ERP Systems Essay

1.Explain the conditions or circumstances that would guide a union to use the IWM features for sale in spite of appearance SAP ERP. What capabilities does IWM add to the features operational within the Sales and Distribution, Materials Management, and merchandise intend and Execution atomic number 18as of SAP ERP?The conditions and circumstances that would drag a alliance to use the IWM features in inventorying(predicate) within SAP ERP are receivable to increased cost pressure, higher client expectations, shorter cycles of innovation and high differentiation of consumer goods within the same industry. Additionally, customers are demanding more competent authoritys of delivery. IWM features are able to advance timeliness and flexibility of deliveries. IWM has the capabilities to support progressively complex supply chains.There are many capabilities provided within the Sales and Distribution, Materials Management, and Production Planning and Execution areas. Some ca pabilities allow in the ability to track modulates and inventory in real time, display inventory value, instruction the movement of goods internally between plants, take off the transfer of goods, and creating sales orders pertaining to materials management and remembering warehouse management. Additionally, running bin status reports of goods in the warehouse, buying/selling goods internally by STOs and controlling the fulfillment process.2.What is the purpose of exploitation a stock acquit order? Why would a stock transport order be used preferably than an ordinary stock transfer, or a combination of sales order ( direct plant) and obtain order (receiving plant)?The purpose of a stock transport order (STO) is to request materials from another(prenominal) plant within the same phoner code instead of procuring the material from a normal vendor. Hence, one plant is purchase materials from another plant that sells the materials. Additionally, the IWM process is triggered by the STO from the manufacturing facility to a warehouse managed storage location. STOs are more complex in nature and can be performed with deliveries, without deliveries, and with deliveries and billing. A STO would be used instead of a purchase order. This is due to the plant acquire goods from the other plant as a transport under the same conjunction code.A purchase order is get goods/materials from a normal vendor, not a plant within the same company code. The same reasoning applies to the sales order. The sending plant is sending goods/materials to their customers, not a plant within the same company code. As for a stock transfer, they are used to transfer materials within a company from one location to another. Movements include within one plant, between plants, and etc line of merchandise transfers are a simple way of moving goods, not internal purchasing/selling of goods like STOs.