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Uncovering Procurement Excellence

A definitive to solve your procurement issues
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Direct vs. Indirect Procurement: What are the key differences?

The literal definition of procurement is the action of obtaining or procuring an entity or a commodity. Here, the term procurement is used in the realm of business. On the surface level, procurement might seem like it is all about acquiring supplies of an organization that needs to function daily. These include vendor management, fraud prevention, payment processing, invoice processing, quality control, etc.
However, there is more than which meets the eye.

Procurement can be divided into two niches - direct and indirect procurement. While both are essential to the smooth functioning of any business, it is very important to understand their place in the business so that you can prioritize and emphasize where and how they are required.

What is direct and indirect procurement?

  • Direct procurement

Direct procurement is the acquisition of raw materials and goods required for production. Such purchases are made in bulk amounts and are acquired from a supplier based on the best possible price, quality, abundance and reliability. This is necessary for the everyday functioning of a business. For example, For a chef, rice isn't just an ingredient, it's the lifeblood of countless dishes. Similarly, cement is the foundation for a builder, and metal the backbone of the iron and steel industry. These essential commodities are more than just materials; they're the fuel that drives production and generates revenue through direct procurement channels. Any disruption in their procurement can grind operations to a halt, sending shockwaves through entire sectors. This crucial need for consistent supply is why robust direct procurement software solutions often originate in the manufacturing industry, where even minor hiccups can have significant consequences. Ensuring a seamless flow in direct procurement processes becomes imperative to maintain the uninterrupted availability of these vital resources, underscoring the pivotal role of procurement software in sustaining essential supply chains.

  •  Indirect procurement 

Indirect procurement is the purchase of services that are required to keep the business running. They do not directly influence the functioning of the business, but they do affect the outcome. It is defined as the activity directed at ordering goods and services that support your primary business, but do not deliver directly to end customers. For example, in the mobile phone industry, silicon chips are a direct procurement commodity, because without them, a phone will not function, but a proper service center is an example of indirect procurement. Would the manufacture of mobile phones get halted because of a lack of service centers? Of course not. However, would the outcome of the company as a whole be affected? Absolutely.

So, we pretty much understand the difference between the two in the basic form.

How to manage direct procurement?

Direct procurement process is one of the most overlooked yet important aspects of business operations. It is directly related to the processes involved in purchasing of the raw materials required to make a product. Managing it isn’t very easy, especially when it's across an organization with thousands of products and services.

Direct vs. Indirect Procurement

Procurement software involves the performance of two main functions. First, it is concerned with purchasing the core component of your products. Second, it is concerned with enabling you to meet your customers’ needs more effectively by granting you access to capital that will enable you to increase your inventory levels. Furthermore, this function is concerned with ensuring that the organization’s stock of raw materials has an appropriate turnover rate, so as to enable not only efficient meeting of customer demands but also effective exploitation of assets. On the other hand, indirect procurement software functions are aimed at securing goods whose consumption does not have a direct effect on customers or production cycles. 

Here are three core areas of procurement where the distinctions between direct and indirect procurement are laid-out:

direct-vs-indirect-procurement

  1. Managing Supplier Relationships - Direct procurement requires  suppliers need to be on good terms with the company to ensure long term procurement of goods. However in terms of indirect procurement, companies focus mainly on expenditure. Hence their focus is mostly on managing and reducing the same. This is especially true in terms of companies that have little to no direct procurement requirements such as software companies, digital marketing companies etc.

  2. Managing Inventory - Having the right amount of inventory on hand is essential for smooth production. It can be highly inefficient to hold large amounts of inventory if the expected demand level isn't known. Direct procurement is beneficial when you expect a constant stock level, when the purchasing process is rather traditional, when it takes time to place orders, when you deal with many suppliers and in some cases when dealing with very expensive and perishable goods. Indirect procurement is more appropriate when the inventory levels fluctuate dramatically in accordance with production cycles, in environments in which customization is possible and when time-to-market is required

  3. Organizational Structure - In most companies, direct costs are managed by centralized procurement and supply chain teams, with category managers focusing on specific areas of spend whereas indirect procurement in most large organizations tends to be decentralized in nature. Organizations have multiple stakeholders with independent budgets and spend protocols, resulting in inefficiency in the indirect procurement process. Lack of centralized structure for indirect spending leads to operational inefficiencies. A significant proportion of global Fortune 500 companies are moving to managed indirect outsourcing, saving 10-18% of their overall operating costs each year.

