COURSES ENTERPRISE RESOURCE PLANNING TOPIC METHOD OF IMPLEMENTATION OF ERP SYSTEM IN 5 YEARS (NPV) FOR WALMART

UNIVERSITY OF TECHNOLOGY AND EDUCATION_ ECONOMICS---- ----SCORE TABLE OF PROJECT REPORT COURSES: ENTERPRISE RESOURCE PLANNING Major: Industrial Management Course: 2019 School year 2021

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UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING

COURSES: ENTERPRISE RESOURCE PLANNING TOPIC: METHOD OF IMPLEMENTATION OF ERP SYSTEM IN 5 YEARS

(NPV) FOR WALMART LECTURERS: TRẦN KIM TOẠI

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UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING

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UNIVERSITY OF TECHNOLOGY AND EDUCATION_ ECONOMICS

SCORE TABLE OF PROJECT REPORT COURSES: ENTERPRISE RESOURCE PLANNING Major: Industrial Management Course: 2019 School year 2021 – 2022

the instructions instructions of the subject, course guide, there are course's instructions (no

of the subject but there are errors in the some spelling and style spelling errors in the

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TIEU LUAN MOI download : skknchat@gmail.com

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Main

content

transformation Describe the current status, details that are not application of ERP in

description, ERP project implementation and Explain well the ERP business problems and

implementation date information enterprise (human, honestly, fully, logically,solution)

Explain to choose the right

financial, means and and in detail State the

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the scenarios, Process simulation and Presenting the ability to

the ERP project

has not been

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conclude Conclusion is Conclusions do not The conclusion

not related to the generalize the research outlines the highlights

content of the problem of the report but is not

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Summarize the salient points of the report, state what you have learned and learned during the project, and indicate the direction of future

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TABLE OF CONTENTS

CHAPTER 1: STEPS IMPLEMENTATION OF ERP PROJECTS 11

1.1 ERP project implementation methods 11

1.1.1 The Big Bang (Total force deployment method) 11

1.1.2 Phased Rollout: 11

1.1.3 Parallel Implementation: 12

1.2 Steps to evaluate and choose an ERP software supplier: 13

1.3 Restructuring the corporate governance model when implementing ERP with change management (OCM) 14

1.3.1 Restructuring the corporate governance model when implementing ERP 14

1.3.2 Change Management (OCM) 17

CHAPTER 2: DIGITAL TRANSFORMATION PROCESS AT THE COMPANY 18

2.1 Brief about the company: 18

2.2 The evolution of Walmart's ERP system: 19

2.2 ERP application in Walmart's supply chain management 19

2.3 Success of ERP application at Walmart: 21

CHAPTER 3: SUCCESSFUL FACTORS IN ERP IMPLEMENTATION 22

3.1 Plan 22

3.2.Suppliers: 22

3.3.Human factor 23

3.3.1 Impact during implementation 23

CHAPTER 4: ASSESSMENT AND SELECTION OF ERP IMPLEMENTATION METHOD FOR WALMART 25

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4.1 Advantages and disadvantages of evaluating ERP software selection according to

ERP SaaS and ERP On-premise methods 25

4.1.1 ERP SaaS method 25

4.1.1.1 What is SaaS? 25

4.1.1.2 Advantages of SaaS model: 25

4.1.1.3 Disadvantages of SaaS model 27

4.1.1.3 Disadvantages of SaaS model 28

4.2 Evaluation of effectiveness and future scalability 29

4.2.1 Comparison of SaaS and On-premise: 29

4.2.2 Choosing the right ERP method for Walmart 31

CHAPTER 5: BUILDING WALMART's MINI-ERP SYSTEM 34

5.1 Overview of the ERP system: 34

5.2 Sales process on Odoo system: 35

CONCLUDE 41

REFERENCES 42

TABLE OF FIGURE Figure 1 Product sales process flowchart 35

Figure 2 Go to sales 36

Figure 3 create customer 36

Figure 4 Create Email Order 37

Figure 5 confirmation 37

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Figure 6 Ask customers to pay 38

Figure 7 Accountants receive payment and issue invoices 39

Figure 8 Create unfinished products to add more products……… 40

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CHAPTER 1: STEPS IMPLEMENTATION OF ERP PROJECTS 1.1 ERP project implementation methods

1.1.1 The Big Bang (Total force deployment method)

Is the overall deployment method for all departments in all modules at the same time Requires a huge mix of resources and will inevitably lead to business disruption

This is a deployment strategy that carries a lot of risks, but in return, the strategy has two advantages:

