ENTERPRISE RESOURCE PLANNING
CIA – 1
REPORT ON
PROCESS MAPPING AND BUSINESS PROCESS REENGINEERING
Under the Guidance of
SUBMITTED BY,
MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY),
BANGALORE MARCH 2022
INTRODUCTION:
The Coca-Cola Company is the world's largest beverage company. The company employs
nearly 72,000 people worldwide and operates 143 manufacturing plants. The company's
assets include 55,000 trucks and 2.4 million coolers, beverage dispensers, and vending
machines (Coca-Cola Enterprises Embraces Microsoft Software-plus-Services to Unify Its
Workforce, 2009). However, as completion rates rise, personnel are on the move to connect
with customers, allowing for more efficient information flow. Changes are required to join
forces with its employees for increased productivity, improved information flow, and
effective customer engagement, as the majority of its employees spend more time travelling
to meet and satisfy customer needs, necessitating the use of enterprise resource planning.
(Coca-Cola Enterprises Embraces Microsoft Software-plus-Services to Unify Its Workforce,
2009).
COMPANY PROFILE
Industries Served Beverages
Geographic areas served World-wide
Headquarters Atlanta, Georgia, US.
Current CEO James Quincey
Revenue($M) $37,802
Profit($M) $8,813
Market Value($M) $261,109
Employees 80,300
ORGANIZATIONAL STRUCTURE
The worldwide structure of Coca-Cola has required the corporation to restructure and continue to
accommodate control efforts. Coco-cola reorganized its geographical divisions to incorporate the
controlling group, such as Latin and European American. Coca-global Cola's reach has resulted in a
wide range of goods and implementation strategies. The Coca-Cola Company operates
predominantly with a centralized structure, however decentralization has been adopted in areas
where it is necessary.
In terms of organizational complexity, Coca-Cola is "Tall." Coca-Cola is governed by a vertical
hierarchy, with higher management having ultimate decision-making authority. Line managers at
the middle level make daily and regular decisions.
BUSINESS FUNCTIONS OF COCO COLA
On the basis of functional approach the Coco Cola Company is divided into different departments.
Employees are grouped based on their common skills and work activities. Such an approach assists
the company in resolving problems and reduces the need for special training for employees. Because
the general manager is in charge of all departments in the Coco Cola Company, all departments
should report to him. There are five major departments in the company which are as follows:
Production Department - The production department contributes to the improvement of the
products. Managers assist others in the production department with their work and guide
them through their responsibilities. This department oversees the entire company's
production. Coca-Cola produces more than 48,000 drinks per hour.
Industrial Relation Department – This department assists them in maintaining control over
the communication between functions. They are in charge of both internal and external
communications. It aids in the successful production of products as well as the efficiency of
the business. It also addresses the issues of the employees. The department listens to
employee complaints and resolve them and prevent them from impeding the company's
progress.
Sales and Marketing Department – This department ensures that the product is easily
available in the market for customers to purchase and deals with the issues of advertisement,
promotion, and distribution of the product. In 2002, Coca-Cola spent approximately $569
million on advertisements. This demonstrates that they put a lot of time, money, and ideas
into the advertisements, and they made money based on the number of drinks sold, with the
target audience varying with the different drinks.
Human Capital Department – Human resources is in charge of finding the best people for the
best jobs. They also construct a framework to aid in their identification. They increase
employee productivity by providing various trainings and protecting the company from any
problems that may arise within the workforce.
Finance Department – The department is concerned with the cost and price of the company's
products. It also addresses the company's import-related issues. In marketing invoices and
payroll entries, the finance department is assisted by the sales and marketing departments.
Implementation of ERP to Coca-Cola Company:
Implementation of Coca-Cola can bring in the following benefits:
● Coca-Cola Company now has a company-wide intranet connection as a result of the ERP
system implementation. This has aided the company's global communication and
collaboration on corporate strategies.
● Coca-ERP Cola's deployment would boost the company's effectiveness with remote team
members. Workers at any company, in reality, require connectivity to the company's
headquarters and other sub-units. ERP saves employees time and money on travel,
making it easier to connect.
