ERP in Malaysia – Opportunities and Challenges

ERP System Malaysia

ERP (Enterprise Resource Planning) System is a business process that integrates all the internal activities of any organization and facilitates efficient transfer of information within the organization. ERP System includes four modules: Customer Management, Supply Chain Management and accounting systems. The concept of ERP Systems is based on the relationship between internal resources of an organization and external third-party suppliers. ERP system enables an organization to successfully deal with the changes in the competitive landscape by improving its overall operational management efficiency. ERP has become the most used business software throughout Asia and now there are many ERP systems available in the southeast Asian countries like Malaysia, Singapore, India, China and Philippines. The following paragraphs highlight ERP systems from these countries.

In Malaysia, there are two leading ERP System suppliers namely Singulair and Ceridian. Earlier, there was another leading ERP provider called ARM Group. However, Singulair and Ceridian have made significant inroads into the Southeast Asian region (not only in Malaysia but also in other Southeast Asian countries as well) mainly due to their availability in low cost and quality goods. Both these ERP providers have their unique strengths and capabilities, and they offer a wide range of products for both small-sized and large-scale manufacturing industries in the southeast Asia.

The ERP system for manufacturing industry incorporates functional requirements of the manufacturers. A feature that most ERP systems do not have is a feature which enables the manufacturers to check if there is a need to change or add any functionality to the product. Some manufacturers may want to incorporate some additional services and some may not want to add them. ERP system provides an opportunity for such manufacturers to incorporate or not and this flexibility is very helpful for such companies.

ERP systems are designed in a manner so that they can integrate with other systems of manufacturing industry. This helps to provide a unified platform for the whole manufacturing process. The suppliers of the parts and raw materials also get involved here. This leads to reduction of costs as the system enables the manufacturers to acquire raw material at low prices and sell them at market rates. Since the system provides for greater control over inventory, it helps to reduce the cost of production.

Most of the ERP packages in Malaysia are designed in such a way so that they can be implemented easily and without any major problems. This makes the implementation process relatively smooth and less expensive. ERP systems integration in Malaysia is done through software outsourcing companies. Most of the ERP systems come with complete technical manuals which are very useful for customization. These manuals give detailed instructions on installation, design, operation, and proper maintenance of the system.

ERP systems are designed in such a way so that they can integrate with other systems of manufacturing industry. This helps to provide a unified platform for the whole manufacturing process. Most of the ERP packages in Malaysia are designed in such a way that they can be integrated with other systems of manufacturing industry. This helps to provide a unified platform for the whole manufacturing process.

Integration of ERP systems with other manufacturing processes has several advantages. The first advantage is that it brings down the cost of development of the business processes. ERP system integration with other systems brings down the cost of manufacturing as it reduces development costs and saves training cost as well. The other major advantage is that these systems make the productivity of the employees much higher than the existing rates and this ultimately helps the manufacturers to increase their profitability.

ERP systems have great potential for improvement in the efficiency of the manufacturing units. For effective ERP integration, most of the manufacturers have to hire a system integration company that can take care of all the necessary processes. This leads to timely completion of ERP system development activities which otherwise could take many months. Integration of the system with other systems offers several benefits. These benefits include elimination of waste, enhancement of overall efficiency, reduction of overheads, productivity enhancement and more importantly it increases the competitiveness of the manufacturer.