ERP implementation – overcoming issues linked with the procurement process

Abstract

This research aims to identify issues faced by an Enterprise Resource Planning (ERP) vendor in implementing an ERP system at a client company and to propose solutions. These issues have been a barrier to reengineering the procurement process and integrating it with the ERP system. The main issue encountered during the implementation was the absence of unique item identification for goods which impacted the entire procurement process. To address this critical issue, a comprehensive hierarchical item identification system was devised, introducing four levels for categorization and unique identification. Further, to streamline the procurement process, a user manual was developed. This user manual offers clear and concise guidance on utilizing various forms related to procurement, ensuring accurate and error-free data input and retrieval. This research emphasizes the critical role of a systematic item identification system and an integrated ERP system in enhancing procurement processes, promoting efficiency, and ensuring long-term operational sustainability for the client company.