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Set of Business Systems

Essay by   •  July 6, 2011  •  Essay  •  250 Words (1 Pages)  •  1,722 Views

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Every company has a different set of business systems that it uses for its business to run successfully. Unfortunately, with technology and business changes, the systems in place need change more often then the company can change them. Sometimes companies just set aside the needs for change until the system becomes so outdated that it is impossible to deal with. Riordan Manufacturing has systems in operations, finance, accounting, human resources, legal, sales, and marketing that either do not work anymore for the company or are completely outdated. Since the buyout of the locations in Michigan and Georgia, current systems have cost the company too much money.

Operations

General Operations

The production and supply chain for Riordan Manufacturing is currently a manual process done mainly by paper. From the initial process of receiving raw materials to the final product that is deliverable to the customer, the current process is manually done. These manual processes can have negative effects caused by human error. Long term, this will lead to inventory loss, revenue loss, and ultimately increased production cost.

Currently, when employees receive or remove material from stock, they use a hardcopy form that is forwarded to various departments for processing. The physical transaction time involved decreases efficiency within every department, especially since every department has to enter this data into a respective database. Implementing a single online system that updates received, such as shipped and purchased items, can save valuable time processing this sort of information. Switching to an automated barcode scanner would eliminate human error.

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