In a Nutshell

Inefficient procurement management directly impacts the bottom line. Without well-defined and streamlined procurement practices, businesses experience high overhead costs. The objective of procurement is to make the best purchase at the right price for the right item, at the right time and in the right quantity and quality within the organization. Businesses need to invest resources towards understanding about what differentiates direct from indirect procuring. It must be noted that it is imperative that direct and indirect procurement goes hand in hand in industries that require it. One is not more important than the other. By focusing on both direct and indirect procurement, organizations can cohesively grow by honing in on the holistic view of the procurement field.

Dec 02, 2021| 6 min read| views 1480 Read More

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Procurement Management, Everything You Need To Know [2022]

Oct 26, 2021 | 6 min read | views 1938 Read More

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Accounting Software with Audit Trail

Accounting software -

On March 24th, 2021, MCA has introduced a new rule related to accounting software by introducing sub-rule (1) to rule 3 the companies (Accounts) rules, 2014.

The new rule mandates every company which uses ?Accounting Software? for maintaining books of account to ensure the below features in new accounting software with audit trail:

  1. Must have a feature of recording audit trail for each and every transactions
  2. Edit log for each change in books of account along with date stamp
  3. The audit trail must not be capable of disabling

In addition to the above, MCA has also changed the content of the audit report, where the auditor must need to comment as below:

?Whether the company has used accounting software with audit trail for maintaining its books of accounts which has below features?:

  1. Recording audit trail
  2. The feature has operated throughout the year
  3. The audit trail feature has not been tampered with
  4. The audit trail has been preserved as per the record retention rule

As we know most of the small and mid-size companies in India use traditional accounting software.

Considering the timeline given by regulator, it?s challenging for businesses to find alternative accounting software or approach their existing accounting software companies to develop this feature. Development of this magnitude may not be quick and easy from accounting software company?s side.

If you are looking for a ready-to-use accounting software with an audit trail, do check out TYASuite?s Cloud ERP Software. With Plug and Play Cloud ERP, you can go live within weeks.

Mar 25, 2021 | 2 min read | views 666 Read More
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What is E-Invoicing and Why it is Important for India?

The change in the taxation system of the country has proved to be a boon for the ever-growing economy. Being the largest democracy in the world, the reform in the taxation system has not only boosted-up the Indian economy but has also made the taxation system transparent than ever before.

After the introduction of the game changer GST Law, E-invoicing has now also been implemented for B2B (Business to Business), and Business to Government. In the world?s largest economy like India, e-invoicing is being rolled out in B2B transactions initially to curb tax evasion in the country.

Following the footprints of India, the European nations are planning to implement the same for their business. Implementing an E-invoicing system will help them to digitalize their economy and open new doors of possibilities for their business in terms of generating revenue and create more employment opportunities.

What is E-Invoicing?

Electronic invoicing or E-invoicing refers to a method of processing and generating invoices in an electronic format with the help of a common platform between the buyers and suppliers. With the implementation of the GST e-invoicing system, all B2B invoices will get electronically verified by GSTN subject to certain limits. All businesses around the country can generate e-invoices with the help of available Plug and Play ERP software which has an e-invoicing module.

Importance of E-invoicing for Business

It can help your business to grow as well as maintain transparency in every financial transaction. The importance of E-invoicing is mentioned below:-

(1) Saves Time

Before the implementation of e-invoicing, the financial records were not so organized. Many times, it was manually or through the use of multiple software. As the records were scattered, it increased the probability of errors. To eliminate the chances of errors and save time e-invoicing, is implemented to reduce the steps that were followed traditionally. As a result, it helps to save a considerable amount of time both for suppliers and buyers. It also automates GSTR 1 fillings thus saving a significant amount of time.

(2) Helps in Cost Control

As the country is heading towards a digital economy it emphasizes more on the paperless mode of working. As E-invoicing is generated and authenticated by government to be a genuine invoice it can electronically be shared online with buyers and sellers with confidence.

(3) Reduce the Chances of Error

With the manual generation of invoices, there are higher chances of errors. As a result, it can create a lot of discrepancies in business transactions. To avoid these types of problems it is the best option to look for E-invoicing software. With help of software, it will be easy for buyers and sellers to maintain the highest level of transparency during the entire business operations.

