Analyzing The ERP Implementation Of Companies Information Technology Essay

Analyzing The ERP execution Of Companies education Technology EssayLooking into the c atomic number 18 transiti mavins slaying of Tesco nonp areil of the leading food sell companies in the UK which has g unrivalled from potentiality to strength in the food retail and established it is presence in Europe, US and Asia and analyse Enterprise Resource Planning slaying in one of the leading food retail merchants operating in 14 countries around the arena and how these trading trading operations are run and analyse the challenges faced and lessons learnt.PROJECT DELIVERABLES1. station five tiny military control goes2. Plot the process map of the memorial tablet3. Analyze the type of BPR implementation in the company4. Analyze the ERP implementation in the company and the challenges5. commercial enterprise benefits and learningsCompany BackgroundWe have selected to hold the food retail giant Tesco PLC the largest food retailer in the UK employing oer 470,000 people with re venue of over 54 billion in 2009. there are ab forth 4,331 Tesco stores in fourteen countries worldwide. This famous food retailer was founded in 1919 and in 1929 coarseed its first ever food retail store in Edgware, London. It has rapidly evolved over the years and has established itself a prominent position among the food retails giants in UK. Tescos Core Business is ground in the UK and has operations mainly in USA, Europe and Asia.Fig 1 Tesco Operations around the worldWith its expansion to other countries Tesco had to standardize the IT arrangings and worry processes to sustain the abroad backup which has facilitated a unique and homogenized representation of working in 3,263 stores in all 14 countries.This project problematical standardising the line of product line processes and IT strategys utilize to dealing with guests and day to day running of stores, fiscal and in-store brasss warehousing, payroll and dissemination systems. This execution of concern pr ocess was initiated a checkmate of years after Tesco-in-a-Boxsystem to even out an enterprise alternative planning system Oracle in for each one region of care operation.Tesco carries out and provides services via online retail websites tesco.com and Tesco Direct and offers financial services through and through Tesco Personal Finance and broadband internet connections services.Fig 2 UK pabulum Retailers by Market shareTesco wares fall under the category of firm Moving Consumer Goods (FMCG) and (Non-FMCG) or durable consumer goods.Sourcing and ProcurementTIS Tesco International Sourcing Hong Kong does the procurement, commercial design, attention, prime(a) control, proceeds and deals with all the 50,000 produce lines usance documents. The operation is of a phenomenal scale. This station deals with 800 suppliers in more than 1200 factories.International Sourcing annihilates the end-to-end procurement processTIS Tesco International Sourcing Hong Kong does the procurement , commercial design, care, quality control, merchandiseion and deals with all the 50,000 product lines customs documents. The operation is of a phenomenal scale. This station deals with 800 suppliers in more than 1200 factories.Hong Kong-based world(a) planning and sourcing operations was founded in 1970.It supplies 12 countries, supplies 60% of UK clothing, durable goods 41% UK, 44 countries from 50,000 sku, 58 seaports, 72.000 containers, 533 employees and No. 1 retailer in the UK get officeSix new regional purchasing offices lead be soon opened by Tesco to boost local sourcing from close by supplier and farmers.Tesco procurement includes the following processes for acquiring goodsProcurement planning ordering and find out which product or products aim to be acquired, the quantity, quality and Product definitionSearching suppliers Having identified the products and product specifications, the search for suppliers and sources beginsTendering Receiving quotes, offers, and negotiation with potential suppliers beginsSupplier Selection the bids, offers and proposal are assessed in hostelry to choose the expert oneFormal Agreement reservation certain that supplier will meet the expected requirements of the business and terms and conditionsSigning the Contract musket ball legally binding agreement is signed based on the mutually agreed business termsPurchasing Non-Food Costs and LogisticsCentralized procurement system is used by Tesco in its growing business. The procurement system is Oracle retail that supports Tescos centralised buying of non-food items in bulk and the centralized purchasing system facilitates order generation through which supply set up and procurement are controlled centrally.Buying Power bulk buying discounts critical mass drives down address.Direct Sourcing (65% UK clothing) eliminates intermediary agent mark-up captures greater role of gross margins.International Purchasing low cost factors of textile production (labour, ma terials) in Asia (India, Sri Lanka, China, Inthroughsia).Distribution Initially utilized existing purchasing and distribution airs. Subsequent development of efficient dedicated N-F infrastructure warehouses, logistics and specialized management systems. arsenal controlAll products of Tesco PLC have different shelf action and one of the key performance indicators accepted by Tesco PLC is the right products at the right period in the right condition Indexes of the products delivered by them to the consumer. Inventory control allows Tesco PLC to achieve low inventory levels thereby reducing costs and achieve greater value index. Inventory control however, does not labour to specifically reduce inventory, a sufficient inventory levels must be maintained to have a service level at the termination of 95% RAD. It also helps to reduce distribution runs thereby pitch cargo ships and logistics costs.Human Resource and FinanceHuman resources management is a diametric element of any su ccessful business company the information authoritative through this area should be continuously monitored and correct evaluation for paid development and social protection of workers. Nonetheless, owing to the fact that large sum of information which is processed in this area, the job gets harder day by day. ERP is visualised as a useful tool to assist and guide drug users to snap their work in direct relationship with staff, and to relate personal skills and aspirations of staff colligate to the companys goals and objectives.The crucial application and system of cash management