Woolworths' Enterprise System: Risks, Adoption, and Success

This report examines the enterprise system implemented by Woolworths, a major Australian retail company, focusing on its nature, the risks associated with its supply chain dependency, and the factors that contributed to its successful adoption. The report details the specific ERP system utilized by Woolworths, highlighting how it enhances operational efficiency, integrates business processes, and improves resource planning. It also explores the various risks, including financial, legal, environmental, and human behavior risks, that Woolworths faces due to its reliance on the supply chain. Furthermore, the report analyzes how Woolworths achieved success with its ERP system, including improved inventory management, enhanced decision-making, and better collaboration with suppliers and customers. The report also discusses the benefits like improved marketing and profitability through the use of technologies.

REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Nature of enterprise system adopted by Woolworths organization.........................................1
2. Risk faced by company in terms of firm’s dependency upon supply chain............................3
3. The adoption of the Enterprise Systems succeed....................................................................4
CONCLUSION................................................................................................................................6
REREFENCES................................................................................................................................7

INTRODUCTION
Enterprise system appears to be the dream to the company which promises the seamless
level of integration of all the information which is flowing through the company. The
information can be such as financial and accounting information, human resource information,
supply chain information, customer information (Pohludka, Stverkova and Ślusarczyk, 2018).
This is considered to be important as the business processes in each business function are
considered to be disparities and not able to share the information with each other as this is the
difficult for the manager to have assembling of all data fragmented into a system to taken firm
appropriate decision. Woolworths Group Limited is a major Australian company with extensive
retail interest throughout Australia and New Zealand. The firm have the recent level
implementation of the enterprise resource planning to have the wide level of coordination and
integration in the business process and planning of resources.
MAIN BODY
1. Nature of enterprise system adopted by Woolworths organization
Every organization has different kinds of enterprise system used by them as per their
business needs and requirements. These systems help organization in many different ways and
especially it helps an organization to enhance their operational efficiency, reduce fiction between
supply chain and resource management in a much better manner (Pohludka, Stverkova and
Ślusarczyk, 2018). Woolworths is one of the major Australian company with extensive retail
interest throughout New Zealand and Australia. They are one of the largest takeaway liquor
retailers within Australia. Woolworths has also adopted an enterprise system for management of
their supply chain both within an outside the organization. They have adopted an appropriate
Enterprise resource planning system also known as ERP system which is a cross- functional
system that helps the organization in providing integration and coordination of business
processes. This system also helps Woolworths in planning resources in an appropriate manner.
ERP system is one of the best solutions that helps an organization in taking care of all the
physical aspects of supply that includes transportation, storage which further helps in
management of supply and demand of products manufactured by the organization.
ERP system adopted by Woolworths has helped them to enhance their overall operational
efficiency within their manufacturing system. it helped in maintaining effective communication
within internal departments of the organization. It also helps in enhancing work efficiency of
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employees in a much better and appropriate manner (Soliman and Karia, 2016). Adoption of
ERP system within the organization has helped Woolworths in increasing operational
transparency throughout their interfaces. There are many other ways with the help of which ERP
system adaptation within the organization has helped the organization in increasing operational
efficiency. It helps in integrating multiple areas of business which helps the managers to access
all kinds of info ration such as client information, orders, invoices and figures easily, it also
provides ways in which overall cost associated with maintenance of efficiency related to
inventory management in a much appropriate manner in other words it helps in reducing
operational and inventory management costly.
ERP system adopted by Woolworths also helps them to increase intimacy of supply and
customers by focusing upon enhancing integration between supplier and customers. it helps in
maintaining information about suppliers, resources supplied by then with its quality and cost
information. It is one of the best ways with the help of which transparency between supply and
customers can be enhanced. Integration between supplier and customer can be done in following
ways: suppliers can see all the planned order that are generated by the system and deadline in
which resources re required. Whereas organization can also see goods that suppliers will be
providing at what cost and quality level which will be maintained by the supplier (Deshmukh
and Kumar, 2016). Whereas customer integration with the system is decided at planning phase
when planning of a new product is done. At this stage demand of customers are tried to be
fulfilled.
ERP system further helps Woolworths in decision making. It is one of the most important
factors which increases its importance within the organization. This system helps the
organization in enhancing decision making as information or data from every department or part
of the organization is available under one system. data related to cost development, Invoicing,
accounting, marketing and sales order entry; manufacturing are available in ERP system.
