Arise Ltd. is manufacturing several types of computer components and is having its branches throughout the globe. The company wants to centralise and consolidate the information flowing in from its branches in a uniform

CS Professional · Information Technology and Systems Audit · PYQS · December 2015
Arise Ltd. is manufacturing several types of computer components and is having its branches throughout the globe. The company wants to centralise and consolidate the information flowing in from its branches in a uniform manner across various levels of the organisation. Each factory and branch is using different software and varied platforms which do not communicate with each other. Also, there is no retention of electronic records in a common server. This results in large duplication of data. So, the company has decided to implement an ERP system to take care of all these issues. In light of the above, answer the following: List out the problems that Arise Ltd. is facing at present. Also mention the objectives of implementing ERP system by the company.

Answer & Explanation:

The problems faced by Arise Ltd. at present include: Lack of interaction and coordination among different units across the globe and along the supply chain High operational costs due to lack of coordination among various units and departments of the organization Redundancy of data Lack of data integrity High inventory cost due to lack of real time updating of inventory Difficulty in reporting Reduced profits due to higher cost per unit. Objectives of Implementing ERP system: Provide support for all variations of best business practices. Enable implementation of these practices with a view towards enhancing productivity. Empower the customer to modify the implemented business processes to suit the needs. Helps in transforming the enterprise functions to be agile, cost-effective and focused on supporting the business objectives. Facilitate the organization in making prompt and effective management decisions.

Topics: Enterprise Resource Planning (ERP)

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