Neha Kumari Singh

SAP ID: 77120761269

NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Enterprise Resource Planning
Internal Assignment Applicable for December 2021 Examination

1. Why do organisations implement an Enterprise Resource Planning system? Why is

OLTP a critical part of an ERP? What component of ERP helps the Managerial level?
Do these components resolve the problems faced by organisations prior to
introduction of ERP? Give an example to show the before and after scenario. (10
Marks)
Ans:
Introduction: During the previous 60 years, enterprise resource planning has made a significant
contribution to the computerized business sector. Despite the fact that reception charges increase
step by step, several associations are still unaware of the importance of reception charges.
Businesses as well as the market are moving towards a strategic gain that is becoming more
apparent over time. In today's modern world, ERP software is gaining a lot of attention and proving
to be useful to many companies.
Enterprise resource planning (ERP) is a system of integrated software applications that
standardizes, streamlines and integrates business processes across finance, human resources,
procurement, distribution, and other departments. Typically, ERP systems operate on an integrated
software platform using common data definitions operating on a single database.
ERPs were originally designed for manufacturing companies but have since expanded to service
industries, higher education, hospitality, health care, financial services, and government. Each
industry has its own ERP peculiarities. For example, government ERP uses contract lifecycle
management (CLM) rather than traditional purchasing and follows government accounting rules
rather than GAAP. Banks have back-office settlement processes to reconcile checks, credit cards,
debit cards, and other instruments.
Organisations implement an Enterprise Resource Planning system because of the following
reasons:
ERP systems improve enterprise efficiency and effectiveness in a number of ways. By integrating
financial information in a single system, ERP systems unify an organization’s financial reporting.
They also integrate order management, making order taking, manufacturing, inventory,
accounting, and distribution a much simpler and less error-prone process. Most ERPs also include
customer relationship management (CRM) tools to track customer interactions, thereby providing
deeper insights about customer behavior and needs. They can also standardize and automate
manufacturing and supporting processes, and unifying procurement across an organization’s
disparate business units. An ERP system can also provide a standardized HR platform for time
reporting, expense tracking, training, skills matching, and the like, and greatly enhance an
organization's ability to file the necessary reporting for government regulations, across finance,
HR and the supply chain.
Properly operating ERP systems enable enterprises to reduce the time required to complete
virtually every business process. They also promote collaboration through shared data organized
around common data definitions, resulting in better decision-making. The standardization and
simplification that ERP systems offer result in fewer rigid structures, thereby creating a more agile
enterprise that can adapt quickly while increasing the potential for collaboration. An ERP systems
centralized database, while being a bigger target, is easier to secure than data scattered across
hundreds of systems.
The scale, scope, and functionality of ERP systems vary widely. However, most ERP software
features the following characteristics:

• Enterprise-wide integration. Business processes are integrated end to end across

departments and business units. For example, a new order automatically initiates a credit
check, queries product availability, and updates the distribution schedule. Once the order
is shipped, the invoice is sent.
• Real-time (or near real-time) operations. Since the processes in the example above occur
within a few seconds of order receipt, problems are identified quickly, giving the seller
more time to correct the situation.
• A common database. A common database enables data to be defined once for the
enterprise with every department using the same definition. Some ERP systems split the
physical database to improve performance.
• Consistent look and feel. Early ERP vendors realized that software with a consistent user
interface reduces training costs and appears more professional. When other software is
acquired by an ERP vendor, common look and feel is sometimes abandoned in favor of
speed to market. As new releases enter the market, most ERP vendors restore the consistent
user interface.
OLTP is a critical part of ERP as OLTP, or online transactional processing, enables the real-
time execution of large numbers of database transactions by large numbers of people, typically
over the internet. A database transaction is a change, insertion, deletion, or query of data in a
database. OLTP systems (and the database transactions they enable) drive many of the
financial transactions we make every day, including online banking and ATM transactions, e-
commerce and in-store purchases, and hotel and airline bookings, to name a very few. In each
of these cases, the database transaction also remains as a record of the corresponding financial
 transaction. OLTP can also drive non-financial database exchanges, including password
changes and text messages.