Analysis of this data help organization in decision making which further helps an organization
uplifting sales performance, reduce labour cost, managing business operations, upgrade planning
and control records, improves delivery time and many more.
ERP system can also be used during new product development and launching process.
ERP system helps in increasing visibility within an organization also provides integrated and
comprehensive view of all the aspects that are involved in selling and manufacturing process of a
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product. Within new product development it can be used by organizations for analysing current
status of all the activities. It simply helps Woolworths to support and combine organization, their
products and different business areas in an appropriate manner (Badewi and et. al., 2018). With
the help of this data company can position their strategy against all of their business processes.
One of the main purposes because of which adoption of ERP system within Woolworths
increases is that it helps in integrating both inter and intra organizational function by simplifying
access to related information. It helps the organization in gaining competitive advantage by
bringing improvement within their business process, supportive decision- making, creating
business value and many more. With the help of this system Woolworths can also examine
impact of decision making upon the organization in the competitive environment in which they
operate in order to gain competitive advantage. As this system helps the organization in reducing
their manufacturing or supply management cost associated with their products and services, this
provides them with an opportunity to introduce the product within the market at lower cost as
competed to their competitors which further helps them to gain competitive advantage.
2. Risk faced by company in terms of firm’s dependency upon supply chain
There are various kinds of risk that are associated with dependency upon firm’s supply
chain because of which operation of supply chain can get disrupted. Some of the most common
risk associated with dependencies on supply chain are as follows:
 Financial risk is one of the most common risk associated with dependencies on the firm’s
supply chain. This is majorly a result of unfavourable and unexpected change in exchange
rate, bankruptcy of supplier or many other changes (Rouhani and Mehri, 2018). Due to
occurrence of these financial risk it can become difficult for the organization to carry out
supply chain operation without any disruption. Due to this work required to complete activity
can also get disturbed. It is one of the most common risk that can be faced by Woolworths.
 Legal risk is another type of most common risk that can be faced by the organization because
of their dependencies on their supply chain. Occurrence of legal risk can crate various kinds
of barriers or obligations that can disrupt supply chain operation in many different ways. it
can also include misuse of intellectual property, violation of laws within supply chain and
many more.
 Environmental risk can occur at any time within an organization that depends upon their
supply chain. This risk mostly occurs or is created by suppliers or contractors who provides
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goods or material required to the organization (Ullah and et. al., 2018). These risks can be
directly impact or disrupt supply chain operational processes.
 Another common risk which is faced by Woolworths is overlapping of supply chain
operations. Dur to lack of proper system or structure many supply chain operations can either
get overlapped either in time duration or in terms of resource required and many more. Fur to
this risk overall supply chain operation or other activities related to it can het impacted or
disturbed.
 Human behaviour risk is one of those risk which quite difficult to be identified and accessed
as this risk can occur at any time within supply chain process or operations of supply chain
upon which organization is dependent. This risk majorly occurs because of lack of proper
communication or mis- communication (Ullah and et. al., 2018). This risk can many times
lead to poor judgement or bad decision. It is extremely important to have proper and effective
communication within departments that are involved within supply chain process.
3. The adoption of the Enterprise Systems succeed.
As the development of the ERP solution in the company have the inclusion of the data mart,
performance management systems along with developing their staff portal and e-learning
application which have the make the company to achieve more level of optimization (Alcivar
and Abad, 2016). This have the benefit their company is the managing the centrally single
system with the least level of maintenance costs along with developing the transparency in the
different aspect of recruitments an employee appraisal processes based on the right level of
competence and proven performance.
The development of the supply chasing mechanism have offered there successful level of
inventory managements, production lines along with real time financial reporting with the no
level of site maintained which avail the Woolworth company to have the major developing
concentration of the core business instead if the adding more level of overhead on the computer
system maintenance.
The firm have the achievement of benefits with the quick and easy setup as the automation
modules for the supply chains and inventory have proper level of endorsement for the report
which have the inclusion of the stock that was “past the expiry date” or “about to expire."
This is helpful in developing their supply chain and production reports which have resulted in
the full control on the product lines with improving of the demand and supply status. The more
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level of accounting detail has the been helpful in taking the time decisions which are basically
based on the real time dates.
