ERP Implementation in Candy Company

Project Overview

Candy Company (CC) was manufactured in 2001. This company produces essentially

hard candy, chewy confections, for example, caramel and salt water taffy and popcorn

sweets. Notwithstanding candy, it additionally delivers private label nutraceuticals. With over

80% of the business being gotten from private label and agreement fabricating, it doesn't just

needs to satisfy its very own high guidelines yet in addition the investigation of the

individuals who put their name on the last products. Candy Company's requirement for an

Enterprise Resource Planning (ERP) system was raised. It was chosen together with the CEO

that the subject of the proposition should be the assurance of CC's necessities for an ERP

system and the inquiry of a reasonable ERP answer for the organization. The business

condition in many enterprises is winding up increasingly complex and universal, which

implies that overseeing and using data successfully is significant for the achievement of

current organizations. Focus on center skills and re-appropriating different exercises are

prompting more extensive accomplice and subcontractor systems and frequently to

internationalization. Dealing with the entire activity all through the system requires data

systems that can incorporate both outer and inward data into promptly accessible and usable

structures.

Numerous organizations are utilizing data technology arrangements, for example,

ERP systems, to deal with their business forms and to coordinate all the various activities so

as to upgrade data stream inside the organization just as collaboration with accomplices,

providers and clients. For the reasons mentioned above, implementation of an ERP system is

considered very important for CC’s competitiveness. Selecting and implementing a suitable

ERP system is a very challenging task, especially for small and medium-sized enterprises
(SMEs), and not least because of the high costs involved in the process. However, more and

more SMEs are going through with the task because of the potential benefits that ERP

systems can bring. Also many ERP vendors have realized the potential in SME markets and

launched new products that are designed for smaller companies.

Hypothesis Justification

Literature Review

This section provides a literature review about the ERP implementation in a company.

The section reviews the various articles, reports, case studies and so on. There are three

sections those cover in it. These sections are role of ERP, success factors of ERP

implementation, and failure factors of ERP implementation.

Role of ERP in Organization

In the literature, there is a considerable volume of research focused on the specific

issues of ERP; however, there are no consensus on the definition and the issues related to

ERP. According to Jacobs and Bendoly [97], “Enterprise resource planning (ERP) has come

to meanmany things over last several decades. Divergent applications by practitioners and

academics, as well as by researchers in alternative fields of studies, has allowed for

considerable proliferation on the topic and for a consider-able confusion regarding the

meaning of the term.” Additionally, successful implementation and effective management of

ERP’s operational performance during its lifecycle is still a major problem in today’s

organization. ERP as a system is about technological infrastructure designed to provide the

required functional capability required to turn the ERP concept into a reality. ERP systems

should not be a mere technological artifact; it is a core platform designed to support and

lever the capabilities of the tools and processes.

 Most of the ERPs support the inventory control functionality as this was the basic first

step of software penetration in the production process. The second most common

functionality is connected with Material Resource Planning (MRP) and modules designed to

manage manufacturing operations processes. Those translate the Master Schedule (MS) into

a “time phased net requirements for the sub-assemblies, components and raw materials

planning and procurement” (Al-Mashari et al., 2003). According to Gupta (2000) MRP

vendors expanded their IS with capacity planning, leading to MRPII. The shortcomings of

MRPII and the need to integrate these new techniques led to the development of a total

integrated solution called ERP. Nowadays ERP systems are IS that merge all department’s

systems into one by integrating inventory data with financial, sales, and human resources

data, allowing organisations to price their products, produce financial statements, and

manage effectively their resources of people, materials, and money.

ERP makes companies more agile and flexible, allowing them to share information.

All these affect their ability to react in a better way to competition and market. Al-Mashari et

al. (2003) argue that one of the biggest advantages of an ERP implementation is the re-

engineering of the whole organisation processes to comply with the ERP and as a result

change the business culture. Posten and Grabski (2001) summarise the reasons why an

organisation wants to implement ERP system. The company should implement the ERP

system because it reduced asset bases and costs, enhanced decision support, more accurate

and timely information, reduced financial cycles, and increased procurement leverage. ERP

systems are well-suited for implementation in multinational enterprises (MNEs) due to their

wide range of functionalities and expected benefits, such as standardization, efficiency, and

better communication [6]. Nonetheless, MNEs comprise several geographical locations

across countries representing a diversity of cultures and business traditions [7]. Moreover,

implementing ERP in MNEs involves a larger network of different actors and stakeholders,
compared to smaller and co-located enterprises, which significantly increases the complexity

of such implementation projects, both while underway and afterward.

In a multinational context, it is not only organizational processes that need to be

changed; there may be global requirements which control and determine different choices,

functions, practices, and processes in the subsidiaries. B. Osnesa and Olsen (2018) claim

some subsidiaries do not have a voice in decisions related to ERP implementation. Thus,

local requirements and needs can be overruled and overridden, for example, concerning

what functionalities and features should be included in the software, who needs and will use

these different features, and for which purposes they will be used (B. Osnesa & Olsen, 2018).

According to Nazemi and Tarokh (2011), ERP systems’ contribute to operational and

delivery efficiency in many ways including its critical role in improving the way a firm takes

customer orders and processes them into invoices; this process is also known as the order

fulfilment.

Success factors of ERP implementation

Failure factors of ERP implementation

Methodology

Sample

Procedure

Measure

Data Analytic Plan

Conclusion