Enterprise Resource Planning (ERP) solutions are essential for all types of businesses, especially those that are growing or very large.
Businesses turn to software vendors to help them manage all kinds of corporate resources. Some of the most important needs fall into the categories of accounting, financial analysis, human resource management, customer relations, manufacturing, supply chain and inventory management. Some of the biggest solution providers include Oracle, IBM, SAP, Salesforce and Microsoft.
Below are some ERP success stories to help you understand the key challenges and goals of some companies in this space.
Key points to remember
- The choice of the Oracle ERP Cloud solution allowed Western Digital to merge three companies.
- In 2018, Walmart announced a five-year agreement with Microsoft for Microsoft Azure, which creates a framework for several ERP systems.
- The TD Bank group of companies has also contracted with Microsoft Azure for a cloud framework that can integrate multiple capabilities and create more opportunities for digital innovation.
Western Digital is a technology company with offerings in data, data storage, data systems and data solutions. A merger of Western Digital, SanDisk and HGST was a big challenge for the company around 2019. With the merger, Western Digital wanted to centralize the ERP so that the three companies could work better together.
After final deliberations between two vendors, the company opted for the Oracle ERP cloud. This choice also followed an Oracle product suite comprising performance management and analytics solutions, all integrated together.
Key benefits of choosing Oracle included integrations from all three companies in the following areas:
- Cost center management
- Computer science
- Human Resource Management
- Payroll processing
- Streamlined systems for forecasting business analytics and forecasts
- Workforce planning
- Complete dashboards and automated reports
- Improved customer relationship analysis
- The systems all operate efficiently in the cloud to facilitate document accessibility and management
walmart is one of the ten largest companies in the United States by market capitalization. The company’s sales are around $500 billion a year, nearly double that of its nearest competitor, Amazon.
The company operates globally with brick-and-mortar supercenters, discount stores and neighborhood markets. It owns hundreds of brands, including the famous Sam’s Club. To properly stock its shelves, it works with thousands of suppliers. Its e-commerce business is also a giant, with a long list of partnerships with online sellers. The sheer size of Walmart’s business is one of its biggest advantages, but also ERP challenges.
Walmart works with many ERP vendors. In 2018, however, it announced a strategic partnership to build digital transformation through Microsoft Azure. Expectations regarding the Microsoft Azure relationship include:
- Plans for creating a cloud-based enterprise system that serves as a framework for managing all of its resources
- The ability to connect existing ERP applications to the Microsoft Azure framework
- Microsoft 365 integration
- Wider and more effective opportunities for e-commerce
- Wider opportunities for automated storage abilities
- The use of artificial intelligence for supplier relations
- Integration with SAP Hana and other legacy inventory management solutions
- Integration with blockchain-based solutions that evolve
TD Bank Group
A migration to a strong cloud framework has also been driving a relationship between TD Bank and Microsoft for Microsoft Azure ERP. For TD Bank Group, some of its biggest challenges center around digital storage and the digital customer experience.
Along with Microsoft Azure, TD Bank Group will also integrate Office 365. Some of the biggest benefits TD Bank will derive from its relationship with Azure include:
- Improvements to derivatives pricing and risk management for TD Securities
- Integrations for its proprietary data and analytics database used in interbank reporting
- Integrations with artificial intelligence developments through its Layer 6 subsidiary
- Greater management possibilities TD Bank Customer Relationships and Digital Experiences
ERP systems are usually expensive projects with high costs and varying lead times. Often the commitment to an ERP system is one that a company hopes to maintain for the long term. Overall, a company can use many different ERP solutions and vendors, which can create a lot of compatibility complexity.