Erp Helps Productivity at Northern Digital

Increase revenue and growth. One of the biggest benefits is reduction in inventory and personnel cost due to integrated systems. Improving the competitive environment with better information visibility. This will help employees and managers make decisions faster. Improve operational efficiency with better business processes that focusses on organizational goals. Is less time consuming for employees by using EDI systems to exchange data within divisions and suppliers. This will add value for it will be in real time, you will be able to see the inventory in all locations. The data information can be used to negotiate agreements and contracts with suppliers to reduce costs. Also organize the deliveries by location in order to maximize logistics associated with the orders.

Enterprise Resource Planning (ERP) is extended to suppliers, customers, and other business partners to enables both smooth integration of a different company business systems as well as effective and secure communication. ERP would facilitate collaboration in its business processes. Supply chain management (SCM) manages the supply chain end-to-end processes that start with the design of the product and end when it is sold, consumed, or used by the end consumer. SCM is to reduce uncertainty, variability, and risk, and increase control in the supply chain, thereby positively effecting inventory levels, cycle time, business processes and customer service. Collaborative planning, forecasting, and replenishment (CPFR) is a business practice in which suppliers and retailers collaborate in planning and demand forecasting in order to ensure that members of the supply chain will have the right amount of raw materials and finished goods when they need them. Collaborative planning is designed to synchronize production and distribution plans and product flow, optimize resource utilization over an expanded capacity base, increase customer responsiveness, and reduce inventory.

In this system, the whole company is based on a matching database, matching application system, and a continuous interface. In addition, the ERP system combines human resources, accounting marketing, production, and the delivery and supply chain management into one system (Chamg, Wu, & Chang, 2008). When the ERP system was first presented, companies began to handle information more accurately and correctly, and thus reformed and enhanced the quality of the accounting and financial processes. The implementation of Section 404 was very difficult and time consuming; however, businesses have been able to find a little relief by implementing an ERP system to help with the transition. Software companies have taken advantage of companies with few internal controls accentuating that the focal feature of the ERP system is the use of built-in controls that can copy a business’s organization (Morris, 2011). This allowed companies to implement the internal control requirements of Section 404 with a little more

Advantages Koch (2005) and Montgomery (2003) state advantages of using the ERP are; Improvement in the time taken to process the data as each department have same standard and can access to the data easily. Communication between each department will be improved as well. More flexibility in the system as it comes from one vendor and the software has been developed to be applicable for all departments in a company. Easier to predict the costs of buying ERP systems as it only comes from one vendor. Having integrated applications solutions with no complex interfaces. All of the data is stored in one central database.

Enterprise resource planning enables firms to replace different departmental information systems and database silos with systems that collectively work as a single cross functional database. ERP systems are available for every key business function such as order processing, production control, HR, warehouse, marketing, finance and much more. By having a common technology and database platform throughout the firm, systems and processes from various departments can be integrated that achieve superiority in terms of enhanced cost, operational and productivity benefits. Implementing an ERP system requires careful planning to achieve the targeted benefits and minimize the risk of project failure.

ERP has grown to become a fundamental part of the toolbox for manufacturers. ERP systems and the user experience continues to improve; users are provided with more intuitive navigation of the system they no longer have to have extensive knowledge to be able to use it. Ease of access is essential to a successful ERP as customer satisfaction is vital. Today’s ERP systems have advanced capabilities that not only allow a more complex interaction with real-time data, but a lot of that data is mobile, allowing individuals to use anytime, anywhere. Manufacturers today are moving beyond just product manufacturing by expanding into services to enhance their customer’s experience and to drive new revenue streams. Modern ERP systems give users access to real-time visibility into things like what phase their pizza is in and the distance away the delivery driver is from the customer’s home. All of this is possible today, and companies are making use of that real-time information on a daily basis. Supply chain visibility in modern ERP systems allow companies to look at real warehouse levels and predict where those levels need to be. Manufacturers can manage virtual warehouses to see what they’ll need for production and make sure that raw materials needed have been ordered and prepared. Parts can be assigned lot numbers and traced from source materials to the end user or customer. ERP systems have gotten much smarter and being able to tracking material

