Logistics Essay

Topics: Enterprise resource planning, Supply chain management, Implementation Pages: 7 (1947 words) Published: February 9, 2011

Student Number:
Table of Content
Introduction- 3 -

Advantages of ERP- 4 -

Disadvantages of ERP- 5 -

Conclusion of advantages and disadvantages- 6 -

Successful ERP implementation- 7 -

Failed ERP implementation- 8 -

Conclusion- 10 -

List of references- 12 -


For this essay I have chosen the analysis of the ERP system. In the last few weeks we have been focusing mainly on ERP and discussing it, therefore I have chosen it. I believe that this assignment will help me find out how well I have mastered the understanding of the ERP system. This essay is going to be provide a clear overview on how a specific company has integrated the system of ERP in their supply chain management and discuss the ups and downs of them. First I will begin by analyzing and explaining the main advantages and the main disadvantages of integrating the ERP system into a company’s supply chain management. Then I will use an example of a company that has integrated ERP into their supply chain management with success and a company in which it did not work beneficial. And last, I will give my own conclusion based on this information.

Advantages of ERP

The biggest advantage of an ERP system is inventory control which leads to total cost reduction and lead time reduction.. Since ERP is a uniform platform it ensures that there in no uncertainty in the information that is processed. To have a better understanding of the advantages of implementing an ERP system, it is wise to categorize them. Industry wise advantages

-Manufacturing Sector: Speeding up the whole process.

-Distribution and retail Stores: Accessing the status of the goods

-Transport Sector: Transmit commodities through online transactions.

-Project Service industry: Fastens the compilation of reports.

Corporate advantages:

The accounts department personnel can act independently. They don't have to be behind the technical persons every time to record the financial transactions.

-Ensures quicker processing of information and reduces the burden of paperwork. -Serving the customers efficiently by way of fast response and follow up. -Disposing queries immediately and facilitating the payments from customers with ease and well ahead of the stipulated deadline.

It helps in having a say over your competitor and adapting to the whims and fancies of the market and business fluctuations. The swift movement of goods to rural areas and in lesser known places has now become a reality with the use of ERP.

The database not only becomes easy to use but also helps prevent any misinterpretations of the information.

ERP is suitable for global operations as it encompasses all the domestic jargons, currency conversions, diverse accounting standards, and multilingual facilities .In short it is the perfect commercial and scientific epitome of the verse "Think Local. Act Global".

ERP helps to control and data and facilitates the necessary contacts to acquire the same. [1]

Disadvantages of ERP

A major disadvantage of ERP is its overall startup cost. The implementation requires new hardware, training and consultants to give instruction in addition to the software itself. This creates a high price tag that may not be acceptable to a company especially for a system that cannot guarantee profit. Another disadvantage of implementing an ERP system is the fact that is a software program which makes it vulnerable towards information leaking out (e.g. via hacking).[2]

Conclusion of advantages and disadvantages

In general ERP is recommended in an organization not only because there are more advantages than disadvantages but also because the disadvantages are very solvable. Although that still depends on the size of an organization, the overall educational level of an organization (a low educated organization will have much difficulties with utilization of the system) and other factors which could...
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