(4) Improve Customer Satisfaction

The satisfaction of customers is very important for any business. The implementation of E-invoicing helps to save 90% of the processing costs. As it is paperless the customer can get complete advantage of early payment as well as they can get best deals on every purchase.

(5) Reduce the Chances of Fraud

With real-time tracking of E-invoices, there are less or no chances of fraud. The implementation of e-invoicing has given a strong hand to tax authorities to take stern action against fraudsters.

Final Take Away

For a developing nation like India where tax evasion is quite a common problem, the implementation of E-invoicing will solve the problem up to a great extent. Apart from this, it will also help to maintain transparency in the long run for all organizations. In the coming time, it will boost up the Indian economy and take the country on the path of progress and prosperity.

Launching of E-invoicing by TYASuite

As an emerging Cloud ERP service provider, TYASuite has taken a step ahead to launch E-invoicing solutions for its esteemed clients helping them to ease the complications. It is one of the leading cloud ERP service providers helping organizations to streamline their business.

Feb 17, 2021 | 4 min read | views 341 Read More
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Top 8 Tips to Follow for Successful ERP Implementation

The innovation of technology has transformed the scenario of business around the globe. With the revolutionary change, the business leaders are looking forward to cope up with the change and implement them to increase their productivity as well as minimize the complications of day to day business operations.

Since ERP came into existence it has proved to be one of the biggest game-changer for the corporate world. As cloud ERP has entered the global market, the hassle-free ERP implementation remains a challenge for the ERP department.

The Layout for ERP Implementation

The tips mentioned below will help companies with hassle-free ERP implementation:-

(1) Know well about your challenges that you are planning to solve

Before starting ERP implementation within the organization, it is very important to know about the unique strengths of the ERP you are implementing. For the successful implementation of cloud ERP, there should be detailed documentation of business problems the ERP is expected to handle and make it easy for the organization to carry out the business operations smoothly.

(2) Get the business process document ready

Before you take a step ahead to implement the cloud ERP, have clarity about digital transformation within the organization. Make a clear map about all the business process along with the details of all stakeholders. By doing so it will help you understand the challenges that can come after the implementation of cloud ERP.

(3) Identify the customization points

It is reasonable to assume that you will need some customizations to the proposed Cloud ERP you are planning to implement. It is advisable to have a complete list of customizations outlined and agree with the implementation partner upfront to avoid derailing the cost as well as the timelines for the implementation.

(4) Choosing the right service provider

Many service providers offer ERP services at amazing prices. But before choosing the service provider you need to decide their credibility and success rate on ERP implementation. The right strategic partner will provide you the exact solution at the time of ERP enforcement as well as train employees to use various modules of ERP. Get an understanding of the hourly rates from the implementation partner in case the budgeted time gets exhausted later.

(5) Be prepared with a realistic plan

Planning is the key to the successful accomplishment of ERP. Be informed about the timelines and milestones of the projects. Keeping that in mind conduct trial runs to test their performance once they are live for execution. By doing so it will help to anticipate the delays and tune-up the configuration.

(6) Conduct User Acceptance Test (UAT) after implementation

Once ERP software is implemented, start the process for adequate testing. Ensure the business process document is met with the final ERP system. Process a few test transactions covering multiple scenarios.

(7) Fix UAT Issues

Once the UAT is done and if changes are foreseen on UAT, get the same incorporated and bifurcate them before going live. Choosing the right cloud ERP system will help you to stay aligned with the pre-defined standards of the organization.

(8) Having an ERP Champion

Depending on the no. of users in your company, you must opt either for a full-time ERP Consultant or a virtual ERP Consultant. In general human beings have been average to any change. ERP Implementation is a big change in the style of their working habits and process. They tend to have a pushback nature on this implementation. The role of an ERP Consultant is critical in addressing the user queries and ensuring that the user?s acceptability is increased.

Final Take Away

Following the above-mentioned tips can help to ensure the successful implementation of cloud ERP. The most important thing is to make sure that the final execution of ERP matches organizational goals and objectives. As cloud ERP comes into effect it will simplify your business operations as well as ensure optimum utilization of resources.

