...On the Formalisation of ERP Systems Procurement Xavier Franch Joan A. Pastor Universitat Polictècnica de Catalunya Universitat Polictècnica de Catalunya c/Jordi Girona 1-3 c/Jordi Girona 1-3 UPC Campus Nord, C6 UPC Campus Nord, C6 Barcelona, Catalunya E-08034 Spain Barcelona, Catalunya E-08034 Spain +34 3 401 69 65 +34 3 401 70 21 franch@lsi.upc.es pastor@lsi.upc.es ABSTRACT In this position paper we present and defend a set of statements regarding ERP procurement. The statements highlight the importance of ERP procurement processes and propose that they should be as well-defined and systematic as possible. For this reason, we advocate the use of formal notations for structuring the criteria used during ERP selection, for describing ERPs with respect to these criteria and in general to help the whole selection process, including tool support. Finally, we point out several open issues that need to be considered. Most of the opinions expressed here arise from a real industrial ERP procurement experience. Keywords ERP procurement, ERP acquisition. 1 ERP PROCUREMENT MOTIVATION A clear trend in both private and public companies with regard to their current options for software-based management Information Systems (IS) is the fast and wide proliferation of large packaged ready-made Enterprise Resource Planning (ERP) systems, surely among the most extreme instances of current Customizable Off-The-Shelf (COTS) software packages. We present in this and the ...
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...ROLE OF ENTERPRISE INFORMATION SYSTEMS IN THE PROCUREMENT PROCESS Ashley Wright What is procurement? Steps taken to acquire raw materials or finished goods Also known as “Requisition-to-pay” process People, data, documents and information are essential components of procurement Who relies on procurement? Manufacturers Raw Legal/ Purchasing Contract Materials B2B Model Management Vendor Management Resellers Finished Goods B2C Model Purchasing Cost Business owners, management and shareholders Consumers Analysis Inventory Analysis Business Models B2B commerce- Business-to-Business When a business sells directly to another business Includes transactions for raw materials & finished goods Examples: Wood to make a skateboard, helmet, first aid kit B2C commerce- Business-to-Consumer When a business sells directly to the consumer Includes online transactions or internet retailing Examples: Airline tickets, eBay, Wal-Mart online Raw Materials to the Consumer Business-to-Business Business-to-Consumer Producer Manufacturer Distributor Retailer Consumer Business-to-Business (B2B) Commerce Manufacturers use B2B commerce to: Acquire Raw Materials from a Producer Manufacturer assembles raw material into a good End product sold to Distributor or Reseller Resellers use B2B commerce to: Acquire Finished Goods from a Distributor ...
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...Executive Summary With the development of information technologies and procurement, Boing Australia Limited (BAL) is given the opportunity to explore the opportunities of procurement. The credit card purchasing system has bought in a considerable cost saving for generic low cost high volume purchases, an e-procurement system will further make the contracting and bidding process more competitive for these items. The e-buy system which is currently being used by the Parent company Boing, as the majority of the transactions are day to day buys, and it is very important to have this new process targeting this segment. Making the day to day purchasing process simpler and more efficient will leave more room for the company to improve on the supply management of the strategic and critical suppliers. Concentrating on supplier management in all areas of product categories, will enable BAL to achieve more effectiveness in the over all purchase of strategic / Critical items. By working with the existing ERP provider, BAL can extend the development of the link between the suppliers customers and BAL. At BAL procurement is a part of information systems, it is important for the company to link the existing Legacy system to the suppliers and customers, and its by far the most cost effective way of integrating between the front end and the back end of customers and suppliers. This will enable the company to move forward with the existing resources, as it’s time for the company...
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...Course & Selection: Identifier: Client: Chapter 03: Financial Accounting Exercise 03-02: Basic Financial Accounting Process Single Company Code Version 1 Rev: 01/03/2011 Introduction General Notes and Information It is strongly recommended that you read through the entire exercise prior to starting. Not all instructions can be provided in a linear manner. The following symbols are used to indicate important information as described below: An arrow highlights an important instruction that must not be overlooked. A text box prompts you to type-in an important piece of information. Each student or group will be assigned a unique three digit identifier. This identifier is used in all exercises to uniquely identify your data. Whenever you see ### in these exercises, replace it with your identifier. Always work with your data. Business Process Overview The financial accounting process allows GBI to pay vendors for services or materials acquired. This process can be used to pay for liabilities that GBI has incurred due to normal operations. This exercise is about paying off liabilities within the accounting statements. Chapter 04 Save Reset Print Chapter 03: Financial Accounting Exercise 03-02 Exercise 04-02 Exercise Prerequisites Chapter 04: ProcurementFinancial Accounting Master Data-SCC Exercise 3-1 Process Exercise 04-02: Basic Procurement Process Exercise Single Company Code Workflow Invest in GBI View Account Balances Purchase Supplies for Cash Purchase Supplies...
