The SAP ERP System Content 2022

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RUNNING HEAD: MANAGEMENT 0
THE DIET CENTER: THE SAP ERP DECISION
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MANAGEMENT 1
Table of Contents
Introduction......................................................................................................................................2
Firm’s strategy, mission and vision in relation to SAP ERP decision.............................................2
Role of an appropriate ERP system.................................................................................................3
Cost and benefits of implementing an ERP system.........................................................................4
Effects of an ERP system................................................................................................................4
Future of the firm.............................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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MANAGEMENT 2
Introduction
Wazzan was the executive dietitian, founder, and co-owner of the Diet Center (DC) in Lebanon,
it is the firm which offers various products and brands which include it provide treatment for
obesity (Olayan, 2018). It also solves the medical problem such as obesity problem, food allergic
in dietetic clinic. It also offer retail outlets by delivery system as well as several customizable
planning for meal, through distinctive features and meeting the requirements of the consumers
the business were in the growth stage in prior three months. However, between the year 1995-
2004 company were in more losses because of several reasons such as instability in the political
factors, increase in the cost and expenditure as well as not more loyal consumers. Due to this
does not earn more profits and half of the amount from the profit is used in paying salaries and
company also face problem and raising debt it is because of purchasing the large property
(Olayan, 2018). This results in other issues which includes such as higher cost of operation,
increase in the waste. The firm also faces other problem that is recruiting the right human
resource, making bargaining with the suppliers as well as controlling the operations of the
organization.
Firm’s strategy, mission and vision in relation to SAP ERP decision
The various problems were faced by the firm which is become difficulty for the firm to gain the
loyalty among the consumers the other reason is increase in competition. For increasing their
growth the firm Wazzan starts working on refine and quality branch of catering which is known
as Tickles for making it more refine she recruit different and special team. In this Tickles provide
various healthy foods so that patients can also consume (Olayan, 2018). The firm also uses
several software to track the clients, to understand the financial performance of the organization
and to investigate the employees performance such as Diet Clinic system, ABC system etc.
Therefore, various initiatives were made to overcome waste and enhance the bottom line of the
firm. However, the company still face problem it is the right decision to adopt the SAP ERP
decision it is because the mission of the firm is to spread awareness of the health and offer low
calories, low design food for managing the weight and for treating the therapeutic patients. For
this firm also provide teaching to educate the clients. Through this software firm can document
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MANAGEMENT 3
all the progress of the procedure and collect the plans of the data which can help the firm to
make right decision at right time (Ng, 2019). This can support the firm to manage the time and
help the firm to achieve that is to become the leading company and expand in international
environment by maintaining among the customers. This software can overcome the problems of
managing the human resources and financials of the firm by covering all the financials
characteristics and managing the sales, quality and technology of maintaining the low calorie
diet. This can also support the firm in maintaining the planning regarding making the decision
and reviewing the progress of the structure (Zhao et al., 2019).
Role of an appropriate ERP system
The ERP system is important for the operations of The Diet Center it is because the various
functions are performed by the company which includes maintaining the balance of the accounts.
The system also helps in maintaining the record for the visit of the clients, this system is also
important and provide other support to the firm which includes it leads in inventory management
and keep the details of the sales items and profits of the firm. Therefore, there is need and it is
appropriate for the firm this helps in reducing the wastage of the firm by keeping the track of
each client (Jenab et al., 2019). This also maintain other operations of the firm such as managing
the human resources by keeping the record of the daily attendance of the time and unpaid leaves
as well as vacation of the employees.
This helps the firm to review the complete procedure in developing the low calories and low fat
food this helps the firm to change as per requirement and changes is made in timely manner. This
supports the firm in increasing the efficiency and productivity as well as save the unnecessary
cost and expenditure; this also results in maintaining the growth of the business. This also
support the firm in improving the accessibility and security which help the firm in maintaining
visibility and accessibility and raise the ability of the firm to coordinate with other systems
(Slaman & Haddara, 2019). It can also help the firm to maintain the financial statements such as
balance sheet, income statements and leads in managing the time in efficient manner. This also
leads in efficient procurement it is because it keep the update of proper data and reduce the
problem of duplication, overlapping and incomplete data.
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Cost and benefits of implementing an ERP system
The implementation of ERP system increases the cost and provides benefits to The Diet Center
that is the ERP is implemented according to the number of user the more user leads in increasing
the cost. The firm has not more users through which the cost is incurred accordingly in which
expectation of per users will be $1500-$4000 (Jenab et al., 2019). The other cost will incurred
installation it is because in which overall procedure will be followed such as planning,
installation, training and configuration and the implementation and software cost will be in the
ratio of 1:1. The maintenance and updating cost for managing the software in the firm is also
increased this is very important due to keep the solution of the firm in shape. The firm will also
cost for providing initial as well as continuing training to all the employees of the organization in
this case firm recruit new special team which raise the expenditure and overall cost will be
occurred up to $90,000.
