Posted at 11.04.2018
Reebok introduces products in to the market on seasonal and total annual basis. Their product infusion into market reaches least five to seven times in given calendar year. On an average it takes 1. 5 years to make a new product from scratch, nevertheless the exemption being "quick to market" products which takes more only three months to be produced. The network and rapport with the suppliers and vendors is enormous to accomplish faster times to gain industry responses, to distribute new goods faster to the racks.
Challenges which ERP execution addressed
The common obstacles which Reebok acquired owing to the size of its huge customer foundation and disbursed manufacturing facilities. World sales network and varied preferences. To fulfill this, Reebok sought a systems solution which can actually lower the product development time, condense stats from all quarters of the world of both B2B and B2C information at a click of a button away. Was ERP really able to help them to handle their concern is what's analyzed in the next slides.
The information that the business possessed was all scattered and it was as small islands, hence retrieving them was difficult. The transparency of information was there. Outdated information was getting stacked and technology at manufacturing plant was outdated and off shoreline of the supervision to monitor. Demand over process was lost. All of this lead to high stress degrees of employees. Image 1 is pictorial representation of days gone by environment
Huge investment funds into automation, lead to a big change in circumstance. Through internet manufacturer activities were checked. Computerization means one data platform with high transparency and latest information at simply a click away. There is absolutely no manipulation of data. This also offers resulted in relatively lower stress levels.
Key traits of current environment
Centralized information storage area has enabled publication keeping of entire full-fledged product information regardless of the area they are really manufactured and underlying technology. This advanced feature of digital environment has helped in command word and control of the complete process and create digitally made images of completed goods would look like. Connection and tagging of products with particular categories is made easy, this paves way for future enlargement of product portfolio with much fuss and fretting about data reduction or style miss-match. Internet, common system ERP makes 24/7 contact with all divisions (from suppliers to suppliers) of the resource chain. Industry sets off are mentioned automatically.
Results of ERP implementation in product development
ERP execution has helped the business to manage something line of 15complete seasons seamlessly. 45000 + files are stored electronically in the information safe-keeping system. Milestone capping has increased from 2 boots and 3 garments to 8 and 9 respectively.
E (Electronic) - HUB Supplier: Role of ERP
The present information of logistics:
5, 000 + purchase purchases per month
40 Main Shoes or boots Factories in 8 Countries
600 Attire Factories in 29 Countries
450 Raw Materials Suppliers
27 Freight Forwarders
Transportation methods include Ship, Pick up truck, Rail and Air
34 Custom Brokers
This section of the paper talks about the supplier aspect of the supply chain, the role of internet technology in extending the computerization from basic ERP to PLM (Product lifecycle Management) systems.
These systems have made life simple, better functional efficiency by automatically accept purchase orders located and distribute those to respected departments and production facilities throughout the world. It also tracks information of shipping details, track the work in process (WIP) and finally publish new labels and images.
Old supply chain model
Image 3 above demonstrates how the earlier supply chain system was highly unorganized and cluttered. Such a formation would result in damage, manipulation of information, business lead to fuss at every stage of the process and production. The methods of communication too were very primitive, slow, unreliable source such as Fax, Mail, Couriers, site appointments, EDI, proprietary record transfers.
New Source Chain
Image 4 is clear representation of highly organised with a e-hub which serves as solitary point of contact for all the divisions of source string. This agile system ensures instant data transmission without reduction or robbery in data. Retrieval of information is manufactured a breeze. Communication function is high tech Business-to-Business data posting /Vendor Natural E-Hub/ Hosted Environment (ASP model), Workflow, note alerts, again office integration with reporting features.
Result of modified supply chain
Revised supply string has help achieve increased operational efficiency through digital transmission of order information straight into the stock systems with added reliability, lower administration cost. The identical system is put in place for newer and future creation facilities too. Common program for process guidance and software as standard across the complete supply string including small suppliers has benefited to be able tracking and back again order retrieval prompt. Purchase order mandate is currently getting logged automatically which helps finance division of the business to get file year end taxes with little if any fuss. Purchase order can be reprinted at any time, while pre- delivered reports can be managed with the tool to over-ride purchase order activity.
Looking at ERP execution from the bigger level management perspective, obtain the control of executives of the organization, get the mixed up in process to them get to know the need/ use of the technology in the interest of organizational development. Try to balance the top-down targets allowing leverage for increasing economies of range and job satisfaction across al verticals of the hierarchy.
Implementation process must be progressive and progressive. Rapid rush on improvement in technology and/or major development (big-bang implementations) should be averted in order wthhold the culture within the business, to boost employee morale. The perfect development/ implementation stage would be once in every 3 to 6 months.
Finance department of the all organizations must take into miscellaneous expenditures, are the process down-time, worker training costs within the budget as this is a substantial quantum above the expected cost of ERP (both software and hardware necessary).
Organizations working on seasonal business must ensure that the project lead in and lead out should not fall during the peak of the season as it might bring about business getting affected. Adhere in strong task methodology and target attention on issues and off plan items. When possible, defer most sophisticated technology issues until team has mastered the technology and gained assurance.
Selection of the vendor (service/ support company of ERP) has to be done after thorough market analysis. ERP package which allow future enlargement must only be decided on. Organizations must keep off from software that is not the best fit for the organization.