1. Why was it important that the SAP sourcing OnDemand comfortably integrate wit
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1. Why was it important that the SAP sourcing OnDemand comfortably integrate with Kerry group's ERP System? 2. What are the advantages of using a cloud computing concept for Kerry group? 3. Why was it so important that Kerry group use the services of the professional training company Olas, SAP's Irish training partner to assist with training system implementation. 4. Why was it important for Kerry group to use the pilot start up approach for installing/implementing the OnDemand system? language (as well CHAPTER 9 needed to the user interf ace, YWOULA Gre scale, with the thin rins of the food industry. are vital to Kerry Group's help make those already a SAP Murcing process is one YnOULA the sourcing customer when it chose invoice, delivery time, and since 2009, The SAP ERP ted. cash collection advantage of obtaining new sysem from its the end of a Financial data is now have all been existing supplier assured period available two pplications company already uses. "What the up to view inventory was an intuitive system that be manage inventory all has enabled integrated with our SAP back office for an end-to-end comprehensively and more efficiently and said Peter Fotios, Kerry Groups Perhaps even more importantly, Group SAP sourcing OnDemand uses the doud computing positioned to grow. As is now concept. As its OnDemand name suggests, customers do not enhance market puts it, "Oracle's jD have to dedicate computing resources to the software. They in the leadership the Balkans, resources on demand as their needs require, paying Ukraine, and continue to busine on a per-user, per-month subscription basis. Meanwhile, SAP efficiency, and profitability improve productivity is responsible for administrative tasks such as daa backup as we expand into new mark and, if necessary, Discussion Questions Kerry Group implemented SAP Sourcing OnDemand beginning with a pilot plant. "We rolled it out smoothly i l. What problems had the YIOULA Group's stand-al legacy software created for the company? Ireland first, then England and then throughout our global 23 countries," explains Folios. If any problems 2. What are the advantages of ERP systems over sand appeared in Ireland, the pilot site, Kerry Group could have focused all its problem-solving resources on that location. Fortunately, no major issues arose. Critical Thinking Another thing that Kerry Group did right at Questions time was training, Recognizing that it had 1. What immediate and long-term needs competent in-house trainers and competent seOne did Enterpri professionals, but few if any who were both, the firm fill for the YIOULA Group? engaged SAP's Irish training partner ous with than The YiOULA group adopted a ERP system that was not industry specific. What are the advantages and end of the project, olas brought SAP expertise to the training pleting the required set of capabilities. disadvantages of general ERP systems and industry Moving forward, Kerry Group has projectplans exending specific systems? into 2016 for the full rollout of all its planned SAPERP capabilities. The smoothness of its sourcing OnDemand SOURCES: orade Corporation, JD Edwards EnterpriseOne Web site, implementation, which took a total of four weeks elapsed time because the software was already running in the doud when they 4: "YIOULA Group Builds skabble Awdow.brwal accessed April 11 began, is a good indication that the restof the project which isin Platform for sustained Growth, Profitability, and Market Leadership. complex will probably go well. If Kem Group many ways more is to carry out its mission statement, which includes being "the sdecow 2012 18H27sipay, September 20 world leader in food ingredients and flavors servingthe food and noULA Group web. r, www.yioula com, accessed March 2920" beverage industry, the rollout will have tobe smooth Discussion Questions Case Two 1, what needs did the Kerry Group's new Eu' system Kerry Group Is on Your Table business, sourcing is the set of activities involved in finding, and suppliers supply services. Before a business can start to manage its 2 Kerry Group is taking a slow and methodical approach of software. What does the company gain and what does it lose by in this chapter, it must complete time in this way? chain, as described s Kerry Group, a supplier of food ingredients and worldwide food industry and of food ires a wide of raw Critical Thinking Questions lavors to the I. Why should Kerry Group standardize on one ERP products to the Isles, requi With annual revenue of package? Wouldn't it be simpler and less expensive et each plant and sales operation choose its own soft- ware, as long as it can report its financial results to those materials, with plants in 21 countries people for the revenue from outside Europe, possible suppliers plant to know about all in a standard form?Explanation / Answer
1. Why was it important that the SAP sourcing OnDemand comfortably integrate with Kerry group's ERP System?
- Kerry group works with many suppliers.
-They have got variety of raw material requirement.
-Annual revenues are 10Billion USD
-40% operations are revenue are from outside Europe.
Compatibility with existing system is very important e.g. part code used in invoicing must match with part codes used in the new system.
The organization is so big and wide-spread and the profit margins are thin in the food industry, they can not afford to have problems due to data compatibility. When the 2 products are from the same vendor, you save from compatibility problems in data types/data definition and mapping the database from 2 systems. It is important that SAP sourcing OnDemand comfortably integrate with Kerry group's ERP System. It ensures faster implementation. The users will also be familiar with the existing system and the acceptance to the change will be better.
2. What are the advantages of using a cloud computing concept for Kerry group?
-There is no need to buy a new hardware for this sourcing implementation.
-Time required to implement is less as installation is already done. It is more of configuration, customization, testing and user training to go-live with the implementation. This definitely saves time in installation.
-Per user, per month payment can be done so it is cost effective. You pay for what you use.
3. Why was it so important that Kerry group use the services of the professional training company Olas, SAP's Irish training partner to assist with training system implementation.
-Kerry group did not have staff who knew the sourcing modules of SAP ERP as well al the training skills. They had trainers and they had technical experts. With the Olas coming on board, they could have experts to train particularly this module and hence the users could get detailed knowledge of the features that were in the new system. Expert from Olas teamed up with the training team of Kerry's to make sure the good quality training.
Pilot project was done in Ireland and the Olas was also from Ireland.
4. Why was it important for Kerry group to use the pilot start up approach for installing/implementing the OnDemand system?
Kerry group had presence in 24 countries. Let us they needed to add 1 more extra field in the procurement screen, after running it for days, then the data correction will be needed to be done to all the data entered from 23 other countries in addition to Ireland. Here they got a chance to make any changes needed or corrections needed by looking at the feedback of implementation in 1 country.
This makes the user acceptance better. As success at 1 place can make other countries follow the implementation easily. You need smaller support team to attend to the problems, otherwise there will be 24 countries calling for support for new problems identified that must be attended across the various time-zones.
5. Why does local sourcing reduce economies of scale compared to using OnDemand to manage the sourcing process?
Local supplier may be able to give price sometimes however might not have resources and capability to supply outside Europe.
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