All entries for April 2012

efficient management in ERP

Every change exist motivation in the process. The majority of companies is eager for more resource for providing better quality to the customers. However, it is irony that the managers acquire great amount of asset without managing efficiently. Thus, ERP provides a solution for resolving them.

Integration is always a complex task for the stakeholders and directors. Inevitably, there are already some asset or data in presence in business running. An efficient system should consider about the compatibility as well. It is not only compatible with existing information but also harmonious with other partnership. In other words, the business owners should not consider an exact solution which just meet their own target. Through coordination, the business should fully utilize the relative resource in order to compete with challengers. In modern business model, supply chain integration is the most difficult task among the targets. The managers should consider about this before manufacturing their own products. ERP will help to collect and to control these important data. The information will be updated in no time. Through real-time system, the resource must be using more efficiently in real world. The raw material will also be stocked in order. Thus, much more resource will be enhanced the competiveness of the business.

Considering human resource, the employees will also reduce the burden on routine work. Basically, inventory management affects the efficiency of overall operation. However, it is inevitably error in such a complex process. Through automatic system, the error rate could be minimized in all circumstances. It is largely reduce the exhausting work on every employee. The employees will no longer consuming time on this sort of work and utilize their time smartly. Furthermore, some new business might be expected in the future, since the employees have change to develop new skill in other fields. The manager is always interested in all kinds of skills which might bring stable income in the business running. There will be more available time for brainstorming new ideas. Similarly, the training course also need time to develop new knowledge. In brief, the employees will be easier in work than previous time. Certainly, the error rate would also be reduced due to this efficient system. Through communicating, the managers will have chance to realize the thought of employees and to carry out any profitable idea.

Modern business emphasized the competition but also stressed the collaboration. Though ERP, the business will have great opportunities to defeat their competitors. It is no reason to survive without the solid partnership in modern business operating. The essential data will be transmitted immediately. The linkage among the suppliers will also be connected closely. Certainly, it is also getting great chance to achieve win-win situation for strategic partners.

Shih-chieh Kuo : 29 Apr 2012 21:00 |  Comments (1) |  Close comments |  Report a problem

Impacts of ERP on Supply Chain Integration

ERP, which originated from MRP in manufacturing industry, has enjoyed a great popularity in recent decades. Meanwhile, the scope of ERP has been expanding in different sectors and there are increasingly more ERP vendors start concentrate on the ERP solution for supply chain integration.

Supply chain integration, which reduces the overall costs, improves efficiency and effectiveness, shortens lead time, develops customer satisfaction, plays a vital role in most industries nowadays.

With regard to the way how ERP helps the entire supply chain to gain competences, I think the most important function is the real-time information exchange. It refers several aspects.

First is inventory management. Based on the real-time sales transactions and the production and schedule plan of suppliers in ERP, inventory level can be appropriately controlled. The real-time sales data also helps develop forecasting plan so as to enable companies be prepared. Furthermore, the relationship with suppliers is developed as well. There is a trend that it is better for buyers to cooperate with fewer but more reliable suppliers. The information sharing with suppliers?? delivery and production plan makes buyer company works closer with its suppliers.

Secondly, customer service satisfaction is improved. Since companies are able to access real-time data of customer requirements and all the resources of operational process through ERP system, the reaction time is shortened. Also, with the control of operational activities, better quality of products can be achieved. Furthermore, ERP system is able to support mass customization by translating a specific order from a customer into production so as to achieve assemble-to-order or make-to-order.

Thirdly, ERP system contributes to more smooth and streamlined operational process. With all the integrated data available, it is much easier to fulfill and replenish orders, organize production plan and purchase raw materials. Accordingly, the overall costs are reduced.

Even there are many benefits that ERP contributes to supply chain integration. Some obstacles still exist. For instance, the standardization of data among partners throughout the supply chain, the resistance of information sharing in order to keep confidential and overwhelming available data for decision-making.

To conclude, ERP does bring loads of benefits to supply chain integration. The obstacles need to be further tackled and supply chain members should also pay attention to these obstacles when integrating.

References

Kelle, P and Akbulut, A. (2004). The role of ERP tools in supply chain information sharing, cooperation, and cost optimization. International Journal of Production Economics. 93 (8). pp. 41¡§C52.

Akkermans, H, A., Bogerd, P., Y¡§?cesan, E and Wassenhove, L, N, V. (2002). The impact of ERP on supply chain management: Exploratory findings from a European Delphi study. European Journal of Operational Research. 146(2). pp. 284¡§C301.

Sua, Y. and Yanga, C. (2010). A structural equation model for analyzing the impact of ERP on SCM. Expert Systems with Applications. 37 (1). pp. 456¡§C469.

Songqin Wei : 27 Apr 2012 14:03 |  Tags: Chain Erp Integration Supply |  Comments (2) |  Close comments |  Report a problem

ERP vs. BPM

Today, there are many discussions on the internet about relationship between ERP and BPM which show that many people are confused and don’t understand the differences between these two solution. The question in this area included;

- Does BPM is going to replace ERP?

- What is the business value of BPM comparing with ERP?

- Which solution should be implemented first?

ERP: the concept of ERP is focusing on integrate information flow within a company using the concept of decentralize database which will be updated on demand and give a single view on customer data. In order to work with ERP in multi user environment, it requires the effective process management to make sure that all users realize the important of process and discipline to business procedure. Some customers didn’t realize an important of business process in implementing ERP and expect that the system will support their processes. However in most cases, company need to reengineering their business process to match ERP best practice and this is why the cost of ERP solution is very expensive.

BPM: in the other hand, BPM is focusing on workflows of task which essential to deliver business objective. BPM aim to make business processes more efficient, more effective and flexibility enough to support any change that happen within the company.BPM tools provide the platform that allows users to create business applications bringing all different data, document, operation and people together. Moreover, it will help improve business agility and productivity while business components can be reusable and changeable.

The difference characteristics of these two systems give the answer that BPM cannot replace ERP system as they focus on different purpose. In spite of those facts, I'm not surprise to see both of BPM software vendors and ERP software vendors offer the solution of complementing these two systems together.

In SAP website, the given information shows that the company adjusts BPM concept solution to help integrate business process throughout application and organizations, know as SAP BPM solutions. SAP BPM claim to have ability to exchange data across applications or module both from SAP and non-SAP. The latest improvement of using SAP BPM is the ability to allow mobile users to interact with SAP and non-SAP application via mobile application. This is just only one example of benefit from combining ERP and BPM together.

As ERP can handle all the data and information while BPM will create business process base on those data to make sure that the data was used through entire business process even the process has been changed, I think ERP BPM solution will easily attract new ERP customer to go for this solution.

References

1. http://processgeniearchitect.wordpress.com/2009/08/10/bpm-or-erp-or-both/

2. http://www.ebizq.net/topics/bpm/features/11594.html

3. http://www.architectsap.com/sap-netweaver/sap-bpm/

4. Enterprise Resource Planning: Implementation and Management Accounting Change in a Transitional Country. Ahmed O. Kholeif, Magdy G. Abdel -Kader and Michael J. Sherer. Palgrave Macmillan, 2008. Palgrave Connect. Palgrave Macmillan. 24 Apr 2012 http://0-www.palgraveconnect.com.pugwash.lib.warwick.ac.uk/pc/doifinder/10.1057/9780230584051

5. DAVIS, R. & BRABÄNDER, E. 2007. An Introduction to BPM ARIS Design Platform. Springer London.

Kanita Tippayajan : 25 Apr 2012 08:00 |  Tags: Bpm Erp |  Comments (2) |  Close comments |  Report a problem