IMPORTANCE OF ENTERPRISE RESOURCE PLANNING

The Importance of Enterprise Resource Planning (ERP) to the Success of a Company Engaged in Electronic Commerce

The Importance of Enterprise Resource Planning (ERP) to the Success of a Company Engaged in Electronic Commerce

In today's dynamic and competitive business environment, survival, growth and profitability are the essence goals of all companies. To stay competitive, enlightened companies have strived to take not only traditional actions such as lowing costs and closing unprofitable facilities but also innovative actions such as applying new Information Technology or creating new products. Countries like China and India are fast positioning themselves as key players and threatening the economic order that has existed for decades. Information technology (IT) is more sophisticated than ever, yet we still struggle with how to best use it in business, and on a personal level as well. E-commerce (B2B, B2C, C2C, G2C, and B2G) has become commonplace and M-commerce is not far behind, especially in Europe and Japan ((McGaughey, 2007).

Hualian is a typical example of adopting ERP as a part of its business. Hualian is one of the local leading retail groups incorporating manufacturing-leading companies in China, it provides a wide array of products and has 1,937 large stores all over China (Li & Fung Research Centre, 2006). It evolves from a traditional clothes manufacturer to high street retailer player, which sells products both on street shops and also on Internet. This report includes three parts. Part one is to introduce the background information about Hualian Company and define the objective of Hualian. Detailed description of ERP in Supply Chain department is also discussed with reference to Information System theory in Part one. In Part two, two techniques SWOT Analysis, and Five Force Model are applied to critically evaluate ERP system in Hualian company.

ERP system in Hualian's Supply Chain

Company Background

Hualian is one of the biggest retail leading incorporating manufacturing companies in China. It evolves from a traditional high street retailer to dominant player in department store, which sells products both on street shops and also on Internet. As one of the largest retailer, it provides a wide array of products like groceries, electronics, toys, jewelry, ladies, men, and children's apparel, and hard goods at reasonable prices. Till now it has operated more than 1900 Chain stores and has sales of 17,000 Million (Yuan), in 2005 (Li & Fung Research Centre, 2006). At the same time, Hualian has its own brand of clothes and pants which is very popular in its star-up. Hualian has an extensive network of distribution, manufacturing and clothes processing facilities in China. The head office of Hualian Company has now moved from Beijing to Shanghai, the city remains the most rapid economic growth rate recently and Hualian Company is strive to be the best in the retail industry in China.

The Mission and objective of Hualian Company

The Mission is to be the first choice for those customers who have the opportunity to shop locally in a Hualian ...