Enterprise Resource Planning System

1581 Words7 Pages
Rainforest started 10 years ago in a small warehouse staffing five employees, creating specialty widgets for its clients. Dedication to delivering the best possible experience for its customers has allowed Rainforest to grow substantially with retail outlets in 22 different states within the U.S. The recent acquisition of XYZ widgets, an online widget retailer, has poised Rainforest to expand into a global market. The acquisition and consolidation of two software of two software systems, including the expansion into a global market will present a challenge to the leadership of Rainforest, but these challenges can be handled in an effective and efficient manner using an ERP (Enterprise Resource Planning) system. An ERP system is a set of…show more content…
390). With proper planning, materials are purchased to arrive just before production to reduce the footprint taken up within the warehouses such as seasonal materials required for holiday widgets. Production can also greatly benefit from SCM as staffing numbers are planned according to estimated production needs, reducing the cost of production. One of the last items that SCM can assist with is sales ordering. This process captures customer sales orders including items like items purchased, price, quantity, and total of the order in addition to determining available customer credit. Should an item be out of stock for any reason, the process is capable of suggesting an alternative product for the customer (Stair & Reynolds, 2012, p. 390). Rainforest would benefit from using SCM during the transition between standard widget product lines and seasonal widgets where excessive product from each season not only results in wasted warehouse space, but also often causes a delay in preparation for the next season’s product line to be available to consumers. Additionally, the ability to determine levels of production needed for each type of widget, order materials for that production, and produce the product at a lesser cost is another reason to implement an ERP solution. SCM also provides a competitive edge,
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