Development suggestions 32

In this chapter, the author suggested the improvement actions to VuHai Company’s supply chain in order to help them to achieve the supply chain activities. The first suggestion was implementing the ERP software package. The author studied different ERP software packages and suggest the best and the most suitable one for the case company. On the other hand, the research suggested the company should have more training sections for their employees in using and applying the new technology tools in their working processes. The use of high technology in supply chain would help

company to reduce and eliminate the human mistakes and errors that may cause due to the old traditional working method.

6.2.1 Improving information flow process

Regarding to many problems in VuHai Company’s supply chain i.e. missing or lost information data during information flow, system not flexible enough under processes’ exceptional circumstances and special needs of a company not defined; it is very

needed for the company to implement an ERP software package.

ERP software package help to link all functions of an organization including order management, manufacturing, human resources, financial systems, and distribution with external suppliers and customers into a tight integrated system with shared data and visibility after implementing successfully. Thus, the suggestion of implementing ERP software package in VuHai Company’s supply chain is to help them to create a well- organized business process management, evaluating their supply chain activity, controlling the inventory and letting all departments work more efficiency. ERP software leads VuHai Company manage their production capacity planning and control, so that the scheduling and resource allocation for different orders can be planned in detail before the products are shipped. Furthermore, the new ERP software is also included the warehouse and stock management functions. Thus the company’s current inventory problems will be reduced and controlled.

In order to choose the right ERP software package for VuHai Company, the author have studied through different ERP software options for medium sized manufacturing companies. There are three options which can be the most suitable for VuHai

Company: Epicor manufacturing ERP software (Express Edition), Fishbowl

manufacturing ERP software (Inventory) or Intuitive manufacturing ERP software.

All of these systems help mid-sized enterprises manage the manufacturing process from quote to final shipment. They all offer a complete package to automate the core functions of make-to-order, make-to-stock, and repetitive manufacturing firms. They are all fairly easy to implement and have good feedback from customers.

In the following table, the functions that each ERP software package offers were presented:

Table 2. The functionality of different ERP software packages (Barcoding, 2012)

Features Epicor Express Fishbowl

Inventory Intuitive ERP

Financing/Accounting X X Assess Management Material Planning X X X Manufacturing Excution System X X X Supply Chain Management X X X Supplier Management X X X

Product Life Cycle

Management X X X Customer Relationship Management X Human resources X

Epicor might be the best option for VuHai Company due to the system’s popularity, functional depth and breadth. It is a fully integrated ERP solution with extensive functionality for accounting, inventory control, pre-production materials planning and manufacturing execution – covering all the current problem areas within the VuHai Company’s supply chain. (Softwareadvice 2012.)

6.2.2 Improving the working method

With the purpose of emphasizing on cutting cost and streamlining expenses, the

researcher suggest the company to improve their method of working in order to have a more effective supply chain. According to the interviews, many employees involved in the company’s supply chain do not have good skills in using electronic tools or

software tools during their jobs and the company’s IT systems are not up-to-date. The lack of using high technology skills and knowledge of employees in VuHai

Company affects to the quality of supply chain. Using the high technology through the use of web-based software and communication leads the supply chain performance reaching its full potential, i.e. the use of electronic mail makes the exchange of data and the running of the supply chain faster.

The company should encourage and have training sections for their employees to use high technology tools instead of using paper documents in order to speed up the working processes, save costs and minimize human mistakes.

6.3 Suggestion for further research

This research was mainly focus on the outbound logistics of the company’s supply chain. Thus, the further research could be the assessment of suppliers’ performance, how to enhance the relationship and work well together to have efficiency supply chain.

Implementing the ERP system was suggested to improve the company’s supply chain performance. Even the ERP systems help to link all functions of an organization including order management, manufacturing, human resources, financial systems, and distribution with external suppliers and customers into a tight integrated system with shared data and visibility after implementing successfully. However, the facts about many companies purchase ERP package but not all of them succeed in implementing the system. This is why the author suggests the further research for VuHai Company on the choosing of the right vendor and how to implement the ERP successfully in the

company supply chain.