KIMBERLY CLARK VIETNAM
ERP IMPLEMENTATION
Lê Thục NghiLê Phương AnhLâm Thị Trà My
Content
Company background
ERP implementation and Critical problems
Situational analysis
Recommendations and action plans
I. Company BackgroundFounded in 1872A global health and hygiene company.4 business segments: Personal care, consumer Tissue; KC
Professional and Health Care with well-known brand (Kotex, Huggies, Kleenex)
I. Company Background
It provides products and the solutions to make people lives better.
KC ‘s management believes that product innovation, effectiveness response to competitive challenges, lead in market shares, control costs, and material risk management are important to the long term success of the corporation.
From 2006,run the progress implementing strategic cost reduction plan.
Kimberly Clark Vietnamfounded in 2000One mill in Vietnam Singapore Industrial Zone, Binh
Duong province. 3 categories: Feminine care, child care, tissue.5 major sections: Sales, Marketing, Finance, Human
Resource and ProductRealizing profit from 2006 and became to one of
strongest companies in the market.In July 2006, KC started project called SPEED.
II. ERP- Enterprise Resource Planning
ERP- Enterprise Resource Planning:• A organization’s management
system• Using software integrates all facets
of an operation, including development, manufacturing, sales and marketing.
Advantages
Integrated information
Increase data security and accuracy
Disadvantages
Expensive to procure
Highly complex
Evaluate ERP Implementation
Success1. Time saving2. Cost saving and
improved product quality
3. Improved communication and collaboration
Failure 1. No improvement in
some department2. Increased workload3. Risk of mismatch
Critical problemERP project is not implemented appropriatelyLimited human resources, budget, time inadequate training
Ineffective communication between staffs and top management
Risk of mismatching between modules and business processes from different departments
SWOT ANALYSIS
StrengthsHighly reputable brand name and
image. Diversified business portfolio
Weaknesses Lack of scale in comparison with
the larger companies in the industry.
Lack of control over raw material’s prices
Weak internal communication system
OpportunitiesCustomers’ high demand for
green products
Successful implementation of ERP will increase company’s competitiveness
Threats Strong competitors (proctor & gamble,
Johnson & Johnson, etc.)
Kimberly Clark Proctor & Gamble
VS
Low economic condition
Fail in implementing ERP will adversely affect the company
Option 1: Pay work overloads
Pros:+High
incentives
Cons:+Increase expenses+Heavy workload
Option 2: Dedicate- Cover
Pros:+Budget-saving
Cons:+Low incentives+Heavy workload
Option 3: Hiring temporary workers
Pros:+Decrease workload
Cons:+ Increase expenses+Hard to find suitable workers
Option 4:“Do the best you can”
Pros:+Budget-saving
Cons:+Heavy workload+Hard to manage
Recommended Option
Option 1: Pay work overloads
III. Recommendations1) Change to option 12) Training and Encouraging Employees
to use ERP system 3) Encourage communication in the
workplace especially between staffs and top management and headquarter
IV. Action PlanTraining Employees to use ERP
system
Project teamClerical staff and Decision makersAdditional course
Action Plan
Improve communication in the workplace
especially between staffs and top management and headquarter
Step 1Schedule regular staff meetingsStep 2Write weekly staff bulletins or email messagesStep 3Listen to the concerns and suggestions of all employees.Step 4Communicate clearly top expectations, instructions and assignments of top management
Step 5Schedule team building activities with all staff membersStep 6Create a communication center or notebook for the staff.
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