Emerge as a winner with Hassle-free ERP Implementation

TYASuite is committed to your organizational success. Plug and Play ERP Software will help you to gain remote access to cloud-based applications. Get live in just 7 days with enriched features and wide accessibility options.

Feb 04, 2021 | 4 min read | views 945 Read More
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How to Choose Right Procurement Software for your Business?

Navigating through numerous ranges of software is quite a baffling problem and selecting the right procurement software as per the requirement makes it even more challenging. Right from medium enterprise to a company with a turnover of billions, there has been a huge demand for procurement software that can help the companies to cater to the needs of the organization.

Businesses across all industries are completely dependent on ERP software. The selection of the right software not only makes your business operations easy and hassle-free but also helps you stay ahead in the competition. The decision-makers of the organization are ready to invest in Plug and Play ERP for smooth execution of all business operations.

Guidelines for Choosing Right Procurement Software

The below-mentioned must have features will help you choose the right procurement software for your business:-

(1) Easy Operation for your Team

Easy and efficient handling of the software is one of the most critical factors before you purchase any procurement software. A user-friendly interface is one of the most crucial factors that need to be taken into consideration. For the best results, it is highly advisable to take a free demo of the software so that the users will get a walkthrough of the complete functioning of your proposed procurement software.

The free demo will help you access and understand the degree of flexibility that procures to pay software is offering for end users.

(2) Fast and Hassle-Free Implementation

Once after purchasing the software the implementation is yet another challenge for the team. No one is willing to abide by a complex implementation process. It is a better decision to know your software well before taking the final call for purchasing the software. You can search for Plug and Play Procurement software which can go live within days and thus saving substantial time and cost of implementation.

(3) Prompt Customer Support

There can be a technical glitch while your team is using purchase order software. For handling technical glitch, it is important to make sure that service providers are providing you with the best customer support in case of need. For best results, the organization can choose for best ERP cloud providers who can extend their services in terms of support. You must take feedbacks from at least 2 existing users of the procurement software you are planning to buy.

(4) Your Business Process Fitment

Every procurement software does not fit all companies process requirement. It is must to have your business process document drafted before you start hunting for right procurement software for your business. This gives you broader picture of how well your company process fits into the procurement software being evaluated.

(5) Identify the Customization Features

Once you take a demo , you must start taking a note of all features which is there in your company existing process but not in the procurement software being evaluated. After this, segregate the same between must have (MH) and good to have (GH) features. Once this is done, have a discussion with the vendor to understand what MH features can be added and the related cost. Based on this, you shall take a decision.

The Bottom Line

Nowadays there are numerous software that are easily available with instant access as per the needs of the organization. Before purchasing the procurement software understand the kind of business your organization is conducting. By doing so it will help you to decide and choose the right software that fit well with the nature of your business.

Get in touch with our team to start your free demo today!

TYASuite is one of the best cloud ERP service providers helping organizations to create a difference in the global market. With multiple options and highly customizable services, TYASuite is providing the best ERP platform to fulfill the organizational goals for all types of industry.

Jan 22, 2021 | 4 min read | views 622 Read More
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Top 5 Benefits of Cloud ERP Software for businesses

Introduction

For successful implementation and running of the business, ERP is known as the stepping stones behind the running of every successful enterprise. Right from startup to a company with a turnover of billions the ERP’s have to revitalize the systems to provide hassle-free and seamless business operations.

The ERP software integrates and automates financial and operational business functions and provides a single source of data which includes inventory, Customer orders, supply chain management and many more. This will help in the procurement, production, and fulfillment of the sources efficiently. AsERP solutions have come into existence it has reduced the business complexity by a higher margin as well as save the company’s resources to streamline business operations within the company.

The Contribution of Cloud ERP in the Organization

Using Cloud ERP is quite easy as it gives you the flexibility to Plug and Play ERP as per the demand of the business operations.

The points mentioned below explain the contribution of ERP within the organization.

(1) Helps in decreasing the operational costs

Switching to cloud ERP has emerged as one of the best options for organizations to get maximum output from the limited resources. The Customized Cloud ERP helps to reduce the cost of inventory and other types of resources being used by the company.

(2) Helps to Enhance the Business Reporting

The implementation of ERP helps to enhance the business reporting with real-time stats to a main consistent flow of the business operations within the company. Cloud ERP has got an integrated database to address all types of business processes.

