Riordan Business Solutions

In: Computers and Technology

Submitted By feenix
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Riordan’s Operations Department

After a thorough review of the Operations Department of Riordan Manufacturing, we have uncovered a few areas that would benefit from the addition of a robust business system to manage some of its functions. The first issue is a process that all four plants have in place for the management of receiving raw materials, tracking products during manufacturing, and accounting for the finished good inventories. During each of these phases, all of the data acquired to track the inventory is delivered or gathered through the use of various documents that are manually reviewed and input into a database by an inventory clerk. Not only is this process time consuming and inefficient, but it introduces the likelihood of human error into several junctures of its completion.

Another issue that we have uncovered has to do with supply chain management. Several of the plants have experienced some difficulty in managing its inventory and ensuring on time delivery to its customers. In order to operate more efficiently, Riordan has asked its customers to forecast its yearly requirements so that adequate quantities of supplies/products are available for shipment. What has been occurring though is that some customers make random orders throughout the year in addition to their yearly contract. This practice makes it difficult to estimate exact material requirements because the orders are received randomly and for varying quantities. Consequently, Riordan has been keeping a safety stock of its products and materials at their facilities.

At this juncture, we believe that the best solution to alleviate the issues that Riordan is experiencing is to implement an ERP (Enterprise Resource Planning) system. An ERP system is a business management tool that has the capability of integrating all facets of the business to include planning,…...

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