INSTITUTE OF BUSINESS MANAGEMENT

Enterprise Resource Planning

Implementation of ERP in
Public Transport System

Submitted To: Sir Sajid Nazir

Osama Riaz (20541)

Abstract:
The public transportation industry today in Pakistan has to be on the move, constantly, in more
ways than one. It has to deal with the increasing demands of customers and suppliers, while
simultaneously trying to optimize the entire business operation at minimum cost. To keep pace
with changing business paradigms, transporters need more than ever to use information
technology, not merely as an enabler of operations but as a strategic driver and critical business
tool. Major citites of Pakistan lacking the government provided public transport is the core issues
here as the whole transportation business is in the hands of Private entities , while looking at the
success of New entrants of Public transport provider like airlift and swl it’s evident that the
market has need, the objective of this study is to find out about the previous implementation of
Erp in Transport by any city of the world and How Pakistan can help get benefit from
implementing enterprise resource planning in the the transport system of its Major citites.

Transportation Problems in Pakistan:

The transport in general and the road transport in particular in Pakistan is facing critical
impediment. Some of these problems are:

Absence or inadequacy of clear-cut policy on the part of the Government

Lack of modern multi-modal transportation system

Non-availability of effective and adequate private sector for transportation sector

Unrealistic regulations of transport

Lack of adequate finances for public sector

Population growth resulting in increased transportation needs and over-supply of vehicles

Lack of credit facilities for the private sector

Serious road safety problems

Absence of efficient mechanism for accident compensation

Proliferation of smaller vehicles

Lack of coordination among transport related agencies

Improper administration of student concession

Lack of transport for students particularly females

Overall transportation shortage for female population

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 Cumbersome labor laws

Poor fleet maintenance arrangement

Inadequate institutional arrangement for proper planning of transport

Lack of quality manpower for management and operation

Absence or inadequacy of traffic management techniques

Environmental pollution

Inadequate involvement of transportation professionals in planning transportation policies and

projects.

Transport and Economic Development

Everyone recognizes that, in today’s world, transportation is a key element of the global
economy. It has changed the face of employment, trade, family life and health care, bringing
benefits that were unimaginable 100 years ago. However, the price we are paying in form of road
crash mortality and morbidity for such benefits is too high. The shock and grief these events
cause are all too well-known throughout the world. Their impact is particularly higher in poorer
countries, where 90% of the road fatalities occur. An Ideal Transport System is a fully integrated
safe transport network which supports social and economic regeneration and ensures good access
for all which, is operated to the highest standards to protect the environment and ensure quality
of life. Long run strategy should be to manage for the growth of transport demand to provide for
the efficient movement of people and goods. Transportation network of any country is of vital
importance to its development and affects all sectors through economic linkages. It ensures safe
and timely travel encourages business activities and cuts down transportation costs while
granting produces access to markets for their goods. A reliable transportation network also
provides swift access to labor force and hence generates employment opportunities. It has been
widely recognized that economies with better road and communication networks are positioned
more advantageously in terms of overall competitiveness as compared to economies having poor
networks. Enhancements in transportation and telecommunication benefit industry, agriculture,
and other services sectors as well as improving the standard of living of the general public, it is
therefore, crucial that investments be made to develop and maintain an efficient network of
transportation and telecommunication to ensure cost efficient integration of markets both
domestically and internationally. It is widely acknowledged that transport has a crucial role to
play in economic development. More specifically, it has been recognized that the provision of a

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 high quality transport system is a necessary precondition for the full participation of remote
communities in the benefits of national development.

Benefits for using ERP for transportation:

Core Utilities:

 ERP saves time and money helping to deliver goods right on time.
 ERP facilitates cooperation between all links of the supply chain.
 ERP monitors inventory using barcodes, RFID, and databases.
 ERP boosts analytics to continue logistics optimization.
 ERP delivers automation of fleet tracking, tasking, and reporting.
 ERP reduces errors because employees have less routine tasks.

Erp Tools that can help Pakistani government in Transport management:

Tools for Operations Monitoring

As the most important function, the operations module focuses on core transport/logistics
processes for your firm. Using this set of tools, managers can easily control inventory and
resources during the shipment process. Depending on specific features of your SCM, you can
add or remove certain tools as per your requisition.

Primary features of Operation monitoring are:

Check bookings, stock, and shipment.

Prove the delivery.

Control entries for goods.

Automate reports about operations.

Monitor fleet movement.

Fleet Maintenance Modules

Despite the previous module often includes some tools for fleet management, there’s a dedicated
system for maintenance of your vehicles. On the one hand, this module helps your managers to
optimize fleet composition and quality in the garage. On the other hand, it’s more convenient to

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track lorries’ movement in real time, agree on schedules and routes, and provide for full support
of different transport modes.

