GROUP MEMBERS

1. Arni B. Hj. Morshidi P14D461P

2. Anisah Bt Ismail P14D389P

3. Syarifah Rohaya Bt Wan Idris P14D397P

4. Dayang Adelina Bt Hj Abang Muan P14D394P

5. Norhana Aini Bt Saini P14D398P

Top wholesale distributors of industrial electrical

equipment and supplies

Founded in 1977 in Albuquerque, New

Mexico

A “middle man”

3 divisions: Global export – Houston, Marine – New

Orleans, Sales - Dubai

A legacy information system not keep up with the business

DONE MANUALLY

• Only handle a fixed number of locations and limited of numbers used on documents

IS DEPARTMENT

• Had to use the same range of document numbers over again every few months

Summit needed a system that could handle a very large number of SKUs

Changed to new system ERP provided by SAP

• That would require improve its business process and the way people worked.

• Which business processes are the most important at Summit Electric Supply? Why?

• What problems did Summit have with its old systems? What was the business impact of those problems?

• How did Summit’s ERP system improve operational efficiency and decision making? Give several examples.

• Describe two ways in which Summit’s customers benefit from the new ERP system.

• Diagram Summit’s old and new process for handling chargeback.

the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.

• Summit Electric Supply is one of the top wholesale distributors of industrial electrical equipment and supplies in U.S.

• Distributes products that include motor control, wire and cable and etc.

• As a “middle man” – obtains finished goods from manufacturers and sell them to electrical contractors working on projects

• Handle a very large number of SKUs transaction in a very short lead times

• Which business processes are the most important at Summit Electric Supply? Why?

ERP SYSTEM

• A packaged business software system that enables a company to manage the efficient and effective use of its resources.

SAP APPLICATION

• SAP is a core ERP application and the best practices function in sale and distribution, materials management, Human Resources and Financials and its knowledge in distribution business.

• SAP’s Net Weaver support Summit Electronic more organize and be able to control how much was needed to be produced and distributed.

• It’s useful for business intelligence reporting and analysis.

BATCH MANAGEMENT

• It is a software that treats a wire reel a batch rather than single as single products.

• It used to cater high demand for wires and cable products.

Used separate systems for orders and financial

So that, the data could not be easily combined for business intelligence

reporting and analysis

The integration between sales entries and purchase

order and back-end reporting.

Only handle a fixed number of locations and limited range of numbers that could be used

on documents

I.S Department had to use the same range of

document numbers over again every few months.

• What problems did Summit have with its old systems? What was the business impact of those problems?

The system was not able to keep up with the fast growing business.

Not able to handle the volume and complexity of the company’s chargeback agreements and reporting capabilities were limited

ERP improved operational efficiency and give scalability and the ability in Summit’s business process

Especially in supply chain areas like sales and distribution, inventory management and financial reporting system - as the company expected strong growth in these areas.

• How did Summit’s ERP system improve operational efficiency and decision making? Give several examples.

• It’s running smaller and frequent inventory update throughout the day, instead of a night-which caused a delay.

• New system provided accurate information of shipping order, which Summit’s was able to ship immediately.

Running more frequent inventory updates

• To replenish wire and cable, the ERP batch material management identified the customer purchase amount, length of wire and product manufacturer.

• Each time a customer buys a length of wire, the length is entered into the system to track how much of the “batch” was sold.

Adapting the inventory tracking process

• To secure inventory for special customers, with long term projects, Summit created a “parent- child” warehouse relationship in ERP system to secure the materials in inventory as well as on premises.

Changing how inventory is managed at job sites

• To make a better manage its finance and ordering system, Summit implemented the SAP’s/NetWeaver BW data warehouse and business intelligence.

• By integrating the NetWeaver, Summit was able to analyze the profit of each sales person, manufacturer, customer and branch.

• Using SAP software, Summit was able to improve its ROI, by automating sales tax and chargeback’s.

• The SAP/Paybacks and Chargeback’s application was able to identify the billing activity, if there was a chargeback, the SAP system would automatically submit the information to bill the chargeback- increase its chargeback claims of up to 118%.

• Summit decision making for implementing the new ERP system was based on the growth of the organization, the complexities of processing orders, analyzing finances and back and reporting.

• Once the new ERP/SAP was in place, Summit management was able to focus on sales and orders and quotes, supplier performance and delivery schedule.

• The new SAP/ERP has allowed Summit to run its operations with flexibility and allow the SAP to operate efficiently.

• The new ERP system allowed management to have a greater vision for decision making and managing its operations

Business intelligence

Customer can rely on the company for their needs and products

• The company now more efficient• The company wants that customers to feel that they can provide

that they have produced products the customer want and sent to them in short time period.

To accommodate large customers with long term job sites

• SES sets up temporary warehouse on site to supply electrical products. • Create “parent – child” warehouse relationship – to able to work with

customers. • The warehouse can be controlled like subparts of the main SES

warehouse.• It helps to prevent anybody from selling the consigned inventory into the

warehouse.

• Describe two ways in which Summit’s customers benefit from the new ERP system.

Chargeback is the return of funds to a consumer.

The chargeback mechanism exists primarily for consumer protection.

For the distribution company, chargeback occurs when the supplier sells a product at a higher price to the distributor than the price they have set with the end user.

• Diagram Summit’s old and new process for handling chargeback

Look through customers

invoices

Identify specific manufacturer which Summit

chargeback could claim

Input data manually in Excel

spreadsheet

Submit paper copies of invoices

to vendors

Received responds from vendors

End of process

All chargeback agreement loaded in

SAP system

System review billing activity and do a

matching to create a separate chargeback

documents

Automatically submit the information and

chargeback document to identified vendor

End of process