The Enterprise Resource Planning

The Enterprise Resource Planning is data management software used by many companies to control their services. Many businesses around the world have been using the ERP system to make it easier for data analysis solutions, infrastructure integration on full-scale basis and automation. However, depending on the type of services you want your ERP system to work on, it can seemingly give someone a headache upon choosing. One’s choice will depend on the output quality of the final data. There are several ERP systems which have different important capabilities of on the services they are likely to offer. So, the management a company chooses the ERP system that suits it and which is friendly to analyzing several ideal solutions. On choosing an effective system, it will help provide accurate information, thus streamlining the company’s operations.

The capabilities of the ERP system that would be useful for a company just like that of Just Sofas could be; firstly, the capability of the system to analyze data would be extremely useful as it could find possible trends and several patterns occurring in the process. It could also enable the company to effectively reflect certain tasks, thus providing some predictions on the future decisions made by Just Sofas Company. The system also, could analyze data relating to the company as a whole, gather clients data, sales data, statistics on production and many others. It could help in demand predictions, analyzing human resource functionality and budget creation. This could increase the efficiency and productivity of the company.

The integration capability of the ERP system could also be useful since it makes a solution appear different from other preferred software. The integration enables all other types of capabilities to work together in harmony and enhance efficiency. It is in a single database through which the system makes a collection, and analysis as well as storing data from other departments. Just Sofa Company could, therefore, enhance its communication across all the available departments, the individuals working in the company and the managerial staff. Integration could also allow Just Sofas to work on several components at a particular time. An example is when the customer relationship management is well integrated; users are allowed to gain access history of orders and the customer’s data at the same time. This integration could be useful at Just Sofas Company.

Automation is another capability if the system. By automation, it means that much of the tedious work such as processing of invoices, payrolls, order entry, and accounting would be automatically processed. Through this, Just Sofas Company would reduce the time spent by the staff and enable them to focus on other work. Process automation would also reduce the number of errors made while undertaking the processes. Errors could be made when the staff members keep on working on a similar activity for several hours. Automation involves the transfer of the data from one section to the next without any human interruption/interference.

Just Sofa Company using Customer Relationship Management capabilities could be effective. The CRM could help in working out on the variety of spreadsheets from the customers, which are too large. The CRM could also help the staff to quickly access other areas when working in other sections of the system. Besides, visibility and tracking could be another capability of the system. The supply chain is monitored through tracking. Many of today’s systems use the technology of tracking can monitor raw materials as well as the finished products for delivery purposes. The Just Sofa Company would use this method effectively to ensure that the delivery services are well done and managed.

The due diligence was not conducted when the ERP system was implemented. This system was implemented in a competitive environment where the members of the staff were not adequately trained on the working capabilities of the system. Having well-trained personnel could help the company to adapt and quickly start working with the system. As a result of competition, they did not access all the information on the operations of the business. This could make them choose a system that is more complying to their needs as well as increase the effectiveness and productivity as well. In a competitive environment, there has to be much of customer consultation, more orders, supply and production of the company. Just Sofas having not conducted the due diligence, its implementation ended up having some major problems. Therefore, the customers had to find other manufacturing companies, slowing down the supply chain due to piling customer orders.

Ruffner did not understand strategy and operation relationships. This is because operations deal with day-to-day activities that are required to produce goods while strategy involves focusing on activities that are essential in the competition rankings. Ruffner only considered the strategy alone other than considering both the strategy and operational basis. If he could consider both the normal production rate and customer attendance could be higher. A section of members of the staff could concentrate on other daily operations and carry out business as usual while others are trying to make the system more effective to the company. Therefore, the Ruffners decision made the company’s production rate to go down as well as the furniture delivery services to its customers. The daily activities could just run normally as the strategy was being implemented. Planning of such activities needed time and consultation from varies bodies governing the ERP system and have the ideas needed to ensure implementation could not affect the normal functioning of the company till the time the strategy would be completely adapted and put into work to ensure an increase in the rate of production and quality services to its customers.

There are problems that contributed to the disappointing results of the ERP system. These problems included poor implementation strategy. When the strategy was being implemented, Ruffner did not consider most the goals that the system was supposed to solve. When setting up such a strategy, the management should be informed on the kind of problems the system is going to solve. The disappointing end results of the system could not manage to solve the competitive model of the company.

Besides, having inexperienced consultants led to the failure of the system. Consultants are essential in trying to give an overview of what the system should be implemented and run. Such individuals did not offer proper guidance to Ruffner so as to come up with such a system. He could be told on the best ways to implement this system and obtain pleasing results.

The project management was also a problem that contributed to the poor results. The ERP implementation needs an experienced, dedicated and professional manager whose mandate is to oversee the activities being carried out. The overall manager should be able to fetch more information on the goals that facilitate the success of the company. In addition, the Just Sofas Company did not have enough time to implement this system. This is because they were under pressures from their respective customers as much of the customer orders were piling up in the company. They had to sort the customers out, leaving no time for the full-time participatory on the system, thus facilitating to the poor end results of the system. Finally, having unskilled personnel also led to poor results. The staff was unable to comply with the new environment created by the system, as more changes had to be done. My suggestion is that, when a company implements a new ERP system, it should ensure that, it has adequate time for its development, have qualified staff to work with the system, have a knowledgeable/professional manager who will supervise the work and also implement a strategy that can solve the allocated issues effectively.

In conclusion, the ERP system is an essential commodity in a company. Each system has its capabilities to effectively work towards achieving a certain goal or the mission of the company. But at times, it becomes a challenge when a company tries to comply or adapt to the newly developed strategy or ERP system. It has to take time for the company to comply, and that is why Just Sofas Company experienced some low production rate as well as customer orders piling in the company waiting for delivery.

References

Beatty, R. C., & Williams, C. D. (2006). ERP II: best practices for successfully implementing an ERP upgrade. Communications of the ACM49(3), 105-109.

Garcia-Sanchez, N., & Pérez-Bernal, L. E. (2007). Determination of critical success factors in implementing an ERP system: A field study in Mexican enterprises.

Bingi, P., Sharma, M. K., & Godla, J. K. (1999). Critical issues affecting an ERP implementation. IS Management16(3), 7-14.

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