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ERP Modules

ERP Modules. Dr Celeste Ng 吳思佩. Source: Lawrence F. B., Jennings D. F., Reynolds B. E. 2005. ERP in Distribution . Thomson, South-Western: Mason, Ohio; pp. 347. ERP modules (from the Distribution Perspective). Sales order processing

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ERP Modules

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  1. ERP Modules Dr Celeste Ng 吳思佩 Prepared by: Celeste Ng, YZU

  2. Source:Lawrence F. B., Jennings D. F., Reynolds B. E. 2005. ERP in Distribution. Thomson, South-Western: Mason, Ohio; pp. 347. Prepared by: Celeste Ng, YZU

  3. ERP modules (from the Distribution Perspective) • Sales order processing • Customer info., billing instruction, order processing options, different order types, quoting, shipping, invoicing • Distribution system planning • Warehouse operations • General ledger and financials • including human resources • Executive information system • Generate report on company’s success in reaching its goals Prepared by: Celeste Ng, YZU

  4. The structure/flow in this textbook • Sales order processing • Chapter 7: Automating sales and marketing • Distribution system planning • Chapter 8: Replenishment • Warehouse operations • Chapter 9: Operations Management • General ledger and financials • Executive information system • Chapter 10 Prepared by: Celeste Ng, YZU

  5. Sales n Marketing or CRM tools • Contact management • Customer interaction, request, opportunities, follow-up (for future reference) • Sales order processing • lost sales and backorder tracking, sales force data entry, customer data entry • Customer pricing and billing • Quoting • Technical data (product spec.) • Catalog • Call center • Data warehousing Back Prepared by: Celeste Ng, YZU

  6. Replenishment • Forecasting • Customer demand, reorder point • Lead-time tracking • To forecast supplier’s performance • Setting reorder point • Calculate/select fill rate • Select an approach (guess, educated guess, supplier, ERP system) • f (safety stock, demand during supplier’s lead time, supplier lead time variability, forecast error) • Buying decisions (coordinated replenishment) • Inventory classification • Based on gross margin ROI, sales volume, or hits • Automating purchase order • Aggregate planning • Needs and placement of resources Back Prepared by: Celeste Ng, YZU

  7. Operations Management • Inventory tracking • ABC layout • Automating part identification • Pick slip • Cycle counts • MRP and work order processing Back Prepared by: Celeste Ng, YZU

  8. Executive Information Systems • Set strategic goals (based on supply chain goals) • Connecting strategic objectives to financial measures • Connecting financial measures to tactical objectives • Connecting tactical objectives to operational metrics • Aggregate measures for executive decision making • Information sharing Back Prepared by: Celeste Ng, YZU

  9. Source:Norris G., Hurley J. R., Hartley K. M., Dunleavy J. R., Balls J. D. 2000. E-Business and ERP: Transforming the Enterprise. John Wiley & Sons: New York; pp. 194. Prepared by: Celeste Ng, YZU

  10. ERP modules • Finance • Manufacturing • Logistics • Sales and marketing • Human resources Prepared by: Celeste Ng, YZU

  11. ERP module – Finance (1) • Reduce the cost of financial record keeping • Provides improved information for analysis and a seamless reconciliation from the general ledger to subledgers • Data is updated in real time Prepared by: Celeste Ng, YZU

  12. ERP module – Finance (2) • A basis for linking operational results and the financial measures • Provide decision support to • Corporate leadership • Create strategic performance measures • Engage in strategic cost management Prepared by: Celeste Ng, YZU

  13. ERP module – Manufacturing (1) • Provides a consistent set of product names in a central product registry • A consistent way of looking at customers and vendors • Integration of sales and production information • A way to calculate availability of product for sales, distribution, and material management Prepared by: Celeste Ng, YZU

  14. ERP module – Manufacturing (2) • Enables better order-to-production planning by linking sales and distribution to material management, production planning, and financials in real-time • Real-time visibility of customer orders and customer demand • Modeling of anticipated orders • Identify sales opportunities based on past performance information • Stock can adjusted nearly instantly • Detailed manufacturing resource planning can be performed daily Prepared by: Celeste Ng, YZU

  15. ERP module – Logistics • Integrates distribution with manufacturing, sales, and financial reporting • Enhance reporting of future performance indicators and past performance measures • Supports the distribution environment necessary to met customer demands Prepared by: Celeste Ng, YZU

  16. ERP module – Sales and Marketing • Perform profitability analysis, showing profits and contribution margins by market segment • Design sophisticated pricing procedures that include numerous prices, discounts, rebates, and tax considerations • Project much more accurate delivery dates for orders Prepared by: Celeste Ng, YZU

  17. ERP module – Human resources (1) • Supports human resource planning, development, and compensation areas • Provides an integrated database of personnel • Maintains salary and benefits structures • Supports planning and recruiting • Keeps track of reimbursable travel and living expenses Prepared by: Celeste Ng, YZU

  18. ERP module – Human resources (2) • Does payroll accounting • Records individual qualifications and requirements used for • Resource planning • Enhances career and succession planning • Coordination of training programs Prepared by: Celeste Ng, YZU

  19. Source: Olson D. L. 2004. Managerial Issues of Enterprise Resource Planning Systems. Mc-Graw Hill: Boston; pp. 180. Prepared by: Celeste Ng, YZU

  20. ERP Supported Functions (SAP) Prepared by: Celeste Ng, YZU

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