ENTERPRISE RESOURCE PLANNING (INT 210)

SAP AT CO-OPERATIVE BULK HANDLING LTD.(CBH)

By :Aashima Sharma- B49 Upma Sharma – B50 Manoj Kumar – B51K3103

Contents Introduction to ERP Benefits SAP Implementation Advantages About CBH Four Business

Divisions The Problem /

Situation Benefits Gained by

CBH

Introduction1. Enterprise resource planning (ERP)

systems integrate internal and external management of information across an entire organization - embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc.

2. The ERP system process is a collection of activities that takes one or more kinds of information systems, enabling smooth and seamless flow of information across departmental barriers, automating business process and thus helping the organisation to work.

3. Enterprise is a group of people with common goal, which has certain resources at its disposal to achieve this goal . The enterprise acts as a single entity.

4. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

Benefits1. ERP can greatly improve the quality and

efficiency of a business. By keeping a company’s internal business process running smoothly.

2. ERP can lead to better outputs that benefit the company such as customer service, and manufacturing.

3. ERP provides support to upper level management to provide them with critical decision making information.

4.This decision support allows the upper level management to make managerial choices that enhance the business down the road.

5. ERP makes the company more flexible and less rigidly structured in an effort to allow the different parts of an organization to become more cohesive, in turn, enhancing the business both internally and externally.

SRP ERP SYSTEM

1. SAP ERP is, in the SAP Business Suite software. SAP ERP consists of several modules, including utilities for marketing and sales, field service, product design and development, production and inventory control, human resources, finance and accounting.

2. SAP ERP collects and combines data from the separate modules to provide the company or organization with enterprise resource planning.

Contd.SAP ERP systems effectively implemented can

have cost benefits. Integration is the key in this process. "Generally, a company's level of data integration is highest when the company uses one vendor to supply all of its modules." An out-of-box software package has some level of integration but it depends on the expertise of the company to install the system and how the package allows the users to integrate the different modules.

ADVANTAGES Allows easier global integration (barriers of

currency exchange rates, language, and culture can be bridged automatically)

Updates only need to be done once to be implemented company-wide

Provides real-time information, reducing the possibility of redundancy errors.

Contd.May create a more efficient work environment

for employees.

Vendors have past knowledge and expertise on how to best build and implement a system.

User interface is completely customizable allowing end users to dictate the operational structure of the product

CBHCo-operative Bulk Handling Limited (CBH),

Perth, Australia

The CBH Group is a grain growers' cooperative that handles, markets and processes grain from the wheat belt of Western Australia. CBH has a permanent staff of around 1000 and revenue of $1.3 billion per year.

It stores, transports and markets more than 10 million tonnes of grain annually, some 40 percent of Australia’s total production. CBH is controlled by over 5,700 grower-shareholders, and exports around 95 percent of the grain tonnage it produces to more than 20 countries.

Four Business divisionsCo-operative Bulk Handling divides its

operation into four business divisions:Storage & Handling: CBH's Grain

Operations group receives, handles, stores and ships grain at its 200 receivable points across Western Australia where grain deliveries are weighed and graded.

Grain Marketing: CBH Grain markets over 5 million tonnes of wheat and coarse grains annually to both the domestic and international markets.

Engineering: CBH's subsidiary CBH Engineering designs, manufactures and maintains all of CBH's storage and handling facilities and equipment. CBH Engineering's products include a range of loading systems, tippers, stackers and drive-over-grids which facilitate the receipt, shipping and storage of grain.

Other Investments: CBH maintains investments in complementary industries include the Inter flour mills in Indonesia, Malaysia and Vietnam; United Bulk Carriers and Australian Bulk Stevedoring joint ventures with Hudson Shipping; Daily Grain online grain price management service; and Australasian Lupine Processing operation with George Weston Foods.

THE PROBLEM / SITUATION

Strategic diversification through corporate acquisitions, development of enhanced services for growers and closer integration with world markets lead to considerable increases in workload for the IT infrastructure. In parallel with these changes, senior management took the opportunity to review.

Business processes, looking in particular for efficiencies and cost-savings. 

With almost 200 grain received points, twelve administrative offices, four ports and 19 million tonnes of total storage capacity, managing the logistics alone is a complex business. The company turned to automation wherever possible to increase efficiency and productivity, to help control staff costs and enhance its ability to respond quickly to customers’ needs.

CBH chose SAP software as its strategic platform for integrating information throughout the company, automating business process workflow and all but eliminating paper-based reporting. The company chose to migrate from an older SAP application to my SAP ERP applications on the Intel Xeon processor-based IBM System x platform and a storage area network based on IBM System Storage technology.

WHY SAP?

GoalsSpeeding Information Flow: The goal was to increase processing efficiency and response times, laying the foundation for future process improvements, and find ways to include and automate workflow processes. By speeding up the internal information flow, they could exploit existing resources more efficiently by removing delays, and by lessening the administrative workload and could release staff for more productive, customer-facing tasks.

End to End Process Management: With mySAP ERP the company has the potential to take advantage of automated report generation and delivery, with on-screen acceptance and approval that has embedded workflows. Now the managers can see the status, approve the necessary actions and make informed decisions without the delays that would occur if they were reliant on paperwork circulating through the company.

BenefitsThe new system improved the processing speed

by about 90%.Transaction that took more than 45 minutes to

run could be completed in less than 5 minutes offering significant savings in time and productivity boosts for a 900-user base.

With mySAP ERP CBH has the potential to take advantage of automated report generation and delivery, with on-screen acceptance and approval that has embedded workflows.

The new system also lowered system administration workload and costs and improved the ability to introduce enhanced reporting services