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GROUP MEMBERS
1. Arni B. Hj. Morshidi P14D461P
2. Anisah Bt Ismail P14D389P
3. Syarifah Rohaya Bt Wan Idris P14D397P
4. Da...
Top wholesale distributors
of industrial electrical
equipment and supplies
3 divisions:
Global export – Houston
Marine – N...
• A legacy information system
not keep up with the business
• Done manually
• Only handle a fixed number of locations
and ...
• Summit needed a system that
could handle a very large number
of SKUs
• Changed to new system ERP provided by
SAP
•That w...
• Which business processes are the most
important at Summit Electric Supply?
Why?
Question 1
• What problems did Summit ha...
• Describe two ways in
which Summit’s
customers benefit from
the new ERP system.
Question 4
• Diagram Summit’s
old and new...
Question 1
• Which business processes are the most
important at Summit Electric Supply?
Why?
SUPPLY CHANGE MANAGEMENT (SCM...
Question 1
• Which business processes are the most
important at Summit Electric Supply?
Why?
ERP System
• A packaged
busin...
Question 2
• What problems did Summit have with
its old systems? What was the business
impact of those problems?
Separate ...
Question 2
• What problems did Summit have with
its old systems? What was the business
impact of those problems?
The Impac...
Question 3
• How did Summit’s ERP system improve
operational efficiency and decision
making? Give several examples.
 ERP ...
Question 3
• How did Summit’s ERP system improve
operational efficiency and decision
making? Give several examples.
• It’s...
Question 3
• How did Summit’s ERP system improve
operational efficiency and decision
making? Give several examples.
• To s...
Question 3
• How did Summit’s ERP system improve
operational efficiency and decision
making? Give several examples.
• To m...
Question 4
• Describe two ways in which Summit’s
customers benefit from the new ERP
system.
Customer can rely on the compa...
Question 5 • Diagram Summit’s old and new process
for handling chargebacks.
 Chargeback is the return of funds to a
consu...
Question 5 • Diagram Summit’s old and new process
for handling chargebacks.
Look through
customers
invoices
Identify speci...
Question 2
• What problems did Summit have with
its old systems? What was the business
impact of those problems?
NEW PROCE...
Summit Electric Light Up with a New ERP system
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Summit Electric Light Up with a New ERP system

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Summit Electric Light Up with a New ERP system