Feautures of fleet Maintenance module:

Schedule vehicle services.

Maintain spare parts/tires.

Record fleet activity.

Manage insurance.

Plan routes and schedules.

Transportation Billing Software

On a par with direct delivery processes, companies have to remember about accounting and
billing. The large finance module handles all money issues including cash exchange between
your team and partners, invoicing, salaries, and payments for freight, labor, vehicles, and spare
parts. Using a good ERP for transport company, you can develop a cost-effective strategy with
accurate money tracking.

Primary Feautures:

Register bills and invoices.

Customize contracts.

Send and receive money for anything.

Track payments.

Work with banks.

Logistics Office Software

Last but not least, there’s another large module which includes all in-house stuff. Basically, its
tasks can be concluded to wholesome strategy planning which stands for optimization of process
flows. Precisely, the office platform is responsible for payroll, reports, dashboards, HR tasks,
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customer interaction handled by integrated CRM tools, security, performance tracking and
improving, and so on. Often, this software is divided into smaller parts.

Primary Tasks:

Contact suppliers or customers.

Train staff members.

Measure KPIs.

Deliver reports and analytics.

Protect sensitive data.

Human Resource Management

Human Resource module in ERP streamlines the management of human resources and human
capitals. It comprises of 4 broad sections, mainly Training, Recruitment, Payroll and Attendance.
HR module routinely maintains a complete employee database including contact information,
salary details, attendance, performance evaluation and promotion of all employees. It involves
functions and information like:

 Employee record
 Salary record
 Grade record
 Overtime Rule
 Loan Management
 Appraisal
 Training Plan Schedule
 Attendance

Finance management Module:

Finance management module has the capability of meeting all the accounting and financial needs
of an organization. It is with this module that Financial Manager as well as other Managers
within business can review the financial position of the company in real time and allows for
better decision-making and strategic planning. It involves functions like:

 Sales Invoice

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  Credit Note
 Payment Voucher
 Receipt Voucher

Purchase Order Processing Management

Purchase module streamlines procurement of required Vehicle spare parts and other Non
Inventory Materials. It automates the processes of identifying potential suppliers, Supplier
Evaluation, Supplier Quote Evaluation, awarding purchase order to the supplier, and billing
processes. Purchase module is tightly integrated with the inventory control and production
planning modules. It will contain details like

 Purchase Order Processing

 Bill Entry
 Payment Entry

Insurance Management Module

Insurance information for all moving assets should be captured in this section. This module must
automatically trigger insurance expiry information from few months prior to the expiry until the
insurance is renewed. It can have:

 Vehicle Insurance Form

 Insurance Payment
 Insurance Claims for Vehicle and goods Form

Case study Of ventura buss line Austrailia:

Background:

Ventura is the largest bus operator in Victoria, Australia. It operates extensive fixed route and
charter services across Melbourne, including 131 public transport routes, school charters, rail or
tram replacement services and group tour transportation. It was founded over 90 years ago by the
Cornwall family and is the largest familyowned bus company in Australia.

Challenges:

Intense Competition:

The bus industry has changed a lot since Ventura was founded with one bus in 1924. Increased
societal expectations that governments use taxpayer dollars in an efficient and transparent way
have led to intense competition in tendering for government contracts to operate public transport
routes; burdensome amounts of red tape, regulations and data recording requirements; and
shorter deadlines for providing options, information and reports to authorities.

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Inaccessible Information:

data being kept in different systems, formats and locations (or in some cases not being recorded
at all) and the many parameters that had to be factored into Planning & Scheduling such as
award rates, union agreements and government regulations. This lack of access to information
also crippled departments and stifled innovation within the company.

Growing Pains:

Ventura also bought over other bus operators to accelerate its growth and size. While this gave
the company a competitive advantage, it aggravated challenges the company was already facing
from its organic growth: scalability and disparate systems. There was confusion, inefficiency,
double handling and siloes of information

Solution:
Implementation of tapreze erp software:

The Trapeze ERP system, specifically built for bus companies, was chosen because it enabled
integration across all departments, like Operations, Charter, Workshop, Fleet, Payroll and
Finance. As a bonus, it also integrated with the Trapeze Planning & Scheduling system, giving
Ventura a single source of the truth.

 Dead running reduced, resulting in fuel and maintenance savings.

 Tenders can be responded to faster and with more confidence in costings and projections.

 Driver turnover reduced to below bus industry averages.

 Department managers now enabled for innovation and continuous improvement.

 An accessible, single source of information for whole country.

Conclusion:
As its evident from the fact that other major cities around the world has successfully
implemented Erp in transportation sector and Pakistan could do the same to enhance the
infrastructure of its transportation system. An efficient erp system will not only provide ease to
customers but will effect the overall growth of economy.

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