Erp Helps Productivity at Northern Digital Inc

780 Words Sep 20th, 2014 4 Pages
CHAPTER III
PROBLEM CASE

Questions:

1. For such a small company, why is an ERP better than SCM applications?
2. Identify the supply chain segments that the ERP supports, be specific.
3. Relate this case to Porter's value chain and to its competitive model (Chapter 14). Show the ERP's contribution.
4. Enter intuitivemfg.com and report on the capabilities of their ERP product.
5. Relate this case to business planning and strategy.

Answer for Question 1

ERP covers the overall processes of the whole organization from front-office to back-office operations. It supports internal supply chain within an enterprise. SCM basically are processes involving bill of materials, manufacturing, inventory, warehousing, and logistics. It
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Answer for Question 2

ERP supports inventory management that helped to:
1. Double inventory turns
2. Order cycle, which has reduced since the implementation of ERP
3. Production control, which had a direct impact on customer delivery
4. Planning system that improved significantly after using ERP and positively influenced labor and materials.
In the case of NDI enterprise, implemented ERP system would support those activities which produced greatest costs in previous period, putting customer satisfaction at risk and making internal moral decreasing. Also, the ERP supports the segments in NDI as well as its environment. First, ERP optimizes the production processes in NDI; including taking into account the needs of its employees. Second, ERP contributes to better forecasting of demands and, additionally, better processing of their orders. Third, ERP efficiently coordinates upstream activities between NDI and suppliers. In other words, ERP supports the supply chain segments like inventories, delivery timing, and flow of materials and cash in NDI.

Answer for Question 3

Activities in Porter’s value chain model can be divided into 2 parts: primary and support activities. Primary activities involve purchase of materials, the processing of materials into products, and delivery of products to customers. There are five primary activities: inbound logistics (inputs), operations, outbound logistics, marketing and sales,…