ERP System

Objectiveto integrate all departments and functions across a company onto a single computer system that can serve all of the enterprise’s needs

Resultsproductivity improvementincreases customer satisfaction

There are different ways of definnig ERP: a business perspective,a technical perspective or a funtional perspective.

One way of looking at ERP is as a combination of :business processes and information technology

The number of local IT system to be replaced by an intefrated ERP system usually runs into the dozens up to a hundred or more in multinational companies.

We find that companies that evolve their ERP solutions usually do so for any combination of the fallowing reasons:1. Increase productivity2. Address performance management needs3. Implement business process imprvements 4. Leverage technology5. Address organizational changes6. Enhance adaptability7. Avoid absolescence8. Consolidate instances

SCM limitations of current ERP systems1. EE funtionality 2. Flexibility in adapting to changing supply chain needs3. beyond transactions- more advanced supporting funtionality

Suppliers

Customers

Em

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ees

Part

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Supply Chain ManagementSourcing - Procurement

Enterprise Resource PlanningInternal Business Processes

Customer Relationship ManagementMarketing – Sales - ServiceK

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Enterprise Application ArchitectureEnterprise Business Systems

ProductionPlanning Integrated

Logistics

Accounting and FinanceHuman

Resources

Sales,Distribution,

OrderManagement

Customer/Employee

Enterprise Resource PlanningThe Technological Backbone of e-Business

Supp

liers

Human ResourcesFinance and Accounting

DemandPlanning

Manufacturing Planning

LogisticsPlanning

DistributionPlanning

OrderEntry

Enterprise Resource Planning

Cus

tom

ers

Purchasing& Accounts

Payable

MRPInbound

InventoryPlant Mgmt.

Manufacturing& Production

Scheduling

InventoryControl &

Warehousing

Distribution& AccountsReceivable

Enterprise Resource Planning

The Business Value of ERP

Benefits of ERP1. Quality and Efficiency2. Decreased Costs3. Decision Support4. Enterprise Agility

Causes of ERP Failures 1. Underestimating the Complexity of Planning, Development, and

Training Needed 2. Failure to Involve Affected Employees3. Trying to do Too Much Too Fast4. Over Reliance by Company on Claims of Software Companies