(3) Provides a high competitive advantage

As a majority of company tries switch to ERP, this software has given good competitive advantages to a vast number of organizations to compete with their rivals in the global market.

(4) Highly Scalable

Cloud services can easily be scaled up as per the requirements of the business. As the enterprises opt for Cloud ERP they can easily scale up and scale down the cloud services as per the requirements of the organization.

(5) Increases productivity

The implementation of ERP helps you to increase productivity by a higher margin. In the case of tedious tasks often there is a delay in production which can affect your business and even the clients can face trouble. ERP helps to give a break to the business from long and complicated tasks allowing the business owners to shift their focus to some other tasks.

The Final Thoughts

As organizations are growing at a faster pace, the Cloud ERP has proved themselves as a boon for companies. The cost control and transparency in the hassle-free implementation is the main highlight of the ERP. It is the best option to get ahead of your competitors globally as well as make your presence felt in the global market.

Still confused! Get in touch with TYASuite to book free demo for Plug and Play ERP software to boost up your business efficiency and explore the endless world of opportunities.

Feel free to speak to us on +91 80 4133 0620, +91 80 4153 0620 or write to us on info@tyasuite.com.

Jan 12, 2021 | 3 min read | views 556 Read More
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Build Up Your Business with TYASuite Cloud ERP Software

There is worldwide shift in organizations progressing from traditional solutions to cloud-based automation. Covid-19 Pandemic has accelerated the adoption where even SMEs are looking for Cloud ERPs.

India has emerged as SaaS Hub and able to compete with Silicon Valley in SaaS innovation.

The one organization helping numerous SMEs extend their impression is TYASuite Software Solutions Private Limited.

The company was established by Vikas Mandawewala and Praveen Dokania in 2018. TYASuite Plug & Play ERP Software is equipped with modest technology to the real-time business problems across industries.

Vikas Mandawewala is a veteran finance expert. TYA Group had an unassuming start ? beginning as a financial and accounting firm in 2013, alongside one representative. With time TYA Group has developed consistently, diversifying its extent of services and wandering into the IT domain, arriving at more than 150 staffs and operations over many big cities and communities.

Introducing the Co-Founder - Vikas Mandawewala

Vikas holds more than 20 years of experience in the finance and accounting domain. He had a staggering corporate profession in India and the United States with KPMG for more than seven years. Vikas has been the fastest promoted individual and the youngest Senior Manager at the most significant worldwide auditing and advisory association - KPMG. After his journey with KPMG, he established a little financial consulting business with only two individuals and scaled it to more than 100 staff with a pan India presence. Vikas is presently managing the finance department of numerous SMEs as their Virtual CFO. Being the exemplification of commitment and polished skill, Vikas imagines the improvement of finance and accounting using modern technologies.

In 2018, Praveen Dokania, a tech-virtuoso, joined Vikas, and they established TYASuite ? a venture seeking to lead the change in modern-day cloud ERP innovation.

A Duo-Journey with Praveen Dokania

Praveen is holding 10+ years of expertise in software and technology. Praveen is skilled in project management and software development equipped with the modern technology of back-end and front-end processes. He has widespread skills in database administration, app development, server management, and IT development consulting. He is specialized in building applications and software. He also has excellent knowledge of SEO and SMO operations for huge online portals. Praveen is the foundation of tech-operation at TYASuite.

As per Vikas, TYASuite is "the consequence of the desire and enthusiasm of a finance veteran to change how organizations run their business and enhance the lives of business experts across the world. Most individuals are tormented by redundancy and duplicity of data, repetitive and exhausting tasks that hamper their efficiency and productivity."

In light of that objective, TYASuite has developed to turn into an on a single solution for businesses, as a No. 1 plug and play cloud ERP software to digitalize and automate their business processes.

TYASuite?s Plug & Play ERP at a Glance

The TYASuite Cloud ERP is a coordinated and unified platform that helps you monitor, manage, and execute all your business capacities from one place with one single data source, interactive dashboards, and vigorous reporting tools. Our cloud ERP software solution incorporates separate integrated modules to deal with consistently ?

1. Procurement Software

The Procurement Software is the key to enabling and sustaining broader procurement value thereby eliminating many manual blunders. This plug and play ERP Software is intended to streamline your organization's procurement cycle through integration and automation of each progression into one simple, controlled, and tracked stream.