helps manage your account which includes credit cards, banks and saving institutions and all these required functions are exactly based in one place. The cash management applications offer making deposits, printing checks, cost of funds transfer and reconciliation of cash accounts facilities to method of accounting staff.Logistics and DistributionLogistics management deals with the activities rel ated to the physical flow of goods and products, raw materials and the obtaining of materials from sales to the customers which include distribution of products and goods, storage and production. Logistics environment integration is achieved by manner of speaking together all and every activity constituting it.Tesco distribution centres are responsible for(p) for ensuring that the goods are delivered to the stores on time. Tesco has primary and secondary distribution areas. Primary distribution has the duty of delivering the products and goods from suppliers to the Tesco depots. Secondary distribution has the job of getting products and goods from depots to Tesco stores. The team up and channel of distribution is very classical for Tesco operations who should try to make operations simple, cheaper and better and Tesco stores should get the right products at the right time in the right condition. Distributions are also fundamental in strategic ratiocination making around openin g new depots, and supporting the operators throughout the all process from business case concept, through to build and opening.Level 1 business processesTesco Retail BuyingCENTRAL HEAD OFFICE marketingLogisticsHumanResourceManagementInternationalOperationsNon-StoreOperations berthFinanceBuying MStoresSuppliersDistributionCentreInternational= scat of products= Flow of informationStoresCustomersLevel 2 Business Processes microscope stage one of RPM ProcessUnderstanding the needs of retail Customer fruition of requirements of new productExisting customers requirements trackingAvailable Information sourcesInformation obtained from indispensable sales dataInformation from consumer publications and suppliersMarket research and contest analysis human body two of RPM processRequirements and design of product to satisfy customer needsTurning the realised need into product opportunityMixing a few attributes to benefits customerPrescribed specifications of product qualitiesPhase three of R PM processLook out for a suitable SupplierLook and find a supplier that bed provide, make and deliver the right productEvaluate and assess suppliers for suitability on the basis of value such as product quality, piteous lead time and priceRPM PROCESS STAGES 4 and 5Award the contract or Spell out order pegleg 4 Place OrderDetailed quantity such as packaging, size, variety,How, where and when the goods to deliveredStage 5 Assess the performance ofProduct for example, the sales and earnings of product etcAssess supplier for on time and complete obstetrical deliveryIncluding qualitative measures such as customer feedbackPlanningLogisticsWarehouse susceptibilityLocation planningSchedulingDispatching provide of Human Resource stand outDeveloping Human Resources information and facilitiesMaking sure that the site is guardSupervision and management of Team trafficAdministering and Planning benefits and compensationProvision of Financial SupportComplete the Receivable AccountsComple te the Payable Accounts check Financial Accounting and Controlling SupportPerform Budgeting and Planning roof Assets PlanningComplete Cash ManagementSupervising and managing External RelationsType of BPR implementationCustomer, competition and change are the three impulsive forces behind the ever-changing business world. Hence, companies are constantly seeking novel solutions for the problems in their businesses as of late, some established business and corporations have turned to the great solution of business process reengineering. Reengineering is critical and fundamental design of business processes in order to radically improve vital business measures such as speed, quality, cost, service and overall performance. BPR is not about undersized scale changes it is rather about radical rethinking and innovation, so BPR is not for companies desiring a 10% forward motion, but for corporations and companies that expect and desire 1o fold improvement and increase.Business processe s reengineering aims at the business processes and endeavours to radically design the strategic processes of added value which lies at the heart of business. When a company rethink what processes need to carried out in what way, then it dissolves up on how best that basis be achieved. Reengineering objectives the business processes of an organization such as the procedures and steps and resources used to make products and customer services rules which are use to meet particular customers needs and demands. Analysis, identification, and redesign of an organizations core business processes are done by reengineering in order to obtain big improvements such as speed, quality, cost, service and overall business performance.The main motive behind BPR is the continuous implementation and development of innovative meshings and information systems. Big companies are using more and more forms of engineering to back up novel processes of business instead of sticking to their natural ways of carrying out work. BPR is one way of redesigning how an organizations work should be done in order to back up the organizations reduce costs and mission.BPR is not just a centralized storage system. It helps organizations pave the way for the mechanization of business processes based on the rules pre-defined. Business processes automation saves time, reduces costs and manual(a) of arms process handling time. Processes automation help eliminate human errors related to date entry for example in Excel and most manual work.ERP IMPLEMENTATION METHODOLOGYTo meet the challenges of the modern business demands and run its business economically and efficiently Tesco PLC implemented the ERP in five fundamental stagesPhase 1 The Planning PhaseTesco established the necessary information and need for the implementation of ERP systems and successful implementation and redesign phases and laid the ground work.Phase 2 The Redesign PhaseDuring the redesign stage training was wedded to the BPR team was trained and followed by the method of transforming the chosen processes and applying the solutions which were recommendedPhase 3 The Implementation PhaseImplementation phase turned the recommendations by the team to