ERP SYSTEMS

Team

ERP Systems 2
Agenda

Introduction

Literature review

Models

Applications

Conclusion

ERP Systems 3
INTRODUCTION
What is ERP ?

• Enterprise resource planning (ERP) is

a type of sof tware system that enables
organiza tions automate and manage
core business processe s for optimal
per formance.

• ERP sof tware coordinate s the flow of

data between a company’s business
processe s, providing a single source
of truth and streamlining operations
across the enterprise .

• It’s capable of linking a company’s

financials, supply chain, operations,
commerce , repor ting, manufacturing,
and human resources activitie s on
one platform.

ERP Systems 5
 • E n t e r p ris e Re s o u r c e Pl a n n ing h a s t w o i m p o r t an t
c h a ra c t e ris t ic s :

D a t a i n t e g ra ti o n .

S u p p o r t fo r b e s t p ra c t i c e p r o c e s se s.

• I t h a s b e e n t h e r e f o r m o r e t h a n f o r t y ye a r s .

• E R P s y s t e m s h ave b e e n i m p le men te d b y m a ny
o r g a n iz a tion s ,

i n i tially m ainly b y l a r g e m u l tin at ion al c o m p a n ies , l a t e r

a l s o b y g ove r n men ta l o r g a n iz a tion s , a n d t o d ay i n s m a l l
a n d m e d i um -s ize d b u sin es s e s a s w e l l.

ERP Systems 6
 Finance: The finance and accounting module is the backbone of most ERP systems. In addition to
managing the general ledger and automating key financial tasks, it helps businesses track

ERP Modules accounts payable (AP) and receivable (AR), close the books efficiently, generate financial reports,
comply with revenue recognition standards, mitigate financial risk, and more.

Human resources management: Most ERP systems include an HR module that provides core
capabilities such as time and attendance and payroll. Add-ons, or even entire human capital
management (HCM) suites, can connect to the ERP and deliver more robust HR functionality –
everything from workforce analytics to employee experience management.

Sourcing and procurement: The sourcing and procurement module helps businesses procure
the materials and services they need to manufacture their goods – or the items they want to
resell. The module centralizes and automates purchasing, including requests for quotes, contract
creation, and approvals. It can minimize underbuying and overbuying, improve supplier
negotiations with AI-powered analytics, and even seamlessly connect with buyer networks.

Sales: The sales module keeps track of communications with prospects and customers – and
helps reps use data-driven insights to increase sales and target leads with the right promotions
and upsell opportunities. It includes functionality for the order-to-cash process, including order
management, contracts, billing, sales performance management, and sales force support.

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 Manufacturing: The manufacturing module is a key planning and execution component of ERP
software. It helps companies simplify complex manufacturing processes and ensure production is

ERP Modules in line with demand. This module typically includes functionality for material requirements
planning (MRP), production scheduling, manufacturing execution, quality management, and more.

Logistics and supply chain management: Another key component of ERP systems, the supply
chain module tracks the movement of goods and supplies throughout an organization’s supply
chain. The module provides tools for real-time inventory management, warehousing operations,
transportation, and logistics – and can help increase supply chain visibility and resilience.

Service: In an ERP, the service module helps companies deliver the reliable, personalized service
customers have come to expect. The module can include tools for in-house repairs, spare parts,
field service management, and service-based revenue streams. It also provides analytics to help
service reps and technicians rapidly solve customer issues and improve loyalty.

Enterprise asset management: Robust ERP systems can include an EAM module – which helps
asset-intensive businesses minimize downtime and keep their machines and equipment running
at peak efficiency. This module includes functionality for predictive maintenance, scheduling, asset
operations and planning, environment, health and safety (EHS), and more.

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Benefits of ERP
1. Higher productivity: Streamline and
automate your core business processes to
help everyone in your organization do more
with fewer resources.
2. Deeper insights: Eliminate information silos,
gain a single source of truth, and get fast
answers to mission-critical business
questions.
3 . A c c e l e r a t e d r e p o r t i n g : Fa s t - t r a c k b u s i n e s s
and financial reporting and easily share
results. Act on insights and improve
performance in real time.
4. Lower risk: Maximize business visibility and
control, ensure compliance with regulatory
requirements, and predict and prevent risk.
5 . S i m p l e r I T: B y u s i n g i n t e g r a t e d E R P
applications that share a database, you can
simplify IT and give everyone an easier way
to work.
6. Improved agility: With efficient operations
and ready access to real-time data, you can
quickly identify and react to new
opportunities.

