ERP Systems Introduction The Enterprise Resource Planning (ERP) is an approach in conducting business that integrates data in an organization into one system. Enterprise Resource Planning system has a hardware component, document-processing component, and a software component like Microsoft Dynamic GP 10 control inventory. These ERP systems normally cover various organizational aspects. For example, it is possible for an ERP system to cover the quality control, ordering of parts, manufacturing, engineering during manufacturing, human resource, and accounting during payments. The design of ERP systems and customization of Microsoft GP 10 depends on a business size, and functions that business or company requires in conducting business. Compare the SAP ECC ERP platform with a second ERP system SAP ECC ERP platform SAP ECC ERP is one of the ERP systems that involves business inventory systems, applications, and data processing of products. The SAP ECC ERP is the latest version of the system. This business inventory application system is based on R/2, a mainframe version centralizes data and system process. The design of SAP ECC ERP is to satisfy needs for information in business inventory. Some of the characteristics of SAP ECC ERP include the system being able to link every business inventory process in a business automatically. This helps a company using the SAP ECC ERP system to reduce the time in interprocess. This enables the one time occurrence of a transaction at the source. The SAP ECC ERP system can maintain an audit that is complete of every transaction. The business inventory system utilizes a single common database in its communication design and performs internal functions like developing records for the items in the business, tracking these items, and product pricing automatically. By integrating inventory, control in SAP ECC ERP system improves the quality of services companies offer to customers by making data available to employees. Many companies use SAP ECC ERP system because it has the capacity to involve every system and user in the entire cycle of performance. Microsoft Dynamic GP 10 Another ERP system is the Microsoft Dynamics GP10 that is a 2010 version of the Microsoft’s ERP system. Over 41,000 customers across the world use the Microsoft Dynamics GP 10. Microsoft Dynamic GP 10 goes beyond operational functions in a business like basic financial and offers full ERP system solution. Microsoft Dynamic GP 10 entails minimal costs in implementation, and system maintenance as it is true with other ERP systems like Oracle or SAP (Microsoft, 2011). Microsoft Dynamic GP 10 provides project management, sales and marketing, financial accounting, supply chain, service information, and human resources functionalities. Microsoft Dynamic GP 10 further enables a firm to enjoy business reporting. This Microsoft ERP system has four different versions that include SL, GP, AX, and NAV. The NAV Microsoft Dynamic is an ERP system suite that is designed for small size business firms. The NAV Microsoft Dynamic involves additional functions apart from enabling functions like accounting or basic PM, which the SL Microsoft Dynamic provides. This NAV Dynamic provides efficient solutions that are cost effective for firms in need of ERP systems solutions. The SL Dynamics provides basic accounting and project management in different divisions of an organization. SL Dynamics primarily aims at the different construction companies, contractors serving the government and distribution companies among others. The AX Dynamic is a Cadillac program of Microsoft Dynamic GP 10 that offers large companies complete solutions to ERP problems. The design of this Dynamic is for global companies or firms, manufacturing companies, and various global industries. This Dynamic provides firms Microsoft GP functions, an additional company intelligence reporting, and business environmental sustainability information (Microsoft, 2011). Select one business area on which to focus their analysis Inventory Inventory refers to an amount of material or goods that a company or factory has in its store. Inventory further refers to the exercise of counting these goods or material in these stores. It is necessary for company owners or manufacturers to know the amount of items that they have in their stores in order to avoid losses and assist them when making orders. SAP ECC ERP platform, Inventory The design and usage of SAP ERP in inventory is for the gathering of information that store keepers, supply chain, or sales and marketing require in order to know the number of items that they possess in these stores. SAP system inventory can offer solutions to businesses doing business in sales and marketing or supply chain. The SAP ERP system provides a business inventory control platform that integrates the complete business functionality for every business function. Two different SAP solutions enable a company or firm to have control of inventory management and optimizing of inventory. These SAP solutions include mySAP Supply Chain Management and mySAP Enterprise Resource Planning. mySAP ERP is the new version of R/3 system that enables a company conducting inventory to control business functions like accounting, supply chain, and logistics. mySAP SCM complements these solutions by equipping a firm/company in solving inventory challenges in supply chain management. Sap assists in inventory by optimizing