  1. 1. GROUP MEMBERS 1. Arni B. Hj. Morshidi P14D461P 2. Anisah Bt Ismail P14D389P 3. Syarifah Rohaya Bt Wan Idris P14D397P 4. Dayang Adelina Bt Hj Abang Muan P14D394P 5. Norhana Aini Bt Saini P14D398P
  2. 2. Top wholesale distributors of industrial electrical equipment and supplies 3 divisions: Global export – Houston Marine – New Orleans Sales - Dubai Founded in 1977 in Albuquerque, New Mexico A “middle man”
  3. 3. • A legacy information system not keep up with the business • Done manually • Only handle a fixed number of locations and limited of numbers used on documents • IS Department • Had to use the same range of document numbers over again every few months
  4. 4. • Summit needed a system that could handle a very large number of SKUs • Changed to new system ERP provided by SAP •That would require improve its business process and the way people worked.
  5. 5. • Which business processes are the most important at Summit Electric Supply? Why? Question 1 • What problems did Summit have with its old systems? What was the business impact of those problems? Question 2 • How did Summit’s ERP system improve operational efficiency and decision making? Give several examples. Question 3
  6. 6. • Describe two ways in which Summit’s customers benefit from the new ERP system. Question 4 • Diagram Summit’s old and new process for handling chargeback. Question 5
  7. 7. Question 1 • Which business processes are the most important at Summit Electric Supply? Why? SUPPLY CHANGE MANAGEMENT (SCM): the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. • Summit Electric Supply is one of the top wholesale distributors of industrial electrical equipment and supplies in U.S. • Distributes products that include motor control, wire and cable and etc. • As a “middle man” – obtains finished goods from manufacturers and sell them to electrical contractors working on projects • Handle a very large number of SKUs transaction in a very
  8. 8. Question 1 • Which business processes are the most important at Summit Electric Supply? Why? ERP System • A packaged business software system that enables a company to manage the efficient and effective use of its resources. SAP Application • SAP is a core ERP application and the best practices function in sale and distribution, materials management, Human Resources and Financials and its knowledge in distribution business. • SAP’s NetWeaver support Summit Electronic more organize and be able to control how much was needed to be produced and distributed. • It’s useful for business intelligence reporting and analysis. Batch Management • It is a software that treats a wire reel a batch rather than single as single products. • It used to cater high demand for wires and cable products.
  9. 9. Question 2 • What problems did Summit have with its old systems? What was the business impact of those problems? Separate systems Used separate systems for orders and financial So that, the data could not be easily combined for business intelligence reporting and analysis Done manually The integration between sales entries and purchase order and back-end reporting. Only handle a fixed number of locations and limited range of numbers that could be used on documents I.S Department had to use the same range of document numbers over again every few months.
  10. 10. Question 2 • What problems did Summit have with its old systems? What was the business impact of those problems? The Impact The system was not able to keep up with the fast growing business. Limited Not able to handle the volume and complexity of the company’s chargeback agreements and reporting capabilities were limited
  11. 11. Question 3 • How did Summit’s ERP system improve operational efficiency and decision making? Give several examples.  ERP improved operational efficiency and give scalability and the ability in Summit’s business process  Especially in supply chain areas like sales and distribution, inventory management and financial reporting system-as the company expected strong growth in these areas.
  12. 12. Question 3 • How did Summit’s ERP system improve operational efficiency and decision making? Give several examples. • It’s running smaller and frequent inventory update throughout the day, instead of a night-which caused a delay. • New system provided accurate information of shipping order, which Summit’s was able to ship immediately. Running more frequent inventory updates • To replenish wire and cable, the ERP batch material management identified the customer purchase amount, length of wire and product manufacturer. • Each time a customer buys a length of wire, the length is entered into the system to track how much of the “batch” was sold. Adapting the inventory tracking process
  13. 13. Question 3 • How did Summit’s ERP system improve operational efficiency and decision making? Give several examples. • To secure inventory for special customers, with long term projects, Summit created a “parent- child” warehouse relationship in ERP system to secure the materials in inventory as well as on premises.. Changing how inventory is managed at job sites
  14. 14. Question 3 • How did Summit’s ERP system improve operational efficiency and decision making? Give several examples. • To make a better manage its finance and ordering system, Summit implemented the SAP’s/NetWeaver BW data warehouse and business intelligence. • By integrating the NetWeaver, Summit was able to analyze the profit of each sales person, manufacturer, customer and branch. • Using SAP software, Summit was able to improve its ROI, by automating sales tax and chargeback’s. • The SAP/Paybacks and Chargeback’s application was able to identify the billing activity, if there was a chargeback, the SAP system would automatically submit the information to bill the chargeback- increase its chargeback claims of up to 118%. • Summit decision making for implementing the new ERP system was based on the growth of the organization, the complexities of processing orders, analyzing finances and back and reporting. • Once the new ERP/SAP was in place, Summit management was able to focus on sales and orders and quotes, supplier performance and delivery schedule. • The new SAP/ERP has allowed Summit to run its operations with flexibility and allow the SAP to operate efficiently. • The new ERP system allowed management to have a greater vision for decision making and managing its operations Business intelligence
  15. 15. Question 4 • Describe two ways in which Summit’s customers benefit from the new ERP system. Customer can rely on the company for their needs and products • 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 sent to them in short time period. To accommodate large customers with long term job sites • SES sets up temporary warehouse on site to supply electrical products. • Create “parent – child” warehouse relationship – to able to work with customers. • The warehouse can be controlled like subparts of the main SES warehouse. • It helps to prevent anybody from selling the consigned inventory into the warehouse.
  16. 16. Question 5 • Diagram Summit’s old and new process for handling chargebacks.  Chargeback is the return of funds to a consumer.  The chargeback mechanism exists primarily for consumer protection.  For the distribution company, chargeback occurs when the supplier sells a product at a higher price to the distributor than the price they have set with the end user.
  17. 17. Question 5 • Diagram Summit’s old and new process for handling chargebacks. Look through customers invoices Identify specific manufacturer which Summit chargeback could claim Input data manually in Excel spreadsheet Submit paper copies of invoices to vendors Received responds from vendors End of process OLDPROCESS
  18. 18. Question 2 • What problems did Summit have with its old systems? What was the business impact of those problems? NEW PROCESS All chargeback agreement loaded in SAP system System review billing activity and do a matching to create a separate chargeback documents Automatically submit the information and chargeback document to identified vendor End of process

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