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Foreword |
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The past few years has witnessed
dramatic changes from competitive environment to
management modes along with the same dramatic development
in network technology. Main manifestations are:
- From individual enterprise competition to
supply chain competition - Competition among
enterprises has evolved to competition among
supply chains, management sphere for enterprise
extends beyond internal resources to include
their suppliers and customers.
- From traditional people,capital and resource
competition to knowledge, information competition
- Knowledge and information has increasing became
important strategic resources for enterprises.
Whether an enterprises can obtain maximum information
in shortest time is key to its sustained development.
- From product-centered to customer-centered
- in traditional industrial time, enterprises
focus on satisfying production needs by concentrating
internal resources and product-oriented operation
management is at the core of enterprise management.
In information economy, "Mass Marketing"
no longer exists; Customers are demanding more
and more varieties and diversity for products;
Smaller batch and more variety production according
to customer requirements is replacing larger
batch and less variety production;Enterprises
is placing more and more emphasize on providing
customized services to raise customer satisfaction.
Customers are becoming the most important assets
for enterprises and customer-centered business
is the only direction for all businesses.
From the above changes, it is obvious that modern
enterprise management requires that enterprise
treat customers as the core of its business and
realize the bi-directional information and data
flow among manufacturers, distributors, retailer
and end customers across its business cycle. It
can be said that optimization of the future supply
chain management will be one of the key elements
for the success of manufacturers or suppliers.
Enterprises can utilize new technologies like
Internet to optimize distribution channels, integrate
existing resources, adapting to market changes
by shortest supply chain, fastest reaction and
lowest distribution costs.
Currently, some large local manufacturers ( or
suppliers) with distribution network across areas
usually implement online order systems or ERP
systems; but these solutions can only solve the
problem of internal resource flow and can't perform
real-time communication with agents and distributors
all over the country. To better manage and further
develop existing business channels and trade partnerships,
enterprises need an Internet-based distribution
system to closely connect with their agents and
suppliers and to realize "win-win".
IDM is thus born:
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What is ERRY IDM
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IDM is an Internet-based online intelligent distribution
system for purchasing, inventory, finance and
decision support. Target customers of IDM are
those manufacturers or distribution companies
with distribution network across many localities.
IDM can help these companies establish eBusiness
application systems for their distribution system,
providing a complete and practical intelligent
business solution with fast reaction capability.
The dramatic growth of Internet has greatly expanded
management capability and requirements for enterprises;
It also runs into reality for enterprises to provide
personalized manufacturing and services to customers.
eBusiness has also brought about fundamental changes
in operation thinking and manners of enterprises.
Traditional ERP focus on manufacturing aspect
of the company, emphasizing productivity increase
and unit cost reduction. This kind of solutions
which aim to integrate and control internal resources
can't meet the needs of modern enterprises. At
the forefront of Internet competition, enterprises
will need to focus on market, network-based sales
and customers, enhance customer loyalty and become
the winner of MindShare economy. Therefore,the
management thinking, application model and technical
aspects of traditional ERP software are lagging
behind; ERP is stepping out and will be replaced
by new forces of which IDM is representative.
IDM, combining up-to-date enterprise management
methodology and Internet technology, provides
a brand new and lowest Total Cost of Ownership(TCO)
solution for enterprises from management methodology,
application model to technical aspects. With supply
chain management at its core, IDM includes enterprise
financial management system, sales and distribution
system and decision support system; It suits the
large, distributed enterprise and systematic management
mode and can satisfy the needs for cross-geography
and cross-country applications. Throughout IDM,
Java and Internet-oriented database technology
gives IDM high compatibility, security and extensibility
and assure that IDM can integrate perfectly with
eBusiness and OA systems and become the most effective
and easy-to-use enterprise management tool in
the Internet era. Advanced B/S (Browser/ server)
architecture can extend enterprise applications
beyond original office desk to computer, terminals
and even telephones, PDA and IT home appliances
anywhere in the world. It will provide stronger
support for the development of enterprises by
its more easy-to-use operation and better flexibility.