ERP systems operate on an integrated software platform using common data definitions operating
on a single database. In general, OLTP systems do the following:

• Process a large number of relatively simple transactions: Usually insertions, updates,

and deletions to data, as well as simple data queries (for example, a balance check at an
ATM).
• Enable multi-user access to the same data, while ensuring data integrity: OLTP
systems rely on concurrency algorithms to ensure that no two users can change the same
data at the same time and that all transactions are carried out in the proper order. This
prevents people from using online reservation systems from double-booking the same
room and protects holders of jointly held bank accounts from accidental overdrafts.
• Emphasize very rapid processing, with response times measured in
milliseconds: The effectiveness of an OLTP system is measured by the total number of
transactions that can be carried out per second.
• Provide indexed data sets: These are used for rapid searching, retrieval, and querying.
• Are available 24/7/365: Again, OLTP systems process huge numbers of concurrent
transactions, so any data loss or downtime can have significant and costly repercussions.
A complete data backup must be available for any moment in time. OLTP systems require
frequent regular backups and constant incremental backups.

The component of ERP helps the Managerial level and also these components resolve the
problems faced by organisations prior to introduction of ERP are given under:
1. Human Resources
Managing wer employees should always be priority number one. Without them, we don’t have a
company.
Before Senario: The HR was not able to handle the full spectrum of employee management.
After Senario: The HR ERP component can handle the full spectrum of employee management,
from onboarding to offboarding, and from benefits administration to timekeeping.
The biggest feature we need from a HR component is payroll software. Manually submitting
payroll and issuing direct deposits is incredibly time-consuming and, frankly, not worth wer time.
Instead, an HR component automates payments, including tax and benefits deductions. With an
integrated timekeeping feature, even payments to the hourly workers can be automated, so we
don’t need to manually input their timesheets.
2. Customer Relationship Management
Before Senario: Managing customers on the other hand was the biggest problem. Profit and loss
of the company needs to be stored efficiently while doing the marketing materials.
After Senario: Managing customers and leads needs to be second highest priority, because without
them, business can’t survive. A customer relationship management (CRM) ERP component allows
to keep track of all of our customer and lead data within our ERP solution. The insights we can
gain from a CRM help optimize our marketing and sales efforts.
One of the main uses of a CRM is tracking the buyer histories of wer customers. With this data in
hand, we can suggest additional purchases through cross-selling or upselling, or try to sell them a
relevant product/service when they’re otherwise not as likely to buy. In addition, we can use a
CRM to track the conversation history with leads, so we know who’s talked to them, when they
talked and what they talked about. Using this data, we can more effectively lead them down the
sales funnel by providing them with relevant marketing materials, and making sure that sales reps
never double-up by calling about the same thing.
3. Business Intelligence
After Senario: Business intelligence (BI) is pretty new. At least, it is when it comes to standard
ERP components. But considering how many businesses are attempting to create data-driven
decision-making processes, it’s quickly become one of the standard ERP components. The BI
component of ERP software collects and analyzes data, providing we with actionable insights
related to business processes.
The best BI ERP components deliver those insights in reports. A good reporting feature is the most
important in a BI, so we can make sense of the data it analyzed. Some reports come in the form of
numbers in different tables. But the best reports are visual, allowing we to spot trends at a glance.
Make sure that data visualization is possible with the BI components’ reporting features.
Otherwise, those insights will be a lot harder to decipher.
4. Supply Chain Management
After Senario: Creating an efficient supply chain isn’t exactly easy, even when deploying software
to help we out. The supply chain management (SCM) component of an ERP system is one of the
most crucial for this reason. We need the best SCM features to be able to optimize supply chain,
and that starts by collecting real-time data.
Real-time data allows we to keep tabs on supply chain, so we can find and fix issues as they
happen, rather than waiting until we receive the data a day or more after the fact. It also makes
predictive analytics possible. The SCM component, with the aid of real-time data, can help with
demand planning, so we can create an up-to-the-minute accurate production plan that meets
demand, but doesn’t exceed it.
5. Inventory Management System