● ERP allows accounts employees to manage payment processing and invoicing more
easily because it integrates several operations such as accounting, procurement, and
human resources into one. This increases the firm's production while reducing its reliance
on humans for such tasks.
● Through the provision of online formats for enquiring and entering information, ERP
eliminates paper work. In big corporations like Coca-Cola, such cost-cutting strategies
would be significant. Furthermore, because the system allows for daily data entry, it
improves the efficiency of information posting.
● The implementation of an ERP system improves the accuracy of information capture with
complex contents, allowing for easy comparison. Furthermore, it gives a single point of
contact for customers, allowing for more efficient reaction times and follow-up on
consumer complaints, as well as the analysis of market developments. 2004 (O'Leary)
FINANCE MODULE:
Financial accounting aims to provide external decision-makers with financial data in the form
of periodic financial statements. General ledger, accounts receivable, credit management,
accounts payable, and cash management are all included in the Financial Accounting
curriculum. Management accounting is a feature that offers accounting information to
internal decision-makers. They can make better business judgments as they plan, review, and
oversee the organisation, ensuring proper resource allocation and responsibility.
Financial accounting is the periodic reporting of an organization's financial situation and
performance through financial statements to external users. Stockholders, tax authorities,
regulators, financial analysts, creditors, and the general investing public are among the
external decision-makers. Financial statements are typically prepared at least once a year for
internal users and periodically for external customers. An ERP system's Financial Accounting
module is used to do this.
As Is model:
FINANCE AS-IS BUSINESS PROCESS
In an organization the Finance module plays an important role in completion of any
functionality. The sales and Distribution, Procurement or Purchase, HRM etc. eventually lead
to the Finance module for the allocation of funds and also the proper accounting of cash
flows involved in their corresponding activities.
Functions in Finance Module:
Accounts Payable Module (AP) - This module allows you to enter, monitor, maintain, and
process invoices and credit notes received from vendors. The following are the main features
of this module:
● Incoming bills are immediately registered.
● Incoming invoices are tracked and authorised.
● Order-based and other invoices are entered.
● Invoices and receipts are automatically matched.
AR (Accounts Receivable) - This module aids in the tracking of all bills awaiting payment
from clients. The following are the main features of ACR:
● Classification of accounts for reconciliation and control.
● Credit management using the internet.
● Letters of reminder with varied degrees of seriousness.
● Reports on Aging Analysis are available for evaluation.
● Interest is charged on late payments.
Asset Accounting
In addition to processing incoming and outgoing payments, it allows for bank master data
management and cash balance monitoring. You can freely define all country-specific
attributes using this. These are some of them:
● Payment mechanisms, both manual and electronic, are specified.
● Forms of payment, etc.
General Ledger Posting
Recording detailed accounting transactions in the general ledger is what posting to the
general ledger entails. It entails gathering financial transactions from specialized ledgers and
transmitting the data to the general ledger.
In the As in Model used in Coca Cola, most of the activities involved are done manually
leading to human errors, inefficiency and time consumption. Hence a To-Be model has been
proposed to overcome these constraints.
Finance To-Be Business Process:
FINANCE TO-BE BUSINESS PROCESS
The aim of the proposed To-Be model is:
Automating few processes with the help of ERP enabled forms and reports which was
otherwise carried out manually in the As-Is model.
To leverage the potential benefits of incorporating enterprise systems, big data, and data
analytics into managerial accounting, as well as providing a management accounting data
analytics framework that incorporates these concepts and methodologies using the balanced
scorecard's four viewpoints.
The processes such as Goods Receipt of Fixed Asset, Invoicing and Sales order creation has been
automated. These eventually lead to the finance module which is made efficient with the
involvement of management accounting and technologies like Big Data Analytics which help in
decision making. This is a step taken towards business process reengineering.