2. Asset Management Software

The Asset Management Software permits your organization to improve your spending on assets and expand your return-on-investment out of the current and future investments. By guaranteeing the best possible usage and maintenance of your assets, you can benefit from them regarding profitability and productivity.

3. Inventory Management Software

The Inventory Management Software helps you plan, screen, and deal with your inventory with full oversight and real-time visibility. With full integration with the P2P module, tracking tools and digital archival, streamlined warehousing, and progressed integration abilities with external platforms, the TYASuite Inventory Management Software helps you build and keep up a simplified inventory solution.

4. Finance and Accounting Software

Enable your accounting experts with the TYASuite Finance and Accounting software to augment their capability and help them understand their maximum capacity. Finance and accounting include numerous dull and humble tasks that must be done accurately. With the TYASuite Finance and Accounting module, streamline your transactions and financial data management to guarantee no-error.

5. Sales Order Management Software

TYASuite Sales Order Management Software helps you in establishing your organization's sales processing by incorporating and simplifying each progression of the sales cycle. TYASuite plug and play cloud ERP software can give you a competitive edge by increasing up the speed of all your traditional process by instantly capturing all incoming order documents and extracting order information, by allocating stock for customer orders thereby managing drop shipments from vendors.

6. Vendor Management Software

TYASuite Vendor Management Software is an excellent solution for all your vendor management prerequisites. Incorporated with our P2P and Inventory Management modules, the TYASuite Vendor Management suite will permit multi-level processes for vendor evaluation, acquisition, on boarding, negotiation, evaluation, and performance tracking with automated tools.

7. Production Management Software

TYASuite Production Management Software is an advanced production management platform. Combined with advanced inventory management, the TYASuite Production Management suite will permit multiple BOMs, manage multiple operations, process. Managing the production cost has never been so easy.

8. Project Management Software

TYASuite Project Management Software helps you consistently plan, manage, monitor, and execute projects and tasks from one integrated and unified platform. Handle tasks easily with multi-level admittance from a smartphone application, and guarantee full feature with minimal human reliance and full automation.

9. Compliance Management Software

The cloud based plug and play Compliance Management Software is full governance, risk, and compliance tool to guarantee efficiency and diligence in following the horde statutes, guidelines, and compliance prerequisites vital for a business to survive in the cutting edge market.

10. CRM

The TYASuite Customer Relationship Management module is intended to enhance your communication with your past, present, and future clients. Coordinated with our other modules, it empowers you to keep up a unified client directory, simplify your client communication, and automates your client acquisition, maintenance, and relationship management.

TYASuite is a multi-featured Cloud ERP Software where customers can work efficiently with the business to provide the flexibility of auto-scaling as the business expands.

Who can be benefitted?

  1. Enterprises that expect scalability in their business operation
  2. Enterprises that expect to have a big pool of workforce
  3. Enterprises that expects a very effortless solution at a minimal cost
  4. Enterprises that expect simplified automation for non-value added procedures

The key focus areas of TYASuite depend on the most reasonable cloud-ERP software in the world. This can be integrated into the customer?s business with more than 2000 plug and play feature.

Growing Through Positivity

Vikas belongs to a middle-class family from Bihar. He has faced a lot of tough times in his journey. But, he had a positive standpoint and accepted that challenges and difficulties make one stronger and more proficient. Discussing his career, Vikas was in the United States for around 5 years where he was working 35 hours a week. But, after he came back to India, he had adjusted his working time from 60 to 70 hours a week. This change has really made him capable of handling anything and everything in a professional manner.

Vikas began scaling a consulting firm from 1 individual to 120 employees in a limited ability to focus. This was for sure a big challenge while simultaneously it made him adept enough to handle all the issues all alone.

Today, he imagines himself and his organization to turn into the World's first Plug and Play Cloud ERP platform. He is moving in the direction of getting perceived as one of the most demanded Cloud ERP solutions in the world which are overwhelmed by Oracle, NetSuite, Microsoft Dynamics 365, and SAP.

Being a start-up, TYASuite is searching for alternatives to raise capital through external investments to grow its marketing and technical abilities. Vikas believes this will drive the financial specialists who can see the capability of the market with a scalable and gainful business model.

Nov 25, 2020 | 8 min read | views 749 Read More