ERP Solutions and Benefits in the Electronics Manufacturing Sector

This report delves into the application of Enterprise Resource Planning (ERP) systems within the electronics industry, with a specific focus on Oracle-based solutions. The analysis begins by introducing ERP and its functions, highlighting its role in automating back-office processes, including project management, supply chain management, and financial management. The report then examines the electronics manufacturing industry, emphasizing its unique challenges such as competition, supply chain complexity, and regulatory compliance. The core of the report outlines the benefits of ERP in this sector, including automation of processes, improved product quality tracking, enhanced supply chain management, promotion of lean management principles, and improved traceability. A case study of LG Electronics is presented, illustrating how ERP implementation helped address challenges like inefficient decision-making and lack of transparency. The case study highlights the positive outcomes, such as improved employee engagement and informed decision-making. The report concludes by emphasizing the importance of careful selection and successful implementation of ERP systems for companies in the electronics sector, reinforcing that ERP solutions are essential for meeting business needs.

Running head: ELECTRONIC RESOURCE PLANNING
ELECTRONIC RESOURCE PLANNING
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Introduction
This paper shall elaborate on discussing about ERP (Electronic Resource Planning)
and its use within the electronic industry. The chosen ERP for the purpose is the Oracle-
based system. The paper shall present the industry highlighting the specific elements of it.
Furthermore, it shall shed light on the solution benefits gained by the industry using the ERP
with reference to a relevant case study for the solution.
Discussion
Oracle-based ERP system
Oracle-based ERP is a cloud based software solution that is used for automating the
back office processes and the daily business activities (1). It is inclusive of project
management, supply chain management, procurement, accounting and financial management.
The electronics manufacturing industry
It is to mention that electronics manufacturing industries are usually with an aim of
cutting down the competition, supply chain management, enterprise-wide visibility, product
life cycles, and traceability. It is baffled with a constantly developing regulatory compliance
and the statutory. Having an existing CRM or MRP, the players in this industry also strive for
meeting the growing demands in order to create more innovative goods for the customers and
at the same time, to uplift the efficiency while maintaining the supreme quality(2). With the
contemporary advanced and developed ERP software, this industry is flourishing and
working excellently as the ERP solutions are helping the businesses in addressing and
meeting the potential challenges in faster and efficient manner.
Solution benefits

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a) Automation- ERP helps in automating the list of the vendors, orders, material billing
and other manufacturing processes for helping the businesses in curtailing the
inefficiencies present in the data handling process and any type of errors in the
production (3). It plays a significant role in the improvement of the manufactured
electronics’ quality.
b) Tracking and enhancing quality- It helps in tracking the weaker and defective areas in
the process of production. Also, the ERP for the electronics manufacturing companies
track these areas that are paving way for seamless data and real-time flow all over the
organisation.
c) Management of the intricate supply chains- It is vital for the electronics
manufacturing companies to communicate effectively in the real-time through the
web based industrial manufacturing cloud ERP software (4). It helps in empowering
the business to share the important information with all the suppliers from one
platform and in this way, it shuns the usage of telephonic conversations, emailing, fax
etc. that are very time-consuming and tedious.
d) Promoting lean management- The electronic manufacturing companies are required to
integrate the lean tools to optimise the supply chains. This is why; the ERP systems
for these companies help them in obtaining seamless data flow, which are both
accurate and demand-centric (5). It automates the internal process of communication,
tracking of production, inventory management and the materials traceability.
e) Improving traceability- ERP software help in tracking the codes of the product and
their availability against the raised orders. This further calls for having feature, which
boosts the traceability of different products that are manufactured.
Case study for the solution

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When LG Electronics, the global giant tried harmonising its HR functions, it faced
some significant challenges that were quite giant to handle (6). The enterprise faced issues
like high costs of maintenance, inefficient decision making, lack of transparency, inefficient
manual processes etc. This made it very tough for the company to operate on a global scale
and it was then when it decided to take the route of Enterprise Resource Planning (ERP). The
familiarity with the Oracle technology of LG has made it quite easier for the company to
finalise the solution. The solution offered it huge data hosting, multiple modules addition,
control and easy scalability. The ERP solution that it adopted included staff portal,
performance management system and the e-learning application. It helped LG Electronics to
manage the single system centrally with minimal cost of maintenance. Also, it helped in
ensuring transparency in the process of employee appraisal and recruitment. Furthermore, it
helped in real-time reporting for the tracking of the set objectives and for higher
management. Using ERP solutions have also helped LG in making informed decision as it
assisted in readily available real time reports. Overall, it also increased the employee
engagement, morale and productivity of the employees working in LG.
Conclusion
Hence, from the above analysis it is to conclude that successful implementation of
ERP systems allows for careful selection of vendors, solutions and systems and it gives a
clear understanding of the prevailing gaps that are to be met. Nearly every company today
could find a solution for meeting the needs of their business with the help of ERP.

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Finance 2014, 72-76.
(2) Powell, D.; Alfnes, E.; Strandhagen, J.; Dreyer, H. The Concurrent Application Of Lean
Production And ERP: Towards An ERP-Based Lean Implementation Process. Computers in
Industry 2013, 64 (3), 324-335.
(3) Elotmani, A.; Bouden, P. Automating The Conceptual Modeling Of Data Warehouse In
Information System ERP Type. Transactions on Machine Learning and Artificial
Intelligence 2017, 5 (4).
(4) Saleh Shatat, A.; Mohamed Udin, Z. The Relationship Between ERP System And Supply
Chain Management Performance In Malaysian Manufacturing Companies. Journal of
Enterprise Information Management 2012, 25 (6), 576-604.
(5) So, S. Creating Lean Suppliers: An Empirical Study Of Adopting Lean Manufacturing In
Supply Chains. International Journal of Rapid Manufacturing 2010, 1 (3), 348.
(6) Inge Strengthens Distribution Ties With LG Electronics. Filtration +
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