Case 12: Submit Electric Light Up with a New ERP system

Q1: Which business processes are the most important at Summit Electric Supply? Why?

There are several numbers of business processes that were used by the Summit Electric Supply, which the most important ones are ERP (Enterprise Resource Planning) system software from SAP. This is because scalability and inventory visibility were the top requirements needed by Summit’s company which from this system they will keep updated the level of stock and inventory left in the store from time to time. This system must work and align together with the SAP software because it’s functionality in sales and distribution, materials management, and financials, and its knowledge of the distribution benefited the company to increase their distribution capacity.

“The Batch Management Process”, in Summit wires and cable are the most important and most popular product.

 It buys these product in reels of length 5000 feet and then cuts them into various lengths and sells to the customers which make it difficult to maintain the inventory and difficult for them to determine how much of this type of inventory has been sold and when it is time to replenish. The batch management process eliminates the problem by maintaining the inventory of such product.

SAP’s NetWeaver BW which function for Business Intelligence by reporting and analyzing the current and forecast for their upcoming sales. This was also helped the company to evaluate the profitability of its sales channels using the what-if approach.

Q2: What problems did Summit have with its old systems?

a) Delay with their supplies.

b) The system was a complicated system because it would separate different categories.

What was the business impact of those problems?

a) Not able to keep up with the business.

b) Handle a few range of numbers and location.

c) Caused delays and time consuming task that was not needed to take as much time as it did.

Q3: How did Summit’s ERP System improve operational efficiency and decision making? Give several examples.

ERP System improved Summit’s Operational Efficiency and Decision Making:

1)Faster distribution

2)Simplify the works/tasks

3)Time efficiency

4)Able to view stocks more often

5)Able to evaluate profitability

6)More easy more simple

Q4: Describe two ways in which Summit’s customers benefit  from the new ERP system.

They can rely on the company for their needs and products which will give them customization services for customers and know when to restock the inventory. The construction of temporary on-site Summit’s warehouse will save time for both sides to build Parent-child warehouse relationship.

Q5: Diagram Summit’s old and new process for handling chargebacks.