ERP (enterprise resource planning) systems are necessary tools for fast-moving businesses and companies to gain a competitive edge. It integrates many business processes like HR, finance, accounting, supply chain, and distribution. However, it allows companies to streamline their operations, improve the decision-making process, and decrease the cost. Today, we’ll discuss the top successful ERP implementation examples; and steps involved in the ERP implementation process.
ERP Implementation Process
ERP implementation outlines the method of launching the ERP system into the company. The objective of ERP implementation is to integrate and combine various business processes into a single unified system to automate and streamline their operations. However, ERP implementation is a difficult process and it comprises the following steps;
- Recognizing business goals, needs, project scope and developing a plan
- Selecting the right ERP solution and negotiating the support and license terms with the vendor
- Implementing the ERP system to meet the needs of the company
- Transferring data from the old system to the new ERP system and combining it with the other system and database
- Testing the new ERP system to ensure that it satisfies the needs of the company
- Implementing the ERP system to all the users and departments
- Conducting maintenance and support regularly to make sure that it works effectively
Top Successful ERP Implementation Examples
Let’s discuss the top successful ERP implementation examples; they’re as follows;
Green Rabbit
Green Rabbit was facing the challenge of melting chocolate bars during its shipment and distribution in the summer. They developed a heat-sensitive supply chain system to deal with this problem, and soon other food companies requested their help. Green Rabbit rebranded their marketing strategy, a supply chain and logistics service providers that specialize in the speedy delivery of perishable goods.
However, Green Rabbit used to employ multiple databases and they couldn’t communicate with each other, which made the real-time data analysis highly difficult. The warehousing team needed the assistance of the IT professionals and they couldn’t do it on their own. The company implemented the new ERP system to deal with the problems;
- Shipping perishable goods across the country within a day to the company’s warehouses without any delays
- Delivering thousands of orders daily
- Generating error-free data to its ERP system
- Building the capacity to bear three times higher volume of orders
The implementation of the ERP system allowed the company to efficiently manage the complicated supply chain. It played a key role in the company’s growth and expansion of various business processes. However, it helped the finance team to manage the record to perform data analysis and make efficient decisions.
Fulton and Roark
Fulton and Roark is a men’s grooming product to serve the needs of the modern lifestyle. The North Carolina based company was employing the Sage live desktop accounting software and spreadsheet to manage its inventory and financial information. Their revenue and sales increased and the management realized the fact that their current system was not keeping up with the growing demand.
However, the company Fulton and Roark decided to implement the NetSuite ERP system to manage their centralized operations. The implementation of the complete system took approximately 3 weeks and the results were remarkable, they’re as follows;
- Revenue increased by 50% annually without hiring more staff
- Having a clear comprehension of the inventories and profit margins that amplified the growth of e-commerce business
- Stopped hiring external accounting professionals and it saved a lot of cost
LG Electronics
LG Electronics is a renowned consumer electronics South Korean multinational conglomerate. The company was facing the challenge of its consolidated HR data of the global report, which was difficult to read, compile, time consumer, and derive from multiple HR systems. The compilation and consolidation of the global business data was highly time-consuming.
However, LG Electronics decided to implement the centralized ERP system to simplify its HR processes which would improve the company’s data management capabilities. It took approximately 5 years to fully execute the centralized ERP software; it helped the company in the following ways;
- Higher transparency in the employee recruitment and evaluation process
- Making changes within the centralized HRM system
- Better document sharing and learning among various staff members with higher lead time and saving cost
The Hershey Company
Hershey’s is the world’s leading chocolate-manufacturing American multinational company. The company first launched the centralized ERP integrated solution in 1996, and the implementation timeline comprised approximately 48 months. During the busiest season of Halloween and Christmas, the company reduced the testing time to keep up with the increasing customer demand. It resulted in the form of unexpected errors negatively impacting the company’s capability to process orders, and the company lost 100 million orders.
Cadbury
Cadbury is a leading British confectionery items manufacturing company. The company was facing the challenge of keeping up with the manufacturing and distribution needs and demands. The brand decided to implement the SAP ERP system in its supply chain network to redesign the warehousing and distribution processes. However, the thorough implementation of the ERP solution required the company to have close collaboration with the vendor and regular updates. It helped the company Cadbury in the following;
- Offered a comprehensive overview of the company’s core business processes
- Efficient warehouse management processes
- Proactive decision-making helped the company avoid issues and streamline its processes
- Helped the company to achieve cost-efficiency
Conclusion: Top Successful ERP Implementation Examples
After an in-depth study of the top successful ERP implementation examples; we have realized that ERP is a necessary centralized integrated tool. If you are learning about the top ERP implementation examples; then you should keep in mind the abovementioned implementation steps and the examples of companies.
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