Submit Electric Light Up with a New ERP system

1. GROUP MEMBERS
1. Arni B. Hj. Morshidi P14D461P
2. Anisah Bt Ismail P14D389P
3. Syarifah Rohaya Bt Wan Idris P14D397P
4. Dayang Adelina Bt Hj Abang Muan P14D394P
5. Norhana Aini Bt Saini P14D398P

2. Top wholesale distributors of
industrial electrical
equipment and supplies
Founded in 1977 in
Albuquerque, New
Mexico
A “middle man”
3 divisions: Global export
– Houston, Marine – New
Orleans, Sales - Dubai

3. A legacy information system not keep up with the
business
DONE MANUALLY
• Only handle a fixed number of locations and
limited of numbers used on documents
IS DEPARTMENT
• Had to use the same range of document
numbers over again every few months
Summit needed a system that could handle a very
large number of SKUs
Changed to new system ERP provided by SAP
• That would require improve its business process
and the way people worked.

4. • Whichbusiness processesarethe mostimportantat
SummitElectricSupply?Why?
• Whatproblemsdid Summithavewithits old systems?
Whatwasthe businessimpactofthoseproblems?
• How did Summit’sERPsystemimproveoperational
efficiency anddecision making? Giveseveral examples.

5. • Describetwowaysin which Summit’scustomersbenefit
fromthe newERPsystem.
• DiagramSummit’soldandnew processforhandling
chargeback.

6. the active management of supply chain activities to maximize
customer value and achieve a sustainable competitive
advantage.
• Summit Electric Supply is one of the top wholesale distributors of
industrial electrical equipment and supplies in U.S.
• Distributes products that include motor control, wire and cable and etc.
• As a “middle man” – obtains finished goods from manufacturers and sell
them to electrical contractors working on projects
• Handle a very large number of SKUs transaction in a very short lead
times
• Whichbusiness processesarethe mostimportantat
SummitElectricSupply?Why?

7. ERP SYSTEM
• A packaged business
software system that
enables a company
to manage the
efficient and effective
use of its resources.
SAP
APPLICATION
• SAP is a core ERP
application and the best
practices function in sale
and distribution, materials
management, Human
Resources and Financials
and its knowledge in
distribution business.
• SAP’s Net Weaver support
Summit Electronic more
organize and be able to
control how much was
needed to be produced and
distributed.
• It’s useful for business
intelligence reporting and
analysis.
BATCH
MANAGEMENT
• It is a software that
treats a wire reel a
batch rather than single
as single products.
• It used to cater high
demand for wires and
cable products.

8. Used separate systems for orders and
financial
So that, the data could not be easily
combined for business intelligence
reporting and analysis
The integration between
sales entries and purchase
order and back-end
reporting.
Only handle a fixed number of
locations and limited range of
numbers that could be used
on documents
I.S Department had to use
the same range of
document numbers over
again every few months.
• Whatproblemsdid Summithavewithits old systems?
Whatwasthe businessimpactofthoseproblems?

9. The system was not able to keep up with the fast growing business.
Not able to handle the volume and complexity of the company’s chargeback
agreements and reporting capabilities were limited

10.  ERP improved operational efficiency and give scalability
and the ability in Summit’s business process
 Especially in supply chain areas like sales and
distribution, inventory management and financial
reporting system - as the company expected strong
growth in these areas.
• How did Summit’sERPsystemimproveoperational
efficiency anddecision making? Give several examples.

11. • It’s running smaller and frequent inventory update throughout the day,
instead of a night-which caused a delay.
• New system provided accurate information of shipping order, which
Summit’s was able to ship immediately.
Runningmorefrequent inventoryupdates
• To replenish wire and cable, the ERP batch material management
identified the customer purchase amount, length of wire and product
manufacturer.
• Each time a customer buys a length of wire, the length is entered into
the system to track how much of the “batch” was sold.
Adaptingthe inventorytrackingprocess
• To secure inventory for special customers, with long term projects,
Summit created a “parent- child” warehouse relationship in ERP
system to secure the materials in inventory as well as on premises.
Changinghowinventoryis managedat jobsites

12. • To make a better manage its finance and ordering system, Summit implemented
the SAP’s/NetWeaver BW data warehouse and business intelligence.
• By integrating the NetWeaver, Summit was able to analyze the profit of each sales
person, manufacturer, customer and branch.
• Using SAP software, Summit was able to improve its ROI, by automating sales tax
and chargeback’s.
• The SAP/Paybacks and Chargeback’s application was able to identify the billing
activity, if there was a chargeback, the SAP system would automatically submit
the information to bill the chargeback- increase its chargeback claims of up to
118%.
• Summit decision making for implementing the new ERP system was based on the
growth of the organization, the complexities of processing orders, analyzing
finances and back and reporting.
• Once the new ERP/SAP was in place, Summit management was able to focus on
sales and orders and quotes, supplier performance and delivery schedule.
• The new SAP/ERP has allowed Summit to run its operations with flexibility and
allow the SAP to operate efficiently.
• The new ERP system allowed management to have a greater vision for decision
making and managing its operations
Business intelligence

13. Customer can relyon the company for theirneeds and products
• The company now more efficient
• The company wants that customers to feel that they can provide
that they have produced products the customer want and sent to
them in short time period.
To accommodate largecustomers with long termjob sites
• SES sets up temporary warehouse on site to supply electrical products.
• Create “parent – child” warehouse relationship – to able to work with
customers.
• The warehouse can be controlled like subparts of the main SES
warehouse.
• It helps to prevent anybody from selling the consigned inventory into the
warehouse.
• Describetwowaysin which Summit’scustomersbenefit
fromthe newERPsystem.

14.  Chargeback is the return of funds to a consumer.
 The chargeback mechanism exists primarily for
consumer protection.
 For the distribution company, chargeback occurs
when the supplier sells a product at a higher price
to the distributor than the price they have set with
the end user.
• DiagramSummit’sold andnew processforhandling
chargeback

15. Look through
customers
invoices
Identify specific
manufacturer
which Summit
chargeback could
claim
Input data
manually in Excel
spreadsheet
Submit paper
copies of invoices
to vendors
Received responds
from vendors
End of process

16. All chargeback
agreement loaded in
SAP system
System review billing
activity and do a
matching to create a
separate chargeback
documents
Automatically submit
the information and
chargeback document
to identified vendor
End of process