Management accountant’s traditional responsibilities included financial planning, budgeting, and
product profitability. Management accounting's focus has changed to financial performance
drivers, channel profitability, enterprise performance management, predictive accounting, and
business analytics in recent years. Enterprise systems have been used by management accountants
to generate reports, but they have overlooked its ability to provide more forward-looking
(predictive) data. Management accounting is divided into three parts in the MADA framework:
● Cost accounting
● performance measurement
● Planning and decision making
Internal data is the focus of cost accounting in order to develop financial reporting. Internal data is
also utilized to measure performance, however external data might be used for benchmarking. The
internal data generated through cost accounting and performance measurement, as well as relevant
external data that is often unstructured, are the focus of planning and decision making. All three
areas can benefit from data analytics: For cost accounting, descriptive analytic tools are useful; for
performance evaluation, both descriptive and predictive tools are employed; and for planning and
decision making, all three tools, descriptive, predictive, and prescriptive, are used.
Management Accounting
Accounting standards and regulations must be followed by financial accounting, but not by
management accounting. Furthermore, since financial accounting primarily communicates
historical information about previous transactional activity, management accounting generates
more forward-looking data.
Cost accounting, a subset of management accounting that establishes the budget and actual costs
of operations, processes, departments, or products, as well as evaluates variations and profitability,
is one of its key duties.
The emphasis is largely on "slicing and dicing" financial data to provide additional context for
management. The Management Accounting module can be used for a number of things including:
● performance management
● designing, evaluating and optimizing business processes
● budgeting and forecasting
● risk management
SALES MODULE:
ERP automates sales and distribution processes such as setting up appointments with clients,
following up with them, and assessing competitors, among other things.
Businesses can complete their sales operations, record documents such as agreements, invoices,
and orders, manage their accounts, update records, and more with an accurate sales management
Module. As a result, it is possible to have complete visibility into the order-to-cash process, be
able to spot cross-sell and up-sell opportunities, limit expenses, and optimize your customer-
focused business.
One can have active control over the sales department using this [Link] trading
information, such as payment conditions, offers, and special shipment information, can be easily
generated and stored in the contact [Link] sales and distribution process productivity
allows and empowers the sales force to remain competitive.
Functions of Sales Module:
Quotation:
A quotation is prepared in response to a customer's request.A quotation can be made for
either a standard or a custom item.
The system suggests payment terms based on the customer's credit score, and the delivery date is
determined using the inventory modules available to Promise (ATP) data. Each item of the
quotation's price and discount amount can be derived automatically from the pricing book.
If the quotation is accepted, the information is used to create a sales order. If the quotation fails,
the cause for the failure as well as the name of the successful vendor are saved in the system for
future reference.
Invoicing
This procedure makes billing functions easier, such as issuing bills based on products or services
given, producing preform invoices, and issuing credit notes with corresponding entries in accounts
receivable and the general ledger's control account.
Order Handling:
This method enables a business to handle sales activities swiftly and effectively. Regular sales
orders, cost orders, client returns, and collect orders are all handled through this process.
The system enables a simple data input method to manage items spanning from standard to
Engineering to Order through the usage of templates (ETO).On-time ATP assists in determining
when a product is ready for delivery and making the necessary commitments/allocations.
Customer Database
The name of the account with which you're doing business. This is frequently classified as a
suspect, prospect, or customer in ERP. Within the ERP database, customers can also be
categorized by product or in any other way that makes sense. CRM tools such as a sales pipeline,
linked customers, and prospecting tools are examples of advanced customer features.
Sales As- Is Business Process
Issues Observed:
● Manual Order management
● Local Databases
● Inefficient quotation generation
● Manual Invoicing
Sales To-Be Business Process:
Solutions Employed:
● Automatic Order Management using Robotic process automation
● Azure cloud Server for database management
● Automated quote generation using analytics
INVOICING AND ORDER MANAGEMENT
Invoicing and Order management As-Is Model:
Issues
● Complicated 11 Step process that requires Specialized Customer Relationship
Management module.
● Emails were used to exchange cartridge and invoice purchase orders.
● Required an agent for order management and invoice generation.
Order Management To-be Model:
Solutions Employed:
● Azure integration with legacy SAP framework
● Artificial Intelligence framework to simplify information extraction
● Automation of Error monitoring
● Automation of Invoicing and Order Management
● Elimination of need for a third party website.