After Senario: An inventory management component is one of the most collaborative ERP
components. Inventory management works in tandem with the SCM component, but also dips its
toes in other processes, such as sales and warehousing. The main purpose of these components is
to manage order fulfillment and stocking a warehouse.
The best inventory management components come with tracking features that all but eliminate
manual inventory control. These features include multi-level serial number tracking, revision level
tracking and multiple units of measure per product ID or SKU.
6. Financial Management
After Senario: Last but not least, we come to the component that deals with data from all of the
other ERP components. Since every business process involves money in one form or another,
whether it’s paying employees or paying to ship goods, the financial management component
works with all of the other components in ERP system.
This component stores and analyzes all of financial data, including accounts payable, accounts
receivable, costs, budgets and forecasts. It helps reveal insights into spending, so we can discover
profit trends and times of unusually high spending. Then we can put that data to good use by
changing whatever processes are causing lower profits or high spend, so we can maximize profits
while reducing costs.
2. Educational Institutions are looking for ERP solutions to improve operational
efficiency and student life cycle. They need to manage numerous programmes,
courses, student and employee performance and records and provide services to
students. Indicate how ERP solutions can help them by focusing on the student life
cycle and identifying the supporting functional areas. You can take any case study to
support your answer. (10 Marks)
Ans: Besides faculty, students, and staff, universities' most essential resources consists of faculty,
students, and staff. Taking into account indisputable interests, each incorporates them in a
connection with a close association. A school is the educational gap a labor force needs to fill to
train, direct investigations, and shape the future of the company. In the context of schooling, a
hostel is a place of study, a place to stay, and somewhere to lock. There are many preparations that
can be made by personnel to facilitate work within the team, alongside leaders' plans etc.
Be it a school, college, university or a business firm, the amount of information that is to be handled
is surplus. Students, teachers, parents, examination, results, funds, payment and what not, but, the
education ERP software (Enterprise Resource Planning) makes it a lot easier to deal with.
ERP acts as an exclusive solution for the educational institutions, helping them to improve their
standard. ERP is used in many fields but the implementation of ERP in education serves a wide
and varied purpose. It contributes largely to the hassle-free running of the campus, thereby
maintaining the constant workflow.
Campus Management System - An Ultimate Tool:
The campus management is a wide term and it would take eternity if it were to be done manually.
The implementation of education ERP organizes the data and recovers them in time of need.
Starting from the admissions to the placements and the attendance to the transport tracking, it
covers the entire life-cycle.
By reducing the workload of the teachers, it allows them to focus more on the growth of the
student. It keeps track of the on-goings of the campus and serves as a bridge between the
management and the students.
As an ultimate campus management tool, it connects various departments and helps we to view
the required information in a single platform.
The students can view the schedules of the events, the availability of books in the library, exam
timetable, the results, etc. This ready hand information keeps them well aware of the on-goings of
the campus.
The information about students are saved and reports are produced on all aspects (attendance,
academic activities, co-curricular/ extra-curricular activities, fees payment, achievements and
awards and also disciplinary actions).
It also connects the teachers, students, and parents to interact and clarify doubts and helps them to
take better decisions.

Benefits Of Implementing Education ERP:

• Improves resource management.

• Paperless campus management.
• Efficient administration.
• Automates payment process.
• Secured student information system.
• Initiates online examination and results.
• Recording of attendance through biometric system.
• Increases daily productivity.
• Quality education.
• Manages campus expenses thus making it cost-effective.
• Potential for new opportunities.
It helps in building a strong academic institution by ensuring the smooth functioning of the general
administration.

The centralized data storage structure reduces the need for time and effort. The choosing of right
ERP with the ability to meet the current needs also matters. The ERP itself should not be difficult
to use and become a tough task to handle but it should be easily operational and understandable.

MasterSoft here provides an efficient solution and impeccable benefits meeting it’s customer’s
needs. It also keeps on evolving day-by-day according to the current trends.

