What exactly is ERP? multi-module application software to cover many back- office functions of a business. This makes data sharing easier as they all access the same database. Typical core modules include : – Finance – Product Planning – Purchasing – Inventory Management – Order tracking – Distribution/logistics – HR – However most ERP systems now include modules for sales management and CRM etc. (www.sap.com) February 20084
Aims of an ERP System Facilitate information sharing and communication between departments. enable end-end management of business processes A business process is a collection of business activities that take one or more kinds of input and create an output e.g. the order fulfilment process, purchasing processes, payment processes. 5
Example: How ERP Services Business Processes Customer service representative enters a customer order: While doing this they have access to all the information necessary to complete the order for example: – the customer's credit rating and order history from the finance module, – the company's inventory levels from the warehouse module – the shipping dock's trucking schedule from the logistics module People in different departments all see the same information and can update it. The order it is automatically routed via the ERP system to the next department. 7
ERP systems generate data and information on business processes. This is used to streamline and improve the activities making up the business process (in theory, anyway – more on this later!)
Customer Relationship Management Focus is the customer..a strategy used to learn more about customers' needs and behaviours in order to develop stronger relationships with them. It is a process that will brings together lots of pieces of information about customers, sales, marketing effectiveness, responsiveness and market trends to build mutually beneficial customer relationships. 9
Supply Chain Management The supply chain refers to the flow of materials, information and services from raw material suppliers through factories and warehouses to the end customers. Supply Chain Management aims to plan, organise and coordinate the supply chain activities. Information on these activities is used to improve supply-chain decision-making.
Performance Management Systems Aim to improve business performance by collecting data and using analytics, BI technologies to provide information to decision makers at different levels within the organisation.
Identifying Measures - look at particular application areas and examine key questions 1. The Supply Chain