Example of How ERP Works

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Example of How ERP Works

• Step 1 Brazilian retailer orders, via the
  Internet, 1,000 shoes from International Shoe Co.
  A sales rep takes the order, routes it to ERPs
  ordering module, ERP checks the retailer credit,
  price, etc. The order is approved.
• Step 2 Simultaneously ERPs inventory module
  checks the stocks and notifies the rep that half
  the order can be filled immediately from stock.
  The other half will be manufactured and delivered
  in 5 days directly from the factory in Taiwan.

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Example of How ERP Works

• Step 3 ERPs manufacturing module schedules the
  production in Taiwan and instructs the warehouse
  (in Chinese) to ship the shoes to Brazil and
  print up an invoice (in Portuguese).
• Step 4 ERPs human resources module calculates
  labor requirements. Due to a shortage, the
  personnel manager in Taiwan is instructed to get
  temporary workers.
• Step 5 ERPs material planning module notifies
  the purchasing manager about a shortage of purple
  dye. A purchase order is automatically issued.

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Example of How ERP Works

• Step 6 The customer logs on via the extranet to
  the companys sneakers division. He can see that
  500 shoes were shipped from the regional
  warehouse. This is done with ERP tracing
  capabilities.
• Step 7 Based on data from ERPs forecasting and
  financial modules, the CEO can determine both
  demand and profitability per product. The
  financial module also converts all foreign moneys
  to U.S., whenever needed