4th European International Conference on Industrial Engineering and Operations Management

IMPROVING THE PURCHASING ORDER PROCESS OF MODEL AUTO AND EQUIPMENT SUPPLIES INC. USING AN ENTERPRISE RESOURCE PLANNING (ERP) SOFTWARE

Grace Lorraine Intal, Lex Marco Paolo Miranda & Bonifacio De Jesus
Publisher: IEOM Society International
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Track: Undergradute Research Competition

Enterprise Resource Planning software is an essential tool for enterprises in the digital age. The study was conducted for Model Auto & Equipment Supplies Inc., an establishment that supplies and deals with all kinds and types of automotive parts, from light vehicles to heavy equipment whose purchasing processes are lacking in terms of automation and report generation. The researchers designed and simulated a future state of the purchasing processes that can generate various purchasing reports that can be significant for the company. Reduce the time needed of purchasing processes, improve the file organization of the company and Reduce the redundancy of processes with the help of an ERP system. The results showed that the future state of the processes can automatically generate various significant reports by the ERP Software that enables MODEL to monitor their purchasing habits and evaluate their suppliers, this feature of the ERP software will eliminate repetitive tasks. The Purchasing Item/Materials process’s VS ratio risen by 37.738%, from 57.500% to 95.238%, and the Request For Quotation (RFQ) Document Creation process the VS ratio is expected to rise by 8.967%, from 34.783% to 43.750%. Lead time for Purchasing Item/Materials process was reduced by 19 minutes while 7 minutes was reduced from the Request For Quotation (RFQ) Document Creation process. The physical storage will be replaced by virtual or cloud storage that will eliminate the risks and dilemmas that the current physical storage of MODEL is facing

Published in: 4th European International Conference on Industrial Engineering and Operations Management, Rome, Italy

Publisher: IEOM Society International
Date of Conference: August 2-5, 2021

ISBN: 978-1-7923-6127-2
ISSN/E-ISSN: 2169-8767