IV. Discuss how their information systems help enhancing their effectiveness
SAP ERP System
The manage of Heineken said they are using SAP system for their management information system. SAP is a German-based software incorporate that stands for “Systems, Applications and Products in data processing” and offers developed enterprise resource planning (ERP) software to its customers. Heineken international company employs enterprise resource planning (ERP) software that executes the key function of an organization including accounting, sales and distribution, production planning, controlling, human resources etc. The whole business modules get integrated in one flow of informations so that all data are interconnected with each other. Therefore, it enables Heineken international company to get the effective use of resources such as reduced material cost, eliminated the duplication in data, increased production capacities, and better inventory quality etc. In this report, it investigates how Heineken enterprise’s information system facilitates to enhance the effectiveness through analyzing each department.
SAP ERP Overview of Heineken international incorporate:
SAP ERP Operations of Heineken international incorporate
SAP ERP Operation is handling the core process in business consisting of selling, producing, stocking, shopping and transporting input and output and is solely integrated in database (Jochen Böder). it includes the following modules:
Sales and Distribution (SD) : offers a complete sales management solution to the company and is one part of logistics that copes with the materials such as the making sales orders, checking of the availability of the demanded products, shipping and billing. It facilitates the Heineken international company to check and foresee overall sales price and requested orders etc. (Margaret Rouse, 2017)
Materials Management (MM) : is the backbone of logistics that assists to manage the procurement such as material management. It includes production planning, plant maintenance, verifying incoming invoices, warehouse management. In order to get high productivity and reduced costs, this function analyzes and examines that there is any shortage of materials or any gap in between supply and demand chain process.
Production Planning (PP) : creates the plan of production, execution, and monitoring and mainly uses in the manufacturing area. It is consisting of routing which is about scheduling of operations, work center, material master, and bill of materials (BOM). This production planning process enables company to plan for increased revenue growth and ensures customers to deliver products or services on time (Rouse M., 2017).
Logistics Execution (LE) : deals with the controlling and organizing the migration of materials including warehouse management, shipping, and transportations (Jochen Böder).
Quality Management (QM) : is a combined component of supply chain and logistics functions including quality planning, materials management, quality inspection and quality control (Jochen Böder). This quality management process helps to detect and prevent negative issues before they take place.
SAP ERP Financials of Heineken international incorporate
SAP Financial modules enable company to create the financial truth and offer real-time capability across other functions. It consists of following components:
Financial Accounting (FI): provides a real-time financial transaction to the company and facilitates to identify the financial conditions in the market. It has sub-components such as general ledger, accounts receivable, accounts payable, and bank accounting etc. This module documents every business transactions, and creates not only the balance sheets but also the profit and loss financial statements.(Jochen Böder) Therefore, company enables to do effective decision making.
Management Accounting (CO): is dealing with the internal flow of costs and revenues within a company and helps to support management decisions. It includes cost center accounting, internal orders, product costing, and profitability analysis etc. The CEO or CFO in organizations makes organizational decision based on this module as well.
Financial Supply Chain Management (FSCM): anticipates cash flow and reduces working capital as well as operating expenses through analyzing the financial and information flow between the company and its business partners.
SAP ERP Human Capital Management of Heineken international incorporate
SAP human capital management develops an organized management in the company and helps to reduce manual work and increase productivity. It has the following sub-components:
Organizational Management : is dealing with the human resources to provide different kinds of work to employee under same platform. It ensures people in the organization to manage their time efficiently and jobs effectively trough giving their own ID, name, and designations etc.
E-Recruitment : is based on web-based recruiting process and an innovative way of hiring the employee. It does not demand for the redesign of the entire process and supports to maximize the recruitment process.
Time management : records and identifies the whole human resource things such as absence, presence, wages, log-in and log-out report etc. through cloud deployment, and automated time and attendance management. It helps optimize their work-time scheduling and analyzing the daily costs for each person in the organization.