Benefits Of ERP System For Woolworths Manufacturing Company

Business Processes and Requirements

In today’s modern world, every manufacturing company uses ERP system and accounting software packages to access the data and run the business successfully. It has been noted that ERP system contributes to make effective decisions for attaining the long term competitive advantages in the global market. It provides various benefits to the companies by reducing the cost and time. Furthermore, it also helps in saving the money and resources of the organization. Woolworths Company has been taken in the task to explain and outline the benefits of ERP system. Woolworth’s group was established in 1924 having team force around 202,000 within the organization (Woolworths, 2018). Currently, the company is serving approx 29 million customers around the world. It offers best quality of retail products and services to the customers. Furthermore, the paper explains the business process of the company. Here is the discussion about the system requirements, business requirements of the firm. Three ways through which the company improves the effectiveness of the business have been described in the report. It outlines the level of competency of the ERP system. It provides brief information about the ERP system that helps to increase and amplify the productivity and efficiency of the firm and employees as well. More information of the task has been described below.

In order to achieve the organizational goal and objectives, the set of activities performed in a systematic way, are called defined business processes. Organizations follow some rules very strictly and business processes are based on these rules. These rule set by the individual organization are helpful to improve organization’s economic value in the competitive market scenario. In order to maintain organization’s market value companies are required to be directed and these business process direct them for the same (Jaeger et al, 2011). Globalization has made many changes in the market scenario which require companies to prioritize managing the business process with high efficiency. Business processes are of different types. Some of them are as Follows:

• Finance- this process of company’s business involves the management of finance or accounts for the organization. In a single day companies make many transactions, some of them are to be paid as bills and others are to be received from the customers. This finance process mange all these transactions for the company.
• Manufacturing- in end product companies the quality maintaining is most important to satisfy customer therefore, a process called manufacturing focuses on making quality products for organization’s customers. This process of manufacturing mainly deals with the external stockholder for the supply of raw material and supply of new products to the customers through new clients (Nazemi, Tarokh and Djavanshir, 2012).
• Health- this is the process of tertiary sector of any economy where companies deal with the services for the well-being or welfare of people. Health processes are mainly deals with medical services provided to people. In this process companies provide drugs to the individuals to cure their diseases. Health process involves both government as well as private sector operations with different costs depending upon the operating and governing body.
• Banking- banking sector follows a typical banking process which safeguards customer’s economic assets like money.  In this process all the credit and debit entries are managed by the banking authorities to maintain a fair record of its customer’s assets.
• Travel- people likely to travel different places for some adventure or experience require travel companies to manage their trips in a systematic way so that they can explore different places spending less and in less time. This systematic management or planning of such trips comes under the travel processes.

There are many more processes like in defence, public sector, and off human resource management. Among all these manufacturing is the main process of Woolworths. Woolworth is one of the manufacturing companies based in Australia dealing with the manufacturing and selling their products online. Woolworth mainly deals in grocery items like vegetables, meat, packaged food, and fruits. In order to retain its existing customers and attracting new customers company is following a specific format which provides better customer satisfaction. When it comes to retain and attract new customers the enterprise planning system will be beneficial for the company.

Benefits of ERP System

(Source: https://www.binarysemantics.com/images/manufacturing_chart2.jpg)

The above mentioned picture provides brief information about the business process of Woolroths that help to minimize the risks and increase outputs of the firm. It explains that how order are placed by the company and how these orders dispatch by the vendor in the marketplace.

Till now Woolworths was mainly dealing with grocery items but now company wants to expand its business in different sectors like energy, industry, and new retail products. This requires a complete change in their business requirements company management was practicing till now. Therefore, to implement this new change in the business requirements, Woolworth categories, its new business requirements, into two different categories as follows (Dos Santos, Svensson and Padin, 2013):

The system requirements play an empirical role to accomplish the desired goal and objectives within the organization. It is a set of statement that encompasses of a document which is exchanged by the team members of the firm. It explains the requirements of the stakeholders in the organization. The main motive of the system requirement is to collect information and fact related to the customers. It helps in fulfilling the needs and requirements of the customers. The hardware and software for the development and implementation of ERP system are included in the system requirement. Documentation is also done by the company before implementing the ERP system at the workplace. ERP system helps to save and protect the data and information of the customers (AO Dos Santos, Svensson and Padin, 2014). It has been noted that Woolworths uses SAP software within the organization to increase and improve the business process.

