In this part an analysis will be performed on the case study of a specific organization in order to determine the usefulness of an enterprise resource planning system in improving the supply chain.
OZS (Odlewnia Żeliwa Śrem) is the leading Iron foundry among three major foundries of Poland. More than 1,450 employees are working with this organization and approximately 50 thousand castings are being produced each year. It has faced many challenges during the last twenty years that resulted in an extreme level of re-structuring processes for achieving process efficiencies. For this purpose, it began to employ a new system in 2000 within the firm that was Enterprise Resource Planning or in short, “ERP”. The decision of employing ERP had some strategic reasons. It was supposed to bring about two major effects. One effect would be the considerable decline in inventory cost and enhancement of production volume by re-organizing the business procedures more proficiently. Another effect of improvement in the management ways and business procedures would be the result of decreasing ambiguousness in operations (e-Business Watch, 2008).
OZS is involved in the export of its partial yield to different countries, such as the Netherlands, United Kingdom, Germany, France and all around the Scandinavian Countries. It has occupied nine percent market segment in the steel market of Poland. Steel industry of Poland had faced many contests over the previous years and so faced by OZS too. The reasons for such challenges were the emergence of Globalization and being a member of the European Union. It created such a trade area for OZS that was free from the restrictions which enhanced the competition with foreign companies. In addition to this, privatization of OZS in 1999 created an extra burden for enhancing the production volume and downsizing the employees that was only possible by restructuring the company’s processes. So, this pressure