Stoney Boots has reported a decline in its gross margins for the fiscal year 2012 and this decline is attributed to manufacturing inefficiencies. Upon further investigation, it was discovered that Stoney Boots’ IT infrastructure is outdated and the company could benefit from implementing an ERP system. Implementing an ERP will help the company integrate all of its fragmented divisions, which will allow it to concentrate on selling its trademarked footwear and making profits (Stoney’s Annual Report).
To help the company get back on track, the following three ERP modules are recommended as a start for the company. These modules will help the company integrate data across its plant sites, generate timely reports so the leadership can make real time decisions, and streamline the work processes across Stoney’s facilities (Annabi, 2015).
Stoney Boots utilizes two systems for its order fulfillment, Sales System and Distribution System. These two systems are required to be synchronized twice daily, because the Distribution System needs the data generated by the Sales System, which is received from the data entry interface. In addition, at the end of the day, the Sales System needs to be updated with the latest inventory data via the custom interfaces. This process will allow the sales personnel to know the current inventory (Stoney IT Audit).
This process is prone to error and can cause the company to lose a substantial amount of money if there are inaccuracies of inventory data. For example, if an employee forgets to synchronize the system for a couple of days due to an unknown reason, this will give false information about the current inventory causing the sales pe...
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...toney’s are accustomed of doing business differently from each other. For example, employees in the sales department at the Durango distribution center use IBM platform while employees in the manufacturing run a COBOL based program to generate stock level reports. The company could make the transition to the new system to be “seamless” by training all of its employees in the new system to ensure every employee understands the very basics of the ERP system.
Leadership: It seems that the leadership of Stoney Boots is not aware of its fragmented divisions and systems and unable to set a clear vision for its ERP system. To me, this company is running in an uncontrolled fashion and requires a stronger leadership. The company needs to hire experienced ERP managers who will be able to understand the company, its needs, and establish a solid plan for the implementation.
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