M.Vivekraj

M.Giriraj

Abstract

Businesses in virtually all industry sectors are working to make their supply chains more efficient. They understand the value of shrinking their inventories, streamlining logistics, improving forecasts, and eliminating costs. A managerial competitiveness depends upon the effectiveness of information flow and subsequently the material flow. Information systems especially computer based ones greatly contribute to the successful communication within an organization. Enterprise Resource Planning (ERP - SAP R/ 3) system can help to improve the communication within an Organization and world wide. In this paper, the authors describe how SAP R/3 software came in rescue of a potentially devastating inventory management situation in a large corporation with worldwide operations. The paper describes in detail the assessment of system requirements at various locations (production and storage facilities), configuration of SAP R/3 to meet those requirements, difficulties in system implementation, and benefits realized.

Keywords- Organizational structure, Material Master, Vendor Master, MRP, MRIS, Customization, competitiveness, SAP R/3