1 EXECUTIVE SUMMARY
In this report, I will discuss the various aspects of an ERP system with a research on how the beverage industry operates in physical mode and how my choosen organisation is gaining competitive advantages via the ERP system.
2 INTRODUCTION
In order to compete in the industry with other competitors effectively, organisations must seek to achieve competitive advantages over them and Enterprise Resource Planning (ERP) can play an important part in helping organisations to gain and sustain competitive edge.
What is ERP? ERP is short for enterprise resource planning and it is a business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing. (http://www.webopedia.com/TERM/E/ERP.html)
There are many components that make up the ERP system, Finance Management, Human Resource Management, Supply Chain Management, Manufacturing Resource Planning and Customer Relationship Management are the few fundamental components. In this report, I will focus on Finance Management, Human Resource Management and Manufacturing Operations.
3 WHAT IS COMPETITIVE ADVANTAGE?
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There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support. Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage.
An ERP system integrates an organization’s data and services in a single system. ERP systems combine computer hardware and software during the process of integration. One thing most ERP systems have in common is the use of a single database that is used to store information for different system components. To obtain an ERP status, a given software package must successfully function as at least two systems. For example, a software package can hypothetically be considered an ERP system if it can execute human resources and financial functions.
Large organizations in the Fortune 1000 organizations were the first to take on the challenge of implementing ERP.
An extensive research was done to fetch the historical background of company, the functioning of its legacy systems, and the issues that are being faced by the company as a result of ERP implementation. However, there are only few studies that showed ERP case studies for the company relative to the ERP issues.The web searches provided a restricted account of data on company’s ERP profile. In order to find details of the issues that are being faced by the
The second requirement was the ERP should support rapid business growth, especially with a company such as Hunter Manufacturing whom had recently acquired two business units. It is only logical to plan for future growth whether organically or through purchases of additional suppliers. In addition, the selected ERP solution should provide a common business solution across multiple and diverse product lines enabling faster communication and collaboration among all departments.
To examine the reasons behind the SAP AG’S R/3 ERP implementation failure at Hershey’s Food Corporation
SAP ERP is the Enterprise Resource Planning function of the SAP Business Suite that is responsible for aspects of the business such as product panning, manufacturing, inventory management, etc.
Enterprise Resource Planning System (ERP), also referred to as the traditional management system, was generated from the MRP or the Material Requirement Systems. Companies have utilized this system for well over 25 years. In its primary set up, the MRP stores data related to inventory control and production planning. The system is widespread with the use of one its system with the largest market share, the SAP system is the primary base system for over 60 percent of multinational companies. Many companies have been influenced by ERP over the years, including both small and medium size businesses; it is the
The Rolls-Royce is a large aero engine manufacturer company that implemented various operational strategies to improve and meet their market demands. However, it was some time after the acquisition of Allison Engine Company (total new market for the company – USA) that forced the company to search for new internal management operational approach. The overall motive was to obtain a new structure which would allow the company to focus more on manufacturing engines and less on internal management operations and decision making. In effort to meet the market demands, the company sought an operation system more adequate to the type of organization. Henceforth, the Rolls-Royce Company embraced the ERP system. Yusuf, et al. (2004), stated that the ERP “aims to integrate business processes [such as manufacturing, finance, procurement and distribution] through the support of an integrated computer information system [connected by interfaces]” (Yusuf, el al 2004, pp 252). Another initiative of the organization was to have external outsourcing company; EDS Company to assist in the implementation of the new system. The main focus was to establish connection and integration amongst all areas of the company’s operation.
Microsoft dynamics ERP: It contains a group of enterprise resource planning products primarily adapted to mid size companies with simple corporate structures. Microsoft dynamics bringing the applications that run your finances, sales and operation together with familiar office apps that we already known. With the cloud technologies, Microsoft dynamics ERP provides to work anywhere, anytime, across your device.
This report is the analysis and commendation of Pete’s business and how and where ERP system can be implemented to reduce the business complications. The company with 113 outlets and multiple sales channels, supplies both homegrown and off-the-shelf system to its customers. With 1,500 grocery stores, corporate offices, a website, and delivery trucks, the company was able to increase its revenue by 23% over a year which is remarkable. However, the outdated system which used to handle core business functions such as financial, order management, inventory management, fulfillment procurement and manufacturing was unable to cope with the ever growing business demand, which in result was effecting both the sales and
ERP (Enterprise resource planning) is a software that allows companies to automate and integrate many of their business processes, share a common database and business practices throughout the enterprise, and produce information in real time. The objective of ERP system is that it supports the streaming and distribution of geographically scattered enterprise information across all the functional units of a business house. It provides the business management executives with a comprehensive overview of the complete business process, which in turn influences their decisions in a productive way. Many big companies have adopted ERP into
Company X is a subsidiary company of Company P that specializes in metal-based components, systems and integrated systems to the construction and engineering industries. Company P operates in over 27 countries and has subsequently employed over 11, 000 people. Company P saw little progress in terms of profits and revenues and was forced to come up
Currently, Cisco uses a combination of ERP systems that are based on Oracle 11i platform. The ERP systems are used to manage a host of features that range from invoicing, purchase, human resource, technical aspects, supply, training, and customer relations among others. An important element to note is that Cisco’s management had to make vital decisions before adopting and implementing the ERP systems. Various challenges motivated this that the company was facing a few years after the inception.
3. To standardize HR Information – Example is like in companies where they have 2 or more business units. In this case the HR may not be unified. ERP can help in tracking employee time and communicating with them about benefits and services.
ERP systems are more demanding and complex when compared to the other systems. Therefore management should allocate enough budgets for the project to hire the consultants and to train the employees.