Analysis of fitment of ERP and conceptualization of its substitute in small segment – a strategic approach

Purpose – The purpose of this paper is to logically establish a Non – IT ERP solution for small and medium scale industry which is based on improvement of operational efficiencies and not on ERP implementation. Today's buzzword ERP is not the right fit everywhere. The medium and small segment has many failure stories and causes of dissatisfaction. There are two schools of thought prevailing in this segment of industry. One school of thought is for big investment for ERP. The other school of thought is not to invest in ERP. This paper further strengthens the second school of thought with valid logic and real life case examples. Design/methodology/approach – The design and approach is to logically establish the unacceptability of ERP solution in small segment through industry analysis and ROI analysis and to develop a model for improvement of supply chain efficiency using linear programming and Wagner Whitin algorithm. Findings – A Non IT ERP solution for a segment of industry whose turnover is less than 2.5 M USD (in Indian perspective) which is completely based on standard operating procedure. The benefit of this model has been evaluated logically. Originality/value – A real substitute of ERP system has been conceptualized in this research paper through improvement in standard operating procedure.