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Types of ERP deployment

• Cloud ERP • O n -P rem i se E R P • Hybrid ERP

W i t h c l o u d E R P, t h e s o f t wa r e i s h o s t e d Th i s i s t h e t ra d i tion al m o d e l Fo r c o m p a n ie s t h a t wa n t a
i n t h e c l o u d a n d d e l i ve re d ov e r t h e f o r d e p l oyin g s o f twar e w h e r e m i xt u r e o f t o m e e t
I n t e r ne t a s a s e r v i c e t h a t y o u s u b s c r i b e
yo u c o n t r o l e ve r y th ing . T h e t h e i r b u s i n e s s r e q u i re men ts ,
E R P s o f t wa r e is t y p ic ally
t o. T h e s o f t wa r e p r ov i d e r g e n e ra l ly t a ke s t h e r e i s t h e hy b r i d c l o u d
i n s t a lled i n yo u r d a t a c e n t e r a t
c a r e o f r e g u l a r m a i nte na n ce , u p d a te s, a n d ERP model. This is where some
t h e l o c a tio ns o f yo u r c h o i c e .
s e c u r i ty o n y o u r b e h a l f. To d a y, c l o u d E R P o f yo u r E R P a p p l ic a tion s a n d
Th e i n s t a lla tion a n d
i s t h e m o s t p o p u l a r d e p l oy m e nt m e t ho d data will be in the cloud and
m a i n te na nc e o f t h e h a r d wa r e
f o r m a ny r e a s o n s – i n c l ud i n g l o w e r u p f r o n t a n d s o f t wa r e i s yo u r s t a f f ’s s o m e o n p r e m is e . S o m e t ime s
c o s t s , g r e a t e r s c a l a b i l i ty, a g i l ity a n d r e s p o n s ib ility. t h i s i s r e f e r r ed t o a s t w o - t i er
e a s i e r i n t e g ra ti o n . E R P.

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Literature review

ERP Systems
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PREFACE

History and Evolution of Enterprise

Resource Planning
• Tra c t o r a n d c o n s t r u c t i o n m a c h i n e r y
m a n u f a c t u r e r J. I . C a s e w o r k e d w i t h
IBM to develop what is believed to be
the first MRP system in the early 1960s

• MRP systems preceded ERP systems.

E a r l y M R P, o r m a t e r i a l r e s o u r c e
planning, systems offered basic
inventor y control to help manage
procurement and deliver y of goods.

• ERP systems first appeared in the ’90s

and pulled in information from other
parts of the business, like accounting,
sales and HR

ERP Systems
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How Do ERP Systems Work?

Presentation Title 13
 A method for functional fit analysis
The functional fit analysis can be described using a theory designed by
Talbert [2002].
She says that every ERP supplier has numerous assumptions about the
way in which a business process should work.
Suppliers use these assumptions when designing and consecutively
programming best practices into
their ERP systems.
A Guide to ERP: Benefits, Implementation and Trends 1st edition

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ERP Project and Time

•Small and medium-sized businesses typically implement within 3-9 months.

•Large businesses typically take 6-18 months.
•Multinational businesses can have ERP programs that last for several years.
ERP ResearchSep 28, 2022 15
 ERP Price Estimation

While ERP pricing varies, a general rule is for every

$1M in revenue, expect to pay $1K/year.

For a company with $100M in revenue, costs average

~$100K/year over 5 – 7 years.

POSTED IN:ERP Technologies

UPDATED ON:Feb 25, 2023

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Parties in the ERP
marketplace

In 2002 the
German company
“ SAP” realised a
7.7 billion US$
revenue; in 2007
this
revenue was
almost doubled,
and in 2012 almost
tripled.

Figure 3.1
Annual ERP
Revenues per
Supplier (billion
US$). Source:
Annual reports

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Parties in the ERP marketplace

Top five ERP system

providers by market share:

•Microsoft
•SAP
•Deltek
•Sage
•Oracle

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MODELS
 PRODUCTS OF SAP AG

SAP offers at the moment three main products. Big companies will use the SAP Business suite.
SAP ERP, SAP CRM, SAP PLM, SAP SRM and SAP SCM are parts of my SAP Business suite.

ERP Models SAP ERP is the successor of SAP R/3 and is an important step forwards, because this is the first
service-oriented business application based on SAP Net Weaver.

Solutions for Small Businesses and Midsize Companies:

T H E C O M PA N Y: S A P A G Midsized companies will be using the SAP All-in-One or Business ByDesign.

SAP AG is market leader in the area of inter- Every SAP All-in-One application consist of a predefined and industry specific version of
SAP ERP, which enables a quick and easy management of financials, human resources,
enterprise solutions whereby the internal
supply chain, customer relationship management and other important business processes.
processes and processes between companies
and their vendors, customers and partners For smaller companies, the SAP Business One application has been developed.
integrate.

