ERP in Cadbury Organization-Free-Samples for Students-Myassignment

Question: Choose any Organization and analyse why this Company needs an ERP System and what is going to be involved with the initial startup. Answer: Introduction This is a report, which will portray the enterprise resource planning of a organization named Cadbury. The report will analyze the need of implementing the enter resource planning system in the organization, the type of enterprise resource system, the components and the implementation strategy for the organization. The report will conclude with the future developments of implications of using this system. Enterprise resource management is used for providing real time view of various processes and the activities within the organization. The system stores data of all the management processes in the database of the organization. Moreover, the system keeps track of all the resources that is necessary for smooth functioning of the business processes. Cadbury is a multinational company, which is based in United kingdom and has its base of operation in Birmingham (Cadbury Chocolate | Cadbury.co.uk, 2017). It is one of the largest brand of confectioneries in the world and have an extended pr oduct line. The organization can be considered to before runners in their market segment and have a large base of operations. In 1824, John Cadbury, the founder of Cadbury opened a grocery store in Birmingham. He sold cocoa and drinking chocolate, which was being famous at that time due to their taste. Moreover, the drinking chocolate being made by him was being seen as one of the alternative of conventional drinks such as tea and coffee. Gradually, his chocolate preparation began to gain popularity in the nearby areas. By 1831, first manufacturing facility of Cadbury was born. This is being decided by John Cadbury due to the increased demand of his products. In this time, he thought of selling his products in bigger way. By 1842, Cadbury grown as a brand and already was selling more than 16 variants of chocolates. Currently, they are one of the most renowned confectionary brands in the world. Need of ERP system Cadbury was growing at a very fast rate and the existing systems in the organization were slowing them down. There were lot of inefficiencies in organizational procedures and it was affecting the supply chain of the organization. The existing system of the organization had become outdated and moreover, the rival organizations were making successful enterprise resource transitions. Thus, in order to maintain their sustainability in the market and regain their competitive advantage in the market Cadbury had to introduce enterprise resource system into their business model (Al-Ghofaili Al-Mashari, 2014). The organization wanted to reduce the overall cost of the processes and the SAP based enterprise resource management system would reduce the cost of sales, distribution, marketing and global systems. This had also helped in smoothening of the various organizational procedures by reducing the delays in the process. Thus, the organizational processes would be able to match up to the fast -paced growth of the organization. One of the key inefficiencies being identified in the order system for Cadbury is the involvement of more cost. The cost that they are incurring in their order system is more than that of their competitors. Thus, it is increasing the cost of their products. Another inefficiency being identified is the consumption of more time in the whole process. It is being identified that, the order process of Cadbury is consuming more time, which is causing delay in the inbound and outbound transportation. Type of ERP system Cadbury implemented the Sap based enterprise resource management system and this is the most widely used system in the world. ERP system are implemented on the basis of the size of the business and the supply chain in the organization. Cadbury was one of the first major companies to implement the ERP system in to the organization. R/3 is the suite that was implemented in to the organization process and procedure. This type of system is mainly used by the large-scale companies and can be customized in order to fulfil the needs o9f the organization. R/3 uses architecture, which is based on the server and client and can be executed on different types of platforms such as Windows, OS/400 and Unix (Holub Bruckner, 2016). The implementation of R/3 can be done by using a variety of database packages that may include SQL Server and Oracle. Cadbury introduced a new warehouse system, which can used for the better implementation of the processes of the organization. This structure was then imp lemented to the branch offices and the depots. Components of ERP Figure 1 (Source: Laudon Laudon, 2016) Enterprise resource management system is used for managing all the resources in the organization. The ERP management system can be used for the tracking all the processes and the procedures of the organization (Laudon Laudon, 2016). This software is cross-functional and is used for supporting all the business processes in the internal processes of the organization. However, the ERP processes are developed based on the needs of the organization and the components of ERP are as follows: Inventory Human resources Purchase Sales and marketing Customer relationship management Finance and accounting Supply chain management Production However, it was difficult for the organization to implement this procedure in all the processes of the organization. Thus, the initial process of implementation of the procedure started with only one of the components and it took time to implement the process in an effective way. The organization implemented the big bang approach and the implementation was based on the company. The organization had aligned with the external vendors so that they can manage the processes in an effective way (Nwankpa, 2015). Cadbury formed partnership with IBM for the management of the infrastructure and Siemens for the management of ERP partnership. The organization