Fast deployment time

Low cost

You should choose The Big Bang if your requirement is to quickly come upwith solutions and operate solutions in the business, but besides that, there are also

many problems to prepare for strategic implementation this

It is necessary to consider and introduce new processes into each departmentand enterprise thoroughly and carefully to avoid or minimize the disadvantages that a

business may face This option will normally be deployed in the off-peak period or at

times when the market is not favorable To be successful, it is imperative to identify

and minimize risks to the lowest level, in which, understanding the needs and

characteristics of a Business is an extremely important thing For The Big Bang

method, the requirements must be detailed and closely monitored to reduce the risk of

the project Any change in user requirements greatly affects the progress and

implementation plan of the project

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Phased Rollout is used when you want to divide a project into several phasessuch as you can deploy sales, purchasing, inventory first; then to the logistics,

production, then to the financial accounting, etc In particular, the first and second

stages depend on the urgency of each core process cluster in the entire operation

process There are ways to divide the stage as follows

Divide the stage by module (Sales, accounting, finance)

Stage by chain of processes linking multiple departments This is the option suggested by Onnet for many successful ERP implementation customers.

Stage by the Business Units of your business (usually applicable to the Group level)

Split Phased by geographical location (usually applicable to multinationals)

This is a medium risk implementation strategy, implementation time and costare also in the average of the 3 methods When successfully implementing a phase, the

deploying enterprise will have a lot of experience to be able to change and adjust in the

following stages, changing the approach accordingly Adjust the implementation steps,

the best way to work

investment step by step to the old management software This is the most

time-consuming and expensive implementation method, but in return, it is very safe because

users will approach it gradually until they have completely mastered the new

management solution and have enough experience to discard the old solution

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For each business, you can choose one method, another method, or you can mix

it up for each stage of implementation to ensure the success of the project, and ensure

on-time solutions into operation and costs so that investors can accept

Your ingenuity and communication in the strategy of implementingmanagement solutions play a very important role and you should carefully consider

and receive advice from experts in corporate governance as well as experts in

implementation system implementation to ensure the correctness of the choice

1.2 Steps to evaluate and choose an ERP software supplier:

Step 1: List of suppliers

Today, there are hundreds of ERP vendors on the market with various support

packages It is completely unfeasible to perform an analysis of all existing packages

Businesses need to determine some of the most suitable packages by reviewing product

information of suppliers, and finding out which business management software is

being favored by businesses in the same industry

Businesses can rely on support from outside experts in the field of ERP

Then let's briefly list some ERP software providers, according to experience, we need

to choose from 3 to 5 suppliers

Step 2: Arrange Demo sessions:

Suppliers will have to respond to service requests, after which the business will compare the

responses to see if the initially identified needs have been fully met or not.

At this step, if the ERP software suppliers do not meet one or several requirements, they should

also be disqualified because the ERP software is determined to be long-term and consume a lot

of money and personnel to complete After this step, the enterprise will invite two or three

leading ERP software vendors to conduct live demos at the enterprise During the demo, the

enterprise will put the real situations that occur when applying the ERP software and the

suppliers will offer solutions to handle the situation The ERP

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software provider that offers the most optimal solutions will be selected, of course,

taking into account the features and interfaces of the software

Step 3: Direct visit and contract negotiation:

After the ERP evaluation and selection committee decided on the most suitable

supplier In-person visits to suppliers are required Suppliers need to provide reference

sites of similar size and industry to the business

Committee members need to provide a view and feel about the operating system and

reference sites and should ask questions about satisfaction with current ERP software,

functions, and costs costs during operation, care, and support concerns

After this step, if all members of the committee have agreed that their choice is

reasonable, negotiations with the supplier will proceed

Negotiations and discussions revolved around app tiers, license fees, deployment

costs, annual maintenance fees, payment methods, and more

The point of the evaluation and selection process is that it should all be based on a

consensus on effective ERP software Some of the problems that businesses need to

avoid are over-demanding during planning as this will lead to unnecessary costs

1.3 Restructuring the corporate governance model when implementing ERP

with change management (OCM)

1.3.1 Restructuring the corporate governance model when implementing ERP

A Restructuring is different from automation:

In the early stages of applying IT to businesses, most of the applications aim to simplify people's

work The management and operation systems are designed based on the organizational structure

of employees and available work models IT applications in this period have the nature of

automating a number of single jobs and bringing convenience to each functional array in

departments In the 80s, in an effort to reduce paperwork, people

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came up with systems to automate workflows, connecting the activities of discrete

applications IT then plays the role of automating the document flow

The automation is based on manual processes being replaced by corresponding system

functions, in the old order and logic, imposed by the management levels Up to now,

conservatives still believe that the reason for this development is that first of all,

employees must get used to living with the system while reforming, what is needed

will come by itself!

