Implementing An Enterprise Resource Planning ( Erp ) System Essay

1354 Words Jul 6th, 2015 null Page
Keda refocused itself using a five year computerization plan, addressing short-term and long-term strategic goals. The first step Keda took to accomplish its goals was to implement an Enterprise Resource Planning (ERP) system. The need for an ERP was the correct issue for the organization to focus on considering the positive outcomes resulting from the implementation of SAP’s ERP system.
Keda could not afford not to implement an ERP system if it was to retain its leadership position and continue growing. The justification for such a system was based on the following reasons. Its silo-based business units often duplicated processing tasks resulting in unnecessarily high costs. Furthermore, business decision-making and strategy were hampered by communication problems amongst departments. Keda was also facing intense local and foreign competition. There was a need to improve product development, business management and operations. Additionally, Keda needed to better understand its production, sales, and customers. Inventory management was less than optimal and pricing was difficult because the costs of goods sold were not clear for products manufactured. There was significant opportunity loss due to production delays and inefficient management of facilities. Keda’s antiquated Manufacturing Resource Planning (MRP) system did not support multi-plant operations and the maintenance contractor for the system was no longer providing service. Finally, another important…

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