ERP Systems Implementation and its Impact on Wendy's Operations

This report examines the implementation of Enterprise Resource Planning (ERP) systems within Wendy's, a major fast-food chain. The study explores the strategic importance of ERP in enhancing Wendy's operational efficiency, focusing on supply chain management, resource allocation, and data-driven decision-making. The report details the structure and implementation process of ERP systems, including project management frameworks and key data utilization. It emphasizes the positive impacts of ERP, such as increased transparency, improved resource utilization, enhanced coordination between branches, and better product demand forecasting. The analysis also covers the potential for innovation and the establishment of integrated database management systems. The conclusion highlights the critical role of ERP systems in optimizing Wendy's operations, knowledge management, and resource management, ensuring its continued success in a competitive market. The report references several academic sources to support its findings.

Running head: IMPLEMENTATION OF ERP SYSTEMS
IMPLEMENTATION OF ERP SYSTEMS
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1IMPLEMENTATION OF ERP SYSTEMS
Introduction
The study is focused towards understanding the effectiveness of ERP systems towards
positively enhancing the productive functions for organizations. The organization that is selected
for the essential analysis of the subject is Wendy’s Restaurants. It is one of the longest running
restaurant and fast food chains in the US with significant requirement of ERP systems. ERP
refers to enterprise resource planning which is the integrated management of the essential
business processes of organizations. ERP is managed through the specially designed ERP
software that gather information in regards to the supplies, resources and other essential aspects
that are used by the organization and use the same to direct the functions of the organization.

2IMPLEMENTATION OF ERP SYSTEMS
Implementation and structure of ERP
The implementation of ERP system and subsequent strategies can determine the
increased productive functions of organization. The implementation of the ERP systems across
the Wendy’s restaurants would need to be strategically focused towards increasing the
productivity of the company. Wendy’s is a long running fast food restaurant chain in the United
States. It was established in 1969 in Ohio. It became the world’s third largest hamburger seller
by 2016 with more than 65 thousands shop locations worldwide (The Wendy's Story | Wendy's,
2019). It is important to understand the requirement for the effective implementation of both
external and internal ERP systems towards enhancing the productive functions of the Wendy’s
organization. The organization of Wendy requires to source much of their resources from a large
number of suppliers. Hence, ERP needs to be implemented to monitor and optimize the supply
chain functions of the organization.
ERP has to be integrated with internal and external factors. The internal factors consist of
the employee skills of the company, the organizational culture of the company as well as
financial and technological strengths of the company. The external factors influencing the ERP
would include political factors, economic factors, social factors, technological factors, legal
factors, legal factors and environmental factors. The mangers have to integrate internal and
external factors like the organizational strategies in response to market challenges would
integrate it with the employee skills.
Project management framework to be used to structure the ERP system:
Firstly, a project management framework need to be created in order to implement the ERP
systems in Wendy’s. This will help in the systematic ERP implementation within the existing

3IMPLEMENTATION OF ERP SYSTEMS
organizational framework. Hence, the ERP implementation need to go through the process of
initiation, planning, managing and implementation. The most important data that would need to
be utilized are customer data, sales data, productivity data and supply data. Firstly, discovery and
planning needs to be done. A dedicated team is needed to consider the entirety of the
organizational process and identify the significant issues and problems. The second phase would
be to design the ERP process. The company currently runs business in around 30 countries (The
Wendy's Story | Wendy's, 2019). Apart from the domestic design the international ERP design
also needs to be created. The third step is the development of the entire system. This will require
the implementation of a system that will have data in regards to the finances, supplies that are
both food and non-food, customer information, sales data and customer preferences data (Laudon
& Laudon, 2016). The fourth phase will definitely be the deployment of the ERP systems. The
initial systems need to be used in the more in smaller branches of the Wendy’s chain of
restaurants. Some of the more experienced employees need to be trained initially in these stares
for this process. The successful implementation of these will make way for the systems to be
spread to the other Wendy’s stores. Fifthly, the deployment of the ERP systems will need to be
done after the initial applications of the systems achieve a certain level of success. The
deployment of the ERP systems across all the stores of Wendy’s would require the employees to
be properly trained in regards to the ERP system usage. This also needs to be done in phases as
some of the employees need to be given access to a range of data that will be used. The sixth and
the last phase will be provision of ongoing support to the ERP systems that are implemented.
Thus, dedicated teams need to be created for providing support in regards to ERP (Deulkar et al.,
2018). This process will make sure that the proper implementation of ERP happens across the
restaurant chain. The resource planning process should take place from the time of gathering

4IMPLEMENTATION OF ERP SYSTEMS
primary resources from the farmers and other suppliers so that Wendy’s can get a proper idea of
the resource availability and requirement. The ERP systems should be made significantly
effective to incorporate all the required information at the right time.

