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Erp System

In: Business and Management

Submitted By zhaorui
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Enterprise Resource Planning (ERP) is a business management software that a company can use to collect, store, manage and interpret data from many business activities, including:-product planning, cost and development manufacturing or service delivery marketing and sales inventory management shipping and payment. ERP facilitates information sharing across organizational units and geographical locations.It enables decision-makers to have an enterprise-wide view of the information they need in a timely, reliable and consistent fashion.The major components of ERP are: financial management, manufacturing, human resource, materials management, production planning, plant maintenance, purchasing, marketing, sales and distribution.
Successful implementation of ERP: Bradley Corporation implemented an ERP system and then they realized significant benefits which is lower inventory levels and warehouse space requirements, increased sales without added staff, decreased lead times and increased on-time deliveries. So Bradley changed their business process because of ERP and moved forward.
Unsuccessful implementation of ERP: In 2000, Nike spent $400 million dollars to update their supply chain system and ERP implementation. But it caused 20% decreased in their stock. Because they did not test the new demand-planning software. And everything went wrong way and broke the supply chain.
The most single important element in a successful ERP implementation is people. Which means a project manager. A knowledgeable, experienced and dedicated manager is the most important thing. They can clarify the situation and the problems. Thy know the need of change and can set a right project team tasks and provide the best way for the ERP implementation. As the unsuccessful case above, if someone in Nike’s team is a experienced and knowledgeable staff who knows they need a test first before

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