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Assignment on ERP Systems (Solution)

   

Added on  2021-06-17

6 Pages1758 Words40 Views
ERP Assignment Name of the CourseStudent Name

1.What are the key goals Hershey wanted to achieve using an ERP system? The key goals that any company want to achieve through ERP systems is increased efficiencyof the business processes, cost reduction, improved collaboration among the departments,competitive advantage and key functionalities. There is no dearth of companies like IBM,General Motors, Emerson Electric, Cummins that have achieved many benefits byimplementing ERP in a successful manner but at the same time there are numerous examplesof ERP failures also. Hershey was using a traditional legacy systems that do not providemuch collaboration among the business processes. For example, each department waspurchasing their own software based on their requirement that result in huge communicationgap between the departments as well as result in the redundant data entry in multiple systems.On the other hand, ERP systems consists of different modules like Purchasing and sourcing,Order and quote management, Customer relationship management, Accounts Payables,General ledger, Human resource, Supply Chain planning and these systems are based on theflow of the data from 1 system to another which encourages collaboration as well as providethe visibility of upstream and downstream processes (Ranjan, Jha, & Pal, 2017). In ERPsystems, as soon as the order management tem ships the customer orders, account receivableswill become active and accounts were informed to invoice the customer. This willautomatically create the process flow and thus streamline the entire business process. Apartfrom it, ERP systems were also consisting of workflows to effectively manage the businessapprovals. Hershey was also looking to improve its inventory turnover rations, better supplyand demand planning, accurate forecasts, and better accuracy in customer fill rate andaccurately promising dates to the customer so as to increase the customer satisfaction (Aloini,et al., 2016). Apart from this, the business climate has become very competitive and costreduction is one of the areas to improve margins. ERPs often streamline the businessprocesses, reduce manual efforts of entering data again and again in different systems and

also speeds up the order processing cycles, purchasing cycles, automate the various activitiesand thus reduce the costs (Conteh, & Akhtar, 2015). Apart from it, ERP systems captures thehuge data and can also provide the key performance indicators by taking data from variousmodules. This will help in decision making as well as identifying the areas of improvement.Further, ERP systems automatically creates the income statement and many other reports bydirectly taking data from the system. 2.Discuss the pros and cons to customising the system. Use examples relevant toHershey. Customization means changing the standard ERP package to suit to your needs. Generally,ERP packages consists of industry best practices ingrained in standard business processes andthus it is not recommended to change the standard way of doing things however there aresome cases when customizations are absolutely necessary. For example, if any organization ishaving very unique business process or the business process is a source of competitiveadvantage for the organizations and it is not supported by the ERP packages, it makes senseto customize the ERP systems however for every single case, it is not advisable to customizethe ERP but instead change the business process and align it to the standard ERP way(Narayanamurthy, & Gurumurthy, 2017). The pros of customizations is that organizations can continue to use their existing businessprocesses if they are not supported by the ERP systems and sometimes it is possible thatcustom process is even better than the standard process flow configured in ERP system.Apart from it, customization of the process will lead to easy acceptance among the peoplebecause they are comfortable in that manner and not much training is needed. However, there are also large number of issues associated with the ERP systems. Forinstance, customization means changing the package and thus require technical expertise and

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