Hyper Panda and ERP

Hyper Panda and ERP

Introduction

Azizia Panda united was established in the year 1978. This is one of the most significant organizations in the retail Industry of KSA. In the year 1994, the organization was merged with Azizia Company. However, late in the year 1998, Savola group acquired Azizia Panda United. Savola group is a leading retail organization that is specialized in food products. After this acquisition, Azizia Panda united was helped to grow and expand with largest market share in the retail sector of KSA. In the year 2008, the organization stepped forward and started the regional expansion when one more acquisition was made by Savola group for Giant supermarkets in KSA and Lebanon. Savola group merged the Giant supermarket with Azizia Panda United (Data Retrieved From: http://www.panda.com.sa).

After one year, in 2009, Azizia Panda United achieved another milestone with the acquisition of Geant Stores in KSA. After this deal, the shares of APU were raised from 7% to 8% in the retail industry. After all these achievements, the organization recorded more than 100 million visitors in the year 2010 only (Data Retrieved From: http://www.panda.com.sa). However, the organization has been facing some issues related to operations after such expansion due to lack of ERP system. In this paper we will discuss all the issues faced by APU due to lack of ERP system. Moreover, this paper will also discuss the solutions to the problems of organization.

Discussion

Problems faced by Azizia Panda United without ERP

Issues in Inventory Management

The organization runs the front-end and back-end systems separately; therefore, the organization has wreaked havoc on the business processes that ensure that company has been operating in a smooth way. In addition, the organization has some problems in forecasting due to inaccurate data of inventory management and sales, therefore the organization has some issues in inventory management as well (Data Retrieved From: http://www.panda.com.sa).

The software of ERP integrates all the systems of organization in order that all the functions rely on one data base. With single source of data that has accuracy and real time data, the software of ERP divides the information logjams and assists the human resource of the organization in better decision making in less time. In this organization is free to work with higher values and targets.

Difficulty in Accessibility to Information about the Business

AZU rely on spread sheets and siloed systems, therefore, it is difficult for the organization to find out the average sales profit and performance because these systems are required to be reconciled and updated manually. This activity takes more time. However, if the organization opts for ERP, the pace of the business will be faster, which means that employees will be able to have easy access to the key data. Management can have a holistic view of the functions of the organization any time, whereas other staff is able to access the information they require to perform their daily tasks. For instance, the salesman will be able to have view of full transaction history of one particular ...