Erp in Agriculture

7/30/2019 Erp in Agriculture

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Introduction

Agriculture remains the core of the economies like Indiaand play vital role in overall economic development.

Increasing saturation of the urban markets and ruralmarkets expanding at a faster pace.

ERP is defines as an integrated software package whichintegrate all the department of an organization.

Great potential of ERP

Agro-sector are looking forward to redefine the productionprocess :

through ERP,through Information and communication

technology.


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Difficulty to determine the price of Agri-sector products.

1. In short runNeeds output prices to determinethe pace & volume of sales

- To optimise the return from the Agro-product

production.

2. In long runTo formulate the investment plan onAgro-products

- To take decisions on the structure & nature of an

enterprise.


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Problems in Agro-sector:

- Lack of reliable, adequate and timely information

- Analysis on various vital aspects of the business.

Fundamentals of commodity price determination:

- Production & consumption

- Import & export

- Distance between consuming center to producing center

- Cost of transportation


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- Impact of weather & technology on agro-productcultivation

- Value chain of commodity

- Taxation

- Foreign currency exchange fluctuations & its impact onagro-sector

- Demand,supply,price,product forecasting.


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ERP helps.

Role of price decider in agro-sector

Reduce excess production inventory

Save money on wastage Improve production synchronization

Increase production profit

Report on production profitability,performance & production costs

Make audits easier.


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Complex production processERPmakes it easy to control

Complexity in production process of agro-products

Processing & packaging process

effortlessly Manages the complex sources that are

used to produce a value-added product

Calculation of production elements intopurchase orders or agro-product plans.

Recording of materials


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Features of process control in agro-

sector

Block history & integrated pest

management

Production programme

Production scheduling

Agro product mapping

Agro producing & production reports Cost of production for individual products.


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Equipment management key pricing

factor in agro-sector

ERP ensures

Serviceability of all machines in order to

ensure reliability & safety

Easy scheduling & recording of service

incidents

Allows the staff to justify service expensesagainst individual equipment

Indicates the true cost of production


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ERPs role in the pricing of agro-

inventory

Agro-product inventory is recorded

Inventory used is deducted from current stockon hand levels

Task verification

Relevant adjustment in the amount of inventory

Allocation of costs of inventory

Records the movement of stock

Reduce the wastage Allows to record the quantity, time, date,employee name, origin & destination.


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Features related to the management

of inventories of agro-products

1.RFID & RFID pallet control

(Radio Frequency Identification)2.Depots

3.Supply chain access


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ERP provides :-

Staff accountability Determine activity costs

Payroll

Calculates the fair value of harvest

Supports the management of financial

transactions


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Remarkable benefits of ERP

1. Improvement in working capital

2. Reduced inventory

3. Cost control4. Fatter margins

5. Tabs on defaulters


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Conclusion

In Agri.sector needs are very complex in

nature, the implementation of an ERP

Package is necessary.

In ERP, reports are developed on a case-

by-case basis & must be revised or

rewritten.

ERP helps to avoid data corruption by

using data generation techniques.

Documents

Erp in Agriculture