Outcome:
● Allows orders to be placed via all channels, including inbound and outbound call
centre agents, field service sales personnel at client sites, and a customer self-service
portal, freeing up the dedicated CRM agent.
● May now schedule and trigger events to improve end-to-end automation of high-
volume processes, such as its unexpectedly increased Freestyle orders.
● Debugging is made easier with Power Platform and Azure's extensive monitoring and
alerting capabilities.
● A transition from low-code to no-code to Power Automate RPA platform's built-in
connectors cut development time in half.
● With little to no additional work, legacy programmes can be extended to tackle
various business concerns.
ERP VENDORS OF COCA- COLA
ERP suppliers are developers and producers of business software who design, sell, and deploy
enterprise resource planning systems. Updates and new releases are also the responsibility of vendors
to stay up with developments in their clients' industry.
ERP vendors used by Coca-Cola can be shown in the below table
ERP VENDOR ROLE OF ERP VENDOR
SAP Hana The company has chosen combination
BW on HANA employing the HANA Enterprise
Cloud and an SAP Layered Scalable
Architecture++ strategy, as well as an agile,
operational data mart on SAP HANA.
Hadoop & Spark It is used to complement the HANA in
supporting four main activities of Coca – Cola
i.e., Analytics, data staging, cold storage and
master data.
Epicor It is used by Coca – Cola to align various
processes and allow transparency of business
data across its sites
These are some of the ERP vendors used by Coca – Cola Company and they do no use a centralized
ERP system across all the operations globally and the above-mentioned vendors are from particular
region.
RECOMMENDATIONS:
Coca-Cola products are consumed by billions of people each day all around the world. This allows
for endless data to be generated as well.
Business Process Re-engineering enables these organizations to re-imagine their whole
organization's workflows, defining how and where to give an automation platform for their
execution. When done properly, this "start from scratch" strategy fully rethinks and effectively
redesigns the whole process chain as well as the way business is done both internally and
internationally. As a result, the service, product quality, pricing, time management, and overall
efficiency may all increase dramatically
Some recommendations for improving the ERP include:
● Using the current ERP to its full potential
● Integration with third-party systems for a more powerful ERP
● Promotion Management: There are many useful uses for integrating promotion
management into your ERP environment, from automating seasonal or conditional
pricing promotions to tracking expenditure on sales rep samples.
● Integration of CRM programme will enhance the framework.
CONCLUSION:
Enterprise resource planning (ERP) and business process reengineering (BPR) go hand in
hand. If the BPR process is completed first, the business processes will be optimised before
the software is configured, and software capabilities will closely match the actual process
steps. Business process reengineering optimization can also help with ERP deployment by
including and configuring useful software capabilities while removing those that aren't
needed.
BPR in tandem with ERP deployment may not only be more cost effective, but it may also
result in a superior final result. Most ERP systems include "best practises" from a specific
industry or from all industries. ERP software may provide process options that were not
considered during the BPR.
REFERENCES:
● Setiabudi, K. J., Siagian, H., & Tarigan, Z. J. H. (2021). The Effect of
Transformational Leadership on Firm Performance through ERP Systems and Supply
Chain Integration in the Food and Beverage Industry. Petra International Journal of
Business Studies, 4(1), 65-73.
● Goundar, S., Gounder, R., Kumar, A., Chand, L., Singh, R., Whiteside, O., & Ali, I.
(2021). ERP IMPLEMENTATION CHALLENGES AND CRITICAL SUCCESS
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Practice, 45.
● Aggarwal, I., Anirudh, A., & Buddala, R. (2021, November). Literature Review: ERP
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Computing Technologies (i-PACT) (pp. 1-6). IEEE.
● Rahul, K., Banyal, R. K., Kumar, V., & Hooda, D. (2022). Cloud Computing:
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Management in the Food Industry (pp. 127-141). Springer, Singapore.
● Olan, F., Liu, S., Suklan, J., Jayawickrama, U., & Arakpogun, E. O. (2021). The role
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