ERP Implementation

Published on January 2017 | Categories: Documents | Downloads: 49 | Comments: 0 | Views: 321
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Global ERP implementation can well be defined as the unification of the worldwide functions of a multinational corporation with the aid of some enterprise resourceplanning (ERP) package. The whole concept of enterprise resource planning originated in the large industrial types of companies where the system was used to simplify their processes and workflow. However, with the passage of time, ERP has evolved as a more comprehensive system and now it is largely available to companies of all types and sizes. It serves and supports a wide range of business functions like manufacturing, order entry, accounts receivable and payable, general ledger, purchasing, warehousing, transportation and human resources. Global ERP: Some more details Today, more and more MNCs are taking the global ERP plunge and this shows that the repayment is quite worth the effort put into it. A global ERP execution ensures that you will be able to work as a total entity and manage your money, material, people, information and so on. Thus, it is real synergy. There are various top ERP vendors like SAP, oracle, Peoplesoft, Baan and J.D.Edwards who can help you to achieve this. The problems All business houses that chose to standardize their operations all over the world on complex and expansive ERP systems, face problem of one sort or the other. While rolling out the enterprise-wide functions (like finance, manufacture, HR, etc), worldwide, all organizations need to tackle unique set of problems. Moreover, it can create technological dilemmas, hitherto unknown in countrywide applications. Often there arises telecommunication problems between the various customer service representatives stationed in various countries of the world. However, competent the telecommunication network be, it cannot avoid multiple connections that overseas transmission require. For instance, the connection between France and Santa Clara may be routed through U.K., Seattle and San Jose and each hop enhances the delay. Moreover, in some countries, like Thailand, you may need to link into governments telecommunication lines that cause further postponement. For centralized organizations, it is good to deploy ERP system from one location to standardize business practices. But just as on one side its easy to handle the entire thing from a single building, on the other hand, backup and other systems maintenance become a scheduling nightmare. Actually, the scheduling of different time zones is a non-trivial issue and should be tackled seriously. If a company is too large in size, then a single central server and network fail to handle the huge volume of transactions. Moreover, ERP is not only a technological implementation but also it involves change management and for change management to succeed quickly, communication is the key factor. As the company goes global, problem arises while comprehending different languages and cultures. Thus, communication remains a big obstacle to successful global ERP efforts.

Global ERP execution involves additional expenses when compared with domestic rollouts. Aspects involving higher costs include Travel, Training, Documentation translations, Purchase of additional ERP modules to accommodate local tax laws, Upgraded telecommunications infrastructures and Additional consultants, who charges higher fees in some less-developed countries. The advantages outweigh the disadvantages The Global ERP implementation yields greater customer satisfaction through lesser inventory backlogs and faster product deliveries. The more the customer satisfaction the more is the financial benefit for the concerns.

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