Submit Electric Light Up with a New ERP System

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

There are several business processes that were used by the Summit Electric Supply company. The most important ones is Enterprise Resources Planning (ERP) which is system from SAP software. The scalability and inventory visibility are the two factors which is most important to Summit Electric Supply keep updated the level of stock and inventory left in their store for a certain time. Second business process used by Summit Electric Supply is Net Weaver Business Warehouse. This SAP Net Weaver offers users many advantages for all aspects of business process management and support the entire life cycle of business process from planning, implementation, monitoring and optimization. This application helps Summit Electric Supply in continually create and manage agreements to maximum charge back recovery and communicate with vendors electronically.

What problems did summit have with its old systems? What was the business impact of those problems?

The problem with this type of system is that integration and response time suffer greatly. It is because batch processing the data from the two systems into an integrated database was a manual process which drained efficiency of process. The system also may be handling in limited number range for documents which are created a problem of having recycle number from time to time. The system more complicated system because it would separate different categories. Moreover, business will impact problems such as not able to keep up with the business, handle a few range of numbers and location and will caused a delay because not enough time handle it.

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

Enterprise Resources Planning (ERP) The new system requirement needed to provide the ability to view and manage sales and distribution, material management, scability, inventory management and financial reporting system.  For example, it’s running smaller and frequent inventory update throughout the day. New system provided accurate information of shipping order which Summit able to ship immediately. Moreover, are Business Intelligence whereby it makes a better manage its finance and ordering system. Summit implemented the SAP’s and NetWeaver data warehouse and business intelligence to ensure Summit able to analyse profit of each person, manufacturer, customer and branch. It is because, Summit was able to improve its Return On Investment (ROI). Other than that, Summit also changing on how inventory is manged at job sites. Summit created a “parents-child” warehouse relationship in ERP system to secure the material in inventory as well as premise. .

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

Firstly, customer can rely on the company for their needs and products because the company now more efficient. The company wants that customers to feel that they can provide that they have produced products the customer want and send in time period. Secondly, is to accommodate, large customers with long term job sites. Summit Electric Supply set up to temporary warehouse on site to supply these customers with its electrical products. Create “parent-child” warehouse relationship to be able to work with customers. It’s also helps to prevents anybody from selling the consigned inventory into the warehouse.

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

Old Process:

In handling charger backs had flaws in it where the company was losing money and sometime barely make any profit. Processing charge back has to compare the sale to contract. Summit Electric Supply need to identify the charge back and which manufacturer with enough documentation of the contract or a lot of manual work. Summit Electric Supply need to go through the customer’s invoice with detailed and put the charge back in Microsoft Excel.

New Process:

In handling charge backs more efficient, it automatically review Summit Electric Supply’s billing activity for the day. All charge backs agreements loaded in the SAP system by the end of every day. There is a match in the system and they are able to claim. These new process able to create a separate charge backs document outside the customer invoice and able tp process more quickly with review in the same day.