As the quote goes, “A good ERP is more than just a software”, the implementation of ERP provides
an immense amount of profitable development needs with a futuristic vision and mission. Making
the institutions move a step ahead towards reaching their goal.

Advances in information technology have redefined the way educational institutions handle their
operations. The replacement of the older legacy systems with centralized ERP brings quick and
quantifiable improvement in the administration process. The software includes a set of tools which
modernizes the campus along with upgrading the planning and management of processes related
to student enrollment, lecture sessions, courses, library, customer care, etc.
An education ERP system automates and streamlines all the processes functioning within the
boundaries of the institution to significantly improve the effectiveness of allocating and operating
academic resources better.
Here are some of the major advantages of implementing ERP at educational institutions.
Simplify Admission Process
Admission process in school, colleges, universities or any other educational institutions is more
often complicated and long. Each application consists of many pieces of information about the
candidate including their date of birth, marks, specialization, and more. To determine the
candidate’s eligibility, we need to check all these records. If the task is done manually, the process
becomes extremely time-consuming. However, with the help of an ERP software , this procedure
to enroll best-fit students gets simple. The system displays all the necessary components at a single
place, which makes them easily accessible to the administrator and thus speeds up the accreditation
process.
Automate Fee Payments
Fee collection is another essential process in any educational institute. Before ERP was introduced,
managing the process used to beset the administrators. They need to check each and every payment
record of all students to find out what fees have been paid and what are outstanding.
An ERP system releases this dreary manual task and makes the fee collection hassle-free and less
tiring. The software automatically segregates the fees collected under various categories and also
tracks all the components in the fee structure including amounts paid for tuition, admission, book,
lab, etc., to help students stay updated about their fee status. Along with this, the software solution
also generates automated alerts to ensure students or their parents are notified on time through the
appropriate mode of communication.
Centralized Data Management
Educational institutions need to store tremendous amounts of information about students, books,
exams schedules, lesson plans, and other data. An ERP solution integrates the whole campus and
all the branches in a common system to make the process of data management easy. The software
enables sharing of stored data across all departments to keep teachers, staffs, and students updated
on important announcements. This way we would have a better control of internal and external
communication in wer institution and never experience a communication breakdown.
Cost Effective
One of the most prominent advantages of ERP implementation in any sector including educational
institutions is its cost-effectiveness. The software cuts down manual tasks involved in the
fundamental methods of campus administration such as admission, payroll, fee collections, and
others to reduce the number of man-hours, resulted in saving of money. The expenditure spared
can be used for imperative educational purposes.
Quicker Management Process
Education ERP system provides easy and quick access to information about students, staff,
timetables, examinations, admissions, fees, reporting, and so on. This helps the management to
consider and analyze various aspects of the institution faster, leading to growth in planning
capabilities. The improved data access also boosts well-informed decision-making through
strategic data analysis.
Improve Resource Management
An efficient ERP system puts an end to manual maintaining of cumbersome resource databases.
The software can track real-time inventory and resource usage, enabling we to optimize operations,
allocate and monitor all activities in the institution in a seamless manner. This helps accelerate
day-to-day activities and work out things well in time in case of any issue or problem.
Data Security
The nature of retail business demands a dynamic pricing system. However, keeping track of this
manually is quite a tedious task. For this, we need a robust ERP solution that can automate the
process of recording the price of products along with discounts available on them, thus making the
process simple and effortless.
Every educational institution needs to keep records of students for the ongoing academic year as
well as the alumni, teachers, books, and other resources of single or multiple campuses. Combined,
the amount of data becomes huge and storing these physically on the shelves is never secure. An
ERP software can store this enormous amount of information securely. The application has a
backup system to preserve the info, which is quite impossible to have if it is stored in files.
Conclusion: Hence, ERP solutions can help institutions by focusing on the student life cycle and
identifying the supporting functional areas
3. New Products Company receives more than 12,000 customer orders a month,
drawing on a combined inventory of over 1,000 products stocked at the company’s
warehouse. About 60 PCs are installed at New Products Company’s headquarters
which are connected in a local area network to several servers. Orders are received
by phone or mail and entered into the system by customer representatives or they are
entered directly by customers who use the electronic commerce website developed by
New Products Company. Well-designed user interfaces help users follow data entry
procedures. The servers store these orders in a database. They use simple database
management inquiry commands to get responses and reports concerning sales orders,
customers, and inventory to review product demand and service trends. The company
has initiated a lot of computerisation but in a fragmented manner. The management
of New Products Company wants to revamp its existing system.
a. Indicate how information flows through the various departments in the organization
to fulfil an order and identify delay points. (You can make assumptions if required). (5
Marks)
b. How can an ERP help them in managing its order fulfilment process efficiently by
reducing manual intervention? Indicate at least two points. (5 Marks)
Ans: 3a.

