In this TMA we will discus many ideas and facts about Whirlpool Europe and about the ERP systems;
What is the ERP system?
What are the benefits of the ERP?
The reasons to applying this new system.
-The impacts of applying the ERP system on the competition.
The benefits of the ERP for the Whirlpool case study.
What are the costs of implementation?
Factors about saving costs and benefits.
The ERP system.
First of all we will talk about the ERP system, many companies moved to use the cross- functional clientserver network applications, which involved installing enterprise resource planning ( the ERP) this new software focuses on supporting the business processes involved in the operations of a business instead of focusing on the information processing requirements of business functions.
Whirlpool had many benefits from applying this new system. I will discus in this TMA how they applying that system, and why they choose to deal with it.
Reasons to applying this new system
The company tries to reduce the inventory, which were 51 days, to 12 days. These 51 days were distributed approximately like this:
days for reserved and allocated units.
days were spending in transit
and 3 days in obsolete.
So, the company wants to apply the ERP system to make their supply chain more efficient in short time. So they start reducing the time that they were use it in transit, in allocated, and in reserved and in obsolete units.
Another reason to use the ERP system is that the information could not be easily shared across functions or organizations, and usually all their works were often inconsistent and irreconcilable.
The benefits of the ERP
The management of the company knows that there are lots of benefits will gains if they use the ERP, one of this benefits is that the whirlpool can serve its consumers market for stand-alone appliance better. They can contracts market for built-in appliances and at the same time, reduce its inventory by 12 days of sales. Also the company can increases the efficiency of the distribution process. In addition, if they installing the ERP system they will forecast...