Improving ERP software adoption among supply chain driven SME businesses

Abstract

The report supports the low adoption rate of Enterprise Resource Planning (ERP) systems and in this case, Tally Prime among small and medium enterprises (SMEs) in Bangladesh, specifically in the supply chain industry. Although ERP software may have potential benefits to the streamlining of activities, promoting better decisions, and enhancing competitiveness in Bangladesh, the sensitive fact is still that many SMEs have maintained old-dated manual systems. Such systems lead to inefficiencies, delays and errors in manufacturing aspects including inventory control, acquisition, tracking sales and financial control. During my internship in Tally solutions, I discovered that although Tally Prime has a large feature-set that includes multi-location inventory management, job costing and embedded reporting, most SMEs have only a limited number of options such as accounting and invoicing. Lack of awareness on the full capacity of the software, the scarcity of technical capabilities in ensuring its use and a high perceived cost of the ERP systems, as well as resistance to change are considered the key barriers towards a wider adoption. This report is aimed at finding out these adoption barriers and how Tally Prime can further address the needs of SMEs. The report will be able to address the knowledge gap by suggesting specialized business development measures such as customized training sessions, focused on creation of awareness, and moderate pricing models so that by using these measures, the harmful lack of knowledge can be overcome and the acceptance of ERP can receive a boost. Integrating the ERP systems like Tally Prime in the SME activities can play a significant role in increasing efficiency, lowering costs of operation and becoming responsive to markets. It is hoped that findings and suggestions made in this report can guide SMEs in Bangladesh to harness the power of digital solutions by expanding in various ways and raising their competitiveness, and thus, leading to the economic growth of the country.