mySAP SCM through leveraging its inventory management capacity. Microsoft Dynamic GP 10, Inventory Currently, with the advance in technology and increase, in business competition, many companies are adapting their business activities in relation to the Internet, culture and capacities of doing business online. Microsoft Dynamic GP control inventory enables many companies have the capacity to make purchases of supplies from other companies’ suppliers. Using Microsoft Dynamic GP 10 in inventory enables a company to achieve sales increment through direct selling of products. Using Microsoft Dynamic GP system in control inventory in doing business enables a businessperson or company to cover business transactions. This capacity of inventory is extended to every internet based business interaction application with business clients, and suppliers selling directly to customers. Activities in Microsoft Dynamic GP control inventory include posting or inserting business transactions or variance transactions both as individual components or as batches, completing counts of stocks that involves physical or cycle counts, using the ABC analysis in items prioritizing, tracking of an inventory item in the warehouse, and tracing a lot number or serial number life cycle. Compare and contrast the use of each system as used in their selected business area. Microsoft GP 10 platform Microsoft GP 10 platform provides a platform for inventory by offering scalability and flexibility in the system capacity to handle complex, large online inventory activities. The Microsoft GP 10 platform has a mobile inventory platform, business-to-customer platform, and a business-to-business platform. The creation of this documentation system is as an enterprise level solution. This feature enables a robust, customizable environment that enables an organization or company doing business like selling, purchasing or collaborating with other businesses. Microsoft dynamic GP 10 inventory system provides the capacity to handle a data load without the risk of degrading the entire system performance. This distinctive feature provides a company an additional throughput that the business needs to do business effectively. SAP ECC ERP platform The architectural design of the SAP ECC ERP platform provides a client-server environment in doing stocks inventory. It enhances purchase order visibility, handling of invoices, and managing contracts. SAP ECC ERP platform inventory enables a company to maintain a good supplier satisfaction. It has the capacity to minimize costs in inventory in addition to consolidating product shipment. Conducting inventory using SAP ECC ERP platform assists in improving procur
ement activities, outbound, inbound, and management of transportation. It enhances the optimization of business processes like invoicing to requisitioning for procurement. Project Background The project aims at comparing the SAP ECC ERP platform with a second ERP system through the employment of Microsoft GP 10 platform. The analysis of the project will mainly focus on the inventory area of business. The use of system documentation along with live systems will provide an opportunity to comparing as well as contrasting the application of each system in the business area already selected. The Systems Applications and Products ERP (SAP ERP) are the integrated software solution, which slots in the key business activities of an organization. An Enterprise Resource Planning (ERP) system is primarily a scheme for manufacturers and is available from an assortment of vendors in various forms. The main goal of ERP system is to fulfill the needs of different types and sizes of manufacturing companies. Besides, the system integrates management information both internally and externally across the entire organization. In order to accomplish this important course, ERP systems will integrate management information with an integrated software application. Apparently, the general idea is to enhance the flow of information between business functions within the boundaries of the organization. Business Area Examined The project seeks to examine and analyze the inventory area of a business organization. Business inventories are the sum of all the commodities available for sale to other companies and customers. ERP systems seek to execute some of the fundamental technological requirements across functional areas within a corporate boundary. The growth in internet technology alongside the emergence of inventory has shifted focus of ERP systems from an integrated functional focus to an extensive system outside the organization through a value chain system. An ERP system has the capacity to enhance the organization’s inventory effort. Apparently, SAP ERP comprises a number of modules, which include field service, product design and development, and utilities for sales and marketing. Other modules of concern include human resources, inventory control and accounting. To facilitate the operations of the ERP, the process would involve investigation of the technological factors of ERP as well as other emerging enterprise systems. The inventory can considerably improve the performance of the organization by strengthening the linkages in the value chain between the enterprise and prospective customers. A typical ERP system consists of manufacturing, logistics, human resources, finance and sale/marketing. Figure 2: Integrated SAP ERP The