" PROJECTMANAGEMENT OFERP SYSTEM Table of ContentsIntroduction ..................................................................................................................................... 2SCM systems in Hercules Business Organization .......................................................................... 3Requirement of ERP system is Hercules Business Organization ................................................... 5Advantages of ERP facility in the business procedure of Hercules ................................................ 6Examination of ERP Mechanism .................................................................................................... 8Effect of ERP method in the Organizational decision making process .......................................... 9Industrial dimension in SCM ........................................................................................................ 10Methods for implanting the ERP in the organization ................................................................... 10Selection Stage .......................................................................................................................... 12Definition Stage......................................................................................................................... 14Implementation Stage ................................................................................................................ 14Operation Stage ......................................................................................................................... 15Risks in the ERP method .............................................................................................................. 16Procedure of reducing risks .......................................................................................................... 17Discussion ..................................................................................................................................... 17References ...................................................................................... Error! Bookmark not defined. 1 | P a g e IntroductionERP system is referred to as the Enterprise Resource Planning which can be used for severalkinds of issues in supply chain management in an organization. This kind of system has beenrecognized as a potent tool for managing the operations of supply chain for any organization.This report mainly focuses on the several kinds of issues related to supply chain which is facedby an organization like Hercules Business organization.Hercules Business Organization is oneof the most efficient air compressor maker and they also supplies the products in differentcountries (Pamungkas, 2009). Quality products are other key factors for this organization but, inthe present day the organization is facing several kinds of problems regarding the poor qualityproducts as well as the supply chain management services. The products which are made by thisorganization are very costly and high demanding. In the present day, several kinds of challengesare facing related to the supply chain management which hampers the business management aswell as the products. Huge volume of products and many employees and several kinds offunctions are not manageable by the management administration of Hercules BusinessOrganization, so proper way of functioning is necessary which helps to work in an efficientmanner. The employees of this organization are unable to store any information regarding theseveral kinds of turnover and another business procedure.Staffs also are unable to record anykinds of data regarding the inventory of the business organization which greatly impacts on thesupply chain management of the organization. The authority of the organization is unable totrack any data records regarding the management procedures so, improper management ofsupply chain can effect on business organization as well as the products. ERP system is suchkind of system which helps to record the several kinds of data and information of the employees,goods as well as the overall supply chain management of the organization. By using ERP system,2 | P a g e the administrator can measure what types of element ad how many products are required, andseveral kind of information about the turnover of the business procedure. With the help of ERPsystem, customers can directly buy the products from the organization which can minimize thelate delivery problems of the products. SCM systems in Hercules Business OrganizationSupply chain management system of any organization consists of several kinds of stakeholdersof the company such as, retailers of the organization, suppliers of the organization, manufacturerand distributor of the organization which helps to carried out the system in an efficientmanner(Pamungkas, 2009). The management procedure can be classified in to three types whichhelp to coordination and co-operation of the network system such as, material flow, financialflow and the information flow. The several kinds of SCM system flows are described below; Material flow- Material flow is such kind of flow of the raw materials which directs from the different suppliersto the distributors of the organization and vice versa. The flow from different distributors tosuppliers includes several kinds of movement of the products for different consumers. Financial flow- Financial flow can be referred to as such kind of flow which is interrelated to the paymentsystem of the goods which are ordered by several kinds of customers and suppliers. Information flow-3 | P a g e "