This ERP case study on why and how Peet's chose its ERP system and Essay

This ERP case study on why and how Peet's chose its ERP system and executed the implementation in less than two years begins her - Essay Example After a careful analysis, it has been concluded that implementing a new ERP system is an effective strategy that would be beneficial for the company in various ways, ensuring that the loopholes are eliminated right from the root from where they surfaced. The case study report would reason the adopting and implementing the second option alongside highlighting the advantages of purchasing and implementing new ERP system. In addition to that, the challenges that a company would face while implementing such a system will also be discussed. Finally, an overall conclusion and recommendation will be provided suggesting the ways to tackle such challenges and maintaining the efficiency of the business operations carried out within the organization. Table of Contents Introduction 4 Discussion 4 Advantages of implementing the ERP system 6 Challenges that might occur because of implementing the ERP system 7 Reference List 9 Introduction The report will involve a thorough analysis of the case stu dy in order to determine an optimum choice that can be adopted as a recommended course action. The case studied involves the issues that were recently faced by Peet’s Coffee and Tea. The case study highlighted the inability of the older system or resource management, implemented by the organization, to keep up with the demands placed on them. The problems that surfaced from such a system was not only limited to improper inventory management, but also went to the extent of an improper order management and procurements and other financial activities. Thus, these issues that surfaced called for the necessity to send out a request for proposal (RFP). It was a critical time within the company’s history that necessitated coming up with an optimal course of action that would either focus on modifying the existing system that prevailed within the organization or would establish a new Enterprise resource planning systems that can be implemented efficiently. Thus, the following sections would involve the discussion regarding the alternative options available at the company’s disposal, including the advantages and challenges of adopting such a course of action. Therefore, appropriate reasons will be set forth for supporting the rationale behind implementing the recommended strategy. Discussion The fact that the existing system prevailing within the organization posed numerous problems in the operational activity of the business that resulted in the system’s inability to meet the sales demand, explains the reason why modification of the existing system would not be an efficient and effective strategy. Thus, the alternative option at the company’s disposal is to implement a new Enterprise Resource Planning system that would help the company recover from the existing level of instability. The new system will enable the company to manage all the integral and external business process effectively and independently. This highlights the necess ity for bringing about a complete change in the system as modification of the existing system, would not be a viable option that can eliminate all the loopholes present in the company’s resource management framework. An outright change in the system by purchasing and implementing a new Enterprise Resource planning mechanism will enable the company to meet the rising demand for sales in an appropriate manner (Cassidy, 1996). It would help to ensure that total