Colgate-Palmolive: The Business Value of ERP Colgate-Palmolive is a global consumer products company that implemented the SAP R/3 enterprise resource planning system. Colgate embarked on an implementation of SAP R/3 to allow the company to access more timely and accurate data, get the most out of working capital, and reduce manufacturing costs. An important factor for Colgate was whether it could use the software across the entire spectrum of the business. Colgate needed the ability to coordinate globally and act locally. The implementation of SAP across the Colgate supply chain contributed to increased profitability. Now installed in operations that produce most of Colgate's worldwide sales, SAP was expanded to all Colgate divisions worldwide. Global efficiencies in purchasing - combined with product and packaging standardization - also produced large savings. Before ERP, it took Colgate U.S. anywhere from one to five days to acquire an order, and another one to two days to process the order. Now, order acquisition and processing combined take four hours, not up to seven days. Distribution planning and picking used to take up to four days; today, they take 14 hours. In total, the order-to-delivery time has been cut to half. Before ERP, on-time deliveries used to occur only 91.5 percent of the time and cases ordered were delivered correctly 97.5 percent of the time. After R/3, the figure are 97.5 percent and 99.0 percent, respectively. After ERP, domestic inventories have dropped by one-third, and receivable outstanding have dropped to 22.4 days from 31.4. Working capital as a percentage of sales has plummeted to 6.3 percent from 11.3 percent. Total delivered cost per case has been reduced by nearly 10 percent. Answer the following questions. 1.What are the benefits which were achieved by the implementation of SAP R/3 to Colgate Palmolive ? 2.Suppose Colgate-Palmolive decides to implement the CRM module of SAP, what additional benefits can they achieve through CRM?
Colgate-Palmolive: The Business Value of ERP
Colgate-Palmolive is a global consumer products company that implemented the SAP R/3 enterprise resource planning system. Colgate embarked on an implementation of SAP R/3 to allow the company to access more timely and accurate data, get the most out of working capital, and reduce
Before ERP, it took Colgate U.S. anywhere from one to five days to acquire an order, and another one to two days to process the order. Now, order acquisition and processing combined take four hours, not up to seven days. Distribution planning and picking used to take up to four days; today, they take 14 hours. In total, the order-to-delivery time has been cut to half. Before ERP, on-time deliveries used to occur only 91.5 percent of the time and cases ordered were delivered correctly 97.5 percent of the time. After R/3, the figure are 97.5 percent and 99.0 percent, respectively.
After ERP, domestic inventories have dropped by one-third, and receivable outstanding have dropped to 22.4 days from 31.4. Working capital as a percentage of sales has plummeted to 6.3 percent from 11.3 percent. Total delivered cost per case has been reduced by nearly 10 percent.
Answer the following questions.
1.What are the benefits which were achieved by the implementation of SAP R/3 to Colgate Palmolive ?
2.Suppose Colgate-Palmolive decides to implement the CRM module of SAP, what additional benefits can they achieve through CRM?
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