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...* Table of Contents 1 Introduction 1 2 Elements of E-Procurement 1 2.1 Systems 1 2.1.1 ERP 1 2.1.1.1 The implementation process and life cycle 2 2.1.1.2 Key success factors (KSFs) 3 2.1.1.3 Project preparation 3 2.1.1.4 Technology selection 4 2.1.1.5 Implementation/ development: 5 2.1.2 EDI 5 2.2 Necessary Support Technologies 7 2.2.1 E-Catalogues 7 2.2.2 E-Auctions 8 2.2.3 Market Places 11 3 Strength and Weaknesses of Implementing E-Procurement 13 3.1 Strengths 13 3.2 Weaknesses 14 4 Critical Success Factors for the Implementation of E-Procurement 15 4.1 Supplier and contract management 16 4.2 End-user behavior and e-procurement business processes 16 4.3 Information and e-procurement infrastructure 17 5 Case Study 18 6 Future Outlook/ Conclusion 19 List of References II Introduction During the last decade and especially in the last couple of years, the internet has finally found its position in business operations. While the use of internet has been rather the exception than the norm, it is now becoming more and more common to streamline processes and eliminate wasteful processes through the use of the internet. This can especially be seen in the purchasing operations of many firms nowadays, as many companies see the importance of efficient procurement and change from slow and often expensive, paper-based orders to e-procurement. It seems as though this style of procurement can be of great advantage to every firm, but there are also drawbacks. The...
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...Paper Rena Davenport Embry-Riddle Aeronautical University January 22, 2015 In reviewing the SAP ERP solutions, my initial thought was how much easier to understand and follow their website is than Oracle’s website. If I were to be shopping for a solution I would probably choose SAP just because I could navigate their website in an easy-to-follow manner. Please save your file as 'LastName_M9_Research' (example 'Smith_M9_Research.docx') Better execute your business strategies – with our enterprise resource planning (ERP) solution Run the foundation ERP software that large enterprises and midsize companies trust to manage their business. Achieve real-time insight and enable operational excellence and innovation for the business processes you need – today and tomorrow. * Consolidate business data to avoid duplication of effort * Streamline business processes with consistent, reliable information and real-time transparency * Quickly respond to customer demand with efficient, fast, and flexible processes * Outperform the competition with improved financial insights and results * Innovate without disruption by updating and activating specific business functions on demand * Rely on a foundation that supports best practices for more than 25 different Industries Procure to Pay (ERP) Maximize cost savings with support for your end-to-end procurement and logistics processes – from self-service requisitioning to invoicing and payments. * Streamline...
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...OPTIONS……………………………………..…2 RECOMMENDATION …………….………………………………………3 MONITOR AND CONTROL…………………..……………………….....4 Executive Summary BAL is considering options for e-procurement and trying to decide if they need to find a new system that they can integrate with their current legacy ERP and other software. The following report will present an approach to continue with incremental changes to their current strategy. The organization has achieved much in a short period of time and I expect they can improve upon the foundation of what they have by further development of their current software and processes. Issue Identification Boeing Australia Ltd. (BAL) Need to decide if they will move forward with finding, purchasing and implanting an e-procurement system that will integrate with their current legacy systems. The current systems manage their procumbent, inventory, work in process, time capture, and finical. BAL has goals that will improve the supply chain extensively. They are looking to: reduce the amount of suppliers they have, improved relationships with their suppliers, reduce costs, reduction in rogue purchasing, and standardize best practices for procurement. BAL has already taken many steps to meet their goals and is achieving headway. By moving procurement, administration finance, engineering, logistics projects, and IT for 4 of the companies key divisions to one building they have improved internal communication. Because of this move they would...
