What is Enterprise Resource Planning (ERP) system?
Discuss about the System Integration at UPS Corporation.
This report is based on a real life case study of UPS Corporation. This study describes the key challenges that were faced by the UPS Company while performing manual system for managing its different business activities. Besides this, the case study also emphasizes on the effective ways that were used by the UPS Corporation to control its challenges. The key point that is discussed here in this case study is about the integration of a system in the UPS Corporation by its management and how this integration of a new system has grown the business of UPS Corporation and its performance as well. This business report will cover some key things about this UPS Corporation and its new enterprise system ERP i.e. Enterprise Resource Planning (Davies 2018).
Enterprise Resource Planning (ERP) system is powerful system which is used by most of the business organizations to handle different business level activities such as customer management, personnel management and inventory management etc. That is why, UPS Corporation had decided to adapt ERP system to control its major business problems such as manual data entry and the management of customers’ enquiries. The manual implementation of all these processes were very time consuming and complex and it caused various conflicts and problems.
UPS Corporation i.e. United Parcel Service was one of the leading company in the shipping industry. However, in mid-1980s UPS was struggling for the market share with a newcomer in the shipping industry i.e. Federal Express. The main reasons of high level growth of Federal Express Company in the comparison of United Parcel Service are culture of the company of adapting new technology as a strategic competitive advantage to improve its level of efficiency and services of customers (August Infotech 2018). But at that time, UPS was suffering with a critical issue of loss of market share due to its low level efficiency in performing business activities and lack of usage of an effective automatic enterprise system. This problem was enhancing its number of errors and warnings in its shipping operations. The time and cost was also not used properly by the UPS Corporation. Indeed, United Parcel Service was in bad condition at that time and wanted to get rid of that situation (Webopedia.Com. 2018).
United Parcel Service Company has adapted the ERP system i.e. Enterprise Resource Planning system. This system is a process management system that allows an organization to use a system of integrated applications that is helpful to perform different business activities. This software can perform different kind of business tasks such as supply chain management, analysis of business needs, management of human resources and accounting and financial applications etc. ERP system contains a large amount of business and other information into its database that is used in the process of appropriate supplying of goods to the right customers. Furthermore, the available information in ERP is also useful for good decision making regarding business needs at the level of management (Selecthub 2018). Manually it is cumbersome for employees to generate appropriate reports on the business activities without any bugs in it. Here, ERP solution can be considered useful to perform this task properly and a good report can be generated. Besides this, ERP system has potential to manage inventory of goods and items effectively (Merrit. 2018).
The challenges faced by UPS before implementing ERP
These tasks are not easy to perform manually. There is requirement of an effective solution like ERP that can handle this type of tasks properly and can provide accurate outcomes. That is why, United Parcel Service Company has executed this system.
Before start using ERP system, UPS Corporation has installed a couple of different ERP modules from Oracle. The one module was for the Human Resource functions and another was for the financial activities. Besides this, with implementation of ERP, UPS has also saved a large amount of money for the goods and services that are imported from the different locations worldwide. The logistics network of UPS has also put great influence on the implementation of Enterprise Resource Planning System. This system is very expensive and rigorous due to well-defined technological standards. UPS Corporation wants that all new technology should be fitted nicely over their infrastructure. There are two main factors that contribute in the successful integration of ERP system in UPS Corporation and for its better technological standards i.e. a corporate culture of open communication and a commitment to training. So in this way, ERP system has implemented in the United Parcel Service Corporation with an effective network infrastructure.
ERP system’s implementation is not so cumbersome task. However, some essential factors are required to consider while executing this system into a business organization. UPS Corporation is using ERP system and this enterprise has faced some key difficulties while installation of this system that are required to discuss here in this report (Kripaa 2018).
The main difficulty related to the implementation of ERP system was its installation. The installation process of ERP is very crucial and without a proper installation it is difficult to get accurate outcomes from this system (Bitsini 2015). So, there is requirement of an expert to install the ERP system appropriately. So UPS Corporation had arranged an expert to install the ERP successfully to run all business activities properly (Invoicera.com 2018). The next difficulty that faced by the UPS Corporation while implementing ERP system was the selection of perfect ERP system. Basically, a large number of ERP systems available in market and it is necessary for an organization to decide that which one is important for it according its requirement. It is a bit confusing decision to make by an organization. To overcome this problem, United Parcel Service Corporation thoroughly understood the needs and challenges of the business and then made decision regarding the execution of the suitable ERP system. This step of selecting a required ERP solution is important for a corporation, otherwise a very costly mistake can be made by the company.