SAP product portfolio

Hands-on with SAP ERP and IDES: Carrying out a complete ERP process -2nd edition

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 ERP Models

SAP ERP:
• Business analytics
• SAP ERP Financials
• SAP Human Capital Management
• SAP ERP Operations:
-- Procurement and Logistics Execution
-- Product Development and Manufacturing
• SAP ERP Corporate Services:
-- Sales and Service
-- Corporate Services

Solution Map

Hands-on with SAP ERP and IDES: Carrying out a complete ERP process -2nd edition

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Financials:

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SAP Business Suite

The SAP Business Suite consists of the

following applications:

• SAP ERP

• SAP Customer Relationship Management

(CRM)

• SAP Product Lifecycle Management (PLM)

• SAP Supplier Relationship Management

(SRM)

• SAP Supply Chain Management (SCM)

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SAP S/4HANA Cloud
W i t h S A P S /4 H AN A C l o u d s o f t wa re

(High-Per formance Analytic Appliance), SAP

i s p r ov i d i ng a n e w g e n e ra ti o n o f
b u s i n e s s a p p l i c a ti o ns – s i m p l e e n t e rp ri s e
s o f t wa r e f o r b i g d a t a a n d a g i l i ty.

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Keyloop
Keyloop DMS

Dealer Management System

(DMS) is designed for the
unique demands of today ’s
automotive business.

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 Aftersales Management
Service
• Labour Price Management
• Creating & maintaining Invoice Messages
• Service Management –Global RTS codes
• Manage & maintain Menu Pricing structures
• Utilizing the Invoice Verification Tool
Keyloop DMS
• Workshop Control –Key stages of Technician clocking
• Suites of tools are designed to layer onto • Workshop Loading set up & management –Resource Availability, Holiday Planners,
the Keyloop DMS, to help make the Shifts, Workshop Calendar, Adjusted Availability, Resources
dealership run even more smoothly and • Creating & maintaining Technician Ability –Skills and Efficiencies
give to customer an exceptional car buying • Standard Point of Sale Reporting
and ownership experience. Parts
• Managing & maintaining Automatic Parts Discounts –Discount Maps & Tables
• Creating and maintaining Invoice Messages
• From that first enquiry through to service
• Invoice Verification – Investigating and resolving variances
and repairs, accounting to inventory
• ICT-Inter-company Transfers
management, solutions boost performance,
• Processing & reviewing Point of Sale Reporting - Working in Progress, Detailed
improve efficiency and, importantly, yield
Parts, Parts Status & Aftersales Statistics
great results.
• Processing & reviewing Stock Management Reporting –Parts Valuations, Bin
Locations, Sales Back Order List & Backorder Clearance
• Processing a Contract Pricing

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 Sales Management
• Search for and load the correct customer record & create a new customer record
• Update the Purchase Requirements tab after qualifying the customer
• Search for a Factory, New & Used vehicles & add dealer fitted options
• Create a diary follow up for an enquiry
• Add a trade in vehicle to an enquiry
• Use the Demo booking facility for a new and used vehicles
Contact Centre Management • Present the Sales Offer
• Searching database records • Correctly review the enquiry, take a deposit and print the order
• Record creation & maintenance • Correctly produce a supplementary order
• Process Manual & Automatic calls • Manage handover schedule & monitor vehicle preparation
• Maintain & manage Aftersales Bookings • Manage diary & complete a handover booking
• Managing Call List Queues Accounting Management
• Utilizing Call Notes • Cost Centre and Expense Code Maintenance
• Reviewing Workshop Availability • Use the various Nominal Ledger Display functionalities
• Processing CSI Survey Follow ups & Vehicle • Learn the several functionalities on NL Journal Entries
Prospecting Calls • Analyze the VAT information
• Review & upsell Deferred Work • Create and post an accrual
• Sending correspondence • Create an asset and process its depreciation
• Missed Opportunities • Run the most relevant analysis reports
• Reporting via the Call Dashboard • Use the Period End Options processes in Keyloop Drive
• Overview of the Key Balance Sheet accounts
• Daily/Weekly/Monthly Checklists

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APPLICATIONS
ERP Applications

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Conclusion

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 The benefits of a properly selected and
implemented ERP system can be significant.

An average, 25 to 30% reduction on inventory costs;

25% reduction on raw material costs.

Lead-time for customers, production time, and

production costs can be reduced.

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Three ERP implementation
challenges for businesses

Choosing the right ERP solution.

Af fording the cost of an ERP system .

Integrating new ERP sof tware with existing

sof tware.

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THANK YOU

ERP Systems 39