2. Background
Asgard automotive supports local
mechanics by providing parts and
accessories through large and
small-scale local distribution.
The company has scaled
tremendously with first quarter
earnings over 250%. With the large
supply and demand gaps, the
company has decided to
implement an ERP system that will
be able to increase efficiency and
how resources are utilized.
3. Objectives
Increase organizational efficiency
Improve resource management and drive marketing automation
Increase availability and transparency with online ordering system
Drive higher customer success through two-way feedback
Better workforce management tools
Increase efficiency in order and delivery processes
Improve supply chain management
4. Current State
● On Premises file system
● Manual inventory ledgers and journal entries
● No vendor tracking
● Inefficient supply chain management
● Poor warehouse management
6. Future State Process
ERP
SYSTEM
Customer
● Order Knowledge
● Delivery Notice
● Commercial Invoice Printout
● Customer Service Provided
Accounting
● Tracking on items ordered
● Inventory Management
Warehouse
● Item Picklist
● Provides item inventory list
● Transfers inventory availability to sales
team
Sales Department
● Confirms and creates orders/ order and
delivery tracking
● Creates sales order
● Provides customer support for products sold
11. Customer
Service
Customers will be able to raise tickets for support using our Atlassian JIRA
ticketing system. The tickets will filter based on criticality and support will be
given at the earliest possible moment. In using a JIRA board it allows two
way communication on the tickets as well as give status updates and the
agent currently working on the issue.
12. Conclusion
Our desired end state for this modernization effort is to see
quantifiable evidence of increased efficiency in parallel with the
increased order volume. We expect to see a significant decrease in
the number of logistical errors when compared to those seen using
analog methods. Our aim is to utilize these new system to provide
our customers with a high level of transparency and open lines of
communication for support, customer relations, and efficiency.
13. References
Locke, S. (n.d.). What is Zachman Framework? Retrieved March 12, 2023,
from https://www.visual-paradigm.com/guide/enterprise-
architecture/what-is-zachman-framework/
Biel, J. (n.d.). 60 critical ERP statistics: 2022 market trends, Data and
analysis. Oracle NetSuite. Retrieved March 12, 2023, from
https://www.netsuite.com/portal/resource/articles/erp/erp-
statistics.shtml#:~:text=ERP%20ROI%20Statistics%201%20ERP%20i
mplementation%20led%20to,collaboration%20and%20a%20centralize
d%20data%20system.%20More%20items
Amadeo, R. (2021, May 25). Google launches its third major
operating system, fuchsia. Ars Technica. Retrieved March 11, 2023,
from https://arstechnica.com/gadgets/2021/05/google-launches-its-
third-major-operating-system-
fuchsia/#:~:text=The%20report%20also%20laid%20out%20the%20ne
xt%20steps,as%20the%20latest%20Chromecast%20is%20switching
%20to%20Android%29.
Tupper, Charles D (2011) “Zachman Framework”
https://www.sciencedirect.com/topics/computer-science/zachman-
framework
Editor's Notes
Our team has selected an automotive accessories company to provide IT consulting. We gave this company the name “Asgard Automotive.” It is a newly formed company that has seen massive growth in their number of customers. In order to keep up with the increased demand from this massive growth in customers. Over this presentation we will discuss some of the background information associated with the business in the coming slides.
Asgard automotive supports local mechanics by providing parts and accessories through large and small-scale local distribution.
The company has scaled tremendously with first quarter earnings over 250%. With the large supply and demand gaps the company has decided to implement a ERP system that will be able to increase efficiency and how resources are utilized. According to Oracle Net Suite, companies that have adopted an ERP solution, they experienced an overall business process efficiency of 49%.
The company’s recent boom in consumers has allowed us to identify seven areas in our operations that need to improve. These seven improvements are necessary for us to keep up with the increased inventory and order volume. Many of these improvements center around modernizing the business’ website, warehouse management, and order tracking systems.
Asgard automotive currently uses and on premises file system for its record keeping. Inventory is tracked via manual ledgers and journal entries and outgoing inventory isn’t tracked after a certain point. There is no vendor tracking, no accurate supply chain management. Due to this, there is increased in accuracy in order vs current supply and poor warehouse management. Although the business is scaling at a fast rate the order process is also lacking as customers have to call in orders, which can in the long run affect profit margins and revenue.
The current process relies on many analog or manual procedures. These methods are not efficient or reliable with a large number of customer orders and do not provide the customer with the visibility needed to track orders. Additionally, they allow for many unnecessary errors in entries or lost orders. A significant effort in modernization is necessary to ensure overall business efficiency and reliability.
This new process fully supports our ideas to improve efficiency through modernization. Rather than a straight line, terminating process, this new system would implement a continuous cycle of communication and transparency between all departments within the company and the customer. Research has found that over 95% of all businesses that implement this type of system report an improvement in all aspects of their operations. The top three areas where ERPs were reported to display a significant ROI were costs savings, improved performance matrices, and improved efficiency with transactions. All of which were a success. We have no doubt that this is the correct way forward for this business’ operation (Biel, 2022).
We chose to follow the Zachman Framework as our guiding principles for implementing this new technology. This approach allows us to analyze our architectural approach from multiple perspectives as seen in the image above. Asgard Automotive will be using the Zachman Framework as a guiding star for the different phases of the ERP implementation as it passes through the different phases of the business (Tupper 2011).
This is a visualization of our proposed processes from end-to-end. There is a constant flow of data both to and from the customer through the ERP system. It encourages constant communication as well as timely and accurate information between both parties. Through the use of an ERP, trust and transparency will continue to grow Asgard Automotive.
Here is our legacy model. It relies on everything working perfectly without delay and is not dynamic to allow for disruptions. Manually checking over the order creates a delay and it’s an unnecessary step. Also, we don’t know if a part is on-hand too far into the process which also adds another delay because we have to reach out to the vendor to get the part in. We lose out on a customer because they can get the part quicker from someone else. Next the manual action of creating the request at the warehouse is another inefficiency of the process.
Under the new ERP model, intelligent design is evident in each step of the process. Our CRM uses Big Data to prospect the best customers who purchase high in volume and frequency. This would give us the ability to service commercial customers B2B as well as our legacy retail customers. As soon as the order is placed, the ERP automatically takes account for the order from what is on hand pending the next steps. Payment processing is also automated where if payment is delayed or declined then that customer’s personal Client Service Rep reaches out to the customer to find out a way to keep the deal. If it cannot, the CSR will enter the data into our CRM which will help refine the kind and type of customer it prospects. If the order is canceled, then the on hand immediately reflects the inventory in real-time so everyone has the most up-to-date information. Once the item is ready to ship, the CSR will reach out to the customer with the tracking number and next steps. So with our ERP model, everything and everyone is part of the process through every step and allows for a greater level of collaboration.
Customers will be able to raise tickets for support using our Atlassian JIRA boards. The tickets will filter based on criticality and support will be given at the earliest possible moment. In using a JIRA board it allows two way communication on the tickets as well as give status updates and the agent currently working on the issue.
Our desired end state for this modernization effort is to see quantifiable evidence of increased efficiency in parallel with the increased order volume. We expect to see a significant decrease in the number of logistical errors when compared to those seen using analog methods. Our aim is to utilize these new system to provide our customers with a high level of transparency and open lines of communication for support, customer relations, and efficiency.
60 Critical ERP Statistics: 2022 Market Trends, Data and Analysis | NetSuite
Companies Using ERP: Case Studies | QAD Blog