Blue Dog Inc Analysis

* Discuss potential benefits of implementing the ERP system. Address (among other aspects) the company's specific objectives of inventory management and production cost control.

Some of the potential benefits of implementing an enterprise resource planning system are:

1. Integration

2. Efficiency

3. Cost Reduction

4. Less Personnel

5. Accuracy

Implementing an enterprise resource planning system will help Blue Dog Inc. take control of its inventory by automatically managing the production, sales, shipping, and billing while lowering the need for a large staff. An ERP system also provides the sell history and trends of sunglasses; as well as customer information and buying power. An ERP system will allow Blue Dog to have instantaneous, efficient, and accurate access to their inventory at any point which will help meet high customer demand. An integrated, decision-making ERP system is a great value-added asset. All information is visible to company departments which results in quicker and more efficient communication.

By using an ERP system, Blue Dog's inventory will no longer be monitored manually or by paper. Its inventory will be stored in a database that consists of physical inventory counts, costs, vendor information, and lead-times for manufacturing. An ERP system will allow Blue Dog to consistently monitor and adjust production levels, to delivery fast and reliable products to the market in a reduced time frame. Waste and the high cost to manufacture products and monitor inventory is tremendously reduced with the implementation of an ERP system. A shortened production life cycle is necessary to remain competitive and to meet customer demand. If Blue Dog has the ability to quickly covert its products to match changing demand, it will remain a competitive leader. Blue Dog will be able to make better decisions for production, marketing, and forecasting with the visibility of real time information provided by ERP.

Since ERP enables Blue Dog to integrate all of its departments into one system, employees are able to share information across a centralized database which lessens the chance for miscommunication and redundancy. This integration also lowers the need to utilize a large staff. More consistent data and communication provides a global view of the business which will lead to continuous improvement strategies by helping Blue Dog to establish consistent measurable performance metrics. The unnecessary paper trails, material costs, and other expenditures will be streamlined which in turn will allow Blue Dog to focus more on research and business expansion. An ERP system also allows the implementation of other systems such as supply chain management, customer relationship