Assignment: Putting the Enterprise into ERP systems

Group 7

LAHORE SCHOOL OF ECONOMICS

ASSIGNMENT

MBA II SECTION I (A)

Strategic Supply Chain Management
Ms. Mahvesh Mahmud

Group Number 7:
Saad Ali Khan
Jahanzeb Aamir
Sidra Baig
Noor Fatima
Hera Qasim
25/05/2015

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Assignment: Putting the Enterprise into ERP systems

Group 7

Putting the Enterprise into

ERP systems
Q1. How is an ERP system different from and IT system as studied in Chapter 7 in the
previous session?
Information technology (IT) is basically a general term that covers all forms of technology used
to create, store, exchange, and use information in various forms. ERP software is used to
manage the business. It integrates all the operations, manufacturing processes etc and these
packages promise the seamless integration of all the information flowing through a company.
Whereas, IT lacks integrated vendors solutions such as those offered by ERP.
Q2: What is SAP? Who makes it? Where is it used? What is its structure? What is Data
Warehousing?
SAP software represents the terms Systems Applications and Products in Data Processing
which is related to ERP. SAP software is important because it manages the complex business
units of large enterprise. Raw material, inventory, production, marketing and sales can all be
managed from a single point. Manufacturing companies face many challenges in coordinating
all of their business units. They have a plethora of data that needs to be integrated and
evaluated by managers in different locations around the world. Specifically designed to tackle
this major challengesit centralizes all of the resources needed for the organization including
payroll, human resources, customer relationship management, sales, material handling and
supply chain. SAP is widely used in these industries: Automotive, Engineering, High Tech,
Media, Mining, Oil and Gas, Retail, Chemicals, Healthcare etc. In the reading an executive of
a company said SAP is not software, it is a way of doing a business. One of the most popular
uses of SAP software is cloud services. Data warehousing emphasizes the capture of data from
diverse sources for useful analysis and access, but does not generally start from the point-of-view
of the end user who may need access to specialized, sometimes local databases.

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Assignment: Putting the Enterprise into ERP systems

Group 7
Q3. How does ERP impact SC strategy in terms of efficiency and responsiveness?
ERP impact SC in many ways for instance When ERP systems are fully realized in a business
organization, they can be expected to yield many benefits, such as reduction of cycle time, faster
transactions, better financial management, improved on-time delivery, improved supplier
interaction, lowered inventory levels, improved cash management, and reduced direct operating
costs.
For example as mentioned in the case Fujitsu Microelectronics reduced the cycle time for filling
orders from 18 days to a day and half and cut the time required to close its financial books from
8 days to 4 days. Likewise IBMs storage system division reduced the time required to reprise all
of its products from 5 days to 5 minutes. Some large manufacturers have been able to achieve
tight coordination throughout their businesses by using ERP. They can rapidly shift sourcing,
manufacturing and distribution functions worldwide in response to changing patterns of supply
and demand. For example Owens Corning adopted ES because for the company to go
internationally it was necessary to coordinate supply chain processes across the world. So by
using ERP the company was able to enter in to larger international contracts and effectively
managed its supplies such as finished goods inventory was tracked easily daily etc.

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