Discuss about the Classification of ERP System Services.
Seven-Eleven Japan Company was found in the year 1974 by Masotoshi Ito and the first store to be set up was situated in Tokyo (Special Topic Forum on resources and Supply Chain Management (2013). The company has been able to compete strategically to provide convenience, availability of products in different varieties at favorable prices and good quality. It supplies a wide arrange of products from food stuff, drinks and even cosmetics.it is the current largest and leading retailer in Japan. It has got an agile supply chain management which has largely contributed its success. Special Topic Forumon Power in Supply Chain Management (2015).SEJ has got a fully integrated information system that can monitor the whole supply chain and provide visibility of the chain at all levels. Reimann and Ketchen (2017).
Purchase and supply chain management of the company is controlled and monitored by an information system which has been integrated all together so that information can be sent from branches, that is other stores in different parts to the headquarters within the shortest time possible. When a customer purchases or orders a product from this company, his or her description is fed into the computer system Rossetti and Dooley (2010).the information shall be sent to the headquarters as well as the manager of the store. With this, they are able to monitor trends in the market and use the information for planning. Even the slightest information that could be termed less important such as the gender and age of buyers is all taken through the computer system. Managers of the headquarters and the store are able to get information from time to time within hours. Chopra (2017). The system at the headquarters goes further to integrate all the information and make it available for all supply chain levels so that each level is aware of what is going on through the whole supply chain. Meetings are held from time to time between the headquarters and the branches management so as to follow up and plan together on the future of the company. The meetings occur regularly on a weekly basis where all stores are represented and the person representing them takes back the information to the various outlets after the meetings. The top management and members of the executive from branches asses the performance of the company for the previous week and use the same information to plan on the coming week Pinney (2012). The plans put in place are all implemented in the stores after the executive has laid down the plans on how to go by and pass information to all stores. Goods are ordered for from the headquarters because the system shows the amount of stock available in each store and the trend at which the goods are moving it is then used to determine the amount of goods to be ordered for hence a proper management of inventory. During distribution of goods to stores, the company ensures that radio calls are maintained with all drivers Menéndez (2018). The headquarters keeps track of all deliveries through communication with the drivers. Goods are delivered following time tables and the stores are assured of getting products within ten minutes of the supposed time, any distributor that delays for more than thirty minutes has to pay the store a fine. In case of any inconvenience r emergency, the company has alternative ways of handling such situations for example, if something goes wrong with one of the stores, goods are rushed from the headquarters using air as a means of transport to rescue demanding situations Supramaniam, Abdullah and Ponnan (2014). TH e success of this company can be attributed to the kind of system they have in place. In a supply chain, there should be transparency, joint decision making and communication for it to be as efficient as possible. The supply chain of SEJ has all these qualities. Inventory management is also done through a computerized system and strict terms and condition set for distributers. Its flexibility also makes it easy to change and adapt to unexpected changes in the business environment. Note that the average amount of stock at SEJ stores can run up to seven days. The stock is customized to meet the exact needs of an individual store. Goods are ordered and supplied to individual stores in accordance to the requirements identified. This makes it easy to manage inventory in each branch without making confusions in such a way that a certain store receives goods meant to be delivered at another store.
Purchases of goods required in the stores depend on the results of the analysis carried out weekly and the information passed to each level of the supply chain by through integration of data from the headquarters. Order for supply of goods from their vendors through the headquarters and the suppliers in turn deliver goods to the individual stores. All goods are inspected to ensure quality and brands meet the demand of the consumers (Sodomka and Klcova( 2016). Systems at the stores are automated such that they do not require the presence of the delivery personal when the store personnel scan the goods delivered. The systems are set in a way that they can be trusted by the delivery team. Deliveries are done during off peak hours when tracks do not have to experience delay and the person delivering goods does not have to wait for the scanning process at the store due to the trusted systems. In conclusion, the supply chain management is the one that has largely contributed to the success of this company due to its efficiency and the information system has made it easy to carry out activities necessary in the supply chain (Roman (2010).