The sad thing is that many implementation consultants still think like that They do not

realize that, with the development of technology, application systems have really

changed and are integrated from the core The system is not only a connection between

separate components but is unified from the ground up, with tools to support workflow

management, openness, and easy connection to all other systems outside It is the

rapid development of the Internet that has driven the success of information systems

Users from every branch can easily access via a Web interface, on a single database for

the whole company or group, minimizing the risk of errors Connectable systems form

the supply chain; optimize the product life cycle from raw material suppliers,

manufacturers, and distribution systems to consumers

Business process restructuring is no longer a risky move with the help of technology

B Modernize the information technology system

The following criteria should be met:

Serving the new needs of customers

Building new cooperation models with suppliers Expanding distribution capabilitiesDevelopment of electronic translations

The ultimate application of process management

User friendly information technology system to increase work efficiency for users

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C ERP software in Vietnam

Businesses need to build an effective operating system based on the existingfoundation To do this, businesses inevitably restructure, moving towards a process-

based business model Restructuring is no longer a risky challenge, if you know how to

design a good process architecture before implementation Note, design responsibility

must be assigned to a really knowledgeable General Engineer (Business Process

Architecture) who best understands the efficiency of each process, planning the scale

of the business after the reform

When deciding to choose one of the ERP solutions of leading vendors (Oracle, SAP or Microsoft) for your business, these are thorny roses Most of these solutions are built on best

practice business models in the world, thus limiting the extent to which businesses can customize

themselves and impose the latest standards in financial management, distribution, production

This is a great opportunity for businesses to modernize, but also a big challenge to overcome the

familiar old models Successfully applying the solution that has been tested in the world means

raising the level of the business, not only of the business itself but also of all employees in the

company.

D Challenges for managers:

As ERP systems are increasingly replacing the role of people, business leaders are

always faced with new challenges:

The effectiveness of the work gradually no longer depends on the employee bonus level, but on how to avoid system crashes

Departments gradually lose the ability to organize and self-assess Any structural change must increasingly depend on the system

System upgrades and expansion should be viewed as a strategic investment rather than as an expense Funds for wrong investment in ERP system are difficult to recover, unlike asset investment The right assessment and decision

is required for an IT development project

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ERP systems do not self-correct, do not self-assess the quality of work, neither complain nor

decide More than that, it always requires a high level of supervision Leaders need to understand

that knowledge of managing employees or managing a part of an enterprise is no longer enough.

They need to deepen their research to be able to use the system's functions competently,

understand the support capabilities of IT, and how to make the most active contributions to the

system's development and improvement Managers must always instill: system upgrade solutions

must be how to increase the efficiency of the process instead of trying to squeeze more labor of

employees (when people only perform the tasks that the system cannot do) the system cannot

afford) For hundreds of years, enterprise management has been carried out on the organizational

structure Today, with the support of IT, for overall and consistent management, it is necessary

to supplement the system structure and process structure These 3 structures must work together

to create a unified and friendly management model.

1.3.2 Change Management (OCM)

A What is change management?

Change management is the process that guides businesses to prepare, plan, and

support individuals to successfully adopt change - with the goal of driving success and

improving business outcomes Each stage and company is unique – yet decades of

research have shown a number of strategies businesses can implement to influence the

personal transformation of employees

B Three levels of change management

- Managing personal change

Resistance to change is a natural human physiological response However, with the right support, each of us can learn to adapt and become more successful

At the individual level, managing change requires leaders - managers to understand how the transformation process takes place in each member - as well as

the necessary "catalysts" for this process More specifically, business leaders need to

identify answers to the following questions:

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- Your employees need to hear the

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CHAPTER 2: DIGITAL TRANSFORMATION PROCESS AT THE

COMPANY 2.1 Brief about the company:

Walmart is an American company operating in the retail industry, founded bySam Walton in 1962 However, before starting this chain of stores, Sam Walton

successfully owned a chain of stores as Ben Franklin Until Walton realized the new

trend was to reduce retail prices, based on selling large volumes of goods through

low-cost retail stores; he decided to open big stores, with features like warehouses to

compete He named this chain of 18 stores “Walmart Discount City”, based in

Arkansas By 1969, Walmart Stores Inc was officially born In 1991, Walmart began

to enter the international market with a joint venture with Cifra in the Mexican market