The development of web hosted the isolation have helped in preventing the need or the
purchases there in house computer hard ware in need to make the purchase in house computer
hardware’s which ensured the easy and timely to the access the varsity of devices (Kumar,
2018). Hence there off sites the computer hosting which is significantly have the lower the cost
by limiting to the annual maintenance charges.
The company have the improve the collaborations between the manufacture supplier for the
demand data driven level of forecasting and inventory management as the along with retailing.
There is the more level of reduction in the inventory along with improvement in the fulfilment
rates along with product advisability at the purchases point of time.
The Woolworth company have their move in ensuring lean supply chains by the improving
the marketing and significant profitability as the technologies have the providing the myriad
opportunities in order to collaborates (Greasle. and Wang, 2017). Hence the supply achieving
have their extended enterprises which are trying out to be more and more complex in terms of
eco systems, people, process and significant technologies.
There is the more level of profanation of data which is the variables in the minded as are
advance to the computing the powered along with connectivity which allows to have the test the
optimality in the ever increasing the area.
Hence the company have the successes in the utilizing the data which as POS sales with the
use of the as well as social media information in identifying there change demand which will
be much earlier respond is the supply chain logistics by increasing the sales, improve service
levels and reposition inventory to maximize true benefits. There is the development in the mule
channels programmes which will have the changing in the expectation form the supply chain for
the forecasting / planning paradigm to have the building the responsive supply chain. This have
the finding of work flow tools as there critical level of step moving towards there lowering of
the operational cost along with bolstering the bottom line efficiency.
On the passive aspect the company have the success in the increasing their global level of
opportunities and enhanced the value chain planning. the companies are considering to have the
development of global needs of the corporations. This have led to optimal level of inventory
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within the echelons of the supply chain process. This is also critical to consider carbon footprint
levels and ensure the greening of the supply chain (Greasley and Wang, 2016).
Hence, the technology has helped in the improving the field sales, merchandizing and marketing
which have enable direct services to the consumer through customized location-based coupons to
improve employee productivity in the field). This make the proving the information’s which
have the provenances with specialized the information’s about the sustainability, local contends
along with manufacturing methodologies which allow the consumer in order to have the
connects the directly to consumer.
CONCLUSION
From the above file it can be concluded as Woolworths has also adopted an enterprise
system to promises for management to the seamless level of integration of all the information
such as financial and accounting information, human resource information, supply chain
information, customer information. This have helped the firm in increase intimacy of supply and
customers by focusing upon enhancing integration between supplier and customers. The
company have the improve the collaborations between the manufacture supplier for the demand
data driven level of forecasting and inventory management as the along with retailing.
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REREFENCES
Books and Journals
Alcivar, I. and Abad, A.G., 2016. Design and evaluation of a gamified system for ERP training.
Computers in Human Behavior, 58, pp.109-118.
Badewi, A., and et. al., 2018. ERP benefits capability framework: orchestration theory
perspective. Business Process Management Journal.
Deshmukh, A.A. and Kumar, A., 2016. An ERP life cycle and its competitive advantages in
SMEs. International Journal of Innovative Science, Engineering & Technology. 3(6).
pp.369-374.
Greasley, A. and Wang, Y., 2016. Building the hybrid organisation through ERP and enterprise
social software. Computers in Industry, 82. pp.69-81.
Greasley, A. and Wang, Y., 2017. Integrating ERP and enterprise social software. Business
Process Management Journal.
Kumar, A., 2018. The Impact of Erp Systems on Business Decision-Making in Pharmaceutical
Company. ZENITH International Journal of Business Economics & Management
Research, 8(4), pp.58-63.
Pohludka, M., Stverkova, H. and Ślusarczyk, B., 2018. Implementation and unification of the
ERP system in a global company as a strategic decision for sustainable
entrepreneurship. Sustainability, 10(8). p.2916.
Rouhani, S. and Mehri, M., 2018. Empowering benefits of ERP systems implementation:
empirical study of industrial firms. Journal of systems and information technology.
Soliman, M. and Karia, N., 2016. Enterprise Resource Planning (ERP) Systems in the Egyptian
Higher Education Institutions: Benefits, Challenges and Issues. In International
Conference on Industrial Engineering and Operations Management, Kuala Lumpur,
Malaysia.
Ullah, A., and et. al., 2018. Enterprise Resource Planning (ERP) Systems and User Performance
(UP). International Journal of Applied Decision Sciences, pp.377-390.
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