One of the best ways of improving the supply chain management is making good use of Enterprise Resource Planning. Elkhani, Soltani and Nazir Ahmad (2014).This is software that can perform different tasks in a computerized system for the organization. As much as the company has integrated information systems, there are other ways that can be used to further improve the supply chain management. SEJ company is recommended to use automatic purchase system whereby there is no need to place orders manually to vendors. The ERP systems can be set in a way that once the information entered from various stores indicates that stock is below a certain level, it automatically places an order with vendors. The organization should carry out regular training of all of its employees to keep the up to date and on toes. The success of the company should not only be the present issue but also be a future plan so that the company can be able to sustain the changes in the business environment as well as compete effectively with other organizations with similar activities Sodomka and Klcova( 2016) .The current system of the company integrates information after a period of time, ERP system can be able to provide and integrate real time information important for fast decision making.
The benefits of using a centralized ERP system are amazing and will propel the company to another level in terms of performance, speed, inventory management and cost cutting. Enterprise resource planning will free up employees, instead of spending time on order placing, they will concentrate on other importance roles that call for their attention. The company will also have to employ fewer workers in order to run their activities. With the system, employees will share a standardized information system, share information and encourage teamwork Elkhani, Soltani and Nazir Ahmad (2014).. Normally, problems that have always affected supply chain management are errors; fraud and lack of transparency .the system will enable the management follow up activities and reduce such cases. Instant decision making is the key driver any supply chain, with the system in place, executive won’t have to meet on a weekly basis so as to make decisions; they can communicate online through conference call or videos and make instant decision using the insight information from the ERP. This will help save time of travelling to the headquarters and the cost incurred Sodomka and Klcova (2016). The performance of the vendors can be monitored using this recommended ERP system. The errors made by vendors from time to time can be traced and the company can be able to determine the best vendors fit to deliver goods for each store. They can use the information to retain the best vendors and do away with vendors who make too much mistakes that may affect the supply chain of SEJ Company. Therefore, if the company uses the recommended system, it will be able to improve on other areas and make it easy to manage the supply chain Elkhani, Soltani and Nazir Ahmad (2014).Money saved by use of this ERP system can be used by the company to improve other sectors and keep for future use. The company should employ innovators who can bring in new ideas on board and implement the ideas for the betterment of the organization and assurance of future sustainability Sodomka and Klcova (2016).
References
Chopra, S. (2017). Seven-Eleven Japan Co. Kellogg School of Management Cases, 1(1), pp.1-14.
Elkhani, N., Soltani, S. and Nazir Ahmad, M. (2014). The effects of transformational leadership and ERP system self-efficacy on ERP system usage. Journal of Enterprise Information Management, 27(6), pp.759-785.
Menéndez, A. (2018). Not seven, but eleven? European crises or “new normal”?. European Law Journal, 24(1), pp.2-6.
Pinney, C. (2012). Seven theses on photography. Thesis Eleven, 113(1), pp.141-156.
Reimann, F. and Ketchen, D. (2017). Power in Supply Chain Management. Journal of Supply Chain Management, 53(2), pp.3-9.
Roman, M. (2010). System for storage EEG/ERP data and metadata. Frontiers in Neuroscience, 4.
Rossetti, C. and Dooley, K. (2010). JOB TYPES IN THE SUPPLY CHAIN MANAGEMENT PROFESSION. Journal of Supply Chain Management, 46(3), pp.40-56.
Sodomka, P. and Klcova, H. (2016). Classification of ERP System Services. Journal of Systems Integration, pp.66-78.
Special Topic Forum onResources and Supply Chain Management. (2013). Journal of Supply Chain Management, 49(2), pp.137-137.
Special Topic Forumon Power in Supply Chain Management. (2015). Journal of Supply Chain Management, 51(2), pp.98-98.
Supramaniam, M., Abdullah, A. and Ponnan, R. (2014). Cost Analysis on ERP System Implementation amongst Malaysian SMEs. International Journal of Trade, Economics and Finance, pp.72-76.
Tenhiälä, A., Rungtusanatham, M. and Miller, J. (2017). ERP System versus Stand-Alone Enterprise Applications in the Mitigation of Operational Glitches. Decision Sciences.
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