Enterprise Resource Planning (ERP) Systems

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RESPONSE:

1. Explain four advantages of ERP within an organization. Provide an example of an organization that has benefited from ERP.

Big companies save money using Enterprise Resource Planning (ERP). Some of the advantages of using ERP systems are as follows:

? The company will have a system that is totally integrated with the ability to make more efficient the workflow and the various processes included.
? Using ERP system will enable sharing of information across different departments within the organization easily.
? There will be obvious improvements in the level of productivity and the efficiency of the organization.
? Another advantage of ERP systems is it has lower costs, better forecasting and tracking of products (http://www.total-erp-sap.com/advantages-of-erp.html).
? One of the essential advantages of ERP is the application that focuses in the accounting of the business. ERP puts together the cost, revenue and the profit information of the sales made in a particular month or year. ERP is also in charge to modify the manufacturing of the product. This is very important since the products that are produced by the company must be tracked and the needed information must be updated whether the company produces high quality products or not. Another very good advantage of ERP is that it can make the changes that are necessary to use to make the organization more competitive in the market (http://www.total-erp-sap.com/advantages-of-erp.html).

EXAMPLE:

Ford Motor Company and Oracle Corporation announced the formation of the AutoXchange, an integrated electronic procurement supply chain to be created and run as a joint venture. In 1999, it was expected to handle Ford's $80 billion in annual purchasing transactions with more than 30,000 suppliers, as well as its total $300 billion extended supply chain (see http://resources.bnet.com/topic/ford+motor+co.+and+oracle+corp.+and+stock.html).

2. Describe four ways how ERP could improve overall Supply Chain Management. Provide an example where ERP has improved the overall SCM.

These techniques are interrelated. ERP could improve overall Supply Chain Management by:

(1) Streamlining the information flow through an integrated system with the ability to make more efficient the workflow and the various processes included.

(2) Providing a consistent database. Increases efficiency by integrating many internal processes in an organization and provide a consistent database (Stadtler & Kilger 2002, as cited in Hastak & Syal, n.d, URL: www.pathnet.org/si.asp?id=1065).

(3) Improving customer service: Increases efficiency and ...