ABC is an international manufacturer and distributor of consumer products. ABC c

Question

ABC is an international manufacturer and distributor of consumer products. ABC currently has multiple information and accounting systems. The company is considering an ERP system with e-commerce capabilities to replace its current legacy systems. The estimated price tag of $100 million is a significant investment. List and discuss the benefits that the organization can realize by moving to such a system. Explain your ideas in your initial post. Then agree or disagree with at least two other posts by your classmates, and explain why.

Explanation / Answer

Answer

Benefits of ERP system

ERP system is real-time analytical system across all functions/departments of organisation and centralized back-up of all enterprise data. ERP system gives visibility to all processes across various departments of an organization and ensures automatic workflow throughout all departments. This also ensures that all the inter-departmental activities are carried out properly. It also provides business intelligence functionalities that can identify potential areas of problems and improvements. It also provides e-commerce integration which helps in order tracking and processing.ERP system has various modules i.e. finance/Accounts, Human Resource Management, Manufacturing, Marketing/Sales, Supply Chain/Warehouse Management, CRM, and Project Management. ERP system has centralized security policies which ensures real time tracking of the transactions, inventory, revenues, sales forecasting. It is possible to integrate other systems to the ERP system. It helps in managing multinational companies better.

The estimated cost of ERP system is $100 million and with ERP implementation, company will get many more intangible benefits, revenue gain and other advantages in long run which will outrun its initial cost. So It is better to implement ERP system.

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