IDM improves the communication among different
parts of the supply chain and efficiency of supply
chain, satisfy the needs of individualized services
by enterprises and realizes the systematic management
and distributed application for enterprises. It
also provides capability and source power for
enterprises to plan as a whole for all internal
and external resources, raise customer satisfaction
and meet the challenge of global competition and
sustained development.
The following is the distribution network architecture;
By installing IDM at distributors or subsidiary
companies, manufacturers can cover the whole distribution
network.

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Positioning
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Functional scope
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ERP
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Internal supply
chain for large manufacturers; Enterprises
are divided into several cooperative support
sun-systems. |
Raw material souring,Production,Sales,
Finance, Quality assurance,Human resource¡¡ |
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CRM
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Customer-centered;
Dig up customer potential and promote sales
through customer behavior and psychology analysis; |
Customer management,
Contact management, Potential customer management,
Marketing management, Telephone sales, Telephone
marketing, Customer service ¡¡ |
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IDM
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Business management
software with production and manufacturing
companies and their distributors and subsidiary
companies as target customers; Inventory and
sales management are the core and business
processes the clues. |
Purchase and replenishment
management, Sales and distribution management,
Inventory management, financial information
management, basic information management,
decision support management |
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IDM value embodiment
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Reduce operation costs
Highly intelligent automatic inventory replenishment
function which avoids situations of out of stock
and overstock and reduce inventory costs; Timely
and flowing information communication among sales
channels reduces transaction costs; Strict credit
check help users reduce bad debt costs and increase
capital turnover, which in turn reduces capital
costs;
Optimize resource allocation
By effective management of distribution network,
can make reasonable use of resources of distribution
network, reduce capital, human and resource occupation
in distribution network, thereby optimizing the
operation of material,capital and information
flow.
Communicate with the market
in time
For many suppliers, products sale are made through
distribution channels instead of facing customers
directly. They usually can not communicate with
market in time and make timely reaction to market
changes, resulting in market opportunity loss
and other unnecessary losses. After implementing
IDM, through centralized information management,
suppliers can deliver product,sales and promotion
information to market quickly and accurately,
ensuring timely and flowing communication of the
whole sale channel.
Increase distributor loyalty
After implementing IDM system, the distributors
and suppliers will be in a close relationship,
which improve fundamentally the means of communication,
product sales and service models between suppliers,
agents and distributors. The distributors will
be more willing to promote the products to market
together with suppliers to realize the benefits
of win-win, thereby greatly increase distributor
loyalty.
Realize standard management
Previously, suppliers, especial those having distribution
network across many areas, usually need to spend
a lot of people and resources managing the distribution
channels, but still find it difficult to get hold
of those disorderly and unsystematic information.
IDM can make real-time data and information communication
between suppliers and distributors, automatically
realize a series of functions such as automatic
purchasing order creation,, credit check for customers,
etc. These help to realize standard management
for distributors and save a great lot of human
efforts and resource usage.
Raise customer service level
Improvement of out-of-stock situation can greatly
enhance order fulfillment; Real time query of
order processing and product delivery status can
help users to spot problems in time to increase
customer service level.
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System functional modules
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1¡¢Basic
information management
Manage and maintain basic information such as
product information, customer archives, supplier
archives, distributor archives, user privileges.
£¨1£© Product information maintenance
Product basic information maintenance and price
information maintenance.
£¨2£© Supplier information maintenance
View supplier basic information.
£¨3£© Distributor information maintenance
Distributor basic information maintenance.
£¨4£© Customer information maintenance
Customer (retailers¡¢outlets¡¢group purchasers)
basic information maintenance.
£¨5£©Warehouse information maintenance
Set up main warehouse.
