Syed Marwan Shah

The installation of the Enterprise Resource Planning (ERP) system will help in the speedy automation and digitisation of Pakistan Railways, WealthPK reports.

The Pakistan Railways has taken several steps recently to move towards automation. The installation of the new system is one of these effective steps to ensure the digitisation of railways.

An official told WealthPK that Minister for Railways and Aviation Khawaja Saad Rafique was briefed about the transition of railway operations to the ERP system in a recently held meeting.

“Most of the railway management issues will shift to information technology (IT) with the ERP system,” he said.

According to a report of the Pakistan Institute of Development Economics, about 50% of ticketing is now electronic, but the Pakistan Railways still lacks an ERP system that integrates all the processes from end to end.

There is also a delay of 60 days in the flow of financial information within the enterprise. The government expects to complete the first phase of the installation of ERP within three months approximately. In the first phase of the ERP implementation, railways will be completely paperless.

Under the system, a dashboard will be available to the chief executive officers, the secretary and the ministers for monitoring all the data generated electronically.

WealthPK research indicates that ERP is a system under which businesses manage and integrate various aspects of their operations. A number of ERP software applications provide companies with the ability to implement resource planning by integrating all the processes necessary to operate their companies into a single system.

It is indeed commendable that the state-owned enterprise has made the effort to switch to ERP. The implementation of ERP will enhance transparency and effectiveness, as well as reduce expenditures by promoting an environment-friendly paper-free culture.

This system will revolutionise the entire process of hiring and releasing a pension for employees. It will increase the level of confidence among all stakeholders, thereby improving the efficiency of the Pakistan Railways.

According to a recent study by the Asian Development Bank, which recommends six policy reforms for regional railways, most regional railways do not adhere to internationally recognised commercial standards when it comes to accounting systems.

In addition, the old systems cannot accurately measure and separate the financial performance of various railway entities.

A modern commercial accounting system that provides reliable and transparent real-time information about costs, revenues and financial performance is needed for the regional railways. It is also crucial to strengthen staff expertise in operating the system and using it to analyse railway performance.

To increase productivity and profitability, railways need ERP systems to help them adopt more commercial approaches.

The system will enable the railway planners to maintain an overview of existing railway resources, such as staff or rolling stock. They can also identify more efficient ways to use them.

The study recommends that regional countries should examine the non-core activities of their railways and gradually separate or privatise them to allow operators to focus on operating railroads on a commercial basis.

“Non-core activities may include healthcare and housing, as well as a variety of non-railroad businesses. The financial resources of railways are often strained by many non-core activities, which are loss-making,” according to the study, available with WealthPK.

Credit : Independent News Pakistan-WealthPk