The adoption rate of ERP systems have drastically increased over time as it offers a vast amount of benefits to organizations. Hau and Kuzie defined an ERP system as a “multi-module, packaged business application solution that enables an organization to automate and integrate business processes and practices within the firm, share common data, manage resources, and provide access to information in a real time environment” (2010, p. 178). One major advantage of an ERP system is the integration of all the functions of an organization into a single system which brings about the smooth flow of information within the organization. The implementation of ERP ensures information shared by different functions such as accounting, distribution, manufacturing and human resources is seamless and can be accessed at any time by authorized employees only. However, the implementation of ERP systems is complex, costly and often leads to failure. Most organizations tend to modify the ERP system’s functionalities to fit into their existing business process but often end up running into challenges and sometimes failure of the ERP implementation. In the case where the features of an ERP system has been modified, a particular module or program might have an update which is not compatible with the existing system and this could lead to challenges in a production environment. These types of issue are usually encountered when the changes that occurs within the operating process of an

The main SAP’s core business offer was an enterprise resource planning system shortly called ERP system. When they manage to successfully implement the ERP system it linked all fields of a company including human resources, management, manufacturing, financial systems and distribution with suppliers and customers. The companies that used their system have felt and “drastic decline in inventory, breakthrough reductions in working capital, abundant information about customer wants and

4 .Since same (ERP) programming is presently utilized over all offices, singular divisions buying and keep up their own product frameworks is no more extended

More obvious benefits can be offered by supply chain and manufacturing solutions. Production and operations managers can get cautions at whatever point there are potential issues – such as raw materials stuck in transit, or machine breakdowns. Without mobile ERP, these alerts are unmistakable when the managers are at their computer; with mobile alerts, they can be informed of problems immediately.

Plan frequency and planning horizon depend on the specifics of the industry. Short product life cycles and high demand volatility require a tighter S&OP planning than steadily consumed products. Done well, the S&OP process also enables effective supply chain management. However, what we have observed in Gabriel is that excessive dependence on platforms like SAP ERP 6.0 have made the process totally system driven in nature. They have their own advantages and disadvantages. On one hand, all the plans get generated automatically by the system and users are required only to input data at various levels. On the other hand, at times system itself becomes a hurdle because employees are losing their efficiency in planning and data management. In such situation system down time at these companies’ leads to huge loses and disrupts entire work flow. These companies have limited practise of maintaining hard copies of data thereby making the whole process totally dependent on IT and Software infrastructure and platform. Huge fees are paid for backhand support for SAP ERP

Value is also added in NA projects in terms of managing customers inventory saving customers time and therefore cost. This also helps the customer to reduce their procurement cost and gives the customer the opportunity to standardize procurement.

One of the primary reasons the company is deploying an ERP system is its desire to replace manual processes in its inventory management. Typically, as a company grows, the data that is being produced becomes more than what a manual system is equipped to handle and a gap is usually created. Consequently, without visibility into data concerning critical operations components such as sales, forecasting and inventory, our procurement professionals are having a difficult time knowing what and when to procure. To address this kind of situation, the solution suggested in the players manual is to maintain production levels and requirements on-hand. This solution will help in reducing stockpiling and instead

Industry growing in a tremendous pace need ERP as essential to integrate and co-ordinate the different business process. Till now from the time Two Degrees entered into this New Zealand Telecom industry and implemented a very good strategy to keep hold of their own customers as well as attracting potential customers in a very successful rate. In order to maintain their successful competitive strategy and cop up with the needs of this fast moving industry they have to organize things in a more strategic way and their comes the need of ERP. We can analyses the competitive strategy of two degrees using Porters Five force model developed by Michael Porter of Harvard(Porter, 1980). Together we will discuss the need of ERP in Two degrees to improve their competitive edge in the market.

Another benefit companies receive from using an ERP is standardized processes and consistent data. This is important in the energy sector and the oil and gas industry because it allows the business to move rapidly to new markets as well as adjust workloads among offices. (Anderson et al., 119) an ERP system will provide managers with pertinent and timely information on when assets need to be replaced among others which will improve the quality of their decisions. (Anderson et al. 119)