Essay on ERP IMPLEMENTATION

Submitted By amiramakazhanova
Words: 2997
Pages: 12
Open Document
Business Strategy and Background Leo Madeiras is a cabinetry supply supplier established in 1943 and is the largest in its field in Brazil. With over 70 stores, the company started with one store in Sao Paulo in a street where cabinetry was the main activity and today the stores are located in 18 out of the 26 states in Brazil. Part of the chain is owned by the company’s owner and another part is owned by partners, that are franchisees, in different states than the headquarters of the company. The whole company has over 2,000 employees divided into stores, warehouses and headquarters.
The expansion started in the late 80’s and in 1994 the legacy system was implanted, a MS-DOS based software that could help the company with the sales, inventory and orders. For an expanding company, such as Leo Madeiras, the system is a very important part of the process of acquiring new partners, opening new stores and creating support departments for the business.
Technological Strategy With the legacy system, the new franchisees were added to the network but with limited connection preventing them to have access to information, order system and since it wasn’t an ERP system, the decision process with the marketing department was too slow because the process was completely done out of the system.
The servers in the company started being replaced for servers with greater capacity and newer models before the ERP was chosen to support the new system. Some other improvements in the IT department were happening such as a new email server and newer versions of Office installed.
Besides the network difficulties, other limitations of the legacy system started to be more visible to decision makers as the need for information began to increase with the time and the number of stores opening. Some of the important changes started with a new warehouse management system that would allow the shipments to be more accurate and in time because the suppliers were selling some products with the bar code but the legacy system didn’t have that possibility, leaving all the control for inventory and shipment in the hands of the employees and subject to error.
Proposed ERP Solution
Because of all these reasons, the company realized that it was time for a change of IS, since the vision of the company includes an ambitious expansion plan in a short-term. Many stores opened and a few new partners were added to the chain every year and a proper robust ERP system would allow the company to reach its goals and keep the quality and reliability of the information high.
In the legacy system, the human resources had a system, the logistic department had another and the company operated in a different one. Besides that, the information was not available for instant retrieval; and a database was created to fulfill the need but with a weekly delay period for updates. With the ERP system most of those issues would be solved just by operating in the same environment, which would allow up to date information available.

Key Drivers for Innovation Whenever a company is faced with choosing a new ERP system, it must consider how that system will contribute to the company’s core values. A system that does not contribute to the company’s key values for operation is not worth the time and effort that will be put into its implementation. However, it is often the case that a new system will enrich the company’s ability to increase the value of its operations. Examples of value drivers for an organization are: financial performance, successful marketing implementation and ability to provide customers with adequate service. Value drivers can be internal and external. Internal value drivers occur within an organization, while external drivers involve a firm’s relationship with the external environment. In the case of Leo Madeiras there were both internal and external values that supported the implementation of a new system. For one, a new ERP system would provide
Show More

Related Documents: Essay on ERP IMPLEMENTATION

implementation ERP Essay

1. What are the current challenges facing Bombardier? They faced challenges from acquiring many companies because during the acquisitions Bombardier inherited the data, processes and systems of each company which created inefficiencies. Systems didn’t communicate with each other resulting in low inventory turns and price inconsistency. This was not productive for Bombardier and was time consuming for the employees. The biggest problem was the low visibility of inventory and the lack of communication…

Words 954 - Pages 4

Symantec Erp's Turmoil an Analysis and Evaluation of Implementation of Its Erp Sysytems Essay example

SYMANTEC ERP’s TURMOIL AN ANALYSIS AND EVALUATION OF IMPLEMENTATION OF ITS ERP SYSYTEMS MANAGEMENT INFORMATION COURSE WORK ASSIGNMENT BY OLUSADE PAUL-ROTUA (0714480) April 21, 2010 Symantec Corporation was established in 1980 and is a leading software vendor specializing in security and information management with operations in 40 countries and 17,500 employees. Since inception Symantec has grown by acquiring companies like Norton, Brightmail, Altris and other smaller software…

Words 2137 - Pages 9

Essay on Cisco Systems Inc.: Implementing Erp

Table of Contents Introduction 2 ERP Implementation Process 3 Implementation Obstacles 8 Implementation Success Level Analysis 9 Suggestions for Improvement 10 Conclusion 10 References 12 Appendix 14 Introduction To be successful in today's competitive and continuous evolving information technology (IT) market companies must be able to utilise their skills, information and knowledge to the highest efficiency level possible. Utilisation of and control…

Words 4327 - Pages 18

Erp and Manufacturing Essay example

The current issue and full text archive of this journal is available at www.emeraldinsight.com/0263-5577.htm IMDS 111,1 Implementation of ERP of the Australian manufacturing companies Maruf Hasan and Nga T. Trinh School of Mechanical and Manufacturing Engineering, University of New South Wales, Sydney, Australia 132 Received 24 May 2010 Revised 14 July 2010 Accepted 24 July 2010 Felix T.S. Chan Department of Industrial and Systems Engineering, Hong Kong Polytechnic University, Hong…

Words 5993 - Pages 24

ERP Application Paper

BUS 771 ERP Final Application Paper Enterprise Resource Planning (ERP) systems are rapidly becoming more and more common in today’s industries, in fact you would be hard bent to try and find any sizable company that is not using some form of ERP. Companies are implementing ERP systems to help them become more efficient in their everyday processes in turn making them more lean and profitable as well as being more reliable to their customers. These companies set these goals of the ERP system but…

Words 3367 - Pages 14

Essay about Accounting Information

the human, system and organizational issues that may be faced implementing an AIS such as ERP. Introduction Enterprise Resources Planning, which is evolved from its previous level, general Information System aims to integrate a set of business processes which together serves common business functions, such as accounting, inventory control and business projecting, etc (Charalambos & Sylvia, 2004). ERP system has its primary objective to improve the decision-making process and organisation performance…

Words 1802 - Pages 8

Enterprise Resource Planing Essay

productivity. Hence, it is very necessary that the changes be implemented very meticulously. In order to fully understand ERP, it must first be defined. Motiwalla and Thompson (2012) define ERP as “basically integrated information systems that support such enterprise functions as accounting, financial, marketing, and production requirements of organizations.” (p. 6). Other definitions of ERP are – “A set of software applications that organize, define, and standardize the business processes necessary to effectively…

Words 2184 - Pages 9

Nibco's ERP System

Objectives for adopting an ERP System NIBCO, Inc., is a medium sized manufacturing company of pipes and fittings with its headquarters based in the U.S with annual revenue of $460 million. NIBCO has implemented SAP R/3 across 10 plants and 4 new distribution centres in December 1997 with a Big Bang approach. The management team of NIBCO was of the opinion that the company was of “information poor” and needed to “cut loose” from its existing legacy systems which does not communicate with each other…

Words 2833 - Pages 12

A Brief Note On Enterprise Resource Planning

Enterprise Resource Planning as ERP is a system with all the business related functions and designed to serve the needs of each different department within an enterprise. A well-implemented and appropriate ERP system can create significant efficiencies across the business, resulting in timely business information, better customer relationships, a more cost effective supply chain, improved internal process and increased profitability. To Analyze ERP system in an enterprise, the architecture of enterprise…

Words 1411 - Pages 6

Importance Of ERP

acknowledge that like any system, ERP has its own limitations and thus manage relevant expectations properly. Executives should circulate the importance of the project regularly and personally participate in the project ongoing activities compared to delegating it to subordinates and worse to technical staff (Holland and Light, 1999). They must be ready to allocate required resource and be willing to clarify any political conflicts. Since the ERP implementation imposes a serious change of practices…

Words 1294 - Pages 6