Login/Register: Registration shall be done to implement ERP system. The personal details such as password, contact number and email address are kept confidential. These personal detail ensure that users are using the system authentically and effectively.

Online shopping: It has been noted that customers of Woolworths are able to purchase the products online also. Online shopping helps the customers to choose right and unique products for use. Payment is done by the customers by credit/debit card or cash on delivery as appropriate.

Convenience: The software would be convenient for all the customers. It is noted that user manual is also provided to the users to access the system effectively and efficiently.

Reliability: The customers or users can maintain reliability by using ERP system. It will also eliminate the extra cost of the firm and helps to provide consistency to the users.

Software and Vendor Selection

Efficiency and security:  The ERP system helps thee leaders to make unique and effective decisions regarding requirements of the system and business as well. The system also helps to keep the records of the employees and users. Therefore, it helps to provide competitive edge against its competitors in the Australian market (Uhl and Gollenia, 2016).

Accuracy and efficiency: It has been noted that ERP system provide accuracy and efficiency to the users to track the record of the users. In this way, ERP system plays a significant role to enhance and maximize the profitability and revenue of the firm (Vom Brocke et al, 2014).

(Source: https://www.reachtechasia.com/does-your-business-really-need-an-erp-system/)

The diagram shows that ERP system plays a significant in Woolworths by maintaining good communication and cooperation with different departments. The picture shows how ERP system is interconnected with different department of the company (Buckel and Thiesse, 2014).

Software and vendor selection are important to make a good image in the minds of the customers. No company can survive and grow without effective software and vendor. It has been stated that software helps in increasing and enhancing the performance of the workers effectively (Morris and Venkatesh, 2010). Along with this, the Woolworths needs to use unique and dynamic policies and strategies to carry the business activities and operations in a hassle free manner. Vendor selection is important task for each and every company. Vendor selection is done by the company as per the needs and requirements of the business (Schaltegger, Lüdeke-Freund and Hansen, 2012). Vendor and new software helps the firm to strive with competitors in the global market. Along with this, effective utilization of resources can be done with the help of unique and attractive software. The company selects software to analyze and evaluate the choices, desires and tastes of the consumers in order sell the retail products in the international market. The company also uses RFID (radio frequency identification) technology to strive the competitors in the global market. It is evaluated that Woolworths focuses on the post sale services, and license before selecting the software for conducting the activities and operations of the organization (Elbashir, Collier and Sutton, 2011). The software and vendor selection can be done by Woolworths after considering various things that have been detailed below.

Computerized process: Automated process is used by the company while selecting the new software at the workplace. Such types of procedures permit the firm to expand and explore the business globally. By using this process, regular improvement and enhancement is done by Woolworths to maximize market share and increase economic value of the firm. It has been analyzed that computerized process also helps the leaders to build unique and effective strategy within the organization. Therefore, it is essential to use computerized process but not too much else it can put negative impact on the system (Hawking and Sellitto, 2010).

Assessment of people: The Company should make suitable contract with investors and partners to beat the competitors. All the terms and condition should be explained clearly to them. All the things shall be defined clearly such as cancellation fees, licenses before introducing a new product and service in the global market. It is stated that vendor should posse’s unique and effective skills, potential and knowledge to access the system in a hassle free manner. They should know whether how to use ERP system within the organization. After the various researchers, it has been found that vendor selection is done by Woolworths after considering the skills and talents of the vendor. It is analyzed that Woolworths select the vendor in an effective way in order to resolve business and ERP system issues (Maditinos, Chatzoudes and Tsairidis, 2011).