implemented big bang approach, which is based on functions in India and then it, took one year for the company to implement the whole procedure in all the different branches of the organization. Moreover, the whole system was driven by the top management of the organization and combined all the procedures in to a single phase. Component Description Enterprise resource management consist of all the important process and procedures of the organization. The enterprise resource processes are as follows: Human resource: The human resource management process is used for the efficient managame4nt of the workforce. The module will facilitate in the management of information of the employees and tracking of designations, performance reviews, time, attendance tracking and skill matrix (Fischer et al., 2017). The ERP system will also manage the payroll system, which will assist in management of the compensation of the workforce. Inventory: The stocks of the organization are maintained with the help of the ERP management system. The items are in the inventory are given a unique serial number which will assist in management of the inventory by keeping a track of all the items by detecting the current location. Sales: The process of sales includes enquiry analysis, sales queries, accepting sales orders, handling quotations, drafting sales invoices and dispatch of materials and tracking of orders. These processes are effective managed with the assistance from the enterprise resources management system (Usman, Coombs Neil, 2014). Finance and Accounting: The outflow and the inflow of cash are managed with the ERP system. The transaction related to accounts like balance sheet, profit and loss, income statement, budget, tax management and payment receipts are managed with the assistance of the Enterprise Resource management system (Nofal Yusof, 2016). The ERP system can easily manage this module and reduces the cost of operations of the organization. Purchase: The procurement of all the raw materials are managed in this module. The functionalities that are included in the module are linking of supplier and items, listing of suppliers and vendors, recording and receiving of quotations, quotation analysis, updating of stocks and reports (Nwankpa Roumani, 2014). This module is integrated with production and inventory module, which helps in providing update of the stocks. Production: Production planning, usage of raw materials and machine scheduling and tracking of daily production and reporting of actual production are the functionalities of production module. Customer relationship management: This department helps in boosting the sale of the organization providing the consumers with desired level of service and product. The detail information regarding the consumers are tracked with the customer relationship management module which will include calls, meetings, history, contract duration and purchase details (Al-Jabri Roztocki, 2015). Supply chain management: The management of the supply chain is important for increasing the efficiency of the organization. The various parties included in the supply chain procedure include stockiest, distributor, supplier, manufacturer and retailer (Acar et al., 2017). The ERP system can be easily used for the management of supply and demand. Implementation Plan Cadbury was very careful in implanting the ERP procedure and they took their time. The implementation started in Cadbury India in one of the modules. The process was completely monitored by the higher officials in the organization and when the implementation was a success, it took fewer amounts of times to implement the procedure in the other modules. Thus, after implementation of the procedure in one of the branches it was implemented in all the other branches from all over the world (Nour Mouakket, 2013). The organization implemented big bang in all the processes if the organization to completely transform the processes of the organization. In 1995, Cadbury had first implemented their ERP systems in their organization. The implementation process was being initiated with the use of the big bang approach. The implementation was being done in the phased manner rather than as a pilot project. This enables them to have enhanced the strength of the foundation of their ERP system. Accord ingly, they have source their requirements and used it in phases. They have partnered with Siemens for the implementation of the ERP system due to the reason that, Siemens is one of the leading software providers in the world along with having the experiences of managing the ERP systems of various big brands around the world. Moreover, Cadbury implemented their first ERP system in India and Siemens have their market presence in India as well. They have also partnered with IBM for the management partnership due to the reason that IBM is a leading brand in management consultation and it helped them to improve their management effectiveness. Future Development The organization has been able to maintain a stable management information system in the organization where the data is enter once a year. The data is updated once a year and the consolidated data can be viewed from all the departments of the organization so that the decision can be made in an effective way from all department of the processes. The organization is using vertical integration, which will help to evaluate and monitor all the processes of the business model in an effective way (Elbardan Kholeif, 2017). Thus, the organization will be able to make continuous improvements to the enterprise resources management system. Thus, the organization will able to maintain their competitive advantage in the market. Conclusion Thus, it can be concluded from the report that Cadbury was in need of an enterprise resource management system as their organizational processes were slower compared to the growth of the company. However, the implementation of the ERP system has helped the organization in making the changes to the processes. 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