Tally for ERP, more than just accounting4 min read . Updated: 15 Oct 2015, 01:41 AM IST
Tally's software is being successfully used as an enterprise resource planning solution, especially by small and mid-sized firms
Tally is synonymous with business accounting the way Xerox is to a photocopier. The software, though, is also being successfully used as an enterprise resource planning (ERP) solution, especially by smaller and mid-sized companies.
Consider the case of Pune-based fleet management operator Prasanna Purple Mobility Solutions Pvt. Ltd, that found it difficult to manage its inventory, especially after it began expanding its services.
The 25-year-old company runs more than 1,000 vehicles of different categories and carries 500,000 passengers daily by city buses. It operates city buses in Pune, Indore, Ahmednagar and Bhopal under a public-private partnership. It also runs Metro feeder services with the Delhi Metro Rail Corporation.
According to Prasanna Patwardhan, chairman and managing director, the company was using Oracle Financials’ ERP software that was not only “very expensive, but also required the hiring of exceptionally trained manpower, which made maintenance very pricey".
“In 2012, after some years of struggle when we failed to get the desired RoI (return on investment), we decided to explore a more practical, less expensive and yet cost-effective inventory module," Patwardhan said.
It was then that the company zeroed-in on Tally.ERP 9. “Initially we only used Tally for financial accounting. It was only when the Tally implementation partner Dexterity TechSys came on board and customized Tally inventory, that we realized the potential and extended scope of the software," he said.
Dexterity Techsys Pvt. Ltd, according to Patwardhan, understood that conventional solutions for material planning were of no use in spare parts management as the requirement would arise only when the spare parts fail. TechSys took up the challenging task of customizing Tally’s inventory module by making provision for capturing data that would help the company run its daily operations seamlessly.
“As Tally integrators, we have to tailor-make solutions for speciﬁc and unique customer requirements," said D.M. Joshi, director at Dexterity TechSys. “About 3-4 years back, customizing reports like vehicle-wise daily fuel consumption and cost of spare parts per km wouldn’t have been possible. However, now we are able to deliver solutions to meet the challenging requirements," he added.
This helped in generating reports that could forecast the replacement of spare parts, thereby helping the management prepare their monthly procurement plan.
Thus, with the help of Tally.ERP 9, Purple Mobility Solutions achieved its objective of reducing the downtime of vehicles and significantly optimized its revenue “within six months of deployment".
“Cost towards spare parts has reduced by 10% as we can now track spare part life and mileage of each vehicle through Tally.ERP 9. Fuel consumption, which was earlier at 40%, has decreased by 2% as the lifespan of each spare part can be tracked and replacements can be done well in advance. Money spent on spare parts alone has reduced from over ₹ 50 lakh to about ₹ 35 lakh," said Patwardhan.
Mohammad Fardwas Alam, chief financial officer of Poly Cable Industries Ltd, has a similar experience to share. His company, one of the largest manufacturers of poly cables in Bangladesh, has seen an “increased efficiency of 70% after it started using Tally.ERP 9".
The company, established in Dhaka in 1996, produces 500 types of wires and cables. However, with business expansion and growth, “manual book-keeping was becoming a tedious and time-consuming affair. The absence of business intelligence reports affected our management’s analysis of the company’s position, thereby restricting the company’s growth".
Alam added that there was a time lag in consolidating reports and information from across their branches, which was also proving detrimental to the business.
The cable manufacturer, then, began taking feedback from the industry on the best accounting software product they should deploy. “The general consensus in the market was to go with Tally, for it was an established brand, synonymous with simplicity and accuracy and so we did it," he explained.
Two years later, Poly Cable became “confident enough to move our wide-ranging inventory to Tally.ERP 9 as well".
Other than saving 50% of crucial business time, Tally.ERP 9 has helped the management at Poly Cable to take timely and informed decisions. Tally.ERP 9 also helps the company to “seamlessly upload data from their three branch offices spread across Bangladesh in no time".
Alam did point out, though, that the onsite support from Rainbow Software, one of Tally Solution’s partners, has “also been of great help to us, especially in terms of customer service".
Analysts believe ERP adoption is picking up in the small and medium business (SMB) market. That’s because even small companies are generating a lot of business information and are always banking on rich customer experience.
“Adoption of technology for business automation has helped SMBs automate and easily manage daily business tasks to a large extent. We see several SMBs adopting ERP technology to streamline their business and reap profits as a result," Biswapriya Bhattacharjee, vice-president of Technology Research at market research firm IMRB International, said, adding that Tally’s product Tally.ERP 9 has a chunk of the market share in the ERP segment that caters to SMBs.
This article is in association with CXOtoday.com, a property of Trivone.