The Diet Center also get various benefits which includes that it help the organization to manage
the time of each activity and invest more time in developing low calorie menu and in spreading
awareness about benefits of health. Therefore, firm also face some problem which can be solved
through this software such as it can support the firm to manage the human resource and recruit
talented staff when demand arises in the firm. This leads in reducing the waste and maintain
operations of the firm such as procurement, financing by understanding the overall transactions.
Further, it also helps in managing the other activities such as cash management, purchasing and
sales of the firm (AlBar & Hoque, 2019). The firm can also declare the sales tax, income
statement as well as trial balance and provide the overall calculation of the payments which is to
be paid to the employees such as salaries as well as other governance payments.
Effects of an ERP system
The ERP system influence the activities of The Diet Center in positive manner it is because
through this firm and integrate all the activities such as human resource, financing, procuring in
highly efficient manner which can also help in increasing the quality of the organization. This
can also leads in controlling the cost and expenditure of the organization it is due to the reason
that through this firm can invest accurate time on each activity and leads in dividing the activities
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such as developing menu and help the firm to use the latest technology to maintain efficiency in
the firm (Slaman & Haddara, 2019).
This also supports the firm for encouraging the employees to develop the large project by finding
the activities so that obesity will be treated. ERP system can also increase the capability of the
organization to provide quality services to the consumers which can raise the satisfaction level of
the consumers. The better management of operations activities leads in reducing the cost of
operations of the firm it can also increase the ability to make accurate decisions according to the
situation (Gupta et al., 2019). It is considered the major important tool when organization has to
process and organize the financial data in efficient manner. Through this firm can also decide the
investment which should be done in the human resource and support the organization to make
big change in the long run. Therefore, the system helps in increasing the overall productivity and
allows the firm to make more loyal customers. The loyalty of the consumers towards the product
supports the organization to gain competitive advantage and can help the firm to accomplish
mission and vision of the firm.
Future of the firm
ERP system leads in providing better outcomes to The Diet Center in future it is because through
this firm can manage all the functions of business in highly efficient manner and encourage the
employees to work in team. This results in increasing coordination and support the organization
to run their operations effectively which can be support in make efficient decisions regarding the
dispatching and distribution. It also helps in making decisions about daily kitchen production and
can maintain good relationship with the suppliers (Gupta et al., 2019). In future firm can manage
the controlling practices in the organization so that firm could maintain proper internal control.
The firm will provide quality product because of complete record of the preferences of clients
and reduce confusion because of also maintaining other records such as client visiting record.
The more control over the inventory and al details regarding the profits and sales can manage
proper flow of cash and helps in understanding the accurate account and resources which is used
in each of the product (Kaaria & Njuguna, 2019). In future there could be proper insight about
the procurement department and make planning according to the requirement, it also provide
regular update to the employees regarding the data , reports s that important information will be
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communicated to all the employees of the firm. This also support the organization to monitor the
purchase order, status of the billing and help the organization to examined the delivery order
which firm has to deliver to the client.
Conclusion
From the above, it is concluded that The Diet Center provide low calorie diet to the clients but
still firm face various issues due to political factors, increase in the cost etc. which provide less
earning to the organization. Therefore, above investigation revealed that Wazzan should adopt
the decision of applying ERP system it is because of receiving various benefits such as time
management, cost management, inventory management. The will provide better outcomes to the
firm in future due to making coordination with the various operational activities, this can
increase the productivity and help the firm to hire competent employee in the organization.
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References
AlBar, A.M. & Hoque, M.R., 2019. Factors affecting cloud ERP adoption in Saudi Arabia: An
empirical study. Information Development , 35(1), pp.150-64.
Gupta, S., Meissonier, R., Drave, V.A. & Roubaud, D., 2019. Examining the impact of Cloud
ERP on sustainable performance: A dynamic capability view. International Journal of
Information Management, 8(4), pp.8-12.
Jenab, K., Staub, S., Moslehpour, S. & Wu, C., 2019. Company performance improvement by
quality based intelligent-ERP. Decision Science Letters, 8(2), pp.151-62.
Kaaria, S.K. & Njuguna, R., 2019. Organizational Attributes and Implementation of Enterprise
Resource Planning. International Journal of Current Aspects , 3(2), pp.231-42.
Ng, C.S.-P., 2019. Emergent Theory for Enterprise Resource Planning Upgrade Decision: A
Multiple Case Study. In Global Information Diffusion and Management in Contemporary
Society, pp.98-124.
Olayan, S.S., 2018. The Diet Center: The SAP ERP decision. American University of Belrut .
Slaman, M. & Haddara, M., 2019. How Green Can the Lettuce Be? A Case Study on Greening
Initiatives in Supply Chains and Sustainable ERP Systems. Procedia Computer Science , 164,
pp.79-85.
Zhao, M., Wang, J., Zhang, H. & Zhao, G., 2019. ERP Perspective Analysis of PSS Component
and Decision-Making. Sustainability, 11(4).
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