Accurate and real-time information on business products and business processes helps automate services and improves efficiency. Enterprise Resource Planning (ERP) systems helps in integration of business processes across all departments. ERP runs on an integrated software platform that harmonizes all data across finance, human resource department, processing, procurement and distribution department into a common database (Holmberg & Johansson, 2017; Turner, Weickgenannt, & Copeland, 2020). Gear Motions, a company that supplies high precision gearing to companies, was operating on an ERP system that did not provide the agility to handle business processes efficiently. This paper analyses how Gearing Motions improved efficiency by adopting a modular ERP system from Global Shop Solutions.
Gearing Motions faced a challenge of long lead times that was caused by manual input of data. The company could not serve the increasing clientele efficiently since the existing ERP system was unable to give real-time information on stock and space available hence delays in generating accurate quotes to customers (Plaskett, 2019). To solve this problem, the company adopted Global Shop solutions’ modular ERP system.
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The Advance Planning and Scheduling (APS) module helps in scheduling jobs. It provides a detailed analysis of jobs and all the departments in the company. Moreover, it improves efficiency and reduces lead time by transforming data into information that helps in decision-making. APS creates custom crystal reports that aid in short-term and long-term planning by providing accurate data that allows managers to meet customer needs. It also updates data automatically every five minutes thus helping in tracking the business processes and operations in real-time.
The Supply and Demand module helps users access data on orders, sales and purchases on one screen. This simple data integration has aided Gearing Motions in tracking daily output from machine operators. Such feedback is used to improve efficiency and performance of the machine operators. Besides, this unbiased data creates a culture of feedback and transparency. Gearing Motions has managed to significantly reduce the amount of time in almost every process and further attained collaboration and better decision making through the shared data.
Custom Rubber Products LLC can use the same modular ERP system to streamline and attain efficiency in business operations. The company deals in production of molded, bonded ad molded phenolic rubber products and swellable packers (Customs Rubber LLC, 2021). The company faces bottlenecks in production, management of storage, management of product and raw materials traceability and optimization in the supply chain. Global Shop solutions’ modular ERP system can be the panacea to all the challenges in the business operations.
First, the modular ERP system is efficient in data management. The two modules, APS and Supply and Demand, ensures that all business processes and organizational departments are integrated into one master data that is accurate and provides real-time updates. This feature will enable Custom Rubber Products LLC to reduce lead-time in production and supply of products to their local and international customers. The APS module will be able to trace raw materials, manage storage space and improve efficiency of the factory operators. In addition, the centralization of data will drive organizational change and help in realizing the company’s objectives of meeting and exceeding customers' expectations in product quality, timely delivery of products and continuous improvement of processes.
The Supply and Demand module will help the company in providing timely quotations to customers by tracking orders, sales and purchases data. Correspondingly, it will aid managers in making short-term and long-term production and supplies decisions based on data projections. The company will reinforce a culture of transparency and efficiency since all data is integrated and all processes can be tracked in real-time. This interrelatedness ensures collaborations across all departments thus avoiding organizational conflicts.
References
Plaskett, E. (2019). ERP System Enables Gearmaker to Achieve Needed Agility. Better Production: ERP Software , 96-101
Customrubber.com. (2021). Retrieved 30 April 2021, from http://www.customrubber.com/ .
Holmberg, N., & Johansson, B. (2017). A Service-Oriented Perspective of Enterprise Resource Planning Systems. Journal of Systems Integration , 8 (2).
Turner, L., Weickgenannt, A. B., & Copeland, M. K. (2020). Accounting information systems: Controls and processes . John Wiley & Sons.