Introduction: It can be explained with the concept of go-useful as the significance of this concept.
If we are looking for an organization that is oriented around its specific capabilities, rather than
getting specific about its capabilities, look at how the databases use all the capabilities, ranging
from requests to objects and management conveyed.

Concept of organizational information flow

Information or communication flow within an organization refers to the movement of instructions

and communications within an organization. There can be several directions in which it takes place
within an organization such as downward, upward, horizontal, diagonal and external. The direction
of information within an organization depends on the size, structure and the nature of the business.
In the case of most of the traditional organizations, the flow of information occurs in a vertical
motion that is in a downward and upward direction. In such situations, the managers give
instructions to the subordinates and hence the flow of information travels from an upward to a
downward direction.

Then, the flow of information also takes place when the communication occurs from the
subordinates to the employees in the managerial positions that lead to a flow of information in an
upward direction. In the case of non-traditional or informal business organizations, like technology
start-ups, the flow of information happens mainly in the horizontal and diagonal directions. It can
be said that this form of information happens in the case of organizations with a flat hierarchy and
there is the need for some form of collaboration.

Information flow in organization:

Information flow within an organization is extremely important in determining the success or

failure of the business in the long run. For example, it is essential for any type of business
organization to be able to share information with all the employees effectively by the management.
When the management takes an important decision then it should be communicated to all the staffs
that are within the organizational hierarchy.

This flow of information happens in a vertical direction at the time when the management
personnel give some instructions that flow from an upward to a downward direction. The
information must effectively flow from the management personnel to the senior managers, middle-
level managers, lower-level managers, senior executives and executives that are in the lowest
position of the organizational hierarchy. Then there can be a flow of information in horizontal
direction also in the case of communication between peers in an organization or in the case of
organizations that do not have the traditional hierarchical organizational structure.

Organizations with matrix organizational structure can depict signs of the flow of information in
a horizontal direction because there can be various departments that are at the same level of the
organizational hierarchy. Therefore, it is evident that for the success of a business organization,
irrespective of its size and organizational structure it is highly desirable that the organization is
able to demonstrate the effective flow of information within the business premises and also with
the external stakeholders of the business. This will ensure long-term growth, profitability, and
sustainability of the business. So, it can be said that out of the various business strategies, the
strategies for organizational communication are highly important for ensuring the success of the
business establishment in the long run.

1. Downward information flow: This form of information flow takes place when the person
in top management and leadership positions share instructions with employees working in
the lower levels of the organization. Unless there is any request, the top-level management
personnel do not expect to get a response from the lower level personnel because they
expect that the message that has been shared from the top management will be observed
diligently without any question. For example, when the CEO of a company is changed and
some new CEO is appointed in the business then there is a downward flow of information
within the organization.

Furthermore, in the case of a merger with a competitor, the management undertakes downward
communication strategies where there will be a flow of information from the top to the bottom.
Apart from all these situations, other scenarios where downward communication takes place are
communications that are undertaken through videos, podcasts, blogs, and speeches within the
organization. Another relevant example of downward communication is when the departmental
managers or the line managers in an organization gives the daily directives to their subordinates
regarding their daily professional activities and targets that they ought to achieve. Interestingly,
the downward flow of information can also be in the form of company handbooks or instruction
manuals that are also shared within an organization on various occasions. Hence, it is evident that
one of the major advantages of downward information flow is that it enables the organization in
sharing information that updates the employees about the major organizational changes, and new
strategic objectives and goals and it also helps in offering performance feedback within the
organization. There are some other key areas where downward information flow takes place such
as undertaking coordination, discuss an official policy such as public relations and messages that
are directed towards enhancing the morale of the workers and consumer relations.

