Enterprise Resource Planning (ERP) - Sales

8/6/2019 Enterprise Resource Planning (ERP) - Sales

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P R E S E N T E D B Y A S H I S H C H O U D H A R Y ( 0 3 )

J A G A N N A T H C H O U D H U R Y ( 0 4 )

S O U V I K C H O W D H U R Y ( 0 5 )

V I V E K D A L A L ( 0 6 )

N I R A J D E S A I ( 0 7 )

Enterprise Resource Planning(ERP) - Sales


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Management Objectives

y Increased Sales.

y Improved Margins

y Reduced Losses due to Rejections

y Faster recovery of Returns on Investment


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Challenges of Global Market

y Compulsions to work at Reduced Prices

y Demand of Improved Quality

y Reduced Lead times

y Requirement of On time dispatches


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Customer objectives and Management Objectivescan be achieved only if.

y Customer satisfaction gets increased.

y Utilization of Materials, Machines and Men gets increased

y Performance of employees gets improved

y Level of quality standards in all functional areas gets

improved.


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Deviations in Customer objectives and Management Objectives can betracked only if ICEBERG monitoring is done

Rework

Claims

Excessive use of material

Inadequate resource utilization

Cost of re-inspection

Cost of resolving customer problems

Lost customers / Goodwill

Rework

Claims


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What holds you back?

y Difficulties in getting timely and accurate information

y Difficulties in retrieving past historic data to support

decision making.

y Misinterpretation of data due to lack of relevantinformation from other functions.

y Time consuming data recording methods


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What is ERP

Enterprise Resource Planning

ERP is software solution which addresses the information

needs of the organization by integrating relevant functions

of an enterprise.


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ERP 1. Sale: Process flow

Confirming

Order details

1.14

Invoice To

Customer

1.13

Invoice

approval

1.15

Payment collection

1.16

Close

Order

1.9

WO for execution to

Planning, Purchase,

Manufacturing &Stores

1.10

WO execution by

Planning, Purchase,

Manufacturing &Stores

1.11

Dispatc

h

Entries

1.12

Invoic

e entry1.13

1.5

Sales Orderfrom

customer

Order details

Amendments

1.8

Release

Order

1.7

Order

Approval

1.6

Order

entry

1.9

1.2

Processing

Enquiry from

customer

1.3

Quotation

preparation &

submission.

1.4

Finalizing

specifications,

Rates

1.1

Enquiry from

customer1.5


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Case Study - JOHNSON INDUSTRIES, INC.

y 1920s : Began as a wholesale distributor of autoparts.

y 1998 : Genuine Parts/NAPA acquired Johnson

Industries as a means of expanding into amarketplace that provided parts to vehicles

y Annual sales of $150M

y 11 distribution centers (DCs) and three retail outlets

that service more than 2,000 dealerships

y Largest OEM auto parts distributor in US.


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Challenges Faced

y Critical business practices, such as invoicing,applying cash, purchasing, and paying suppliers,

were being distributed across several DCs

y It generated multiple statements, requiring paymentto be sent to multiple places, thereby creatingmultiple corporate identities.

y Business information was managed on four different

IT systems, creating complexity.y Job duties were duplicated across all 11 distribution

centers, creating inefficiencies.


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Challenges Faced

y No support for multi-warehousing functionality

y Limited ability to smooth slower moving inventorybetween distribution centers

y No automated means of receiving inventory andtracking inventory movement within the distributioncenter


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Business Solution

Representing Johnson Industries as a Single Entity

y Implementation of JD Edwards One World in a

centralized footprint, using an NT operating systemand a SQL database to support multiple warehousesas a standard for all distribution centers.

y This new, centralized footprint allowed JohnsonIndustries to check inventory availability frommultiple DCs, thereby driving up service levels.


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Business Solution cont

y It incorporated centralized, critical businessprocesses (i.e. journal entries, invoicing, applyingcash, purchasing, paying suppliers, etc.) in all DCs to

ensure consistent Best Practices across theorganization.

y This, in turn, enabled customers to receive onestatement for all purchases and the ability to forward

all payments to a single location.


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Business Benefits

y Streamline future acquisitions

y Increase inventory turns and improve cash flow

y Ensure the consistent and timely application of price

changesy Present a single company image to its customer base

y Defer the need for warehouse expansions

y Close t

he mont

hearlier Eliminate eig

ht full-timeequivalent FTEs, which lowered payroll expenses by

400K


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Business Benefits

y Increased order fill rates by 1%growing gross profitby $419K per year

y By increasing inventory turns, one-time reduction in

inventory estimated at $7.6My Savings of approximately $1M in annual inventory

carrying costs.

y By consolidating the different IT systems, reduce

SG&A expenses by 1%, increasing annual profits by$247K


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THANK YOU

Enterprise Resource Planning (ERP) - Sales

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