Communication and cooperation: It has been stated that Woolworths follows an effective communication process while making contract with vendors to ensure that their meeting could provide some benefits to the firm. The company maintains reciprocal relationship with vendors to maximize the revenue and run the business operations successfully. Checklist has been measured by the company to analyze the effectiveness and significance of the vendor. It has been revealed that checklist is not used by Woolworths while selecting a vendor within the organization (Ram, Wu and Tagg, 2014).

(Source: https://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-74382014000200347)

The above mentioned diagram outlines that how Woolworths select the vendor to grab the overall market. This vendor selection model helps the company to identify and analyze the obstacles and issues of the market.

In today’s globalization world, each and every company uses information system to get right and accurate information at the workplace. This system also helps in managing the business processes successfully. It permits Woolworths to attain their long term mission and vision by rendering unique quality of products and services to the customers (Coles and Kirwan, 2011). Along with this, effective and dynamic information system helps in decision making process and furthermore, it also builds and develops dynamic relationship with target audience. Woolworths wants to increase and enhance the market share and revenue in the marketplace. Thus, it is significant to initiate the dynamic and effective software and ERP system at the workplace because it is not possible for the employees to manage a ample of information and inventory in a regular basis (Wainwright and Shaw, 2013). It is seen that software and ERP system permit the computerized process to perform tasks and duties effectively. If the company is unable to use software then it is very difficult to manage different function of the development, designing and production. Software and ERP system make easy all these functions by providing right and accurate information to the users (Jaeger et al,  2011). There are three ways through which the company can improve and enhance the efficiency of the business that is discussed below.

Communication software: One of the significant ways through which Woolworths can improve the efficiency of the business is communication software. Strong and unique communication is essential for each and every business to perform roles and responsibilities effectively. It is noted that miscommunication and misunderstandings arise at the workplace due to lack of strong communication. It will affect the growth of the firm and will lead to the loss of the business and profit.  The company should use videoconferencing and open communication to transfer the messages and information with each other. It will help to increase the productivity and outcomes of the company (Norton, 2015).

Task management software: This type of software provide right and accurate information related to process and business. The task management software permit the employees to create a agenda and programme to perform business activities and operations in a hassle free manner. Effective planning shall be done to increase the efficiency and effectiveness of the workers. Milestones can be formulated in advance to execute the tasks in a given time period. Basecamp and Wrike are some example of the task management software that can be used by Woolworths to improve the efficiency of the business (Asemi and Jazi, 2010).

Performance and time tracking methods: After the various studies, it has been found that the company can use performance management system and time tracking tools to enhance and improve the performance of the subordinates and business as well. In this way, Woolworths has been able to stand out against the rivalries in the competitive market (Grabski, Leech and Schmidt, 2011).

The MIS system and integrated system are initiated by Woolworths to evaluate the effectiveness and efficiency of the workers and business as well. Each and every company wants to flourish the business processes globally by increasing and improving the productivity of the employees. It has been noted that most of the companies are failed to attain sustainability and growth due to ineffective and improper management of utilizing the resources. It is observed that ample of issues faced by the company while managing the performance and effectiveness of the business and employees as well (Pang et al, 2016). The integrated information system provides information and data about the customers and internal and external business procedures. The company is seeking effective ways to beat the competitors in the global market. The level of efficiency can be attained by using ERP system in the workplace. ERP system helps to integrate the information in a single process therefore; it saves resources and time of the company. It is noted that ample of modules provided by the ERP system that permit the business operations and activities to be exercised effectively and efficiently (Schmiedel, vom Brocke and Recker, 2013). The level of competency can be achieved by Woolworths by measuring and identifying the progress and growth of the company over the past year data. It has been analyzed that growth and success of the firm can be attained by initiating the ERP system at the workplace. All the employees in the company are unable to perform roles and tasks successfully due to lack of skills and knowledge. Therefore, the organization uses ERP system to handle and reduce the issues and challenges of the marketplace. It reduces the workload and pressure of the employees. Woolworths also uses management integration system to complete the data base system. Along with this, records of the activities and operations can be kept with the help of this system. It has been analyzed that ERP system reduces the cost of the firm and increases the revenue and outcomes (Wang and Tan, 2015). Besides this, cost of ownership is also managed by ERP system effectively and efficiently. It also reduces and eliminates the extra cost of operations. It has been measured that ERP system increases and enhances the performance and effectiveness and decreases the operating cost of Woolworths (Makhitha, Van Heerden and Wiese, 2014).

