Enterprise Resource Planning - Analysis of Oxfam Charity - Case Study Example

ENTERPRISE RESOURCE PLANNING Introduction In the current business world, success is often achieved by inculcation of strategies, methods and tools that enable the business to maximize its output while minimizing its returns. One of the tools and equipment that businesses have come to fully appreciate in the recent past is enterprise resource planning, which is often thought as the best alternative for businesses that seek to increase their performance in the most effective way. Enterprise resource planning, better known as ERP, describes the software used in business management, enabling the business to achieve efficiencies in different areas of its management (Brady & Monk 2001, 21). The suite of integrated applications in this tool assists the business in collecting, storing, managing and interpreting data from a range of business activities including sales and activities, payment and shipping, inventory management, cost and product panning as we as manufacturing and service delivery. ERP in organisations offers an effective and integrated view of most of the core business functions and processes that in most instances happen to be in real-time. It uses common databases that are maintained by an effective database management system. The ERP system is effective in tracking business resources, which comprise of raw materials, production capacity as well as cash among others. It also explores the actual status of the business commitments and how they can be used for the growth and success of the business. This paper examines how the ERP system can be used to enhance effective work practice and performance for Oxfam, an international confederation that comprises of organisation that work to eliminate poverty and social injustices in the world. Analysis of Oxfam Charity The world as a social environment comprises of people working and living together for achievement of various goals and objectives. While some people achieve their goals in life, others are often hindered by among other things, poverty and social injustices. This is where Oxfam now comes in, to ensure that poverty and other kinds of social injustices are alleviated and eliminated completely. Oxfam is actually an international confederation comprising of approximately 17 organisations that work in about 94 countries across the world in order to find and affix solutions to poverty and various kinds of social injustices across the world. In all its work and activities, Oxfam’s ultimate goal remains has always and continues to be enabling people in exercising their rights and managing their lives effectively. In order to achieve its goals, Oxfam works alongside communities directly, seeking to influence powerful members of the community to value and appreciate all people. In this case, they aim at ensuring that poor people in the community improve their livelihoods and play a role in decisions affecting their lives. Each of the organisations affiliated to Oxfam works internationally in the process of achieving greater impacts through combined efforts. Enterprise Resource Planning at Oxfam As noted before, one of the perceived effectiveness of ERP in achieving organisational efficiency lies in the fact that the system is integrated with various applications that enable it to perform a variety of services and actions for the benefit of the organisations. Being an international organisation, the integration of ERP systems in its operations can ensure that Oxfam maximize its outputs, thus achievement of its goals and objectives. Supply chain management Supply chain management as provided for in the enterprise resource planning refers to the strategic and systematic coordination of various kinds of traditional business processes and functions and the various tactics across these functions in a particular company and across different businesses within the specific supply chain. This is often done with the aim of improving and ensuring a long-term performance of individual companies in the entire supply chain. Additionally, supply chain is also described as the actual design, planning process, execution, control criteria and monitoring of all the activities of the supply chain with the aim of creating and sustaining value, establishing a competitive and reliable infrastructure, leveraging on the worldwide logistics as well as synchronizing supply with its respective demand while measuring the company or organisations global performance (Sumner 2005, 78). Rationale for having Supply Chain Management at Oxfam At Oxfam, the application of this system will ensure that the organisation can effectively meet its specific supply issues for resources needed in its activities. Working in many countries globally, the organisation needs to ensure that its resources are effectively utilized for achievement of its set mission and vision (Shanks 2003, 61). For instance, it has to ensure that the tools and equipment alongside other resources needed in the different places and organisations are made available conveniently and efficiently, this can only be possible if an effective supply chain is in place. Of the three systems in the ERP, the supply chain seems to be the most effective towards ensuring that Oxfam achieves its plans. For Oxfam to effectively use the supply chain, it needs to ensure that it builds capacity so that all people in its departments can learn how to use it. One of the ways of that organisations can use in introducing new changes in its performance is building large capacity. For this reason, Oxfam needs to ensure that it trains its employees effectively to take on the changing needs of the organisation. By developing and integrating the supply chain management, Oxfam stands to ensure that all its affiliated organizations are effectively managed. The financial system The financial system is also provided for by the enterprise resource planning system. In this case, the integrated financial plan ensures that an organisation can effectively plan and follow up on its ledgers and other kinds of financial information. It is important to note that the success of any organisation lies in its ability to effectively monitor and manage its financial for its success. Financial management as provided for in the enterprise Resource planning ensures that organisations can generate reports for its financial activities and plan for its income effectively and efficiently (Nah 2002, 76). By integrating this system in its practices, Oxfam can ensure a proper and reliable way of accounting for its finances in a manner that will enable it to maximize on its output. However, it is important to note that by integrating the supply chain, Oxfam stands a good chance of enjoying effective financial management from its various processes. Marketing The enterprise resource planning tool offers ways of how people can undertake proper planning as far as marketing of its activities products and services is concerned (Leary 2000, 54). Marketing is an essential company activity that is used in creating communications that ensure awareness of the products and services offered by a company. For Oxfam, it is evident that by working alongside other international organisations, the organisation offers humanitarian services that may not necessary be aimed at making profits. For this reason, the marketing system may ne be very effective in its operations. However, it may still aid in its achievement of set goals and objectives by enabling it link with other organisations and personnel that can assist it achieve its objectives. The marketing system can offer cost effective ways of offering communications intended at creating awareness about its activities and services. For instance, it enables a company’s marketing department in creating communications intended for meeting the marketing goals and objectives as well as platform that the company can use in managing and monitoring its marketing activities. However, for Oxfam, the integration of the supply chain management system can go a long way in helping the organisation achieve some of its marketing goals and objectives. For this reason, the organisation will be better off in working with the Supply chan management as part of its ERP planning. Bibliography Brady, J., & Monk, E. 2001. Concepts in enterprise resource planning. Course Technology, Australia. Leary, D. 2000. Enterprise resource planning systems, life cycle, electronic commerce, and risk. Cambridge University Press, Cambridge, UK. Nah, F. 2002. Enterprise resource planning solutions and management. IRM Press, Hershey, PA. Shanks, G. 2003. Second-wave enterprise resource planning systems implementing for effectiveness. Cambridge University Press, Cambridge, U.K. Sumner, M. 2005. Enterprise resource planning. Prentice Hall, Upper Saddle River, N, J. Appendix Read More