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Enterprise Resource Planning System (ERP)

ERP is a software that consists of multiple applications such as
customer relationship management(CRM) software; inventory
control software; accounting applications; sales software; ordertracking tools; invoicing software; project-management and payroll
programs, among others. By consolidating all these tasks into
over-arching software suite, businesses can dramatically cut
training and maintenance costs, ensure all data is consistent and
up-to-date, and reduce software expenses. It integrates
information across the company and eliminates complex links
between computer systems.
ERP Key functions
ERP Systems typically handle the manufacturing, logistics,
distribution, inventory, shipping, invoicing, and accounting for a
company. ERP software can aid in the control of many business
activities, including sales, marketing, delievery, billing, production,
inventory management, quality management, and human
resource management.
ERP Software Applications Include:

EDI(Electronic Data Interchange): is the structural

transmission of data between organizations by electronic
means. It is used to transfer electronic documents from one
computer system to another, eg. From one branch in an
organization to another. It is more than mere e-mail; for
instance, organizations might replace bills of lading and even
cheques with appropriate EDI messages.

AMS(Attendance Monitoring System): The attendanc

monitoring system provides registration and complete
processing of the employees' attendance. It is intended for all
organization types, ranging form state administration bodies
to banks to industrial companies. Data is stored in an SQL
server database allowing distributed data processing within a
computer network.
CAD/CAM/CAE(Computer Aided Design/ Computer Aided
Manufacturing. Computer Aided Engineering) : This system
handles the desing , manufacturing and engineering
functions of the organization.
This provides drawing and design engineering information to
ERP in the execution of manufacturing and purchase
functions.
DMS ( Document Management System): Provides storage,
versioning, metadata, security, as well as indexing and
retrieval capabilities of electronic documents and images of
paper documents e.g., records of transactions handled. The
system also provides text edit facilities , cross checking,
confirmation of authenticity of documentation.
CMS(Communication Management Systems): ERP uses
CMS as a tool for its communication needs. CMS controls
overall communication within the organization.
SMS ( Security Management System): It handles security
aspects of the organization. It tracks the movement of man,
material and vehicle . Access by unauthorized or unidentified
means are monitored and warned. Therefore the entire
business operation can be safeguarded.

Objectives for Implementing an ERP System:

Performance Management & Reporting: Report and

manage the performance of entreprise business solutions.

Purchasing: Automate the steps from procurement to

payment.

Materials Management: Manage inventory receipts,

shipments, moves and counts across your warehouses,
suppliers and customers.

Manufacturing: Control manufacturing operatins with

material planning, production schedualing and shop floor
execution capabilities.
Order Management: Create quotes, book orders, manage
materials, geneate invoices and collect cash.
Sales: Control your valuable customer relationship
management solutions.
Service: Manage the entire Service deleivery lifecycle.
E-Commerce: Create and run a secure web store front.
Point of Sale: Automate cash sales and inventory
management.
Financial Management: One system automates the
proceses of your business solution and manages your
financial records.
Projects: Project management, planning and execution.
Track costs associated with multi-phase projects across your
business solution,

Advantages of ERP System:

ERP systems connect the necessary software in order for

accurate forecasting to be done.
Integration among different functional areas in an
organization to ensure proper communication, productivity
and efficiency.
Order tracking, from acceptance through fulfillment.
The revenue cycle, from invoice through cash receipt.
Tracking the three-way match between purchase orders
( what was ordered), inventory receipts ( what arrived), and
costing ( what the vendor invoiced).
Reduce paper document by providing on-line formats for
quickly entering and retrieving information.
Improves timeliness of information by permitting, posting
daily instead of monthly.
Greater accuracy of information with detailed content,
better presentation, fully satisfactory for the Auditors.
Improved Cost Control.

Faster response and follow up on customers.

More efficient cash collection and reduction in delay in
payments by customers.
Better monitoring and quicker resolution of queries.
Enables quick response to change in business operations
and market conditions.
Helps to achieve competitive advantage by improving its
business process.
Improves supply-demand linkage with remote locations
and branches in different countries.
Provides a unified customer database usable by all
applications.
Improves a international operations by supporting a
variety of tax structures, invoicing schemes, multiple
currencies, multiple period accounting and languages.
Improves information access and management throughout
the enterprise.

ERP Systems Centralize Data

Benefits of this include:
Eliminates the problem of synchronizing changes between
multiple systems consolidation of finance, marketing and
sales, human resource, and manufacturing applications
Permits control of business processes.
Provides real time information to management anywhere,
anytime to make proper decisions.
Reduces the risk of loss of sensitive data by consolidating
multiple permissions and security models into a single
structure.
Shorten production lead-time and delievery time.

Disadvantages of an ERP System:

Customization of the ERP software is limited.

Re-engineering of business processes to fit the "industry

standard" prescribed by the ERP system may lead to loss of
competitive advantage.
ERPs are often seen as too rigid and too difficult to adapt
to the specific workflow and business process of some
companies this is cited as one of the main causes of their
failure.
Many of the integrated links need high accuracy in other
applications to work effectively.
Resistance in sharing sensitive internal information
between departments can reduce the effectiveness of the
software.
Some large organizations may have multiple departments
with separate, independent resources, missions, chains-ofcommand, etc, and consolidation into a single enterprise may
yield limited benefits.
KFC Before Implementing an ERP System
KFC was using multiple IT solutions to address their business
requirements. Because of this, the integrity of the reports
became difficult to validate and management had a hard
time tracking down their stocks.They became burdened by
multiple data sources that didn't integrate. Lots of time and
money was lost from duplication of order entries and
business processes throughout the outlets. Numerous hours
were being spent each month manually creating reports,
tracking invoices, and handling payroll to provide the Head
Office with their month end financial reports. The reason
behind these problems was evident: the systems could not
communicate with one another . The KFC IT Team update
KFC's enterprise IT structure with JD Edwards EnterpriseOne
8.10 to be able to solve KFC's growing problem of
misinformation and inaccurate reports.
KFC's Implementation of an ERP System
This Enterprise Resource Planning(ERP) system assists with
managing finance, assets, people, projects, suppliers and the
fulfillment and manufacturing processes.

JD Edwards EnterpriseOne 8.10 offers both the foundation

and operational components, including:
FinancialManagement
Technical Foundation
Inventory Management
Asset Management (Equipment,vehicles)
Forecasting
Workforce Management
Time and Expense Management
Procurement

JD Edwards EnterpriseOne 8.10 benefits the company with the

following:

Greater efficiencies reducing duplicate data

entry/maintenance
Standardizes business processes
Tracks and manages key data
Greater level of insight into how the business works
Enables to plan ahead
Provide business applicatios for now, and into the future.