ERP System

1799 Words8 Pages
1. Introduction: This report is the analysis and commendation of Pete’s business and how and where ERP system can be implemented to reduce the business complications. The company with 113 outlets and multiple sales channels, supplies both homegrown and off-the-shelf system to its customers. With 1,500 grocery stores, corporate offices, a website, and delivery trucks, the company was able to increase its revenue by 23% over a year which is remarkable. However, the outdated system which used to handle core business functions such as financial, order management, inventory management, fulfillment procurement and manufacturing was unable to cope with the ever growing business demand, which in result was effecting both the sales and operation. Subsequently, the company has decided to start fresh with current market demand. Even though the company needs a comprehensive ERP system, the CEO still desires to reinforce existing systems by customizing and patching. If approved, the project would cost $2.5 million for design and development and $6 million in total. In such scenario, we are going to support the idea of buying new ERP system by showing technical advantages, organizational advantages, and cost and future benefits of the ERP system. 2. Discussion: 2.1 Technical Benefits: At the most basic level, ERP is a system which aids to move data between different computers using various software. The ERP system integrates the practical systems used by the organization to manage the basic purposes of the business, such as: planning, inventory/materials management, accounting, human resources, purchasing, manufacturing, finance, marketing and sales, services etc. The new system will eliminate labor-intensive manual processes and current... ... middle of paper ... ...
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