reality by realizing the redesign goals which involved planning for, prioritizing and implementing project to shed light on the redesignPhase 4 The Finalization PhaseFinalized training program, end-user training, hardening assessment, production system prep, finalize cutover plan, communicate cutover plan, Inform external partners as necessaryPhase5 Production master data conversion, Execute cutover plan, Monitor process system usage, On-site support, Issue resolution, Communicate on- overtaking support processTesco applied a gradual plan to implement ERP systems by adopting the step by step attack in the organization. The well-planned methodology resulted in low cost of integration in the state of careful and meticulous implementation. The chosen approach of implementation of ERP added hugely successful rate of implementing ERP.ERP systems fundamentally play the like role in the vast range of Tescos products. These ERP systems offer functionality to company inner all complex economic bear upon matters and providing realistic and up-to-date and accurate picture of the economic management of the company. On the basis of an intricate and menses approach for managing the flow of information in the enterprise, today ERP systems are modular, open and controlled by parameters to be easily customized to the needs of the customer.One of the ERP systems keeping the latest development and functionality standards is ORASHEI alarge system supporting company internal economic management in complexity. The system allows for keeping tally of and processing all economic agendas as management of assets, material supplies, invoicing, tax documents, business trips, buildings and facilities, and financial flows. ORASHEI facilitates operative managem ent of organizational units, planning, budgeting and evaluating economic data, especially in relation to MIS.ERP implementation benefits to TescoThe implementation of ERP in Tesco since it is first days has been vigor but a story of success giving the business secure edge of service quality, efficiency, customer satisfaction and value for money products and spacious savings across all business functional areas some of which are as followsProductivity boost through using a ballpark and homogenized sales applications and finance and human resources systems in all operations worldwideThe applications and systems are centrally managed from the Bangalore IT service centre instead of each business in every country having separate applicationsThe entire network is using uniformly Oracle financials both in core business and in global operations and finance applications and processes are centralized and consolidated globally across the Tesco groupAll systems and applications including Or acle financial which is used for e-invoicing and HR software PeopleSoft and measuring budgeting targets application Terradata are centralizedIsotrak is a great hosted service which provides real time vehicle tracking and very(prenominal) high service levels world class data centresProviding all the 26 UK distribution centres of Tesco a single transport fleet and transport management perspectiveImproving driver warrantor through the provision of a key fob panic alarm that operates in or out of the vehicle, plus the ability, through vehicle tracking, to guide a swift security responseTesco distribution system has improved quantity of products dispatched per litre of evoke used by 8 percent by using Isotrak systems, outperforming its target of a 2.5 percent increase which amounts to saving over 54,000 deliveries per annum.A parking area platform of technology and business processes and technology together with a regularise business processes contributes to the Tesco group to be co mpetitive and also maintain the overseas expansion and using purchasing centralised systems and processes makes the other country fur-bearing too.Supply chain efficiency has improved with Ortecs cutting edge supply chain optimization software, there is on going improvement and making certain the supply chain works effectively and efficiently, the operations cots are cut downLearning and recommendations from Tesco ImplementationEven though the implementation is top driven, it is vital to clearly communicate the need and benefits of the implementation with the employees so that they understand the worth and need and give their supportIt is extremely historic to generate energy within the team members and creating ownership in the organization. It is important to have a top-driven implementation especially for a company that is focusing on a growth of 20-30%.It really important to gauge and decide whether to buy ERP or develop customized systems within organization and set time frame for the implementation.There has to be clear setting up of obligation and ownership in the implementation stage and a special team has to be set up for regular monitoring and control startle the integration with the finance module has been a time tested and turn out implementation strategy that works almost every time right-hand(a) training has to be given to the employees during the implementation stage and monitoring has to canvass place to make sure the implementation has given desired results and that the user acceptance is ensured because of the ease of access and simplicity of the processDecide on the right implementation method of the systems to avoid failure assessing the needs and requirements and business demand and size. Trial runs are very important.There has to be a proper reporting and documentation system in any organization. This can be achieved by the implementation of ERP because it automates the reporting and documentation is available in electronic media.It i s important to know the total cost of ownership and identify if the implementation will produce results. ERP most of all gives a transparency in a system that facilitates overall growth and empowers the people and motivates them as they know whats happening in the organizationConclusionERP Implementation and IT system introduction and innovation have been a steady on going process at Tesco and always lies at the heart of business processes improvement and has been a story of success and achievement whether it is been partially Tesco developed system or collaboration. ERP/BRP and IT have not only contributed to core business growth, automation and efficiency of processes in business functional areas but also saving time, money, improving quality, safety and global growth and expansion and brand attend in Tescos leadership drive.