The Diet Center: An SAP ERP System Implementation Report

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THE DIET CENTER: THE SAP ERP
DECISION

Table of Contents
Introduction......................................................................................................................................2
Evaluate the firm’s growth strategy, mission and vision in relation to their SAP ERP decision....3
Assess the need and role of an appropriate ERP system in the operations of the firm..................4
Evaluate the costs and benefits of implementing an ERP system...................................................5
Assess the effect of an ERP system on the various activities within the firm.................................6
Manufacturing..............................................................................................................................6
Accounting...................................................................................................................................6
Human Resources........................................................................................................................6
Customer relationship management............................................................................................6
Discuss the future of the firm by analysing the potential impact of the SAP ERP system on the
operation and financial results.........................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Introduction
The report discussed here talks about a significant decision which has to be taken by Sawsane
Wazzan who is a dietitian by profession in Lebanon whose entire family is dedicated to dietary
health and well being of people dealing mainly with obesity, Mazen jabri who is sales manager
of systems, Applications, and Products in Data Processing (SAP) for the Middle East and North
Africa region is constantly talking with Sawsane Wazzan to upgrade her system with enterprise
resource planning (ERP) systems which is founded attractive by her ,but as the dietitian family is
going through tough times due to various reasons ,it has lag behind and is unable to upgrade the
system easily.

Evaluate the firm’s growth strategy, mission and vision in relation to their SAP ERP
decision
Sawsane Wazzan who is the owner of a diet centre whose entire family is dedicated for well
being of the country while constantly working for their health in general, even after getting a
setback due to civil war which lead to recession for the country and loss of quality of life which
was lived by the countrymen, as they were not able to spend much even on the basic livelihoods
which was required by them in general, they were dedicated to their diet center while working
regularly on its growth and making a strategy for the same ,while doing and planning for the
same they came across an new strategy which was The Sap system which was provided by
Mazen jabri to them.
The Sap system was basically dedicated to strong ERP business management system; it provided
growing companies with software independently dedicated to them only which would help them
in expanding their business while providing a quality of products to their customers, in this case
as the management was related to a diet plan which was to be expanded in the country as the
country was constantly suffering from health issues and basic living hood ,so a plan was to be
made to make a success full system that can be provided to people which they can afford easily
while they can work on their health also.
The SAP software was dedicated to big organization as it was considered as a gold standard for
ERP system, as it was too expensive to be afforded by smaller organizations; it provided all
kinds of financial as well as management reporting by collaborating various outfitted functions,
it provided the templates of various kinds of reports which were readily available to the
companies which evidently helped them in lowering their costs and increasing profit for the
organization. It allowed administrative management to easily supervise all the activities which
were required in the business to be done through a database which could be modified on a run
time, which was indeed a necessity of the diet center but as it was too costly to be purchased so
the family worried about how to purchase the system, as the manger was relative of the family so
she provided a relaxed fee convenience which could help them to purchase and use it easily. So
his was the mission for the diet company which was to be done in accordance to provide a
successful start for the center in adverse situations like this.

Assess the need and role of an appropriate ERP system in the operations of the firm
There is definitely need of an efficient ERP system in the firm as it is highly needed by the firm
to develop, there are too many challenges in the present scenario as they needed to cope up with
the competitors growing constantly in the country while there are too many challenges in the
organization too which marks the need of an appropriate ERP system in the firm which includes-
 There are too many data challenges which questions diet centre’s integrity, there is too
much inefficiency and wastes prevailed which require an imperative need to incorporate
data.
 It needs to focus on four of the departments which include –the clinic, the store,
production and POS as well as delivery which needed a perfect ERP system to manage
all of them simultaneously.
 It needs a merged data provided in central data base which could be enable real time data
updates which would lead to modify data whenever needed.
 Wazzan believes that SAP system would make it professional to deal with all diet centres
business operations and would lead to efficient working of the centre.
 If functioned properly, it would limit the cash duct and other inefficiency which company
has experienced in past.
 The system would lead to lesser wastage of money and lessen the expenditure which is
made on salaries of the employees employed, which might work overtime and might not
get the work done on time efficiently.
 The system might lead to offer newer opportunities for more control ,it might lead to
make newer lines in data incorporation ,make data protected, supervise budget of the
company, while conducting an analysis on the clashed data.
 The system was urgently needed in these adverse situations to stop all kinds of extra
wastage which were occurring in the company while needed to improve the company’s
structure while focusing on the urgent needs only.
 ERP system was highly recommended for the company but was restricted by some
difficulties as the owner asked if there is urgent need of it, would it be helpful to invest a
large amount at this point of time when the family was going through such unstable
political situations and poor economic conditions, it also needs to answer that if there
would be a large amount of benefits which would exceed the cost applied while doing the
investments for the same.

