Erp at Benetton

448 Words2 Pages
The ERP system at Benetton provides several benefits to its business. The ERP system allows Benetton to integrate the ordering, supply chain, production, and delivery processes. When an order is made by a sales agent, the ERP software can locate merchandise that is readily available and forward the remaining order to manufacturing. The completed items are stored in the warehouse with RFID tags where a robot can then automatically pick them for shipping. Benetton’s ERP system also incorporates a common database that ensures the same information is being reported to the various processes of the business. It provides timely and accurate inventory levels which, in turn, helps prevent overproduction in manufacturing and overstocking at the warehouse. The database also expedites production of orders and lets the shipping department notify customers of expected delivery times. The ERP at Benetton allows its buyers to better forecast demand for its products. The data from the ERP shows which items are selling better and in which geographical areas. Additionally, this information can also aid in the marketing of Benetton and its products in areas where it wants to improve its sales and/or brand image. The ERP system gives Benetton a distinct competitive advantage. It allows the company to begin producing items as soon as they are ordered, making them one of the fastest factories in the garment industry. The ERP also gives the company an extremely efficient distribution system that allows them to quickly and accurately ship 30,000 boxes per day to over 5000 worldwide outlets with only 19 employees in the entire distribution center. Though an ERP system can have major benefits, it can also have its drawbacks. Cost is a major factor in the implementation of an ERP system. The system used at Benetton is highly integrated into its day to day business. If the software
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