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...SAP’s ERP Solutions Introduction Today’s highly competitive global business arena has become an environment where companies face numerous obstacles and challenges. In an attempt to adapt to rapidly evolving business needs, Enterprise Resource Planning systems, more commonly referred to as ERP, were developed. Simply put, an ERP system is a set of software modules that handle the core functions of a business. Various functions that include a wide range of business applications are integrated into one system that allows them to communicate seamlessly in order to provide reliable, real-time information to base business decisions upon. No matter what marketplace a company operates in, there is a need to have precise and accurate information which provides keen insight that allow for swift, flexible, and efficient actions. SAP, one of the pioneers of ERP software, is one of the industry leaders that specialize in providing solutions to meet the ever evolving ERP demands of modern business. Their goal is to provide products that consistently deliver high quality solutions in the form of software applications that help businesses operate more efficiently in their daily activities (Quality Vision, n.d.). SAP’s sole focus is on the development of superior enterprise applications which has allowed them to maintain its customer base for over 40 years. Like many other ERP solutions, SAP offers a variety of products that can be scaled and tailored to meet the needs of the firm...
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...ADOPTION OF ERP SYSTEM FOR ALL DIVISIONS I would like to propose an upgrade of our in-house internal Material Requirement Planning (MRP) mostly used by the Engineers to an ERP system which would encompass sales, account payables, finance, supply chain, invoicing and receiving. Our current system works well internally, however, there are several issues that the MRP cannot address. The MRP doesn’t disseminate information to procurement, sales and finance. Also it doesn’t provide information on inventory levels and late deliveries. It’s therefore difficult to make the necessary changes, which would, commensurate with the rapid changing business environment. In addition, the MRP is manufacturing driven and it is only of advantage to the manufacturing divisions. Even in those divisions, communication and the require knowledge for better forecasting and financial planning are lacking. The ERP would improve the entire efficiency of the company’s processes. First and foremost, the ERP would enable all the diverse divisions to work as a single unit, provide a key knowledge development and ensure the seamless workflow of processes. As of now, access to information and data retrieval is difficult and cumbersome to analyze. This reduces the production efficiency of employees. With the ERP system all employees would have access to same information and/or data at the same time. Also the ERP has many modules such as inventory, order management, sales, human resource, procurement, warehousing...
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...Planning (ERP) System has an enormous effect on a business which includes information sharing, business planning and decision making on an enterprise-wide basis, Therefore it allows each department to share information and communicate which greatly benefit for a more productive and effective business flow. ERP is one of the newest Information Technology System which is implemented on all KFC Restaurants around the world which is used to analyze and integrates all of business processes. Enhancing the customer relationship is one of the main features coming under the core objectives of every ERP system, the newest web-based system enables quick generation of inventory, sales and revenue report which is very effective for every QSR Restaurants including KFC. There are various modules in ERP system including Finance, Human Resource Management, Manufacturing, Project Management etc. KFC is a major quick serving restaurant (QSR) with stores located in 109 countries and territories around the world and serves over 12 million customers every day generating nearly $10 billion a year, Founded by Col. Harland Sanders and based in Louisville, Kentucky USA, it is now the world’s most popular chicken restaurant fast food chain specialized in Original Recipe, Hot and Crispy Chicken and freshly made chicken sandwiches. KFC is part of Yum! Brands, Inc., the world’s largest restaurant company in terms of system restaurants with more than 36, 000 locations around the world which implement ERP system...
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...BAL’s reach extends to customers in more than 90 countries around the world, and they are a leading U.S. exporter in terms of sales. With corporate offices in Chicago, Boeing employs more than 159,300 people in 49 American states and 70 countries. Their enterprise also leverages on talents of hundreds of thousands more people working for Boeing suppliers worldwide. BAL however faced difficulties as it sought to upgrade its procurement systems and processes to improve operations. Russell, the new National Procurement Manager on realizing the new opportunities available through e-business technology, Russell needed to decide what BAL’s next step should be, should BAL invest in new system that would simplify procurement processes; should BAL sit on the fence? I am Russell Menere, the National Procurement Manager for Boeing Australia Limited (BAL)., my decision is to recommend that BAL pursue a cost effective e-procurement system that will interface with the legacy information technology systems that are already in place. This tool should simplify the procurement processes across the different divisions of BAL and support the complex interfaces BAL’s suppliers and customers require. Based on a 6 month to a year...
