SAP R/3 and Online Inventory Control

This assignment delves into the application of SAP R/3 in managing online inventory. It examines how SAP R/3 facilitates real-time tracking, optimization, and control of inventory levels. The assignment explores the advantages of implementing SAP R/3 for online inventory control, including improved accuracy, reduced costs, and enhanced customer satisfaction. It also analyzes the impact of SAP R/3 on supply chain management by streamlining processes and fostering collaboration.

Information management system
2017

Contents
Introduction:..........................................................................................................................................2
Types of ERP application software:......................................................................................................2
Proposal of ERP software application:..................................................................................................3
Features of the proposed ERP software application:..............................................................................3
Transition of the organization with the new system...............................................................................4
Integration of ERP with different Departments:....................................................................................4
Conclusion and Recommendation:........................................................................................................6
References:............................................................................................................................................6

Introduction:
The working of the “Real tech Organization” is the development of the new IT system. They
are working in the direction to provide best customer service support to the users. The
organization is divided into several departments which are sales and marketing department,
financial department, R&D department, IT, Human resources, and management department
(Raj, 2012). The information system deployed in the working curriculum of the organization
is inefficient in handling the functioning of the different department. Now the owner of the
company wants to transform the tradition information system with the ERP system. In this
paper we are looking forward to identify the types of ERP applications which can help in
improving the operational capability of the enterprise. The purpose of this paper is to provide
an ERP software application which is best suitable for the organization with the explanation
of its features. The implementation of the ERP system within the working curriculum of the
organization helps in streamlining the business operation and processes to synergize the
utilization of the resources (Jain, 2010).
Types of ERP application software:
The types of ERP application software are listed below:
 SAP R/3: This is the most suitable ERP software used for transforming the business
operation and processes.
 LN/BaaN: This software helps in increasing the productivity of the organization by
having better control on the underlying processes.
 Microsoft Dynamics Ax 2009: It provides efficient services to the retailers, suppliers,
and wholeseller.
 Microsoft Dynamic NAV: This software works on improving the functionality of the
finance department, supply chain management system, customer relationship
management system, and others.
Difference is shown in the table below:
SAP R/3 LN/BaaN Microsoft Dynamics
Ax 2009
Microsoft Dynamic
NAV
It helps in improving
the business
The areas which are
covered are
The better services
can be provided to
It is capable of
managing supply

operational capability
by providing better
services and support
productivity of the
user, increasing the
efficiency of the
operational
processes, controlling
of operations, and
enhancing
communication
the suppliers,
retailers, distributors,
and whole seller
chain and customer
relationship
management
program.
It is suitable for large
organization
It is suitable for
manufacturing
companies
It is suitable for
larger and medium
sized organization
which works on
multiple sites or
countries
It is suitable for small
and medium sized
organization
Proposal of ERP software application:
From the above discussion and literature review, we have concluded that the SAP R/3 is the
most suitable ERP application software which can be used by the Real Tech Organization to
transform their business operation to provide better services to the customers.
Features of the proposed ERP software application:
The SAP R/3 software is capable of simplifying the processing of complex business
transaction and reducing and distributing the work load among the different unit of the
project. It helps in improving the operational capability of the organization. The
implementation of the SAP R/3 ERP system within the working curriculum of the
organization helps in streamlining the business operation and processes to synergize the
utilization of the resources. The scalability of the enterprise can be enhanced. It is the
versatile software which can efficiently work in the different department of the real tech
organization.

Transition of the organization with the new system
The Real tech organization makes use of SAP R/3 application software for transforming their
business tactics and operational processes. The financial accounting system of the
organization can be improved by providing accuracy in the management of budget,
investment, distribution of services, sales, and human resources. It helps in satisfying the
requirement of the business by providing the common platform to the different department of
the organization such as sales and marketing department, financial department, R&D
department, IT, Human resources, and management department (Wilson, 2010). The client
server architecture is supported by the SAP R/3 application which is capable of handling
database packages for warehousing, finance, supplier, customers, sales, marketing, human
resource, and others. The implementation of the SAP R/3 program helps the organization to
improve its planning processes. The interruption and risks associated with the processes can
be reduced and minimized. The cost of the material used can be estimated with the
procurement protocols. It helps in monitoring the sales and customer relationship program for
enhancing the workflow of the enterprise. The administrative cost of the enterprise can be
reduced to a high extent with the deployment of the new technologies (Mashari, 2014). The
global integration of all the departments can be possible on the common platform. The real
time information about the activities performed by the different departments can be easily
retrieved. The knowledge and expertise system helps in improving the operational capability
of the present architecture.
Integration of ERP with different Departments:
 Marketing and sales department: The implementation of SAP R/3 helps in managing
the automation in the sale and marketing department. The processes of multi-channels
marketing are streamlined with it (Kelly, 2009). The monitoring of the real time sales
and marketing can be efficiently done. Within the moment of second the required
information can be accessed with the use of ERP system. The relationship can be
effectively maintained with the customers. The ordering of the products and services
can be effectively done with the SAP R/3 system. The database is prepared for the
sales and marketing transactions. The unique number is generated to the sale order
process. The customer can choose multiple payment modes according to their
comfort.