Two years later, the company acquired 122 stores from Woolworth, Canada In 1997,

Walmart became the largest retailer in Canada and Mexico That same year, Walmart

acquired the German chain of 21 hypermarkets Wertkauf Efforts to expand into the

international market were made when the company successively acquired or entered

into joint ventures with local distributors in countries such as Brazil, Argentina, China,

Korea, UK… By 2002, Walmart became a success the largest company in the world

by revenue as voted by Fortune magazine Since then, Walmart has always maintained

its leading position in the world retail industry

From Walmart's humble beginnings as a small discount retailer in Rogers,Arkansas, Walmart has opened thousands of stores in the US and expanded

internationally Through an extensible model that re-creates the storage formats that

power the communities that need them, Walmart is creating opportunities and

delivering value back to customers and communities around the world

In 2012 Walmart operated more than 11,000 retail units under 69 banners in 27countries They employ 2.2 million people worldwide and 1.4 million in the US alone

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Walmart's markets include the USA, Mexico, UK, Japan, Argentina, Brazil,Canada, China, and Puerto Rico, Walmart operates with more than 3,800 locations in

the US and more than 2,600 overseas

2.2 The evolution of Walmart's ERP system:

1988: Walmart invests in a 4-link information technology system including Walmart Store - Walmart corporate headquarters - Walmart Center - Suppliers

to determine inventory and allow suppliers to access the system their offsite network to track sales and adjust production plans

1991: Walmart invests $4 billion in building a contact system with retailers

Retailers use this system to control sales Details of daily transactions are processed through this system and made available to Walmart stores by 4 AM the next day

October 2001: Walmart partners with Atlas Trading to upgrade Walmart's Internet system to use MPP computer systems to store shipping and inventory levels.

2007: Walmart purchased an ERP Financials software package from SAP to handle the company's financial needs

2.2 ERP application in Walmart's supply chain management

A Sourcing Management:

The goods, after being purchased from suppliers, will be delivered to Walmart's

distribution system Here, goods will be stored for a short period of time and can

perform operations: packing, and labeling When a supplier's products are about to be

sold out, the system will automatically send a reminder to ship more products

B Transportation Management

Walmart equips its employees with a wireless communication system When employees deliver

goods from a distribution center to a Walmart store, they will continue to communicate via an

intercom to a nearby manufacturer, who will simultaneously pick up and return the item to the

center In addition, each employee is also equipped with a

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headset with a pre-programmed voice Thanks to that, they know the instructions at

work and it also reminds them and the work progress Walmart also uses productivity

meters to check employee productivity It's a computer system that checks how much

goods are loaded onto trucks per hour of work by workers at the center before being

shipped to Walmart stores

C Warehouse Management

Walmart uses sophisticated barcode technology and computer support for inventory management in its distribution centers Each employee has access to information about the inventory levels of all products in the center

Need to scan goods 2 times: Once to identify the lifting plate and the second time to identify the location of the export warehouse

The computer system will instruct the staff on the exact location of individual products in the warehouse, and when the system reports a product has been removed, the employee will confirm that information

The number of products required by the supply center will be entered into the computer and then updated to the server

The computer system also provides information on the storage, packaging, and transportation of products Along with that, allowing the center to closely monitor their employees to make the best decisions and guidance

Computer systems in Walmart stores identify low-stock items and send orders to the

supplier's nearest computer via satellite communications Store workers have a

handheld computer (Magic Wand) that is connected to the main computer system via

radio frequency, helping to record inventory, deliveries, and store goods at a central

level distribution Walmart also uses sophisticated algorithms to predict the exact

quantity of each item to be delivered based on store inventory levels Walmart also

uses a centralized inventory data system so that in-store employees know stock levels

and where each item is stored at any time

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2.3 Success of ERP application at Walmart:

Improve forecasting for all supply chain actors and facilitate sharing of forecast information

Capturing new market segments and reducing impact on existing stores

Reduce costs and time when doing business, thereby improving business efficiency as well as shortening product supply to the market

Improve the efficiency of supply chain operations, reduce the amount of inventory required

Provide online service capabilities

Create a competitive advantage on price Fast delivery

Information about goods is constantly updated and more complete

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Tiêu đề	Method of Implementation of Erp System in 5 Years (Npv) for Walmart
Tác giả	Phạm Thị Ngọc Giàu, Lê Tăng Tài, Trần Ngọc Bảo Yến
Người hướng dẫn	Trần Kim Toại
Trường học	University of Technology and Education
Chuyên ngành	Industrial Management
Thể loại	Project Report
Năm xuất bản	2022
Thành phố	Ho Chi Minh

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