2¡¢Purchasing
and replenishment management
Help buyers to control and complete whole purchasing
process from automatically create purchasing orders,
generate purchasing order suggestion to check
arriving products, warehouse and create accounts
payable. By effectively monitoring the execution
of purchasing plan, the variation of purchasing
cost and product delivery by suppliers, can help
buyers to choose best suppliers and purchasing
strategy, ensure high quality, high efficiency
and low cost purchases, and let enterprises gain
best purchasing performance. Including such business
processed as automatic replenishment order creation;
order transmission; consignment confirmation;
warehousing; accounts payable creation; purchase
returns.
3¡¢Distribution
and sales management
Include such business processes as product quotation,
blank order form creation, order form acquisition,
customer credit check, product distribution, warehouse
consignment, accounts receivable creation, sales
returns ,etc.
The system will manage the whole sales operation
by aiming at market economic environment and focusing
on sales orders (Contracts). It is a multi-step
and continuous system through which users can
timely obtain accurate information and data about
every step of sales operation. It help enterprises
raise customer service level, enhance market adaptability
and maintain leadership position in competition.
In the system, sales quotation can be made according
to different users, different time frames and
different product batches. When recording sales
orders, system will calculate real time the detailed
amount, applicable discount, arles and various
tax (such as value-added tax, business tax, excise
tax, the calculation and applicable rate of which
can be user-defined) and allow users to modify.
Users can also view at any time relevant information
such as material records, customer records, inventory
status and quotations when recording orders. In
order confirmation, the system can automatically
check customer credit status according to predefined
rules. To simplify operation, the system also
provide functions for order replication and automatic
conversion of measurement units. In view of ever-changing
market environment, the system also allows changes
to effective orders.
4¡¢Inventory
management
Help warehousemen of enterprises control and manage
such operations as warehousing, consignment, inventory
movement and check, to reduce inventory level
and decrease inventory fund occupation, to avoid
situations of overstock and out-of-stock, to raise
customer service level and to ensure smooth business
operation progress. Inventory management will
manage the quantity, cost and fund occupation
of inventory from such aspects as type, material,
inventory position, batch, unit and ABC classification
to ensure that users can timely obtain and manage
accurate information and data about all parts
of inventory operation.
5¡¢Financial
information management
The Accounts payable management( APM) of IDM can
be used to manage all the accounts payable information
generated during the course of business operation
for enterprises. In practice, accounts payable
management is very onerous since enterprises usually
have frequent and complicated accounts payable
transactions with other enterprises or individuals,
which are often highly workload-intensive and
plan-oriented. APM can help enterprises better
manage accounts payable, effectively control capital
usage and maintain a good corporate image. APM
provides such functions as invoice recording,
payment planning, payment processing, analysis
and payment control;It also provides function
to query payment status. APM is fully integrated
with General ledger management and Purchasing
and replenishment management.¡¡
The Accounts receivable management( ARM) of IDM
can be used to manage all the accounts payable
information generated during the course of business
operation for enterprises. In practice, accounts
payable management is very onerous since enterprises
usually have frequent and complicated accounts
receivable transactions with other enterprises
or individuals, which are highly workload-intensive
and which frequently have overdue accounts. ARM
can help enterprises better manage accounts receivable
and take back arrearages in time, effectively
control capital usage and generate best business
results. ARM can directly generate invoices according
to shipment lists from order system and then automatically
generate subpoenas and record to general ledger.
ARM will, after receiving customer payment, allocate
among accounts receivable, write off relevant
account receivable and automatically generate
payment subpoenas. The system can also track customer
account status and overdue accounts, providing
timely customer credit information.
6¡¢Decision support management
IDM' s Decision Support module provides powerful
functions for report analysis. Decision-makers
from all levels may see analysis results they
concern most; this helps them to make better decision
to manage and control the business activities
of enterprises and to reduce operation risks.
Analysis reports include: Sales representative
business scorecard; Sales channel report; Customer
sales report;Accounts receivable transaction report;
Overdue accounts report;Accounts payable transaction
report; Inventory report; Gross margin report
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