Case Review – Skullcraft and ERP

Case Analyze – Skullcraft and ERP

Discussion Questions

  1. What encouraged Skullcraft to pursue ERP even though the company had just 26 staff?

Solution

An Enterprise Resource Arranging system can be an integrated system which helps how to write a compare and contrast paper the organization to manage its information; inventory, procurement, supply chain, finance, human learning resource etc. are few of the many information an ERP really helps to manage.

Although, the company had just 26 staff members, an ERP program will enhance the managing of information which is not limited to just human resources.

The following facts will justify the implementation of the ERP system:

  • The business was rivalling Sony in the U.S. earphones market with sales of up to $37 million.
  • The company had around 200 to 300 percent gross annual growth rate.
  • The business had to take care of large amounts of transactions.
  • The finance department was using Excel spreadsheets and Quickbooks to control the books.
  • Wide distribution of goods.
  • No product tracking through supply chain till ERP was applied.

In a nutshell, Skullcraft was a small business with transactions comparable to a large enterprise. Thus managing methods was getting ultimately more and more complicated as the company grew in product sales and buying an ERP system will help the company maintain its resources in a more efficient way. Furthermore, as the ERP program was fully hosted, the business did not have to manage a separate ERP infrastructure that was a reward for them.

  1. What features brought on Skullcraft to select SAP’s ByDesign?

Solution

SAP’s ByDesign was a unique system which fulfilled Skullcraft’s just about every requirement. After evaluating various systems, Beth Siron chose ByDesign for the following reasons:

  • SAP’s ByDesign was a fully system hosted mass number equals system meaning that it didn’t required additional information system infrastructure to be implemented by Skullcraft. The business would use the ERP system online which made it easy for every single and every department to put it to use from anywhere.
  • It enabled big business practices for managing financials, inventory, customer relations, source chain etc. in a file format accessible to smaller businesses. This was perfect a was the tiny enterprise with twelve-monthly growth rate of 200 to 300 percent.
  • It helped Skullcraft to track the merchandise through the supply chain.
  • The ERP program was enabled the company to forecast long term demand.

Thus, the software did everything a major company’s Information Program would do but without the additional infrastructure and a workforce to manage it. These features where ideal for Skullcraft which was a little firm with transactions add up to a sizable firm.

Critical Thinking Questions

  1. How do you think Skullcraft could maintain a small staff while increasing production 200 to 300 percent annually?

Solution

Rick Alden saw a unique business opportunity in offering high-end radically designed headphones to Skiers and Skateboaders. The business was also the first of all one to enable users to change between music listening and cell phone conversations over headphones.

The reason behind the tremendous development was the target market and distribution channel. The business initially targeted specialty ski and skate retailers and later large retail chains. Specialty retail retailers attracted huge amounts of extreme sports activities fanatics which put Skullcraft on the map in the headphones industry.

Even with just 26 employees, the business was effectively able to manage its operations exclusively production and distribution. It isn’t unusually for a firm to possess a tremendous growth level with such a tiny workforce. If businesses are effectively managed, development could be increased without comparable expenditure in additional resources.

The company may experienced the production outsourced which makes sense as a tiny workforce cannot produce and maintain such large product demand. Moreover, the company could have arranged the goods to the picked up at the manufacturer’s workshop and dropped at the specialty retail stores. Thus by efficiently managing the stream of goods, the business must have been able to increase its creation up to 200 to 300 percent with simply just 26 employees.

  1. Do you think Skullcraft is unusual in its size and requirements? What other businesses can you think about that fit the Skullcraft model?

Solution

No, Skullcraft is not unusual in its needs and size. It I common for a company to have a tremendous growth rate even with a little size. Many small company offer services to a sizable number of consumers. Skullcraft’s Rick Alden realized an exceptional business opportunity which became an enormous success and helped the business experience a growth price of 200 to 300 percent annually. Also, the business was able to properly manage and integrate procedures resulting in huge product sales while maintaining a little human capital.

Other businesses that suit the Skullcraft style are:

  • IT businesses like GoDaddy which offer domain companies to small and large enterprises enterprises can serve a big number of customer with its small size. The improvement in internet services allows such firms to stay small and serve large. Thus, buying an ERP program will permit GoDaddy to manage procedures more effectively.
  • Freight Forwarding businesses consolidate good from several buyers into one big container. This helps cut down the expenses of shipping small amounts of goods. They use the infrastructure of big organizations and manage businesses right at their tables. Also, and ERP program can help freight forwarders to track the goods through the source chain and mange consumer relations.
  • A small logistics firms manages the operations and uses sources of other organizations to transport the goods. Their small size needs huge amounts of solutions. And ERP in a logistics company with help the staff track the goods, manage the finance, maintain client relations etc.
  • Medical firms, architecture businesses, designing and developing firms and several other IT sector companies are small in size but their needs are huge.

Thus, Skullcraft’s size and needs are not unusual as it is quite common for a company to stay small but serve a sizable number of customers which will inevitably increase their needs.

Group Members

Dhruvit Shah

Praveenchand Nair

Abhay Khurana

Brahamdeep Singh

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