How did UPS implement ERP system?
Only the implementation of ERP system at the workplace is not important, proper training is also important for its users to understand its functionalities. It was a challenging factor for the UPS Corporation to provide the appropriate training to its employees so that appropriate results can be found. Therefore, it was a difficulty for the UPS Corporation to find out an appropriate trainer of ERP system.
These are key problems that were confronted by the United Parcel Service Corporation in the case of implementing ERP solution. Now, the next segment of this report will emphasize on the level of the successful adoption of ERP system in the UPS Corporation and which kind of success metrics is used by this corporation.
The implementation of the ERP system was very successful in UPS Corporation. Due to this system, UPS Corporation improved its performance in the competitive market and this system has also increased its competitive advantage (Sundtoft Hald and Mouritsen 2013). Besides this, there are some other benefits that have gotten by the United Parcel Service Corporation. The first success of UPS Corporation after executing the ERP system is the reduction in the delay rate of the shipping operations of company (Schiff 2018). The reason behind this is the automation of work with the help of ERP system (Corporation 2018). Now, UPS Corporation is producing maximum work in less number of hours by using new enterprise system (Medical Design Technology 2018). The accuracy in outcomes has increased. Enterprise system implements every operation properly by checking every input from user. If there is any issue with user input then ERP will not accept that and will show error message. This is important to restrict the flaws in the results (Gemignani 2018).
According to the employees’ feedback of UPS Corporation, ERP system has provided the better services related to the package shipping. Moreover, the tracking of the packages can be maintained from the UPS website or from ERP system. If an incorrect zip code is entered, an error message prohibits the user from continuing the process. ERP system generates the smart data that is actually required for the goods delivery at the right locations. ERP saves shipping addresses of customers and other important information into its database that can be accessed anytime by authorized users. Real-time communication became possible for the UPS Corporation with the ERP system. To immediately record the tracking number, date and status of the goods, a communication with the shipped packages is required. ERP system has improved customer management service of the UPS Corporation. Enterprise system of UPS Company generates a tracking number of a shipping package of a particular customer and by using this number, customers’ queries regarding the shipping package are easily handled by the UPS Corporation (Kays Harbor Technologies 2018).
Challenges faced while implementing ERP system
These are some improvements that found in the UPS Corporation after implementing the enterprise system. Not only United Parcel Service Company but also other companies prefer to use ERP System to perform variety of business operations. After the implementation of ERP system, UPS Corporation has established a benchmark for other companies in this field of shipping industry by integrating ERP system successfully.
According to the given case study of the UPS Corporation, it is found that before start implementation of the Enterprise Resource Planning System into its organization, UPS Corporation had implemented a business matrix or success matrix to resolve its critical business issues (Software Advice 2018). This matrix is actually the SWOT matrix and through this UPS corporation tried to find out its potential business strengths, weaknesses, opportunities and threats. This was really important to know because without this step, company was not able to identify the actual problem with its operations and market shares. After SWOT analysis, UPS Corporation got to know about its major strengths such as its extensive infrastructure and its specialty in the transportation. Besides this, company also tried to measure its external factors such as customers, business marketplace and the competition. Through this analysis, UPS Corporation got a clear result that there is a gap between physical product and the access to the electronic information. This gap was necessary to cover by the company, so the implementation of ERP System was done (Panorama Consulting Solutions 2018).
UPS Corporation implemented an action plan to remove its weaknesses and threats. All weak factors were the main hurdles for the UPS Company and its success. This action plan was made to emphasize on the customers and their needs. This plan was enabled by the technology. After doing these all important analysis, UPS Corporation integrated variety of new services to its core transportation to provide more benefits to its customers and to make its company an invaluable part of the customer’s business. Various new technologies are also introduced in the corporation such as centralized database centers and ERP System. In this way, to make UPS Corporation a successful organization, its management has done many efforts that are discussed above. Nowadays, technology is getting advanced day by day and most of the business and other workplace issues can be resolved with the help of new and innovative techniques. It is necessary for business organizations to be aware about the latest and emerging tools and techniques that can be successfully used into their business for increasing profit and revenue of the business.
