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DISTRIBUTION AND LOGISTICS
- 1. MK 223: DISTRIBUTION AND LOGISTICS MANAGEMENT INDIVIDUAL ASSIGNMENT: MARK UP COURSE INSTRUCTOR; MR DAVID RWEHIKIZA STUDENT NAME REG. NO PROGRAME SIGN MDENYE EXPEDITO 2015-04-03774 BCOMIN MARKETING QN: discuss the importance of enterprise resource planning on organizational performance. UNIVERSITY OF DAR ES SALAAM BUSINESS SCHOOL
- 2. An ERP system can be characterized as an information system made up of different modules, each supporting the business processes. The modules are integrated and all gathered data are stored in a central database (Aernoudts, 2005). The fact that all data are centrally stored makes it possible to extract data into information. Simply could mean batched application software programs, with a combined systems organization installed as their main engine for grabbing, batching data and processing information to improve coordination across internal and external functions. The ERP systems specifically stress the need for combining of application programs for firm tasks in a processing firm, such as sales, cost, accounting and process. Companies use ERP to improve performance mainly processes that impact customers and organizational pursuance. For example, ERP can serve as a veritable tool for costs and cycle times reduction, by eliminating unproductive activities and the employees who perform them (dezdar, 2011) (Avegour, 2008).Furthermore ERP improves quality by reducing the fragmentation of work and establishing clear ownership of processes, hence, workers gain responsibility for their output and can measure their achievement. Bellows are the selected and discussed merits/importance that will necessitate as firm to employ the ERP. For a firm to win and conquer all the output of ERP need a strong skilled and financial recourse is inevitable at installation stage. Increased productivity, through the reduction in time needed in supervision and associated cost, automatic and coherent workflow form one department to another. Just in time section of ERP gives the management greater advantages in field such as forecasting, planning, implementation and control in terms of time that could have been invested by manager and workers. In additional employing such staff would have necessitated the incurring of costs for compensation on time they have vested. For small business if they could employ the system that could help them to up with competition through providing high quality products, constant deliver and in time service. Greater customer satisfaction, fasten and improved production and in time serving and other collaborative activities centered to customer change, justifies the fact that on customer view and organization the introduction of ERP in firm systems have proved changes in customer serving. This is possible through employing what is called custom relationship management and market/sale system which enables a manager to track complains suggestion and satisfaction up their market target. Product development and reformation in terms of packages, ingredients and taste to suit customer demand is facilitated by ERP system. Improved quality management, as per firms the innovation of ERP has brought about much advancement in how good the output from all the functions in management produces. The definitions of quality incorporate factors like top management commitment, leadership, team work, training and development, rewards and recognition, involvement and empowerment of employees. To derive the so mentioned, the action
- 3. must be guided with four rules as work processes, variability, analysis, and continuous improvement. With the whole system becoming improved then the business enjoys the fruits and becomes less indebted with such tasks of follow up on the matter. Provide conducive environment for online marketing, the advanced e commerce inclusion in the ERP programs as most of them are designed to handle web based order tracking and processing. The idea that many businesses nowadays are growing to internet marketing which has proved betterment and more sales past traditional marketing is supported and integrated in the so called ERP. Enable a firm to perform all processing and sale on software which is need by e-commerce of which as business can not dismiss. Sale force allocation and management assistance, the human problems and issues interfered a lot with the running of business. Through the introduction of ERP system specifically human resource recruitment and control problems has by large percent declined as the system is capable of integrating many data from all sections of the business by which the use of human skills and ability have not shown greater achievement as under this innovation. Offers more secured system of information and back up facilities, before the ERP emerged the decentralization in organization gave a way for outsider to invade the information system because it was less privacy and allowed employee and sub manager to enjoy the privacy. Parallel to that the possibility of losing data and worry of on the effects of system break and loss is at high point lowered as ERP installed. The ERP works with more formatted pattern prevent the non user to interact with it. It also provides manager with device and software application that tracks all transactions that are intra and inter department or organization. Provide the firm with more flexible working environment internally and externally, since ERP can change to justify itself to suit the size of an organization. The system is made with module software system which allows implementing either few among the modules basing on the requirement of the firm. Merge and unmerging of the sections in system generates more flexible than the past system (SCM). It makes the organization flexible any changes depending up on the need of economy and company resource and structure at the end. Standardization of various business operation, more improved order management, accurate accounting of inventory and better supply chain management by ERP. Form the easier in tracking activities such as of inventory management, sale forecasting, order tracking and other activities makes the output of these segment more improved and standardizes than before. The system facilitates naming and coding of standard product by means of software. The system enables a company to cope with world trend and standards. By the use of application programming interface like bar codes reader the inventory and accounting is more simplified under ERP than without it Elimination of works that adds no values, with help of ERP which works with integrated functionalities such of finance, human resources, manufacturing, warehouse,
- 4. project management and accounting which all provide the system with essential information that can give overall insights on business or segment and identify potential area to keep and improve and detects loss making products, segment, sale force, supplier or market. Then manager are left with only decision of eliminating or keeping it. It paves way for business to see pick more benefits at costless. In the past few years, ERP has become a ‘‘must have’’ system for almost every firm to improve competitiveness. Today, over 60% of companies have installed or plan to install a packaged ERP system (SHEU, 2003). ERP systems quickly became large in use by huge corporations that needed integration of firm operation, but are now frequently used by SMEs. Despite ERPs indicated benefits to companies which put in a substantial capital investment, not all ERP settings have successful outcomes. ERP implementations commonly slowed an estimated schedule and raid the initial budget (EHIE, 2005). The success of the ERP use depends largely on the labor force type and thus, the best human resources should be provided. The management team members have to be skilled individuals, capable, qualified and with high learning potentials because of the complexity and high standard of the ERP project. The management has to have authority and control over all the aspects, to be able to act quickly, effectively and independently on problems without constraints from the organization side. Indicators prove the fact that ERP implementations have sometimes failed to achieve the organization’s targets and desired outcomes. The issue main issue with ERP system in many countries isn’t the installation and adaptation financial constraints but the structural and cultural rigidity as the bigger challenges.
- 5. REFERENCE Aernoudts,R.T. (2005). MANAGEMENT ACCOUNTINGCHANGE ANDERP. ASSESSMENTOFRESSEARCH. Avegour.(2008). enterpriseresourceplanning and organisationalperfomane. davenport,TH. (2005). MANAGMENTACCOUNTINGCHANGEANDERP. NIGERIA:ROTTERDAM. DAVENPORT,T.(2001). MISSION CRITICAL:REALIZINGTHE PROMISEOF ER. DEZDAR, s.&. (2011). THE INFLUENCEOFORGANISATIONALFACTORSON ERP. EHIE, I. B. (2005). IDENTIFYINGCRITICALISSUESIN ERP. COMPUTER IN INDUSTRY. SHEU, H. R. (2003). ANALYSISTHE IMPACTOFENTERPRISERESOURCEPLANNING.