Analyzing ERP System Impact on Operation Management at Walmart

This report explores the influence of Enterprise Resource Planning (ERP) systems on various operational aspects of Walmart. It highlights the impact on key areas such as accounting and finance, information systems, supply chain management (including inventory and logistics), human resources, and customer relationship operations. The report details how ERP systems enhance task completion through faster tracking across the supply chain, break down communication barriers between departments by providing a common communication channel, and effectively manage resource costs, ultimately improving the overall business performance of Walmart. Specific examples are provided to illustrate how Walmart utilizes ERP software to streamline processes, manage employee data, and optimize inventory resources through a centralized, server-based system.

Running head: Operation Management 1
Operation Management
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Operation Management 2
Introduction
ERP system is a broad concept that utilizes most of the organization processes
through software development and implementation. All organization processes and functions
are automated for the easy and effective execution of integrated organization operations
(Nwankpa, 2019). The ERP system has an impact on several organization operations, as
outlined below, based on the Walmart organization.
The effects of ERP systems in different organization operations
Organization operations which are most influenced by ERP system in Walmart
include accounting and finance operations, Information system, supply chain management
which involves inventory and logistics management, Human resource operation, customer
relationship operations among others (Heredia-Calzado, and Durendez, 2019). The effects
and relationship of ERP system within the above operations includes:
Task Completion – Supply chain operations manage the production and distribution
of intermediate and final products to the necessary points. ERP system enhances faster
tracking, which is effective from one end to another. For example, in Walmart, customers can
place and pay orders through the developed system, which is accessible to all departments
under production and supply chain.
Communication Barriers – ERP system breaks down communication barriers
between different departments within the organization. Each department and operation
traditionally used to work dependently as a "min organization." Through the use of ERP
software, Walmart has a common communication channel that is used to improve product
delivery through effective communication. All information is shared through ERP software
within an organization.

Operation Management 3
Cost of Resources – Cost of resources within an organization is effectively managed,
thus improving the general performance of the business. For example, the decline of the cost
of resources used in Walmart is declined, management of employees' data, and inventory
resources, among others. All these resources recently are managed using a single and
technical system that is server-based in its operation – ERP software.
References
Nwankpa, J.K., 2019. “ERP System Benefit Realization and the Role of ERP-Enabled
Application Integration.” In Advance Methodologies and Technologies in Business
Operations and Management (pp. 802-815). IGI Global
Heredia-Calzado, M. and Durendez, A., 2019. The Influence of Knowledge Management and
Professionalization of the use of ERP systems and its Effect on the Competitive Advantage of
SMEs. Enterprise Information Systems, 13(9), pp. 1248-1274.