enter existing data into a new format.
Depending on your industry, the data migration process can take a long time to complete,
especially if done manually. Even digitized data isn't an exception here. You'll need to double-
check that data is not duplicated or lost during the migration. Fortunately, many ERP systems
are compatible with existing data storage software for easy uploading and organization

IT TAKES TIME TO SEE RESULTS

As the previous disadvantages show, using EPR systems with maximum efficiency and ROI
will take a long time. The lengthy implementation process, system customization, data input,
and staff training are all time-consuming and require patience.

You'll also need time just to get accustomed to new features and processes and learn how best
to use what the system offers.

THE CUSTOMIZATION PROCESS

Customization is one of the best aspects of ERP software, but it can easily and quickly get out
of hand. Customizing your software takes a lot of time, effort, expertise and money. But too
often, businesses underestimate how many resources are needed and either don’t finish their
customization or go way over budget. Customization can diminish the best practices built into
the system and make it more difficult to upgrade in the future

27
 CHAPTER -04

DATA AND INTERPRETATION

28
TABLE NO 4.1 SHOWING AGE OF THE EMPLOYEE

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
20-25 years 8 9%

25-30 years 27 28%

30-35 years 32 33%
40-45 years 13 14%
Above 45 years 15 16%
Total 95 100%
Source: Primary data

CHART NO 4.1 SHOWING AGE OF THE EMPLOYEE

35%
33%

30% 28%

25%
Percentage of repondents

20%
16%
15% 14%

10% 9%

5%

0%
Age of the employee

INTERPRETATION

From the above chart we would conclude that 33% of the employees working there would be
aged above 30-35 years and 28% of the employees would be age with 25-30 years 16% would
be aged above 45 years, 14%would be between 40-45 years 9% would be aged between 20-25
years

29
 TABLE NO 4.2 SHOWING GENDER OF THE EMPLOYEE

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
MALE 75 78%
FEMALE 20 22%
TOTAL 95 100%
Source: Primary data

CHART NO 4.2 SHOWING GENDER OF THE EMPLOYEE

78%

INTERPRETATION
From the above chart we can conclude by saying 78% of the total population are male and 22%
of the total employee are female

30
TABLE NO 4.3 SHOWING EXPERIENCE OF THE EMPLOYEE :
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS

1-2 YEARS 15 16%

2-4 YEARS 13 14%

4-6 YEARS 32 33%

6-8 YEARS 27 28%

MORE THAN 8 YEARS 8 9%

TOTAL 95 100%

CHART NO 4.3 SHOWING EXPERIENCE OF THE EMPLOYEE

Percentage of respondents

33%
35%
28%

30%

25%

20%
16%

15% 14%

10%

5%

0%
Experience

INTERPRETATION

Out of the total respondents 33% of the employees would have an experience of 4-6 years 28%
of the employees would have an experience of 6-8 years, 16% of the employees would have an
experience of 1-2 years, 14% of the employees would have an experience of 2-4 years While
only 9% of the employees would have an experience of more than 8 year

31
 TABLE NO 4.4 SHOWING YEARS OF WORKING WITH THE ERP
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
O-2 YEARS 15 16%
2-4 YEARS 13 14%
4-6 YEARS 32 33%
6-8 YEARS 27 28%
MORE THAN 8 YEARS 8 9%
TOTAL 95 100%
Source: Primary data

CHART NO 4.4 SHOWING YEARS OF WORKING WITH THE ERP

35%
33%

28%
30%

25%
Percentage of respondents

20%

16%
15% 14%

10% 9%

5%

0%
Years of working

INTERPRETATION

Out of the total respondents 33% of the employees would have an experience of 4-6 years 28%
of the employees would have an experience of 6-8 years, 16% of the employees would have an
experience of 1-2 years, 14% of the employees would have an experience of 2-4 years While
only 9% of the employees would have an experience of more than 8 years

32
 TABLE NO 4.5 SHOWING SERVICE EXPERIENCE WITH ERP IN THE
ORGANIZATION

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
HIGHLY SATISFIED 20 21%
SATISFIED 21 22%
NEUTRAL 32 33%
DISSATISFIED 14 15%
HIGHLY DISSATISFIED 8 9%
TOTAL 95 100%
Source: Primary data
CHART NO 4.5 SHOWING SERVICE EXPERIENCE WITH ERP IN THE ORGANIZATION

