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In order to accomplish this desired leading position, the management of Keda made an attempt to implement SAP ERP software package to restructure its production, logistic and inventory operations along with sales. This resulted in the augmentation of its brand image and dominance over other apparent players (Richard Ivey School of Business, “Keda’s SAP Implementation”). Moreover, it also positioned itself as one of the top national machinery producers and a leader in the building-material machinery firm, with revenue of 1,425 million CNY in the year 2009 (Richard Ivey School of Business, “Keda’s SAP Implementation”).
Thus, to maintain its supremacy, Keda desired to implement computerisation in its operational process in order to enhance its operational competencies across diverse product-lines (Scribd, “Ceramic Industry”). Identification of Major Issues/Dilemmas Keda is a branded organisation in the sector of ceramic machinery manufacturing, operating with the desire to offer value added products at an efficient cost. The underlining aim of Keda is to augment its status and profit margin among other competing firms of this sector. . It was expected to facilitate Keda in enhancing its level of productivity and profitability.
In addition, due to intricacy in the pricing of the materials among its distributors and retailers, the brand also faced a considerable extent of dilemma which was mainly due to lack of pricing details and information technology packages. Lack of integration among the organisational hierarchy is another significant issue which resulted in the downfall of Keda’s total sales as well as brand value in global perspectives (Richard Ivey School of Business, “Keda’s SAP Implementation”). Positives and Negatives of Two Alternative Paths of Action The two alternative paths of activity employed by Keda was the implementation of SAP ERP software package and the computerisation process (Richard Ivey School of Business, “Keda’s SAP Implementation”).
To retain the uniqueness and inimitability in the current era, Keda aimed to implement an entirely automated SAP software package within its organisational structure. The major purpose for Keda to implement the technology was to rationalise the production systems and inventory management procedures to augment its production level and total revenue by a certain extent. It further helped in the reduction of production delays, resulting in the deliverance of the products at an accurate time, which in turn amplifies customer reliability and trust (Richard Ivey School of Business, “Keda’s SAP Implementation”).
The above discussion highlights the benefits of SAP software package, even though it includes certain limitations as well. However, based on the findings, it can be stated that the introduction of SAP software package might augment the total profitability of Keda. Contradictorily, it can
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