2. Upward information flow: In this type of information flow, the communication of

information flows from the downward to the upward direction such as from the lower-level
employees to the higher-level employees. This form of communication is also known as
 vertical communication. We can say that in modern organizations, vertical flow of
information is a very common incident to happen. For example, there is upward
communication in an organization at the time when the workers report their day’s works
to their supervisors or during the times when the team leaders report the day’s proceedings
to their departmental managers. Upward information flow happens in an organization when
communication takes place in an organization encompassing sharing of progress reports,
sharing estimates of budget, communicating problems and grievances, communication
improvement suggestions or communicating project proposals. On many occasions within
an organization, a downward communication stimulates an upward response. For example,
when a manager seeks a recommendation from the subordinate or inquires about the
probable time when a project will be completed. Today, many of the organizations
encourage prompt upward information flow through instant feedback from the
subordinates without even asking for such feedback from the juniors.

There are many organizations that even offer prizes and rewards to employees for their prompt
feedback to the superiors through creative solutions. However, the employees need to feel
absolutely confident on the management before taking part in such upward communication in
terms of the event that their contributions will be duly recognized and there will not be any effort
to undermine their efforts. In this context, it is worth discussing that there are ‘whistleblowers’ in
many organizations that have been installed for reporting any unethical behaviour by any employee
to the top-level management. This also is a form of upward communication.

3. Horizontal information flow: The horizontal flow of information happens within an

organization when there is an exchange of information across various departments of the
business that exist at the same level. This is also known as peer-to-peer communication.
One of the major objectives of horizontal communication is to ask for support or achieve
coordination in several activities. Employees functioning at same levels within an
organization have the opportunity to work together and try to solve various problems and
achieve the organizational objectives. Here, the working of the employees occur in an
informal approach and also as and when required. For instance, the production manager
can communicate with the purchase manager for the purpose of dealing with shipment
issues of products within a company. Again, the finance manager of a company can
 coordinate with the inventory manager for achieving successful strategic planning on
behalf of the company. Another example of horizontal information flow can be the process
of interaction between two employees that report to the same manager. However, there are
some challenges in horizontal information flow within an organization.

For instance, if one of the managers at the same level of the organization is unwilling to cooperate
and share information with the other manager then that will lead to communication gaps and
naturally, the productivity of the organization will suffer. Often, managers can demonstrate
communal behaviour or territorial behaviour while interacting with another manager who belongs
to a different background. This will lead to a manager at the next higher level intervening into the
issue and undertaking downward communication to solve the problem.

4. Diagonal information flow: Diagonal communication or information flow within an

organization takes places when there is a cross-functional communication between staffs
working at different organizational levels. For instance, when the VP of Sales Department
shares an email with the VP of Manufacturing Department seeking information regarding
the availability of a product for shipping then it is an example of horizontal information
flow. However, when an email is forwarded by a sales executive to the VP of Marketing
then there is an instance of diagonal communication within the organization. During the
times when there is a flow of communication from one department to another, the manager
of the department that is sending the message should be kept in the loop.

In this context, we can say that a manager might find himself or herself in an extremely unsolicited
position if he or she is not aware of all the proceedings that have been happening within the
department. This can lead to a devastating situation where there will be a lack of trust between the
employees and there might be a significant influence on the careers of the employees if the
communication protocols are not successfully observed. It is interesting to learn that today, the
diagonal flow of information has been gaining increasing popularity within the organizations that
have matrix organizational structures or much flattened or product-based organizational structures.
There are several benefits to the diagonal information flow such as it helps in developing warm
and hospitable relationships between the lower-level and the senior-level employees across diverse
departments of the organization. An informal flow of information within the business is highly
encouraging and it reduces the possibility of the message being tampered with by passing through
additional filters. Finally, diagonal communication flow reduces the workloads of the managers at
different senior-level positions within the business.