35% 33%

30%
Percentage of respondents

25%
22%
21%
20%

15%
15%

10% 9%

5%

0%
Service exoerirnce with ERP

INTERPRETATION

The table and the chart says that 33% of the respondents would be neutral to the service of the
ERP and 22% of the respondents would be satisfied to the service of the ERP,21% of the
respondents would be highly satisfied to the service of the ERP ,9% of the respondents would
be highly dissatisfied to the service of the ERP and 15% of the respondents would be
dissatisfied to the service of the ERP

33
TABLE NO 4.6 SHOWING CHALLENGES FACED WHILE OPERATING THE ERP

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
LACK OF USER ADOPTION 30 31%
HIGH IMPLEMENTATION AND USER 15 16%
COST
DATA MIGRATION CHALLENGES 25 26%
RESISTANCE FROM EMPLOYEES 19 20%
OTHERS 6 7%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.6 SHOWING CHALLENGES FACED WHILE OPERATING THE ERP

35%
31%
30%
26%
percentage of Repondents

25%
20%
20%
16%
15%

10%
7%

5%

0%
Challenges faced

INTERPRETATION

The table shows that 31% of the respondents reported a lack of user adoption as the most
significant challenge they faced. Data migration challenges were the second most commonly
reported issue, with 26% of the respondents reporting this challenge. Resistance from
employees was reported by 20% of respondents, while 16% of respondents reported high
implementation and user cost as a challenge. Other challenges accounted for 7% of the
responses

34
 TABLE NO 4.7 SHOWING TECHNICAL PROBLEMS FACED WERE ENCOUNTERED
DURING AND AFTER THE IMPLEMENTATION

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
INTEGRATION WITH 20 21%
EXISTING SYSTEM
INTEGRATION WITH NEW 37 38%
BUSINESS
DATA MIGRATION 20 21%
CUSTOMIZATION 10 11%
SECURITY 8 9%
TOTAL 95 100%
Source: Primary data

CHART NO 4.7 SHOWING TECHNICAL PROBLEMS FACED WERE ENCOUNTERED

DURING AND AFTER THE IMPLEMENTATION

40% 38%

35%

30%
Percentage of respondents

25%
21% 21%
20%

15%
11%
10% 9%

5%

0%
Technical problems

INTERPRETATION

Out of the 95 respondents, 38% reported integration issues with new business, while 21%
reported integration problems with existing systems. Another 21% of respondents reported data
migration issues, while 11% reported customization problems. Security issues were reported
by only 9% of respondents.

35
 TABLE NO 4.8 SHOWING BENEFITS EXPERIENCED SINCE IMPLEMENTING THE ERP
SYSTEM

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
BETTER ORDER 9 10%
PROCESSING
IMPROVED CUSTOMER 20 20%
SERVICE
IMPROVED DECISION 28 29%
MAKING
IMPROVED LOAD TIME 5 6%
BETTER DATA ACCURACY 35 35%
TOTAL 95 100%
Source: Primary data
TABLE NO 4.8 SHOWING BENEFITS EXPERIENCED SINCE IMPLEMENTING THE ERP
SYSTEM

40%
35%
35%

30% 29%
Percentage of respondents

25%
20%
20%

15%
10%
10%
6%
5%

0%
Benefits of ERP

INTERPRETATION

The data collected from 95 respondents indicate that the highest percentage of benefits were
related to better data accuracy, with 35% of the respondents reporting this benefit. Improved
decision making was the second-highest benefit, with 29% of the respondents reporting it.
Improved customer service was reported by 20% of respondents. Better order processing was
observed by 10% of respondents, and only 6% reported an improved load time

36
TABLE NO 4.9 SHOWING IMPLEMENTATION OF THE ERP DOES IT HAD SEEN
COST SAVING IN ANY AREA
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
INVENTORY MANAGEMENT 8 9%
TRANSPORTATION 17 18%
MANAGEMENT
WAREHOUSE MANAGEMENT 30 31%
SUPPLY CHAIN 35 36%
MANAGEMENT
OTHERS 5 6%
TOTAL 95 100%
Source: Primary data
CHART NO 4.9 SHOWING IMPLEMENTATION OF THE ERP DOES IT HAD SEEN COST
SAVING IN ANY AREA

40%
36%
35%
31%
30%
Percentage of respondents

25%

20% 18%

15%

10% 9%
6%
5%

0%
saving cost

INTERPRETATION

The table shows that out of the 95 respondents, the highest percentage of cost savings was
observed in supply chain management, with 36% of the respondents reporting savings. This
was followed by warehouse management, with 31% of the respondents reporting savings.
Transportation management had 18% of respondents reporting cost savings, while inventory
management had the lowest percentage of respondents reporting savings, with only 9% of
respondents reporting savings in this area.

