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Enterprise Resource Planning And The Field Of Information Technology And Business

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Business-IT
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Business-IT
Enterprise Resource Planning is one of the biggest breakthroughs in the field of information technology and business. Integration of business processes through usage of centralized connected information systems gave the impression of solving the most crucial of all the business problems. They were deemed to assist the management in taking crucial decisions related to the sustainable future of the organization. At the same time, it was also expected that this system would result in elimination of human errors of omission and commission completely from the business environment. However, the corporate world saw a completely different picture of the things in the past few years. There were a number …show more content…

It was therefore important to redesign the supply chain management process so that the overall time taken by the organization in supplying the goods to the consumers could be reduced considerably. They also wanted to eliminate any kinds of stoppages in the process of supplying from the core suppliers. Overall, the cost of carrying the inventory and finished goods had to be reduced. However, the actual results after the implementation of the new ERP system were not as good as they were expected. As a matter of fact, the situations related to the internal control system became worse from bad. The company ended up losing a large amount of money (approximately $100 million) as part of the lost sales across various locations. The stock of the company dipped around 20% after the implementation of the new supply chain ERP process. They also faced numerous case laws and legal issues after the process was made live (Wailgum, 2009).
There are a number of reasons as to why this concept failed to work for the company. As part of the new ERP system, they had implemented new demand-planning software. The new program was implemented without even testing it properly. The result was something which Nike would have never wanted. The company was never actually able to match their expected sales with the anticipated demand. The manufacturing process was also affected to a great deal by this mismatch in the process.

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