Case Study 12: Summit Electric Lights Up with a New ERP System
Question 1:
Which business
processes are the most important at Summit Electric Supply? Why?
Answer
There are
several numbers of business processes that were used by the Summit Electric
Supply, which the most important ones are ERP (Enterprise Resource Planning)
system software from SAP. This is because scalability and inventory visibility
were the top requirements needed by Summit’s company which from this system
they will keep updated the level of stock and inventory left in the store from
time to time. This system must work and align together with the SAP software
because it’s functionality in sales and distribution, materials management, and
financials, and its knowledge of the distribution benefited the company to
increase their distribution capacity.
“The Batch
Management Process”, in Summit wires and cable are the most important and most
popular product.
It buys
these product in reels of length 5000 feet and then cuts them into various
lengths and sells to the customers which make it difficult to maintain the
inventory and difficult for them to determine how much of this type of
inventory has been sold and when it is time to replenish. The batch management
process eliminates the problem by maintaining the inventory of such product.
SAP’s Net Weaver
BW which function for Business Intelligence by reporting and analyzing the
current and forecast for their upcoming sales. This was also helped the company
to evaluate the profitability of its sales channels using the what-if approach.
Question 2:
What problems
did Summit have with its old systems?
a) Delay with
their supplies.
b) The system
was a complicated system because it would separate different categories.
What was the
business impact of those problems?
a) Not able to
keep up with the business.
b) Handle a few ranges
of numbers and location.
c) Caused delays
and time consuming task that was not needed to take as much time as it did.
Question 3:
How did Summit’s
ERP System improve operational efficiency and decision making? Give several
examples.
Answer
ERP System
improved Summit’s Operational Efficiency and Decision Making:
1) Faster
distribution
2) Simplify the
works/tasks
3) Time
efficiency
4) Able to view
stocks more often
5) Able to
evaluate profitability
6) Easier and more
simple
Question 4:
Describe two
ways in which Summit’s customers benefit from the new ERP system.
Answer
They can rely on
the company for their needs and products which will give them customization
services for customers and know when to restock the inventory. The construction
of temporary on-site Summit’s warehouse will save time for both sides to build
Parent-child warehouse relationship.
Question 5:
Diagram Summit’s
old and new process for handling chargebacks.
Answer
For today's small industries Software like ERP are needed to do the task like billing etc.
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