Analysis for Improvement

Analysis for Improvement

Melissa Yingling

June 9, 2014

CMGT/554

Bhupinder Singh

Analysis for Improvement

Enterprise systems refer to a category of information that integrate internal business processes and improve collaboration with external business partners. The major types of enterprise systems are Supply Chain Management (SCM), Collaborative Panning, Forecasting, and Replenishment (CPFR), Customer Relationship Management (CRM), and Enterprise Resource Planning (ERP). SCM software supports manufacturing, storages, inventory control, budgeting, and many more. CPFR is an extension of ERP and SCM, in which it focuses on reducing uncertainty by using better prediction and in doing this the supply chain will have the amount of materials it needs when it needs them. CRM systems can create a total view of the customers to maximize profit and optimize the customer’s lifetime value. ERP systems are commercial software packages that integrate business processes. The systems my company needs to improve is the warehouse, purchasing, and finance departments.

Enterprise resource planning (ERP) is a business management practice that uses information technology as a tool in order to be able to integrate all business processes and also enable a company to achieve all of its business technologies. When using ERP there is one database which manages all of the business processes. ERP software is a multi-billion dollar industry that produces components to support a variety of business functions. Many companies consider ERP systems a vital tool because it integrates many organizational systems and helps in achieving error-free transactions and production. Early ERP systems have evolved over the year in going from being used specifically for manufacturing companies to now providing solutions for all types of companies.

Some of the problems faced by my company can be solved in using an ERP system. My company currently when entering in orders they must be sent to the purchase department and then approved by the finance department. Each department must enter the information into their system since they each have their own and the three individual department systems do not work with each other. If an ERP system is added all department systems will work together since they will just be one and in doing this there is less cause for error and the information only needs to be added once.

ERP software solutions is one of the most successful because of its many features a few which are integrated business processes, centralized data storage, and having centralized management. The key feature is that it streamlines the business processes of a company. With using an ERP system you have a reduction in process turnaround time, a reduction in information lost due to human error, and the automated environment ensures that the data is available to everyone in the company. Since an

ERP system stores data in a centralized location it takes away all of the boundaries within the company. By doing this it enables the company to more efficiently manage their data, increase the security polices related to that data, and there is now a faster way to access the data since there is no waiting for information from different departments. The centralized management increase control over the entire business which can help the management make more accurate and faster decisions. With the system now the company’s departments must each submit their own reports and someone has to join these reports together to make them one.