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After studying how the logistics industry benefited from using Enterprise Resource Planning system, SAP software, we found the following.
• Improved communication
The communication between partners of the company and within the company had improved
• Increase in profits
Increase in profit by reducing expenditure and increase in sales
• Better security
The business data is centralize, consolidating separate security systems into a one structure
• More accurate information
The data/information is updated in real time basis
• Increase data usage
Increase usage of cooperate data as data is shared
• Easier modifying information
Information is easier to be modified
Enterprise Resource Planning system
Enterprise Resource Planning System Diagram
Enterprise Resource Planning is a system made up of programs which automate the business admin functions of an organisation back office. It includes modules such as financial, manufacturing and human resources (HR) modules.
Enterprise Resource Planning system was created as an extension of the concept of manufacturing resource-planning system. It automated the process of keeping the manufacturing line to stay supplied with materials in order meet the incoming customers’ demand.
Enterprise Resource Planning system helps to synergise the resources of an organization mainly men, material, money and machine through information, by making the operation process more integrated and streamlined, and also make the information flow within and beyond an organisation more dynamic and immediate, by extending and integrating the business's operational IT systems, eliminating redundancy and automate the routine processes resulting an increase of shelf life and usefulness of the information. It also makes the components of the information system more flexible in a way that soften the boundaries of the departments, and increasing the partners’ and customers’ ability to access data and enhancing the organisation respond to the market place.
Since Enterprise Resource Planning implementation had become a must for gaining competitive advantage. Today, in India many companies had gone in to implement ERP system and is expected in the near future that 60% of the companies will be implementing one or the other Enterprise Resource Planning systems In the past, due to the high cost of implementing an Enterprise Resource Planning system, only very large Multi-National Companies and Infrastructure Companies is able to implement Enterprise Resource Planning system. today in India, many organisations have gone in to implement Enterprise Resource Planning system and is expected that in the near
Some Leading Enterprise Resource Planning vendors include SAP, Oracle, People soft and JD Edwards.
Michael Porter Five Forces
Michael Porter five forces, is an industrial analysis structure and a development for business strategy. It derive the five forces that determines the competitive intensity and attractiveness; overall profitability of a market by drawing upon the industrial organization economics.
Michael Porter Five Forces Diagram
The five forces include:
• New competition threat
• Substitute products or services threat
• Customers bargaining power
• Suppliers bargaining power
• Competitive rivalry Intensity
Enterprise Resource Planning system stands for Enterprise Resource Planning system; it is a system that facilitates the flow of information between all business functions inside the boundaries of the organization and manages the connections to...
References: • Wolfgang Niefert, SAP ONE BUSINESS Implementation(2009), Birmingham, U.K. : Packt Publishing Ltd., 2009 .
• Andreas Vogel and Ian Kimbell, MySAP enterprise resource planning for dummies(2005), Hoboken, N.J. : Wiley Pub., c2005.
• Joseph A. Brady, Ellen F. Monk, Bret J. Wagner, Concepts of enterprise resource planning (2001), Boston : Course Technology, c2001.
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