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Erp Helps Productivity at Northern Digital Inc

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CHAPTER III
PROBLEM CASE

Questions:

1. For such a small company, why is an ERP better than SCM applications?
2. Identify the supply chain segments that the ERP supports, be specific.
3. Relate this case to Porter's value chain and to its competitive model (Chapter 14). Show the ERP's contribution.
4. Enter intuitivemfg.com and report on the capabilities of their ERP product.
5. Relate this case to business planning and strategy.

Answer for Question 1

ERP covers the overall processes of the whole organization from front-office to back-office operations. It supports internal supply chain within an enterprise. SCM basically are processes involving bill of materials, manufacturing, inventory, warehousing, and logistics. It support just certain part of internal supply chain.
In certain industries, such as manufacturing, freight forwarding, and logistics providers, SCM is a subset of ERP. Therefore, for small companies like NDI, it’s more efficient and effective to implement one system, namely ERP, instead of more SCM systems. Because if a small companies like NDI only implements SCM instead of ERP, they have to expand to another system such as HRM (Human Resources Management), FM (Financial Management), and PB (Planning and Budgeting), if the company’s demand of business process is exceeding the system that supports it.
Furthermore, ERP software support several functionalities for SCM, and small companies like NDI could choose which functionalities they would like to implement, i.e. Supply Chain Management, Human Resource Management, Financial Management, or Planning and Budgeting. Also, unlike SCM applications, ERP system of new generation provides new opportunities for enterprises in (near) future: to connect to their business partners, to integrate new functionalities (open ERP), to use Internet capabilities, to integrate with CRM solutions, etc.

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