Erp logistics implementation (pratik)

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Erp logistics implementation (pratik)

  1. 1. INTERNATIONAL INSTITUTE OF PLANNING AND MANAGEMENT AHMEDABAD ERP implementation In Logistics Submitted To Prof- Vatsal Shah By: Pratik K S Negi SS/09-11/ISBE  Enterprise resource planning (ERP) is an integrated computer-based system used to manage internal and external resources including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Built on a centralized database and normally utilizing a common computing platform, ERP systems consolidate all business operations into a uniform and enterprise wide system environment. An ERP system can either reside on a centralized server or be distributed across modular Hardware and software units that provide "services" and communicate on a local area network. The distributed design allows a business to assemble modules from different vendors without the need for the placement of multiple copies of complex, expensive computer systems in areas which will not use their full capacity
  2. 2. To be considered an ERP system, a software package should have the following traits:  Should be integrated and operate in real-time with no periodic batch updates.  All applications should access one database to prevent redundant data and multiple data definitions.  All modules should have the same look and feel.  Users should be able to access any information in the system without needed integration work on the part of the IS department ERP implementation in Logistics Benefits of ERP in logistics  Operational efficiency - The very purpose of logistics is to supervise transportation and associated function. Anybody in the department should be able to say the status of a good at a particular point of time. This will make the logistics function more meaningful. Organizations have never found this happening on many occasions.  Monitoring Vehicles - Companies always found it equally difficult to maintain vehicles so as keeping a track of them because the former cannot take place if the later is not done properly.  Logistics also includes managing vehicles. An organization could have various modes of transports for dispatching and receiving its consignments. Companies that have a specific logistics department own trucks and Lorries or avail the services of travel agents. Bigger organizations could also own cargo ships. The mode of transport and the modalities of operating them purely depend on the financial soundness of the organization and relevant factors like geographical location of customer and deadlines for delivering the products.
  3. 3.  Companies resorting to transport facilities from outsider- When a company makes use of railways or air transport or other modes of transport the burden or the question of maintaining vehicles do not arise. On the other hand they have to play a vital role in aspects like applying and renewal of licenses, comply with the safety standards and other mandatory requirements and coordinate with the freight authorities in matters like payment of bills and preparing vouchers. It might seem that ERP may have a lesser use because the control goes beyond the organization. On the contrary the fact is that the freight authorities become another party to the ERP database. The companies can make an arrangement with them in such a manner that they are able to share the freight and relevant details of the organization. The same case will apply in the case of third party travel agents. ERP logistics software will facilitate connectivity and integration in all these areas mentioned above.  Managing company owned vehicles - When it comes to the question of vehicles owned by the companies (like trucks Lorries or autos or any other locomotives for that matter) another important task lies with the logistics department. They have to monitor and manage the vehicles as well. This task is not easy as envisaged. The company may posses hundreds of vehicles and it is difficult to know the standards of each one at a particular point of time. As the number of vehicles increases the difficulty also increases. It is important to maintain those vehicles because they are the backbones for transportation.  Communicating with other departments- The department of logistics needs to regularly update and answer queries raised by the others. Since they deal with movement of goods their services are required for everyone right from purchases department to sales department and others. Prior to ERP intervention there was no proper means of supplying the required information to the companies because the logistics department themselves are not aware of the status of the goods at all times. Even if they were aware it required a lot of maneuvering and procedural delays in eliciting the required information. Some of the factors were beyond the control of Logistics department themselves. ERP logistics software has removed these drawbacks in two ways. Firstly it had done away with the inherent defects of the logistics department itself. Secondly it has paved way for the other departments to obtain the required information from logistics department without even contacting them as everything is available in the common database setup by the company. After the evaluation of the benefits and possible positive outcomes of implementing the same in the organization, we will consider the threats of the implementation. Then a detailed layout would be prepared and adopting any one of the technique would be adopted for its implementation.

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