It is noted that Enterprise resource planning also helps in strategic planning and evaluation. It helps to know and analyze the plans, strategies and policies of the competitors. By using ERP system, the company has been able to identify and measure the tastes, preferences and choices of the customers in the international market (Nour and Mouakket, 2013.). With the help of strategic planning, effective and open communication is maintained by Woolworths between managers and stakeholders. ERP system also helps in financial control and effectiveness of the firm. Under ERP system, the company can also use business analytics tools and techniques to manage and handle the transactions details of the various departments such as accounts, finance and marketing (Buckel and Thiesse, 2014).

The risks are associated with financial activities and ERP system has been detailed below.

• Integration issues will be faced by the company while implementing the ERP system at the workplace. It is noted that outdated system also may influence the success and growth of the firm adversely. If the company uses outdated and old software to increase profitability then it can lead to losses and damages. It is studied that outdated and older software are failed to provide right and accurate information to the customers. Therefore, it may influence the financial image of Woolworths in the global market (Zheng and Liu, 2015).
• ERP system does not address the needs and requirements of the customers which leads to various losses in the workplace and affects the goodwill of the firm adversely. Loss of data control is one of the biggest risks that is associated with system and software. Due to lack of control, the organization is unable to maintain proper records of the users.
• If the motive behind the implement of the ERP system in Woolworths is not good then it can affect the sustainability and effectiveness of the firm. It can also hamper the reputation of the company in the international market (Fernie and Sparks, 2014).

It is stated that plenty of issues faced by Woolworths while implementing the ERP system within the organization. The risks and threats may also influence the economic value of the firm and market share in the marketplace. Due to lack of understandings, the company is unable to manage the external stakeholders and partners. The guidelines for managing and controlling risks and challenges are discussed below.

• Modification and improvement shall be done in ERP system and other software to mitigate and reduce the risks of the company (West, 2011).
• The firm should use computerized process to handle the issues and challenges rather than manual process. It will save the time and cost of the company as well as users. Along with this, employees will have to put fewer efforts to carry the business operations and actions. Automation system shall be used by the company to manage and handle daily transactions, sales, supply chain and finance department of the firm. This system will also provide wide range of opportunities to Woolworths to expand and explore the business and generate higher profits.
• Cloud based accounting software shall be initiated by the firm to track the records of the users and employees. It will eliminate the risks and issues of the organization by tracking the records and data successfully.
• It has been noted that Woolworths should use effective and unique decision making process to take effective decisions in terms of expansion and development of the business.  The managers and top management should include employees while making dynamic decisions.
• Vendor selection must be done by the company after considering their knowledge, skills, reliability and authenticity. In this way, the Corporation can reduce the risks and challenges of the business that are associated with ERP system.
• The organization should explain the benefits of the ERP system with employees to attain competitive benefits in the marketplace.
• It is noted that Woolworths should appoint effective and talented workforce to implement ERP system at the workplace. In this way, the firm can provide accurate and right information to the users by reducing the risks and issues of the system.

Conclusion 

The manufacturing companies such as Woolworths will have to build and improve the effective and unique strategies and policies to improve the quality of the products and satisfy the needs of the customers worldwide. It is impor0tant just because the competition in the manufacturing industry is increasing day by day that could affect the reputation of the company adversely. The above analysis shows that Woolworths uses effective strategies to implement the ERP system at the workplace. It is recommended that the company should use focus on the customer relationship management to attain long term benefits in the marketplace. It is measured that Woolworths cannot attain its long term goals and objectives without using effective software system. The paper explains the significance of the ERP system and further it also explains the risks and challenges that are associated with ERP system. The paper also explains the business process of Woolworths that helps to make a global leader in the competitive market. At the end, some recommendations have been given to reduce and eliminate the risks and challenges of the market.

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