inventory also increases efficiency in selling, purchasing and marketing plans. In order to achieve effectiveness, the inventory platform must improve customer service, reduce costs and streamline business processes. This will provide a favorable environment for operations of the enterprise. Inventory creates a business environment that is customer focused together with mutual benefits and joint rewards. Besides, many companies use the Internet for implementation of the CRM (Customer Relation Management) and SCM (Supply Chain Management). Through implementation of CRM and SCM, the organization would be in a better position to link its operations with customers as well as suppliers without any difficulties. The traditional ERP systems played a fundamental role of taking care of the internal value chain within the company. The inventory would then establish the value chain across the market and industries. Today, many companies construct the architecture of their systems by integrating ERP systems within the inventory section. The integration process involves application of corporate portals (Web-based interface) together with add-on modules such as SCM and CRM among others. ERP systems redesign and facilitate all business processes with a view to eliminate the non-value added activities. It also allows companies to direct their focus towards implementing only the core and strictly value-added activities. In the contemporary society, ERP systems seek to address challenges that would deter the growth of different business enterprises in relation to expanding its policy beyond the walls of the enterprise. Every organization must ensure the ERP is accessible to all employees, business partners and customers. Hence, it would be easier for all entities along the entire value chain to make better decisions. Discussion of SAP capabilities supporting the business inventory SAP business technology has improved relationships between business people and their customers and partners, streamlining operations and accomplishing crucial efficiencies throughout the supply chain of the organization. SAP has enhanced effective delivery of business strategies, business functionality and processes in an attempt to enhance operations in the inventory. The SAP capabilities in supporting the business area includes but not limited to the following key areas: SAP facilitates the systems’ ability to rapidly adopt emerging technologies along with different applications through the use of flexible platform that is mainly designed for change SAP extracts value from big data using the leading business intelligence in the industry and also in the field of memory computing Assists in the mobilization of the labor force with secure access to business information as well as systems SAP also boosts the business as well as the efficiency of the IT with integrated cloud-based platform and on-premise systems SAP enhances development of business strategies that will promote operations in the inventory area of business. Figure 3: SAP Discussion of Microsoft GP10 (or other system) capabilities supporting the selected business area Inventory application in specified business area involves the sum of commodities and materials enclosed in a factory or store at any time. One can predict the production activities of products when assessed along with the sales index. Microsoft dynamics GP software will help to enclose information about reorganization and entering of inventory transfers and transactions that assist in the delivery of an astounding Inventory Control functionally through working online. One must complete some tasks in order to set up an inventory including setting up unit of measure schedule with item classes and specifying system settings. The transactions that one enters can increase or reduce alterations to ones inventory or transfers of quantities amid various types of quantity at the main sight. One can enter operations that enable the transfer of inventory quantities involving two sites. The software system will connect various moving parts of the administration, giving an individual a better visibility and control over what is taking place in the business. The system will enable the management to make smart decisions that have a positive impact on the business thus amplify the scope and improve on the cash flow. This system is easy to use and works with ones scale and existing technology as they grow to deliver their long-term objectives. The Microsoft Dynamics GP has various, exciting new qualities among them its new workflow functionality. This functionality allows multiple levels of authorization, approval routing that are useful for transactions. This is fundamental since one can save Transactions entered in consignments, edit them when necessary and post so that they develop into permanent accounting records. Reducing the approval process is essential especially during times of financial cutbacks, where there are increasing numbers of critical financial decisions that need urgent managing under time pressure. The workflow functionality is flexible because of its establishment of Microsoft Office SharePoint Server. The workflow has benefits in that one can view their transactions in MOSS and approve in Outlook MOSS or in Dynamics GP. For example, a user submits a contract online, which will send an email to the first approver. This approver opens the emai