Conclusion
To conclude, it can be said that United Parcel Service Corporation has really taken a wise decision regarding the implementation of ERP system for handling its business issues. It shows that it is a time to move on from conventional business procedures to the contemporary processes to run business successfully and without flaws and delays. Like, UPS Corporation, many companies exist that are using traditional ways to run its business. They also need to start work with new technologies and systems that can help them to survive for a long time in the business market and to obtain good business outcomes. Latest technologies also have potential to provide customer satisfactory results which is the first priority of the business organizations.
References
Davies, Jonathan. 2018. “Common ERP Implementation Challenges And How To Overcome Them”. Winman.Com. https://www.winman.com/blog/common-erp-project-management-challenges-and-how-to-overcome-them
Kripaa, Admin. 2018. “7 Common Challenges Faced In ERP Implementation”. Blogs.Ramco.Com. https://blogs.ramco.com/7-common-challenges-faced-in-erp-implementation
Invoicera.com. 2018. “Top 10 Challenges Faced By An Organisation In ERP Implementation”. 2018. Invoicing & More! https://www.invoicera.com/blog/10-common-challenges-in-erp-implementation/
Merrit. 2018. “What Are The Challenges Of Implementing An ERP System? – Dzone Java”. 2018. Dzone.Com. https://dzone.com/articles/what-are-challenges
Schiff, Jennifer. 2018. “11 Common ERP Mistakes and How to Avoid Them”. CIO. https://www.cio.com/article/2397802/enterprise-resource-planning/article.html
Panorama Consulting Solutions. 2018. “ERP Implementation Tips – Problems to Avoid When Implementing”. https://www.panorama-consulting.com/major-problems-to-avoid-when-implementing-an-erp-system/
Gemignani, Zach, and Zach Gemignani. 2018. “5 Rules For Successful Success Metrics”. Juice Analytics. https://www.juiceanalytics.com/writing/5-rules-for-successful-success-metrics
Sundtoft Hald, Kim, and Jan Mouritsen. 2013. “Enterprise Resource Planning, Operations And Management”. International Journal Of Operations & Production Management 33 (8): 1075-1104. doi:10.1108/ijopm-11-2011-0430.
Webopedia.Com. 2018. “What Is ERP – Enterprise Resource Planning? Webopedia”. https://www.webopedia.com/TERM/E/ERP.html
Medical Design Technology. 2018. “How ERP Systems Can Increase a Business’S Operational Efficiency”. https://www.mdtmag.com/article/2013/10/how-erp-systems-can-increase-businesss-operational-efficiency.
Bitsini, Nkosinathi. 2015. “Investigating ERP Misalignment Between ERP Systems And Implementing Organizations In Developing Countries”. Journal Of Enterprise Resource Planning Studies, 1-12. doi:10.5171/2015.570821.
Kays Harbor Technologies. 2018. “6 Primary Business Benefits of An ERP System | Kays Harbor”. https://kaysharbor.com/blog/enterprises/business-benefits-of-erp-system
August Infotech. 2018. “10 Benefits of ERP System In An Organization For Growth Of Your Business – August Infotech”. https://www.augustinfotech.com/10-benefits-of-erp-system-in-an-organization-for-growth-of-your-business/
Selecthub. 2018. “Benefits of ERP – A Look at ERP Advantages & Disadvantages”. https://selecthub.com/enterprise-resource-planning/erp-advantages-and-disadvantages/
Software Advice. 2018. “7 Key ERP Benefits You Need To Know About”. https://www.softwareadvice.com/resources/7-little-known-erp-benefits/
Corporation, Microsoft. 2018. “What Is ERP and Why Do You Need It?| Microsoft Dynamics 365”. Dynamics.Microsoft.Com. https://dynamics.microsoft.com/en-us/erp/what-is-erp/
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