Evaluate the alternative methods of solving the problem (P 3.2) According to the analyst, the followings are the reasons why your company is becoming to fail. The reasons are –1) Delay in raw and associated material delivery2) Sometime demands and production rates are uneven3) Credit and memo records are inconsistent4) Delay of documentation passing between departments because of data from one form took time to fill up in another form.5) Inventory management and audit took more time to make a report6) Can’t recognize customer information very well and so on.The problems can be solved by using the information system in your company. For example, if you are still using the files and papers to store your company’s information, that will be so messy and it takes a long time to retrieve an information.
The software I want to recommend is SAP business One ERP software. SAP means system application and products in data processing. ERP is an enterprise resource planning software that contains the key functions of a business organization. It contains multiple business applications with each application capable of representing the specific business areas. SAP ERP consists of several modules, including Financial Accounting (FI), Controlling (CO), Asset Accounting (AA), Sales & Distribution (SD), Material Management (MM), Product Planning (PP), Quality Management (QM), Project System (PS), Plant Maintenance (PM), Human Resources (HR).
Functions of ERPSales and DistributionSAP ERP software includes the Sales and Distribution, which can help the organization in managing their sales information. Like your company can know which golf sets are selling well and can produce more of the popular product. So, you don’t have to worry about the demands and production rates are uneven problem.
Manufacture and material managementIt also includes the material management – which will show you what raw materials are becoming to lack and you need to order. The ordering is simple too. The business partners are registered in the software so you just have to write the partner name and the raw material amount you want to order. If you enter the quantity of the product, the system can automatically calculate the total amount of the order. And it can even add the taxes fee in your total ordering amount. So, you can know the exact cost of the product materials.
You can also see/set the delivery date of the raw materials so there is no need to worry about the delay in raw materials. The below figure is the raw material purchasing form.As you can see in the figure below, your business organization’s business partners’ information are stored like that. And the software also provide a full form in registering your business partner so all information about the certain business partners are gathered in the form.
You can also store the customer’s information in the business partners. If you forget your business partner or customers’ name, they can use the find method to search the business partners’ full information easily. So, by using this software, the problem ‘can’t recognize the customer information very well and so on’ will be cleared off. Finding the business partners with their name The company doesn’t need to worry about the ordering vouchers. They are auto-generated since making in the ordering form. You can just print them if you want to show it to your supervisors or manager. And you can view the order list anywhere and anytime. That’s why there is no need to wait in making report about the ordering list which will be a lot of easier for the business.
Financial Management The ERP software have the financial management like financial accounting, and management accounting too. It also have the Human Capital Management like Payroll system and training for the employees. The financial management can store the company’s financial information like debts to the Business Company, monthly budgets and income and outcome of budget. The financial will be very clear and easy to understand. You can see the credit and memo records of your company just by one click.
The below is the sample form of the finance accounting in SAP software. As you can see, all the information required are gathered in one place and it is very convenient for the business. This will solve one of your company’s problems – credit and memo recording are inconsistent. Warehouse management SAP ERD also has the Warehouse management. The company can store their raw materials and production data in the inventory tab. You can add new data into the inventory or can view how much products left by seeing the inventory list. And the audit’s job will be a lot of easier too.
He can make the inventory reports by just looking at the inventory data and write down the numbers. He don’t have to go to the garage or search through thick books to count how many in stocks left. So, the warehouse management feature have solved one of the company’s problem too – the inventory management and audit took a lot of time to make report.To solve the last problem – Delay of documentation passing between departments because of data from one form took time to fill up in another form, you only need information system in your business.
By using SAP software, the employees do not need to use the papers and pen to fill up the data form. The SAP software has technology that can transfer the data from one form to another. As you can see on above pic, ou can copy the form to another form or copy from another form. This would make the business easier and faster.Advantages of using SAP ERPSaving budgets Using the SAP ERP software can save your organization a lot of money. The software can track all your company’s data and generate reports on them. So the business doesn’t have to worry about the raw materials purchasing.
And the reducing of the costs can increase the effectiveness of the inventory management in the company.Stable Operations of the business The use of the SAP ERP software helps the business in making strategies and ensure that the company is on the right path. The company can get a better idea what’s going on in the company by seeing the consistent reports generated by the SAP ERP software. Based on the reports, the business can know about the functions of the other departments in the business and ensure that the all the employees are working hard to the company’s goals.Improved customer service The company can access all the information from all the departments which allows for a quick response to the notifications from the customers and perform appropriate action based on the customer’s feedback immediately.
Flexibility The SAP software contains all the areas of the business’ operation. So, the information flow between the employees are easy to use. And the employees who use the SAP software can access data from the different areas of the company within the single report and the retrieving the necessary documents is easy and quick.