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...Course/Unit Information | Course | Postgraduate Diploma in Supply Chain Management and Logistics. | Awarding Body | The Association of Business Practitioners | Batch | SCML - 1406 | Instructor Information | Name | LeenaWanganoo | Phone | +971501139849 | Skype | Leena.wanganoo@gmail.com | Email | Leena.westford@gmail.com | Assignment Information | Full/ Part Assignment | Part – Task 1( LO1, LO2) | Date Assignment Issued | 4.07.2014 | Date Assignment Due | 25.07.2014 | Student Information(To be filled by the student prior submitting the assignment) | Name | Siji Sundaran Manalikkattil | Email | sijisundaran@ymail.com | Date of Submission | 19th July 2014 | Student Assignment covering form is an integral part of the assignment document and should be submitted along with all submissions. Student Declaration I, Siji Sundaran Manalikkattil hereby confirm that this assignment is my own work and not copied or plagiarized. It has not previously been submitted as part of any assessment for this qualification. All the sources, from which information has been obtained for this assignment, have been referenced as per Harvard Referencing format. I further confirm that I have read and understood the Westford School of Management rules and regulations about plagiarism and copying and agree to be bound by them. Students Signature : Siji Student Name : Siji Sundaran Manalikkattil Date : 19th July 2014 Learning Outcomes and Assessment...
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...Chapter 3: Procurement Process Teaching Objectives The teaching objectives of this chapter are to: * Describe the steps in the procurement process. * Explain the role of different functional areas in efficiently and effectively completing the procurement process * Identify the key steps in the procurement process and the data, document, and information flows associated with the process. * Explain the financial impact of the steps in the procurement process * Explain the role of enterprise systems in supporting the procurement process Chapter Outline and Teaching Suggestions 1. Key Concepts and Assumptions a. Procurement - Requisition to pay b. Business to consumer c. Business to business Explain what procurement means and differentiate between B2B and B2C procurement. 2. A Basic Procurement Process d. The framework i. Physical flow ii. Data and document flow iii. Information flow Review the framework introduced in chapter 1 e. Physical Flow iv. Create requisition v. Create and send purchase order vi. Receive shipment vii. Receive invoice viii. Send payment Explain each step in terms of purpose. Discuss how communication between process steps is accomplished. 3. Document and Data Flow f. Purchase Requisition g. Purchase Order h. Packing List i. Goods Receipt Document j. Goods Receipt...
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...went digital. It established several infrastructural components such as Computer Network, a backup system and security policy. Attractive and Informative website has become a major need for many companies and that made El-alamein company to develop a website (www.elalamein.net). The website helps many functional Departments including marketing, HR, sales and customer services. The company reviewed different Enterprise Resource Planning (ERP) systems and chose the Oracle E-Business Suite as the best ERP to meet the company’s information and business requirements. The modules chosen under the Oracle E-Business Suit was Oracle Financials, Inventory Management, Manufacturing, Sales and marketing, Order-management and Procurement. An implantation vendor was selected to start the project and the modules chosen to help automate the business processes were Oracle Financials, inventory management, manufacturing , sales and marketing, order-management, and procurement. To ensure ERP implementation success El-alamein focused on the following business process...
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...Analyzing SAP ERP's success in TISCO The critical success factors of ERP systems mainly include proper implementation and usage. Beside this there are several other factors that decide the regular functioning of ERP in organizations. While many organizations have not incurred the necessary benefit in terms of money and other measures there are lots who have witnessed multiple profits. Studying them will help in understanding the critical success factors for ERP implementation. They will help in deciding ERP success. TISCO PROFILE This company founded and established in the year 1907 is known to be one of the leading steel giants in the country offering multiple products and successfully running many subsidiary corporations. Being a large entity does not stop things from being subject to scrutiny and internal audit. They are regularly implemented with the help of committees who report to the selected members from the senior management. The company is dedicated to providing laudable services to the stakeholders improve on the quality and as thrive for innovations and improvements constantly. BACKGROUND TATA steel is India’s largest integrated private sector steel company that started its corporate journey in the year 1907. Backed by captive iron ore and coalmines, Tata Steel runs state-of-the-art Cold Rolling Mill complex at Jamshedpur, Eastern India. The enterprise has undergone a modernization programme costing $2.3 billion, resulting in production of steel at...
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