The Agriculture sector to thrive using the ERP solution

As part of concerted efforts in making IT prevalent in virtually every sector of the Nigerian economy, Signal Alliance one of the leading IT companies in Nigeria recently came up with proposition for an Agro-based  ERP solution. This was contained in a white paper which it recently published on Agriculture Titled “ERP for Agriculture Sector: transforming big data into big value in the agriculture sector.

The ERP solution is to provide an integrated real-time view of core business processes, using common databases maintained by a database management system in the Agriculture sector. The SAP myAgri and Microsoft Dynamic AX ERPs are the solutions that are in effect designed to carry out definite activities beneficial to the Agriculture sector. MyAgri which operates on SAP business intelligence is designed to create automated control of field and production operational activities reducing costs in their resources management. Improve flow of products through the processing plants, allowing for much better interaction. The Microsoft Dynamic AX Microsoft Dynamics AX, is designed to build a unified business infrastructure that facilitates an unimpeded flow of information.  

According to Signal Alliance’ SAP consultant, Charles Esumeh “In Agribusiness, there are strong tendencies towards increasing the role of IT in creating positive value, decreasing costs and ensuring high quality food products to final recipients. At the same time, the number of regulations concerning the food market is on the increase, including those associated with the necessity to ensure the identification of the origin of ingredients and semi-products in food supplied to the market. Information and data is an essential ingredient in agricultural development programs but Nigerian farmers seldom feel the impact of agricultural innovations either because they have no access to such vital information or because it is poorly disseminated”.

He highlighted some the challenges the local sector is faced with at the moment as lack of awareness, marketing process and technology challenges.

 With the Agric ERP integration the sector, would cut across many platforms, bridging the gap between the producers and the final consumers. For instance, using a SAP ERP Software running on a smart phone, a local buyer of cashew nuts is able to record single buying transactions. Each bag of cashew nuts is labelled with a barcode. By scanning the bar code on the bags of cashew nuts, the system can track every bag. The phone collects the data and sends it directly to the farmers’ cooperative. The cooperative controls the daily pricing for cashew nuts and this information is also sent to all buyers’ smart phones

Some notable features of this proposed ERP is that it is suited for small, medium and large farms with facility to manage to manage multiple farms at multiple locations. It will also improve farm producer’s operational efficiency and profit. Agriculture ERP is designed also to help optimize resources, maintain quality and improve staff performance levels.

Production, post production and sales, marketing and accounting also is considered on the ERP solution.

The Agric ERP can keep track of planting - cultivation - harvesting – Production - marketing history of multiple farmers and farm produce. Land information with scanned photographs and documents can be stored. This Agric ERP maintains farmer database to aid the Management in taking critical key decisions based on data available in terms of irrigation, crop cultivation practices, pest and nutrient management, marketing of crops harvested, etc.

The implementation of ERP in agriculture business enterprises is a requirement resulting from the progress of information technology, BIG DATA and economic globalization. This is a method of not only improving the business processes in the agriculture industry but also a source of obtaining competitive advantage on the market, which leads to an improved financial situation of the industry. Analysis shows that there is significant internal variation within the scope of the food production sector with reference to the scope of IT system use in management of agricultural produce. However, without doubt the agriculture industry is a field in which the implementation, range and pace of ERP system implementation will be increasing.

Due to the influence of ERP systems in obtaining a competitive advantage of enterprises, their implementation is highly recommended for the agriculture sector. Countries are now moving from the small subsistence farming to the industrialized and mechanized form of farming to meet growing population demands. However, attention should be paid to the appropriate adjustment of systems to the needs of the enterprise; depending on its size (less complicated and cheaper systems can support the development of micro and small enterprises).

The benefit of the system will enable farmers to avoid long paper works involved in the supply chain process. It will also increase the revenue of low-end Farmer that deals on seed plants.

In conclusion, the role of technology in all sectors of industries is becoming increasingly relevant. The Agriculture Industry is no different from any other industry. ERP systems implemented in various organizations have not only improved business processes overall but boosted revenue of that organization. Developed countries have recognized the importance of a modernized agriculture industry and have leveraged on technologies like The ERP to gain comparative advantage in the industry and generate massive income revenue for the country.