IMPLEMENTING ENTERPRISE RESOURCE PLANNING

Abstract

ABC Company Limited is a tube manufacturer wanting to modernize further after successfully deploying a Finance and Accounting software module called MAC5. This research explores the merits and shortcomings of implementing and Enterprise Resource Planning (ERP) software system in the purchasing department. The inefficiencies of the current working process flow in the purchasing department were identified: human error in the manual input processes, and a disorganized database which has wide ranging effects from inventory planning to delivery planning. The new ERP design would reduce the work processes from nine to five processes. The old purchase order processing time of thirty minutes could be reduced to fifteen minutes. The operation cost would be reduced, and the new system would integrate the database into a centralized database.