SOLBRIDGE INTERNATIONAL SCHOOL OF BUSINESS
Keda’s SAP Implementation
Tan Wang
201505046
2015/10/11
1. Reasons for Keda to implement ERP system
First of all, according to the silo-based mode, the departments in Keda were lack of
connections to each other; there were little communications between them. It leaded
repeated work for the same tasks and the managers hard to make effective decisions. So,
the ERP system was needed to integrate the whole business process and provided
necessary information for decision makers.
The second one, in order to improve and pursue the foreign companies; the government
gave incentives to the local companies to be innovative and computerized. The ERP
implementation was seemed as a good way to react the call from government.
The third one is the difficulties of inventory management, due to the products
characteristics; it was hard for Keda to track the each component, so it was hard to know
the cost of the products and hard to pricing the products. Thus, the ERP was needed for
the material management.
The fourth one is due to the resources and facilities could not be utilized. The
utilization of machines is much lower than the competitors. This caused Keda had a low
output and could not meet the market demand.
