Case Study: ERP for 'Sofa Sets' Manufacturing Company

BACKGROUND:

Company’s  product range consists of, bed sets, dining sets, sideboards, cabinets, sofa sets, center tables, side tables, corners, consoles, fireplaces and every such thing that can form a part of home or office furniture.  Most furniture manufactures are not organized or working systematically, barring few large corporate companies.  Here is management software that helps small and medium size companies to manage business effectively.    ERP for this sector addresses the new, more customer-centric orientation of the furniture industry with an affordable software package that supports end-to-end integration and enhances operational efficiency. 

ISSUES & CHALLENGES:

Today, furniture firms in India face many challenges.  Although manufacturers in different line of products may have significantly different operating structures, their business requirements are similar.  In an economy that’s become increasingly competitive, all furniture making firms must efficiently respond to a more demanding customer-base and build long term, profitable relationships.  Meeting these challenges requires new IT strategies that can boost revenues, improve the productivity, cut costs, and enhance the overall management of your business.  In addition, you must be innovative, while seeking operational excellence at all levels.  Real-time organizational control is necessary, for that sophisticated workflow is required.  Low literacy level of users.

 

HOW  ERP CAN ADDRESS THESE ISSUES:

ERP application software specifically for the furniture industry can help users achieve business goals by implementing following ERP Modules:

 

1.      Security module 2.      Accounts module – General Ledger Accounts 3.      VAT / Sales Tax module 4.      Excise module 5.      Inventory Management module 6.      Purchase module 7.      MRP - Material Requirement Planning module

8.      BOM – Bill of Materials module 9.      Production module (Assembly Production and Process Production) 10.  CRM module (Customer relationship management) and pre-sales module. 11.  Order Fulfillment module – Sales Accounting.

 

KEY BENEFITS:  Sophisticated workflow gives real-time reports:

 

• Customer's order is linked with the Indent and Sales invoice.  Chances of mistakes / miscommunication are reduced with this kind of tight integration.  The work order (job card) link with material issue from stores ensures high level of material management.

• Supply chain management: Furniture Items

  •   Plywood

  •   Sponge

  •   Clothing

  •   Wood

  •   Dacron cover and fabric cover

  •   Springs, Legs, Imported accessory items

• Download this ERP case study of the furniture manufacturing industry prepared by Prof. Jyotindra Zaveri.