Essay about Yowasap

716 Words Jun 6th, 2015 3 Pages
CASE SUMMARY Summit electric supply is one of the top wholesale industrial electric distributors in US. The product range is from basic commodities to sophisticated electrical components. It provides many value-added services that help electrical contractors purchase electrical supplies efficiently. Founded in 1977 in Albuquerque, New Mexico and has grown very quickly. Unfortunately, its old legacy information system could not keep up with the business. The old system could no longer process its nightly inventory and financial updates. Summit needed a system that could handle a very large number of SKUs. Changed to new system ERP which is SAP that would require improve its business process and the way people worked.

1. Which
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Distribution industry has some unique aspects that drive its business. The company has a very large number of SKUs (Stock-keeping –units) and transaction (very short lead times). Inventory distributed in various models, including at customer job sites. In the distribution business, the lead times for fulfilling an order can be only minutes.
2. What problems did Summit have with its old systems? What was the business impact of problems?
Summit Electronics is a major corporation, which began in 1977. It developed it’s own legacy information systems in the 1980’s, but the rapid growth of the business quickly outpaced its IT systems – and this left a very high degree of outmoded systems with high fragmentation. For example, the legacy system built exclusively for sales entries and purchase orders is completely separate from the system, which handles back-end reporting.
The problem with this type of system is that integration and response time suffer greatly. Batch processing the data from the two systems into an integrated database was a manual process which drained efficiency. The system was only able to handle a certain finite number of locations and only had a limited number range for documents which created a problem of having to reuse numbers from period to period. This created not only confusion but the company was also unable to process financial updates

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