5IMPLEMENTATION OF ERP SYSTEMS
Positive impact on operations
There are many significant implications that can be derived from the implementation of
ERP systems towards enhancing the productivity of the organization. Firstly, there is a definite
need in Wendy’s to find out whether a portion of their supplies are going to waste. Improper
utilization of resources can greatly hamper the productivity of the organization. Moreover, this
can end in the organization incurring heavy losses. Hence, the implementation of ERP systems
will make sure that all the resource oriented data are accounted for (Tenhiälä, Rungtusanatham &
Miller, 2018). This means that Wendy’s will be aware of exactly how much resources are being
utilized in accordance with the requirements for productivity in the organization. Thus, wastage
if any can be detected and subsequently reduced for ensuring optimal utilization of resources.
Secondly, there will be more transparency in the business operations due to the implementation
of the ERP systems. This will cater to the better growth of the organization as the people will be
aware of the requirements of productivity. Transparency will make sure that a large number of
people are aware of the processes that are required for the organization to achieve its major goals
(Deulkar et al., 2018). Hence, they can make their performance better and utilize the knowledge
of the resources to provide innovative solutions. Thirdly, there will be growth in innovative and
effective measures of achieving objectives and goals. One integrated database management
system will be used to monitor and optimally manage all the significant resources that are to be
utilized at Wendy’s. This will make sure that there is ample scope of innovation across the
various stores of the organization. Innovative approaches have to be implemented in line with the
requirement put forwards by the ERP systems. Innovation will help towards achieving optimal
growth for the organization.

6IMPLEMENTATION OF ERP SYSTEMS
Fourthly, Wendy’s is a large enterprise that is spread across the United States. An effective ERP
system will help to establish essential coordination between the various branches of the
organization. The Wendy’s store at one part of the United States will be able to communicate
data to a Wendy’s store located at other parts of the country. There will be proper coordination
between the supplies provided by the warehouses and the demand for fast food across the various
stores of Wendy’s. Fifthly, a very important positive side of implementing ERP will be that the
stores will be aware of the exact demand for the exact product. Products that are difficult to
provide at a given restaurant of Wendy’s will be cancelled and a more locally available and liked
item can be provided in place of that item. The company can essentially gather information that
can help in the future product offerings of the organization.

7IMPLEMENTATION OF ERP SYSTEMS
Conclusion
The product offerings of Wendy’s have been the key to its rapid growth and historic
success. The outlets would need ERP for enhancing their future prospects. This will ensure that
the company lives up to the reputation it has been able to garner over the years. It is important
for the organization that it establishes an optimally effective network considering the supply
chain, operations and productive output functions of the organization. Wendy’s need to
implement effective changes through the direction that it would receive from the ERP systems.
In essence ERP systems help organizations to optimize their knowledge management and
resource management processes.

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References
Deulkar, A., Thakre, K., Zade, P., Gajbhiye, R., & Balbudhe, P. O. (2018). Design and
Implementation of Smart ERP System. International Journal of Current Trends in
Science and Technology, 8(04), 20208-20213.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Shen, Y. C., Chen, P. S., & Wang, C. H. (2016). A study of enterprise resource planning (ERP)
system performance measurement using the quantitative balanced scorecard
approach. Computers in Industry, 75, 127-139.
Tenhiälä, A., & Helkiö, P. (2015). Performance effects of using an ERP system for
manufacturing planning and control under dynamic market requirements. Journal of
Operations Management, 36, 147-164.
Tenhiälä, A., & Helkiö, P. (2015). Performance effects of using an ERP system for
manufacturing planning and control under dynamic market requirements. Journal of
Operations Management, 36, 147-164.
Tenhiälä, A., Rungtusanatham, M. J., & Miller, J. W. (2018). ERP System versus Stand‐Alone
Enterprise Applications in the Mitigation of Operational Glitches. Decision
Sciences, 49(3), 407-444.
The Wendy's Story | Wendy's. (2019). Retrieved from https://www.wendys.com/wendys-story