 Supply chain management system: The ERP system helps in maintaining the balance
between the supply and demand of the resources which solves the problem of storage
and waste. The integration of SAP R/3 with the different department of the
organization helps in handling the availability of the resources (Moon, 2007). It plays
a vital role in handling operational cost and reducing overhead expenditure. It is
capable of managing flow of material, required information, information related to
finance, and others. The efficiency of the entire system can be efficiently managed
with the tracking of the orders and optimization the inventory management program.
 Accounting and finance system: SAP R/3 is the most suitable ERP by managing the
information related to the development of the general ledger, investment management
schemes, integration of the transactions, material management program, distribution
and sales department, and human resource department (Mishra, 2013). It helps in
analysing the profit ratio of the enterprise. It divides the accounting system into four
blocks which are classified as audit block, vendor block, receiving block, and manual
block. The financial accounting system of the organization can be improved by
providing accuracy in the management of budget, investment, distribution of services,
sales, and human resources. The management of these blocks helps in providing
accurate information for the accounting and finance department (Srinivasan, 2016).
The applicability of the ERP application helps in reducing the operational cost by
removing the redundant processes. The stability in the performance can be improved
with the consistency in the response time.
 Human resource management system: The SAP R/3 ERP system plays a vital role in
managing the data related with employees and man power. It focuses on aligning the
activities associated with the arrangement of training and development program,
payroll management, recruitment and appraisal, promotion, performance
measurement for incentives, and others (Mandal, 2013). The different activities which
are performed by the ERP system in managing human resources are categorised as
master plan for human resource management, administration of employees and their
salary, time management plan, training and development program, and others. The
complexity in handling the human resource can be resolved with the implementation
of SAP R/3 system.

Conclusion and Recommendation:
By analysing the given scenario, it is recommended for the real tech organization to
implement SAP R/3 ERP system because It helps in analysing the profit ratio of the
enterprise. The implementation of the SAP R/3 program helps the organization to improve its
planning processes. The interruption and risks associated with the processes can be reduced
and minimized.
References:
Jain, B. (2010). ERP SAP R/3 overview. Retrieved from
https://www.slideshare.net/seekbuntyjain/erp-sap-r3-overview-introduction
Kelly, J. (2009). SAP R / 3 Functionality overview. Retrieved from
http://www-bcf.usc.edu/~anthonyb/itp321/r3func.pdf
Mandal, P. (2013). Application of SAP R/3 in on-line inventory control. Retrieved from
https://www.researchgate.net/publication/222519314_Application_of_SAP_R3_in_on
-line_inventory_control
Mashari, M. (2014). Implementing ERP through SAP R/3. Retrieved from http://ac.els-
cdn.com/S1319157802800027/1-s2.0-S1319157802800027-main.pdf?_tid=2bdfe212-
9d3d-11e7-82bb-
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Mishra, A. (2013). Achieving business benefit from ERP system. Retrieved from
https://www.researchgate.net/profile/Alok_Mishra5/publication/259486796_Achievin
g_Business_Benefits_from_ERP_Systems/links/0a85e52d58aab1485d000000/
Achieving-Business-Benefits-from-ERP-Systems.pdf
Moon, Y. (2007). Enterprise resource planning: A review of the literature. Retrieved from
http://surface.syr.edu/cgi/viewcontent.cgi?article=1007&context=mae&sei-
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Raj, A. (2012). Role of ERP software in an Organization. Retrieved from
http://www.fibre2fashion.com/industry-article/2939/role-of-erp-software-in-an-
organization?page=1
Srinivasan, M. (2016). Role of ERP in supply chain management. Retrieved from
https://www.linkedin.com/pulse/role-erp-supply-chain-management-mohanapriya-
srinivasan
Wilson, C. (2010). Introduction to the enterprise resource planning and SAP. Retrieved from
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