5. External information flow: The external flow of information or external communication is

the process in which flow of information occurs between a manager and an external group
such as the various financial institutions such as banks, financial organizations or with the
vendors and suppliers of the business. For example, for the purpose of raising capital for
business, the Managing Director of a company might need to communicate with the Bank
Manager which is a form of external communication or external flow of information. A
business establishment has to interact with several external stakeholders for the purpose of
ensuring that the daily functions and processes of the business are being undertaken
effectively and at par with the set goals and objectives of the business. The better the
communication process between the organization and the several external stakeholders, the
better are the chances of the organization to gain competitive advantage within the industry.

Conclusion: Therefore, it is undeniable that the long-term success of a business depends not only
on the effectiveness of internal information flow but also on the external information flow. Hence,
information flows through the various departments in the organization to fulfil an order and
identify delay points. A business needs to have proper communication with the external
stakeholders to achieve long-term growth, profitability, and sustainability. Now instant
assignment help will tell we about the success factors for efficient information flow.

Ans 3b.

Appropriation firms face many challenges in managing their inventories, obtaining orders,
implementing delivery chains, and coordinating physical games with changing interests, costs, and
different factors.

ERP helps in managing order fulfilment process efficiently by reducing manual intervention
Example: ERP Software To Improve Order Fulfillment in Warehouse

On the surface, wholesale distribution may seem simple: Get an order, pack it and ship it. But in
reality, the warehouse is a complex place with logistic intricacies tucked into every part of the
order fulfillment process. Perfect order fulfillment means delivering an accurate product on time,
with complete documentation and no damage. Strong order fulfillment is critical to ensuring
customer satisfaction.

Eliminating Inaccuracies With Add-Ons

Many factors contribute to inaccuracies in the order fulfillment process, with human error perhaps
being the greatest factor. If warehouse houses similar items, the threat of human error increases.
For example, let’s say we have a stock of snow blowers, with two particular models having only
slight differences. As a result, it’s easy to mistake one model for the other when picking the order.

By using a barcoding tool that integrates with your ERP system, we eliminate the possibility of
human error causing the wrong SKU to get picked for an order. With a barcoding system in place
that checks the product against the customer order, we add a layer of error proofing to your order
fulfillment process.

Mitigating Business Risk

Inaccuracies in the order fulfillment process start in the warehouse, but they end with the customer.
Unhappy customers often take to the Internet and social media to voice their dissatisfaction. A
customer publicly calling out mistake is unpleasant, but the consequences could be more far-
reaching. This information may breed distrust for brand, or even cause current customers to
question their loyalty. Implementing tools designed to improve order fulfillment in warehouse
helps to mitigate issues that lead to unsatisfied customers.

Gain More Accuracy And Transparency

Good ERP software can help improve order fulfillment by creating a system filled with more
accurate and up-to-date information. With transparency and no data trapped in silos, everyone in
organization has access to the same information. For example, if a customer has a hold on their
account and their order doesn’t leave the warehouse, the sales team can see this and alert the
customer rather than assuming the order is being fulfilled.

ERP Features To Improve Order Fulfillment In The Warehouse

ERP system could have world-class features, but if we never use them (or if we don’t know how
to use them properly) none of that matters. In organizations where the culture isn’t technologically
inclined, we may need to consider a significant change management component when upgrading
the warehouse with the latest technology. When we’re ready to move forward, consider these ERP
tools and features for better order fulfillment:

• Freight software: Multi-carrier shipping software connects shipping with order entry,
accounts receivable and customer service to streamline the order fulfillment process.

• Inventory forecasting software: Uses historic data to help we know when to order and
how much to order.

• Replenishment software: Maintains efficient order and line-item fill rates; helps reduce
waste and increases inventory turnover.

• Buying history analytics: Allows we to look up customer purchase history and receive
alerts to any irregularities on an account

Conclusion: Therefore, ERP help in managing its order fulfilment process efficiently by reducing
manual intervention.