KIMBERLY CLARK VIETNAM

ERP IMPLEMENTATION

Lê Thục NghiLê Phương AnhLâm Thị Trà My

Content

Company background

ERP implementation and Critical problems

Situational analysis

Recommendations and action plans

I. Company BackgroundFounded in 1872A global health and hygiene company.4 business segments: Personal care, consumer Tissue; KC

Professional and Health Care with well-known brand (Kotex, Huggies, Kleenex)

I. Company Background

It provides products and the solutions to make people lives better.

KC ‘s management believes that product innovation, effectiveness response to competitive challenges, lead in market shares, control costs, and material risk management are important to the long term success of the corporation.

From 2006,run the progress implementing strategic cost reduction plan.

Kimberly Clark Vietnamfounded in 2000One mill in Vietnam Singapore Industrial Zone, Binh

Duong province. 3 categories: Feminine care, child care, tissue.5 major sections: Sales, Marketing, Finance, Human

Resource and ProductRealizing profit from 2006 and became to one of

strongest companies in the market.In July 2006, KC started project called SPEED.

II. ERP- Enterprise Resource Planning

ERP- Enterprise Resource Planning:• A organization’s management

system• Using software integrates all facets

of an operation, including development, manufacturing, sales and marketing.

Advantages

Integrated information

Increase data security and accuracy

Disadvantages

Expensive to procure

Highly complex

Evaluate ERP Implementation

Success1. Time saving2. Cost saving and

improved product quality

3. Improved communication and collaboration

Failure 1. No improvement in

some department2. Increased workload3. Risk of mismatch

Critical problemERP project is not implemented appropriatelyLimited human resources, budget, time inadequate training

Ineffective communication between staffs and top management

Risk of mismatching between modules and business processes from different departments

SWOT ANALYSIS

StrengthsHighly reputable brand name and

image. Diversified business portfolio

Weaknesses Lack of scale in comparison with

the larger companies in the industry.

Lack of control over raw material’s prices

Weak internal communication system

OpportunitiesCustomers’ high demand for

green products

Successful implementation of ERP will increase company’s competitiveness

Threats Strong competitors (proctor & gamble,

Johnson & Johnson, etc.)

Kimberly Clark Proctor & Gamble

VS

Low economic condition

Fail in implementing ERP will adversely affect the company

Option 1: Pay work overloads

Pros:+High

incentives

Cons:+Increase expenses+Heavy workload

Option 2: Dedicate- Cover

Pros:+Budget-saving

Cons:+Low incentives+Heavy workload

Option 3: Hiring temporary workers

Pros:+Decrease workload

Cons:+ Increase expenses+Hard to find suitable workers

Option 4:“Do the best you can”

Pros:+Budget-saving

Cons:+Heavy workload+Hard to manage

Recommended Option

Option 1: Pay work overloads

III. Recommendations1) Change to option 12) Training and Encouraging Employees

to use ERP system 3) Encourage communication in the

workplace especially between staffs and top management and headquarter

IV. Action PlanTraining Employees to use ERP

system

Project teamClerical staff and Decision makersAdditional course

Action Plan

Improve communication in the workplace

especially between staffs and top management and headquarter

Step 1Schedule regular staff meetingsStep 2Write weekly staff bulletins or email messagesStep 3Listen to the concerns and suggestions of all employees.Step 4Communicate clearly top expectations, instructions and assignments of top management

Step 5Schedule team building activities with all staff membersStep 6Create a communication center or notebook for the staff.