,H1. What is ERP? (p.1-35)
= Enterprise resource planning
→ how is the company going to plan the use of the different resources (= raw materials, machinery,…)
= Erp is a software for how to plan the different resources
1 Department structure
• These are the main departments who add VALUE
• Other departments are also important but sales and distribution, materials management &
production planning are the most important
STEP 1 • It’s all start’s with this department = “What do you want?”
• A front office process = the costumer is in front of the company
back office
• It’s not yet a contract → pre sales !!!
STEP 2 • Parties agree
• Sales order
STEP 1 • Selection (talking to the customer) transaction process (if we have an
STEP 2 agreement)
• Only use transaction when we have an sales order
2
, STEP 3 • Check the stock?
• 2 options:
o Available*
o Not available*
Available*
• Short costumer order lead-time = time between costumers order and receive
o How faster how better
• Pick and pack & Post goods issue
STEP 4 Send invoice & Receive payment
Why is this the best-case scenario? A question
WHY? We talked to the customer, we come to an agreement, we check the availability, we have
a bike available, we have a bike available, we pick & pack, and send an invoice
= customer order lead time
- This is the most important objective when installing an ERP system
- It is the time between the customer ordering the product, and actually receiving
3
, If 3 different parties will talk to each other →
we want to avoid miscommunication →
That’s why we are going to need an ERP-
system
Control/ check points:
3-WAY MATCH You should verify whether the documentation process matches to the physical
(A-question) process, matches to the financial process
→ in other words: the sales order should match the post goods issue, should
match the invoice
= 3 sub processes
• First check = Documentation (when an sales order comes in)
• Second check = Physical (Post goods issues)
• Third check = Financial (invoice & receive payment)
!! The 3 checks are in contact with each other:
Risk!
- If one of the stars do not match, the risk is that the customer do not
want pay
4
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