l and tracks this link to MOSS to view the complete transaction. This approver can approve the transaction directly from the email, which in turn triggers another email to the final approver. The final approver can approve the transaction directly from email or log in to MOSS and this chain of transaction appears in the Dynamics GP; therefore, the owner of the inventory can monitor the status of the transaction. Analysis comparing and contrasting the systems SAP and the Microsoft system have various similarities and differences. Both have the same function, for example, they give managers all the fundamental requirements for the creation of employees. Their differences arise from diverse areas such as the creation of functions, items and visual representations. In terms of the interface, users of SAP ECC 6.0 should have a basic understanding of how to operate the system and they need more basic training. Microsoft dynamics is intuitive, and the set up resembles a windows interface. It is easy and the menu appears immediately when the user clicks on a functionality such as financial or inventory. When one is creating the functions, the SAP system is more methodical than Microsoft GP system. When a user is in the correct system, SAP enables him or her to go through the process of creating different departments gradually. In Microsoft GP windows, the majority of the information is in the first window. This does not require the user to pass through the procedure of clicking on different windows in order to access various options. The SAP ECC system can create numerous units at once, and after creating these units, one has to edit data after filling in the information. Microsoft GP can only make one division at a given time, and this is beneficial since the user enters all the information after the formation of the division. In the creation of departments, organising of charts it is easy when one uses the SAP system. One creates different units under different divisions through selecting the organisational unit and clicking on create. There is no alternative for addition of divisions to a department directly in Microsoft, and one has to go in later to restructure the information. SAP uses crystal reports to export different types of files such as word, but Microsoft GP exports these files directly to MS office without using any intermediary system. The SAP will enable the manager to put information quickly and reports on various commodities since it has the €˜managers desktop’. Microsoft has a standard and perceptive set up that allows managers to navigate through windows quickly. Factors managers should consider when deciding which system should best support a given business environment A company should consider various factors when choosing a software system. These factors include flexibility, affordability, distribution management and vendor stability among others. Flexibility Many business management solutions tend to fail or succeed basing on their ability to help organisations accomplish various situational needs. A company should install software that is more than flexible and broad. This will enable it to transform and fit new requirements that arise because of change in technology. Increase in the inventory control, complexity and many scopes of operation require a company to have an on-site control of crucial business applications. Firms should consider how the system they choose can undergo modification or correspond with other existing systems. Affordability Managers should know the cost involved in implementing a high business functioning management solution. They need to understand the true cost of owning and operating a system. They should also make sure that their partners are aware of the requirements and expectations of getting the system without capsizing on the company’s budget. These also include the licensing fees, the cost of training the workforce in the use of the system and the amount of time spend on making the necessary intellectual changes to enable the use of the system for storage of information. Distribution Management Companies should choose systems that have the sophistication that will enable them to manage effectively more complex inventory and allocation processes. The manager must choose the system based on the needs of the company since needs differ among individual industries and businesses. It is significant to ensure that the system will meet the distribution and inventory needs of the business. Vendor stability The size of the software companies matter and some of them may die, and their system may fail. It is crucial to consider the vendors financial stability when choosing the software system to implement. It is also necessary to have a strong partner channel that sells and supports an application. This is because one may have a problem finding an associate whose focus is on the success of the company’s business. Figure 4: ERP Software Factors managers should consider when deciding which system should best support a given business environment A company should consider various factors when choosing a software system. These factors include flexibility, affordability, and distribution management as well as vendor stability among others. Figure 5: Business Inventory References Microsoft (2011). Human resources management in Microsoft Dynamics GP. Retrieved on 28th November, 2012. Retrieved from
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