37
 TABLE NO 4.10 SHOWING ERP USED IN THE ORGANIZATION ARE THEY USER
FRIENDLY

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
HIGHLY SATISFIED 30 31%
SATISFIED 25 26%
NEUTRAL 20 21%
DISSATISFIED 10 11%
HIGHLY DISSATISFIED 10 11%
TOTAL 95 100%
Source: Primary data
TABLE NO 4.10 SHOWING ERP USED IN THE ORGANIZATION ARE THEY USER
FRIENDLY

35%
31%

30%
26%
Pencentage of respondents

25%
21%
20%

15%
11% 11%
10%

5%

0%
ERP user friendly level

INTERPRETATION

From the above data 31% of the respondents are highly satisfied with the ERP which is been
implemented in the organization while 11% of the employees are highly dissatisfied with the
ERP which is been used in the organization

38
 TABLE NO 4.11 SHOWING THE ERP SYSTEM HELPED IMPROVING DATA
ACCURACY AND REDUCING ERRORS
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
HIGHLY SATISFIED 35 36%
SATISFIED 20 21%
NEUTRAL 10 11%
DISSATISFIED 10 11%
HIGHLY DISSATISFIED 20 21%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.11 SHOWING THE ERP SYSTEM HELPED IMPROVING DATA

ACCURACY AND REDUCING ERRORS

40%
36%
35%
Percentage Of respondents

30%

25%
21% 21%
20%

15%
11% 21%
10%

5%

0%
Data accuracy

INTERPRETATION
Out of the total respondents, 36% were highly satisfied with the ERP system, while 21% were
satisfied. 11% were neutral, meaning they neither agreed nor disagreed with their level of
satisfaction.

39
 TABLE NO 4.12 SHOWING ARE YOU SATISFIED WITH THE INFORMATION
SHARING WITHIN THE ORGANIZATION DUE TO ERP SOLUTION IN THE
ORGANIZATION
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
HIGHLY SATISFIED 40 41%
SATISFIED 10 11%
NEUTRAL 10 11%
DISSATISFIED 15 16%
HIGHLY DISSATISFIED 20 21%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.12 SHOWING ARE YOU SATISFIED WITH THE INFORMATION

SHARING WITHIN THE ORGANIZATION DUE TO ERP SOLUTION IN THE
ORGANIZATION

45%
41%
40%

35%
Percentage of respondents

30%

25%
21%
20%
21%
15%
11% 11%
10%

5%

0%
level of Implementation

INTERPRETATION

Based on the given data, it appears that 41% of the respondents are highly satisfied with the
information sharing within the organization due to ERP solution implementation, while 21%
are highly dissatisfied. Additionally, 11% are neutral, 11% are satisfied, and 16% are
dissatisfied. Overall, it seems that there is room for improvement in terms of information
sharing within the organization.

40
TABLE NO 4.13 SHOWING THE IMPLEMENTATION OF ERP IN ORGANIZATION

PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF

REPONDENTS
HIGHLY SATISFIED 20 21%
SATISFIED 30 31%
NEUTRAL 10 11%
DISSATISFIED 15 16%
HIGHLY DISSATISFIED 20 21%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.13 SHOWING THE IMPLEMENTATION OF ERP IN ORGANIZATION

35%
31%
30%
Percentage of employees

25%
21%
21%
20%
16%
15%
11%
10%

5%

0%
Implementation level of ERP

INTERPRETATION

We can see that 52% of the respondents are satisfied or highly satisfied with the effectiveness
of the ERP solution in improving the work processes within the organization. However, 37%
of the respondents are dissatisfied or highly dissatisfied with the effectiveness of the ERP
solution in improving the work processes. Additionally, 11% of the respondents are neutral.