Evaluate the costs and benefits of implementing an ERP system.
There were numerous benefits which were associated with implementing an ERP system as it
would definitely lower the cost applied to the company today while maintaining the quality for
the same, being relative of the owner of the diet center ,Jabri offered a relaxed and easy going
payment facility which would help him to finance the ERP easily at a initial level ,as the
software was expensive and could not be afforded by them easily but would definitely lead
company to cost the company much lesser than the annual waste which was associated with
labor applied in the company, food to be given to employees which can be wastage ,it can also
cost material costs which could be reduced after applying successful ERP for the company.
The investment which was to be made at the starting while purchasing of the SAP software
represented only 10 percent of diet centers yearly sales, which was quit significant to be made as
this would definitely lead to successful working of the center while applying a minimum
amount of cost initially only. As it would give plenty of benefits and advantages when applied
and implemented in a proper manner to the company, even the return of investment is expected
to be very high, the return which would be obtained in the payback period which would result in
cost saving, eliminating repetition while preventing fraud and waste.
Implementation of the SAP software will definitely result in proper management of the company
while maintaining the accounting part, financial as well as reporting of the managerial reporting
while maintaining the cost structure to a finest allowed level, it would also focus on payroll and
management of stock that is it will control inventory management for the company
The software installed would lead to quality control of the products made by the company and
would also check the care provided to its customers at the time when it’s needed the most, as it
would lead to link all the processes, the system would also lead to centralization of all the data at
one place which could be made available to all the users at a time. It would also lead to
pinpointing the red flags available in the database and will provide tailored solutions for various
departments working in the company.

Assess the effect of an ERP system on the various activities within the firm
ERP system have generally a soothing effect on the firm to which it is applied as it gives various
advantages as well as features to the company and its customers,it has an effect on following
areas which are as discussed below-
Manufacturing-
There was time when instead of ERP, MRP was used everywhere which was manufacturing
resource planning, but as business realized that they need a support for operational functional as
well as when tools were added to MRP,it started to take ERP systems on the present market,
functionality to be remained as fastener for that day.
It helped to manage their product manufacturing easy, while developing it to a good level. It will
give the users some tools to manage resources which are available and which are needed to be
used, maintain finance of the company as well as maintain the shop floor it would help while
assisting, forecasting, procurement, material management, planning, as well as scheduling,
budgeting and other. Also many of the companies trust only on project management tools only to
keep a track on iteration of designing.
If the manufacturing was done using these tools easily then it would give more time to the
employees to apply creativity to everything they do.
Accounting
ERP has contributed in accounting mainly as it is included in back offices work for which it
was initially developed, it may cover all the tasks related to back offices including accounting as
main function it includes various functions in it including maintenance of account receivable,
payable amount while doing general functions like payroll, tracing time period and reporting of
tax in general.
Human Resources-
Human resource is also included as one of the task in back office work which could be done by
developed ERP system, it covers all HR functions which are needed to be performed by a
candidate in general for a person working in a company, it may also help in applicant tracking
which can lead to right applicant to be chosen by the system according to the criteria as set by
the team in the software
Customer relationship management-
Maintaining relation with customer is seen as one of the most important task which has to be
performed for the growth of the business as a strong relation with loyal customer can help the

business grow faster than ever before, ERP system makes a foundation to do so and helps it to
maintain a strong communication with its customer allowing to maintain a healthy relation with
the customer.
Discuss the future of the firm by analysing the potential impact of the SAP ERP system on
the operation and financial results.
After application of ERP systems in the firm there would be significant impacts on the firm
which would lead to growth of the firm eventually which include following benefits which are-
 Modification of data from single place only which means that a person could apply any
sort of changes in the database through accessing from one place only
 It would be done on the same time that is it would be a real time system which would
modify data at the same time only.
 It would definitely help in growth of business while increasing productivity for the
customers.
 It would lead to a reduction of internal cost applied while working for the firm by its
employees that would save the cost applied for giving the salaries of the employees.
 It would lead to customer services improved while fulfilment of the orders quickly than
ever before.
 It would help the firm to improve communication with the customers as well as with the
suppliers which would eventually lead to growth of the business.
 It would make a competition position in the firm while maintaining a healthy
relationship with comates.
 It would lastly lead to increased sales as well as profits attained by the firm.

Conclusion
The above report discussed the significant decision which was taken by the Sawsane Wazzan
who was dietitian by profession and her entire family was involved in doing the same while
maintaining a healthy relationship with its customers, while doing so a sales person comes in
her way who is basically her relative who directed her to use an effective ERP system which
would lead to growth of her business eventually as would reduce cost of man power applied to
the firm and would make it effective spending by the firm.

References
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Acar, M.F., Zaim, S., Isik, M. and Calisir, F., 2017. Relationships among ERP, supply chain
orientation and operational performance: An analysis of structural equation modeling.
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