ENTERPRISE
RESOURCE
PLANNING
WHAT IS ERP?
DEFINITION
• Enterprise resource planning (ERP) system is a business management system that
comprises integrated sets of comprehensive software, which can be used, when
successfully implemented, to manage and integrate all the business functions within an
organization.
• It is used to manage day-to-day business activities such as accounting, procurement,
project management, risk management and compliance, and supply chain operations.
• A complete ERP suite includes enterprise performance management, software that helps
plan, budget, predict, and report on an organization’s financial results
HISTORY OF ERP
From Paper Cards to Mobile Devices
The history of ERP goes back more than 100 years. In 1913,
engineer Ford Whitman Harris developed what became known as
the economic order quantity (EOQ) model. After 4 decades later,
Toolmaker Black and Decker changed the game in 1964 when it
became the first company to adopt a material requirement
planning (MRP) solution that combined EOQ concepts with a
mainframe computer.
From On Premises to the Cloud
From the 1990s until the beginning of the twenty-first century, ERP
adoption grew rapidly. Both the hardware and the software licenses
https://www.erp-information.com/history-of-erp.html
required capital investments and depreciated over 5 to 10 years.
FUNDAMENTALS OF ERP
https://www.slideshare.net/PresentationLoad/
enterprise-resource-planning-ppt-slide-
template
CORE OBJECTIVES
1) Accounting Management
2) Human Resources
Management
3) Enterprise Resource
Planning
https://tallysolutions.com/erp-software/what-is-
enterprise-resource-planning-system/
Life Cycle of ERP
Life Cycle of ERP covers 10 to 20
years of effective operating life
and often, it is confused with ERP
Implementation Life Cycle. The
Phases of ERP Life Cycle is shown
in following diagram:
Source: https://www.synconics.com/erp-life-cycle/
BENEFITS OF ERP
ADVANTAGES DISADVANTAGES
• Streamline Workflows • Slow Software Implementation
• Better Financial Planning • Expensive to Start (and
• Improved Data Security and Continue)
Accessibility • Slow Data Migration
• Improved Communication • Too Complex
SUPPLY CHAIN MANAGEMENT
• Supply chain management (SCM) is the optimization of a product's
creation and flow from raw material sourcing to production, logistics
and delivery to the final customer.
• SCM contains of the integrated planning and execution of processes
required to manage the movement of materials, information and
financial capital in activities that broadly including demand planning,
sourcing, production, inventory management and storage,
transportation or logistics and returning excess or defective products.
5 Stages of Supply Chain Management
https://www.omniaccounts.co.za/articles/why-
consider-erp-supply-chain-management
https://www.pinterest.ph/pin/704
039354238072161/
Benefits of Supply Chain Management
• better ability to predict and meet customer demand;
• better supply chain visibility, risk management and predictive capabilities;
• fewer process inefficiencies and less product waste;
• improvements in quality;
• increased sustainability, both from a societal and an environmental
standpoint;
• lower overhead;
• improvements in cash flow; and
• more efficient logistics.
ENTERPRISE RESOURCE
PLANNING
OF WALMART
OVERVIEW
• WAL-MART is one of the top ten largest companies in the
United States in terms of market capitalization.
• Its E-commerce business is also a behemoth, with a long list
of online seller partnerships.
• Wal-Mart uses Enterprise Resource Planning (ERP) framework
in its operation since a mix of adaptability, process
capability, reliable data, and responsiveness is essential to a
retail business and furthermore, ERP packages have been set
up to manage the avoidance of IT confusion in spite of the
fact that with some execution disturbances to the line of
business IT staff of management.
SOFTWARE INNOVATION
• Wal-Mart focuses on its ERP software with speed. This innovation
consists of the SAP’s HANA technology wherein business intelligence
platform to perform tasks such as processing the company’s half a
trillion transaction records.
• Wal-Mart uses HANA’s in-memory data processing capabilities to
assemble data from different parts of the enterprise and visualize it, in
real time.
• The retailer is also deploying the recently launched SAP S/4 HANA
business suite.
SOURCES:
https://www.investopedia.com/articles/investing/111214/lg-case-study-successful-enterprise-r
esource-planning-system.asp
https://chainstoreage.com/news/wal-mart-focuses-speed-innovation-saps-hana-technology
https://www.erpsoftwareblog.com/2017/08/3-basic-functions-erp-systems/
https://softwareconnect.com/erp/benefits/
https://www.managementstudyguide.com/erp-life-cycle.htm
https://searcherp.techtarget.com/definition/supply-chain-management-SCM
https://www.oracle.com/ph/erp/what-is-erp/
https://www.quora.com/What-ERP-system-does-Walmart-use