41
 TABLE NO 4.14 SHOWING IS THERE ANY COMPLAINTS FACED BY THE
EMPLOYEES IN ERP ON A DAILY BASIS
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
REGULARLY FACED 20 21%
PERIODICALLY FACED 35 36%
NEUTRAL 30 31%
RARELY 5 6%
NONE OF THE ABOVE 5 6%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.14 SHOWING IS THERE ANY COMPLAINTS FACED BY THE

EMPLOYEES IN ERP ON A DAILY BASIS

40%
36%
35%
31%
Percentage .of respondents

30%

25%
21%
20%

15%

10%
6% 6%
5%

0%
Complaints Faced

INTERPRETATION

This data represents the frequency of technical problems faced by employees due to the
implementation of ERP in the organization. Out of the total 95 respondents, 21% face technical
problems regularly, 36% face them periodically, 31% are neutral, 6% face them rarely, and
56% do not face any technical problems. This indicates that a significant portion of employees
face technical problems due to ERP implementation, which needs to be addressed to improve
the overall satisfaction level of employees.

42
TABLE NO 4.15 SHOWING IMPLEMENTATION OF THE ERP DOES IT HAD SEEN
COST SAVING IN ANY AREA
PARTICULARS NO.OF RESPONDENTS PERCENTAGE OF
REPONDENTS
INVENTORY 35 36%
MANAGEMENT
TRANSPORTATION 20 21%
MANAGEMENT
WAREHOUSE 5 6%
MANAGEMENT
SUPPLY CHAIN 30 31%
MANAGEMENT
OTHERS 5 6%
TOTAL 95 100%
Source: Primary data

TABLE NO 4.15 SHOWING IMPLEMENTATION OF THE ERP DOES IT HAD

SEEN COST SAVING IN ANY AREA

40%
36%
35%
31%
Percentage of Respondents

30%

25%
21%
20%

15%

10%
6% 6%
5%

0%
Cost saving Area

INTERPRETATION
This data shows the percentage of respondents who indicated which area of logistics
management was most impacted by the implementation of ERP in the organization. The
majority of the respondents 36% indicated that inventory management was most impacted,
followed by supply chain management 31% transportation management 21%, warehouse
management 6% and others 6%.

43
 CHAPTER -05

FINDING, SUGGESTIONS&
CONCLUSION

44
FNDINGS

1. The majority age of the employees working there would be 30-35 years

2. The maximum number of employees working there would be men 75(78%)

3. The analyse say that the maximum member of years of work experience would be
4-6years
4. The maximum number of years the employees working with the ERP would be
4-6years which has (36%)
5. The service experience of the ERP system used is quite manageable by the employees

6. Data migration option is the complicated process

7. The integration of new business is the technical problem faced by ERP

8. The analyses says that the decision-making power was increased due to implementation
of ERP in the organization
9. There is a maximum effect on supply chain management which had significantly leased
thecost
10. The analyses says that there are many employees who are satisfied with the ERP

11. The maximum number of respondents feels that the data accuracy is improving
anddata are safe because of the ERP
12. The majority of the employees feel the information shared in the organization regarding
ERPis accurate and reliable
13. The majority of the employees are satisfied with the implementation of ERP in the
organization
14. The employees feel that the ERP has complaints which is been faced periodically

15. The implementation of ERP had saved the cost in many Area

45
SUGGESTION

1. The majority of employees at the organization are between the ages of 30-35.

2. 78% of employees at the organization are men.

3. The analysis shows that the maximum number of years of work experience is 4-6 years.

4. 36% of employees have worked with the ERP for 4-6 years.

5. Employees find the service experience of the ERP system to be manageable.

6. Data migration is a complicated process.

7. Integrating new business is a technical problem faced by the ERP.

8. The implementation of ERP has increased decision-making power in the organization.

9. The impact on supply chain management has significantly lowered costs.

10. A majority of employees are satisfied with the ERP system.

11. Proper measures should be taken to improve the data accuracy and errors

12. The information shared should be accurate and presided in order to avoid barriers

13. Proper action plan should be taken in order to have control of ERP in the organization

14. There should be continuous checking of ERP software and the computers in order
to avoid miss working
15. There should be proper training to the employee given in order to given his
efficiencyto maximize the cost

46
CONCLUSION

In conclusion, the impact of Enterprise Resource Planning (ERP) systems in logistics

operations is significant. ERP systems provide a centralized platform for managing various
functions such as inventory, procurement, and transportation. By integrating these functions
into a single system, ERP enables organizations to optimize their logistics processes and
improve overall efficiency.

The benefits of ERP in logistics include improved inventory management, better demand
planning, increased supply chain visibility, and enhanced customer service. Additionally, ERP
systems can help organizations reduce costs by streamlining processes and reducing the need
for manual labor.

However, implementing an ERP system can be complex and requires significant investment in
terms of time and resources. Organizations need to carefully evaluate their needs and choose
an ERP system that aligns with their business goals.

