Case Study

Case Study: SOHO Electronic Distribution



Executive Summary

The paper researched into SOHO Electronic Distribution in order to establish the utility of ERP systems to the home appliance retailer. It was observed that ERP systems allow for the effective execution of communication across the organization's departments while enabling the organization to benefit from the utility of fast data transfer. In this regard, the paper also delved into the concept of Electronic Data Interchange (EDI). It was established that EDI serves as a fundamental working element for ERP solutions since it enables the effective collection and instantaneous access of data. However, the study process also shed light on the relevance of the simplification of processes; and it was observed that ERP systems experience a deficiency in effectiveness when processes become over-complex.

Contents

Introduction4

EDI benefits and drawbacks5

Enterprise Resource Planning System (ERP)6

Example7

Benefits8

Solutions………………………………………………………………………………………..9

Relation of Enterprise Resource Planning with Data Interchange System12

Feasibility Analysis14

Implementation of Resource System within Our Organization15

Linking our Departments and Retail Stores16

Benefits for Customers16

Conclusion17

References18

Case Study: SOHO Electronic Distribution

Introduction

SOHO Electronic Distribution (SOHO ED) is a major home appliance retailer. With its vast availability of appliances and major expansion and operations around the world SOHO ED is focusing on managing its data with a proper way so that it can easily link its chain of outlets and its suppliers, vendors as well as its customers.

Focusing on computer ability to link out a single user around the world, it now became a need of people not only to have their needs online but for fast transfer of data computer technologies plays a major role for information sharing. As part of our company “SOHO ED” expansion plans to link up our all chains around the country we took a first phase of initiation by introducing internet as a data interchange facility. Data interchange has its own benefit and we have taken a several major turns through the initiation of this project within SOHO ED offices and outlets.

Exchanging of Data through internet has its own benefit; details of how it works and its benefit are described below:

The computer-to-computer exchange of documents of business between companies is known as the electronic data interchange (EDI).

These are the specific computer document formats that are widely based on accepted standards. However, our company uses the flexible standards in a way that is unique to fit in our business needs.

EDI benefits and drawbacks

The benefits of EDI are the exchange of information by means of computer-to-computer which is much less expensive than handling paper documents. The benefits which we can consider comparing EDI with other documentation process system are as follows:

Much less labor time is required

Error chances are less since computer system process the documents rather than processing by hand

Business transactions flow faster.

With quick transaction process it supports reduction in inventory levels, which in turns make better use of space of warehouse, fewer out-of-stock occurrences and lower freight costs through fewer emergencies expedites.

Orders purchase through paper can take up to 10 days from the time the buyer prepares the order to when the ...