HS2011 Systems Analysis: ERP Vision for Ceylon Textile Suppliers

This document presents a system vision for implementing an Enterprise Resource Planning (ERP) system at Ceylon Textile Suppliers (CTS) to address challenges in manual sales order management, inventory control, and marketing. The proposed ERP system offers capabilities such as automated sales and inventory management, stock control, goods receipt processing, and enhanced marketing campaigns. The implementation of the ERP system is expected to yield tangible benefits, including improved productivity, reduced costs, and inventory reduction, as well as intangible benefits like increased transparency, faster data access, enhanced client response, and simplified strategic planning. The standardized reporting ensures global standards for the organization.

Running head: SYSTEM VISION DOCUMENT FOR IMPLEMENTATION OF ERP
SYSTEM VISION DOCUMENT FOR IMPLEMENTATION OF ERP
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1SYSTEM VISION DOCUMENT FOR IMPLEMENTATION OF ERP
System Vision Document for implementation of ERP for Ceylon Textile Suppliers (CTS)
Problem Description
 Description of the problem and idea for the solution:
o Manual management of sales order through master sales spreadsheet (MSSP)
o Manual sales report
o Sending mails to the consumers either monthly or sometimes more frequently to sale product that are not
in demand
o Creating delivery note manually after order is dispatched
o Stocks are managed manually and therefore sometime items are not sourced according to the demands
which affects the business and profit as well along with less consumer satisfaction due to poor product
delivery
o Sales teams update stock master file manually when the returned items from the customer are received and
items from the suppliers are received and therefore this process is not that effective when numbers of such
orders are significant and therefore requires improvement for ensuring effective management of good
receipt
o Customers are send emails manually for advertising and therefore, in this process some loyal customers
might not be included in this promotion

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3SYSTEM VISION DOCUMENT FOR IMPLEMENTATION OF ERP
Now the effective solution for all of these issues is to automate this process through application of appropriate software
and therefore ERP or enterprise resource planning software is considered in this context.
System Capabilities:
The following aspects are considered in describing the system capabilities:
 Description of the capabilities the new system will have
 D e s c r i p t i o n o f t h e s c o p e
The new system is equipped with the following capabilities:
 Automated sales management: ERP through its sales management module provides effective sales management
capability. It receives purchase orders and update the database and this information is automatically
communicated with the sales team along with order id, dispatch note and delivery note and all of these features
are automated for increasing productivity and accuracy
 Automated inventory management: ERP inventory management module keeps accurate description of the
inventory along the supply chain so that orders are tracked accurately before it is dispatched from the warehouse
and also keeps track of the orders after it is dispatched from the warehouse

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 Automated control of stock: ERP automates the tracking of products and therefore it provides an accurate
description of the items that needs to be stocked and items that are already in the inventory. Therefore, it is easier
to identify which products needs to be procured so that there is consistency between the supply and demand of
product. Along with that it also categorize products according to their demands so that products that are in
demand is procured accordingly and therefore it is easier to ensure that only those products are sourced that are in
demand and therefore less chance of stock surpluses so that resources are not wasted
 Automated receipts of goods: once an item is shipped and it is delivered to the consumer, it automatically creates
receipt of goods and communicated with the sales team and there is no requirement for creating receipt of good to
provide accurate sales figure required for financial analysis of the company
 Enhanced marketing and effective advertising campaign: ERP through its consumer management module,
analyses purchase data of the consumer and creates a list of loyal consumes and products are advertised through
email to ensure that advertising is effective and efficient that ensures profit for the company

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Business Benefits:
In order to analyze the benefits that the implementation of the ERP system provide to the organization, following aspects
need to be analyzed:
 The benefits that accrue to the organization
 Tangible (in dollars) and intangible benefits
Tangible benefits are referred to those benefits that are measured in monetary terms and intangible benefits are referred to
those benefits that cannot be measured in monetary terms but when analyzed in details it is identified that they are also
very significant if business impact is considered.
Tangible benefits:
 Improves the productivity that is associated with the process and personnel
 It lowers the cost required for products and services that needs to be purchased
 Paper and postage expenses is reduced as well
 Inventory reduction
 Lead-time reduction
 Stock obsolescence is reduced
 Product / service look-up is faster and ordering saving time and money

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 Automated ordering and payment is automated, cost for payment processing is reduced along with reduction in
paper costs
Intangible benefits:
 Transparency in the organization along with organizational responsibility is increased
 Data is accessed accurately and faster to ensure timely decision making in the organization
 Easier to communicate with more vendors which produce bids that is more competitive than traditional bidding
 Enhanced client response
 Time and effort required for data entry is reduced significantly
 Enhanced control on resources which provides context for lowering the risk that is associated with mis-utilization
of resources
 Simplifies strategic planning
 Reporting is uniformed and standardized that ensures global standards that is required for the organization as well