1. MK 223: DISTRIBUTION AND LOGISTICS MANAGEMENT
INDIVIDUAL ASSIGNMENT: MARK UP
COURSE INSTRUCTOR; MR DAVID RWEHIKIZA
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
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.
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DEZDAR, s.&. (2011). THE INFLUENCEOFORGANISATIONALFACTORSON ERP.
EHIE, I. B. (2005). IDENTIFYINGCRITICALISSUESIN ERP. COMPUTER IN INDUSTRY.
SHEU, H. R. (2003). ANALYSISTHE IMPACTOFENTERPRISERESOURCEPLANNING.