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The Need for ERP in the Agricultural Sector

On Monday, 16 Jun 2014
The Need for ERP in the Agricultural Sector

According to United Nations, by 2050 many of the countries will lack enough arable land for the ever-growing population. It is estimated that by 2050, the growing population will reach a record 9 billion people, who would be surviving on shrinking land. The density per hectare will go up. This growth needs to be fueled by food supply for these 9 billion people.

  The Agriculture industry is dynamic, constantly evolving in response to changes in the marketplace, technology and in social attitudes.Although it’s one of the world’s oldest and seemingly straightforward industries, the reality is that agriculture management, grower management and efficient field operations management is an ongoing challenge for the farming industry. The sector faces numerous challenges including competition, scalability, rising costs and a host of uncontrollable factors. Moreover, the agricultural industry usually has to deal with volatile and inevitable weather patterns, clubbed with the inventory requirements which are seasonal adding to the irregularity of the business planning.

The industry requires business solutions to help it improve its competitiveness, efficiencies and keep pace with the ever-changing technology improvements. It requires greater efficiency of administration, better control over costs and maximum reach into potential customer markets, whilst at all times being able to monitor live and control risks in the business.

Few of the potential benefits of Enterprise Resource Planning Software for the Agriculture Industry are:

Enhanced Productivity

In the years to come, agricultural land will be lost for residential purposes. Since the area under cultivation cannot be increased, the most viable option is to increase its productivity. ERP software can help in maximizing output on a given land bank via improved utilization of employed resources.

Reduced Wastage

Since ERP software converts a business into an integrated activity rather than a culmination of various modules, growers can plan their crops accordingly. This would help them get the right quality of inputs and reduce wastage due to over-production.

Improved Distribution

Proper management for the agriculture sector needs to be built around better distribution throughout the supply chain. This would ensure that excess supply of food crops do not lie idle in warehouses for long periods.

Better Storage

Even harvest storage can be optimized via the use of ERP systems. This would mean that fewer items would reach the storage grounds and would result in immediate distribution of produced goods. All the required crops will be produced in optimal quantities and even if some crops need to be stored, ERP systems ensure that they are efficiently managed.

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