Enterprise Systems Assessment - Essay Example

89). In order to understand the correlation between Argos as a company and how it functions as an enterprise system, we will have to define some few terms and concepts. It is important to point out that SAP is constantly changing the SRM framework. More often than not it is introducing innovative concepts that are useful in arranging the components of SRM. Basically, there are three core concepts that we have to understand. They include, supply process, business scenarios within each key process, and fundamental technology constituents that are useful in enabling the business processes.

It is worth noting that Argos have implemented each business scenario, with one or two SAP elements and there third party applications as they maybe required. An example is the Supplier Enablement scenario is through empowering it with a number of underlying technological components. These components include, Supplier Self Service (SUS), Biller Direct, Enterprise Portal, and inventory Collaboration Hub (ICH). Argos stores all over the UK have achieved in implementing this business scenario (SAP.

COM, 2013, p.1). Production Process at Argos SAP has defined three key supply processes that are involved in purchasing. These processes will jointly constitute the SAP SRM solutions. They include; operational procurement, strategic sourcing, and supplier enablement. Operational Procurement In this section, we will be looking at the various business scenarios that Argos has been successful in implementing. We start with the self service procurement. When it comes to indirect procurement, it allows ones employees to create and manage their own obligation requests.

This has been key in relieving it’s purchasing department the huge administrative burden while ensuring at the same time that the procurement processing are faster and responsive. The next scenario is the plan driven procurement also known as the direct procurement. This has been great at automating and streamlining the ordering processes for regularly needed important materials (SAP.COM, 2013, p.1). It is a known fact that SAP SRM has been integrated with planning, designing and the order processing systems.

This has made it possible for Argos to link its procurement process with their plan driven strategy. This ensures that they get the materials they need for their key business while at the same time processing and delivering their clients request. Direct procurement does integrate flawlessly with most back end systems like enterprise planning and production. This scenario has given Argos procurement division a chance to integrate operational procurement with their existing supply chain management solution.

The last scenario is the service procurement or as it is commonly known as the E-procurement. It has created many opportunities for Argos to save cots in their purchasing process. They have gone the extra mile of extending their cost saving measures like services given that this account for over 50 percent of their annual purchasing volumes. This scenario has provided services that have led to a reduction in labor costs, consulting, and maintenance and facility management. Strategic Sourcing After the 2008 world economic crisis, it is estimated that sourcing makes up for 75 percent of one saving on