Why ERP is essential for success

Posted by   Priya Muralidharan   |   Categories :   ERP

Enterprise Resource Planning provides many benefits to business such as

  1. Enhance productivity, flexibility and customer responsiveness : By integrating core business processes together in one single application, it helps company maximize the efficiency of business process across the entire organization. Increase on time delivery, increase productivity, increase ability to forecast demand to supplies, increase order capacity, and improve customer service (Customer Relationship Management (CRM)) etc. are the results achieved with a good ERP system.
  2. Eliminate costs and inefficiencies : Using an ERP system to standardize business processes can dramatically improve company’s operation. ERP enable company to manage relationship with vendor which results in better purchase efficiency. Better resource management results in more inventory turns and decreases the level of inefficiencies.
  3. Data consistency : With an integrated system of all business management functions, it decreases level of inconsistency from different systems. Thus, by using ERP system, managers can gather correct information and make a right decision.
  4. Extend your business using the Internet : By integrating all business functions together in one system, it increases ability of a company to use internet as part of the business strategy. Web-enabled technology allows you to access information, sell product, run business processes, and communicate with customers and partners at any time and from anywhere in the world.

Some of the Success stories on implementation of ERP

FedEx air company (FedEx)

Company profile

FedEx air company (FedEx Express), the world’s largest Express company, with its incomparable route right and infrastructure make it the world’s largest Express company to 220 countries and region to provide fast, reliable, and
timely Express transportation service. Fedex package delivery of each working day more than 3.2 million, in the world with more than 138000 employees and 50000 delivery point, 671 aircraft and 41000 vehicles. The company through the FedEx Ship Manager at FedEx. Com, FededEx Ship Manager Software and global more than 100 customers to stay close electronic communications link. In 2004, the total turnover of us $29 billion.

ERP implementation situation

The Oracle of ERP products provide. Already used modules including PeopleSoft asset management, accounting general ledger management, financial management, human resources management, electronic procurement, spending report, inventory management, project cost accounting and other. In 1997, the company began to implementation of the PeopleSoft accounting general ledger and asset management module. In a few years after the two major upgrade after, in 2004, the whole system has included 12 PeopleSoft module. FedEx ‘s domestic and international operation share the same examples, and cooperation services, transportation, the use of another example. At present the users and more than 20000 people.

Whirlpool company (Whirlpool)

Company profile

One of the world’s top 500 American whirlpool company was established in 1911, is the world’s largest white home appliance manufacturers, and in North America, Latin America and India the lead, sales across four continents, thirteen countries. At present, the company employees about 68000 in 2004, the total turnover of $13.2 billion.

ERP implementation situation

Adopted SAP provides the complete set of ERP products. From 1999 to 2000 in North America branch to produce product began implementing the process management (except for manufacturing process), has 98% of the business process in the platform. At the company’s headquarters for the installation of a single global branches use examples, the IBM DB2 database has accumulated a number of TB data. At present, its users to nearly 10000 people.

Colgate-palm Company (Colgate-Palmolive)

Company profile

Colgate-palm is one of the world’s top consumer products company, based in New York, USA, in more than 200 countries and regions set up branch companies or office, a total of 40000 employees. The company in oral care, personal care, household care and pet food provides the high quality for the consumer, among them are familiar to the consumers of global famous brand, such as Colgate, palm, clean teeth white, Ajax, Protex, Fab, Irish Spring, Mennen and Science Diet, and so on. The company since the 1930 s in several European countries established company, then continuously to foreign business expansion. By the end of 1993, the company has set up a file in more than 70 countries around the world in the business. In 2004, the total turnover of u $10.6 billion.

ERP implementation situation

Colgate company adopted SAP provide ERP system, implement successful modules including supply chain management, customer relationship management, supplier relationship management, human resources management, financial management, integrated application, order processing procedure management, materials management, production management list, self-service and other employees. The company’s ERP implementation began in 1996, has already completed 2 times overall upgrade, currently include the SAP R / 3 series, mySAP senior schedule plans and optimization, CRM, SAP portal and mySAP Business Warehouse (Business Warehouse). They are in Europe, North America, South America, South Asia Pacific and branch, the Hill Science Diet brands implement the R / 3 series of five examples. In addition, the implementation of the global human resources management, and SAP business warehouse at present more than 6 TB storage (note: 1 TB is equivalent to 1024 GB) customer data. At present, the more than 15000 using ERP system.

The aluminum company (Alcoa)

Company profile

The aluminum company was founded in the 1880 s, is now the world’s largest aluminum oxide, electrolytic aluminum and aluminum processing products manufacturer, active in basic research and development, including technology and recycled aluminum industry, all major areas. Beautiful aluminum products used in the aerospace, automotive, packaging, building, commercial transport and industrial markets. Beautiful aluminum products include daily consumer beauty aluminum wheel (Alcoa wheels), Renault membrane (Reynolds Wrap) and baker Household membrane ( Baco Household Wrap). Other business also includes vinyl sides, packaging system, precision castings, bottle caps and cars and trucks of the power distribution system. Beauty in global aluminum 43 countries a total of 131000 employees. The dow Jones industrial index aluminum become members for 45 years and in 2001 to become the dow Jones sustainability index members. The aluminum is China’s largest investor and aluminum industry aluminum products trading partner, at present in China has 5 individual proprietorships, joint venture enterprise, employees 2200 people. In 2004, the turnover of the company and the products to us $23.5 billion.

ERP implementation situation

Since 2001, the company began to carry out the aluminum Oracle provide ERP system, at present has implemented successful modules including financial management, human resources management, Order to cash (Order to cash, OTC) business process management and demand to payment (Requisition to pay, RTP) business process management. Beauty in all countries of the world of aluminum branch is various, the implementation of the ERP is also very complex, therefore according to different regions in stages. Their first 50 branches in Europe of the implementation of financial and demand-payment process module, the module currently including Europe, North America, Australia, Asia and South America, the branches of the widely used. HR module has been completed in Australia branch, and Europe and Latin America, is expected to end at the end of the year. OTC module in the aluminum company is all the global offices at least 60% complete.

January 27, 2017

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