The Contribution of Enterprize Systems Essay Example | Topics and Well Written Essays - 500 words

The Contribution of Enterprize Systems - Essay Example Effective implementation and use of enterprise systems enables an organisation to react instantaneously to orders from customers. These could be orders for products or information. Because ES avails data on order, manufacturing and delivery, it enables a company to produce only what customers have ordered and also to procure the correct amount of raw materials or components to fill actual orders. It also enables the company to stage production, reduce the time that finished products or components are in inventory. In terms of management, ES enables the senior management of an organisation to determine which organisational products are least or most profitable. At any one time, ES enables them to find out with much ease how a particular unit of the organization is performing. ES also helps the organisation on how to react to delayed shipment from suppliers. ES facilitates operational excellence in supply chain management (SCM). This applies to companies that produces a wide range of products and services hence it could have hundreds of suppliers (Laudon and Laudon, 2010). In a SC, ES enables the company to coordinate activities between the many manufacturing plants and suppliers, retail outlets, distribution centres and firms involved on in way or another in the production of their products. It leads to the provision of untimely and inaccurate information and this prevents inefficiencies in the SC, excessive inventory of finished goods and underutilised plant capacities. It also reduces the bullwhip effect. Enterprise applications involve pieces of software that are complex and expensive to purchase and implement. It might therefore take a company many years to complete the implementation of large-scale ES applications. The cost incurred for the implementation of ES in a large firm might amount to 4-5 times the initial software purchase price. These include software, consulting fees,