Overall, the impact of ERP in logistics is positive, and organizations that successfully
implement an ERP system can benefit from improved efficiency, reduced costs, and enhanced
customer satisfaction.

47
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 Bowersox, D.J., D.J. Closs, M.B. Cooper, and J.C. Bowersox. 2013. Supply
Chain Logistics Management. 4th ed. New York, NY: McGraw-Hill.
 Brealey, R.A., S.C. Myers, and F. Allen. 2017. Principles of Corporate Finance.
12th ed. New York, NY: McGraw-Hill.
 Adkins, T. (2006) Case studies in performance management: a guide from the
experts.Hoboken, N.J.: John Wiley.

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ANNEXURE

QUESTIONNAIRE ON IMPACT OF ERP IN LOGISTICS WITH REFERENCE

WITHFREIGHT CONSOLIDATORS

1. SINCE HOW MANY YEARS ARE U WORKING WITH THE ERP

 0-2 YEARS
 2-4 YEARS
 4-6 YEARS
 6-8 YEARS
 MORE THAN 8 YEARS

2. PERIOD OF IMPLEMENTATION OF THE ERP

 0-5 MONTHS

 5-9 MONTHS

 1-2 MONTHS
 2-3YEARS

3. RATING THE EXPERIENCE WITH ERP IN THE ORGANIZATION

 HIGHLY SATISFIED
 SATISFIED
 NEUTRAL
 HIGHLY DISSATISFIED
 DISSATISFIED

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4. IS THERE ANY COMPLAINTS FACED BY THE EMPLOYEES IN ERP
ON ADAILY BASIS

 REGULARLY FACED
 PERIODICALLY FACED
 NEUTRAL
 RARELY
 NONE OF THE ABOVE

5. DO U FEEL ERP USED IN THE ORGANIZATION IS USER FRIENDLY

 HIGHLY SATISFIED
 SATISFIED
 NEUTRAL
 HIGHLY DISSATISFIED
 DISSATISFIED

6. THE IMPLEMENTATION OF ERP IN ORGANIZATION, HOW

FAR IT ISFACILITATING IN LOGISTICS OPERATIONS

 HIGHLY SATISFIED
 SATISFIED
 NEUTRAL
 HIGHLY DISSATISFIED
 DISSATISFIED

7. CHALLENGES FACED WHILE OPERATING THE ERP

 LACK OF USER ADOPTION

 HIGH IMPLEMENTATION AND USER COST
 DATA MIGRATION CHALLENGES
 RESISTANCE FROM EMPLOYEES
 OTHERS

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8. TECHNICAL PROBLEMS FACED WERE ENCOUNTERED

 INTEGRATION WITH EXISTING SYSTEM

 INTEGRATION WITH NEW BUSINESS
 DATA MIGRATIONN
 CUSTOMIZATION
 SECURITY

9. BENEFITS EXPERIENCED SINCE IMPLEMENTING THE ERP SYSTEM

 BETTER ORDER PROCESSING

 IMPROVED CUSTOMER SERVICE

 IMPROVED DECISION MAKING

 IMPROVED LOAD TIME

 BETTER DATA ACCURACY

10. HAS THE ERP SYSTEM HELPED IMPROVING DATA ACCURACY

ANDREDUCING ERRORS

 HIGHLY SATISFIED
 SATISFIED
 NEUTRAL
 HIGHLY DISSATISFIED
 DISSATISFIED

11. ARE YOU SATISFIED WITH THE INFORMATION SHARING

WITHIN THEORGANIZATION DUE TO ERP SOLUTION
IMPLEMENTATION IN THE ORGANIZATION

 HIGHLY SATISFIED
 SATISFIED
 NEUTRAL
 HIGHLY DISSATISFIED
 DISSATISFIED

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12. WHAT DO YOU THINK ABOUT THE WORK LOAD IN THE
ORGANIZATIONAFTER THE IMPLEMENTATION OF THE ERP
SYSTEM

 HIGHLY SATISFIED
 SATISFIED
 NEUTRAL
 HIGHLY DISSATISFIED
 DISSATISFIED

13. IMPLEMENTATION OF THE ERP DOES IT HAD SEEN COST SAVING

IN ANYAREA

 INVENTORY MANAGEMENT
 TRANSPORTATION MANAGEMENT
 WAREHOUSE MANAGEMENT
 SUPPLY CHAIN MANAGEMENT
 OTHERS

52