19128969 Johnson Industries

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Erp and case analysis On Johnson and johnson Presented by Hepsy verghese Tracy Himanshu sati


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Integration is a key for ERP ERPs main goal is to integrate data and processes from all the areas of the organization. Provide easy access to data and workflow in the organization. It creates a single database that employs multiple software providing different areas oforganization with various functions.


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Advantages of an ERP system A totally integrated system. The ability to streamline various processes and workflows. The ability to easily share data among various departments in an organization. Improved efficiency and productivity levels. Better tracking and forecasting. Lower cost. Improved customer service.


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Disadvantages of ERP system Time consuming. Expensive. Conformity to the modules. Vendor dependence. Features and complexity. Scalability and global outreach.


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Some of the ERP modules are Accounting Management. Financial management. Manufacturing management. Production Management. Transportation Management. Sales and Distribution Management. Human Resource Management. Supply Chain Management. E-Business.


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COMPANY OVERVIEW

Originated in. 1920s. Corporate headquarters-Atlanta 1988-Genuine parts /NAPA acquired Johnson industries. Largest OEM auto parts distributer in the country. Annual sales-$150m It now serves automotive repair facilities throughout the United States. Largest distributers of acdalco, motorcraft


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CHALLENGES FACED Johnson industries procured businesses in similar markets. Contract with JD Edwards software implementation. C.D groups audit discovered following problems in the implementation. Only the general ledger module was implemented with the entire


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Functions and duties across the organization were not consolidated. No clear strategy or solution were defined with regard to centralization of business processes. Critical business practices were distributed across several DCs.


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Job duties were duplicated creating inefficiencies. Created high degree of complexity. Generation of multiple statements creating multiple identities.


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DRAWBACKS OF CURRENT LEGACY SYSTEM

No longer supported its needs.duplicate and inconsistent business practices andrules No support for multi-warehousing functionality. Limited ability to smoothslower moving inventory between distribution centers. Absence of automation created


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SolutionNew business model implemented by CD Group which represented Johnson Industriesas a single entity. The new model used JD Edwards OneWorld in a centralized footprint, using an NT operating system and a SQL database to support multiple warehouses as a standard for all distribution centers.


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Changes brought inIncorporated centralized, critical business processes (i.e. journal entries, purchasing, paying suppliers, etc.) in all DCs to ensure consistent Best Practices across the organization.

Benefits -

enabled customers to receive one statement for all purchases Ability to forward all payments to a single location. Standardizing customer and item numbers


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Step 1 RF technology was leveraged to automate the tracking of inventory movement within a DC

Benefits Inventory balances updated immediately Eliminating of paper trail and human intervention required to manually update inventory.


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Step 2 Implemented a warehouse location system to improve inventory tracking. Benefits - provided visibility to inventory on the receiving dock, in a staging area, in product overflow, or on the shelf.

Step 3 Applied a consistent cycle count program that validated and maintained inventory accuracy. Benefits - Rebuilt confidence among management regarding inventory accuracy


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Business Benefits Streamline future acquisitions Increase inventory turns and improve cash flow Ensure the consistent and timely application of price changes Present a single company image to its customer base Defer the need for warehouse expansions Close the month earlier


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Increased inventory visibility across DCs and among customer service personnel. Johnson Industries received a one-time reduction in inventory estimated at $7.6Min annual inventory carrying costs. Consolidation of the different IT systems caused reduced hardware and software maintenance expenses. Incorporation of BestPractices standards model reduced employee training costs. and


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THANK-YOU


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19128969 Johnson Industries

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