CASE:WIM Industries: From MRP to ERP

1: Why did WIM feel the need to implement an ERP system?


Before implementing an ERP system, WIM was using a materials resource planning (MRP) system, but this system, while a large advance over paper-based management techniques, nevertheless created many problems as the company’s operations expanded. MRP systems do not integrated information from various divisions within a company, but instead automate processes and information within departments. For WIM this meant there was no platform with which to integrate data from different departments, there was a prevalence of data duplication and redundancy, and inconsistent data were supplied to managers.

In addition to this, the departments within the company were acting as separate entities and information was not being shared. The growing size of the firm and the corresponding increase in the sizes of departments also bogged down the flow of information. There were also no predefined standards for data communications and information was often lost. In the absence of an enterprise-wide approach to information, WIM had a diffficult time meeting production schedules. The lack of communication of vital information resulted in a loss of crucial resources; that is, people, material, and machinery.

Senior management could not obtain a complete view of the company as a whole, but instead had to rely on piecemeal reports from each division. MRP system had the manufacturing modules, but it couldn’t manage huge data. Overall productivity of the manufacturing process was falling, employees were disengaged and customers did not return. And that is why WIM feel the need to implement an ERP system to save the future of the company.


2: What goals were the ERP system used to achieve at WIM? Critically analyse how these goals helped WIM to overcome obstacles they had faced earlier.


ERP at WIM has changed the way the firm functions. The role of ERP in managing manufacturing processes now extends from procurement all the way to consumption. Holistic information on material, machinery, and labor, such as the cost structure of all raw materials, can now be accurately assessed. WIM is able to utilize its resources to reap maximum profits. ERP has also integrated different departments at WIM, resulting in increased efficiency in operations at the firm which cannot be done in the past.

The implementation of Epicor’s ERP software has helped WIM to scale up its operations. Epicor provides greater visibility over material movement and having an advanced MRP system within a comprehensive solution.  The success of any manufacturing company also lies in how inventory is utilized. The software tracks and controls all procurement activities, schedules production processes, manages costs, and generates information that helps WIM to manage its inventory. It accurately forecasts the demand for materials and provides clear visibility into the lead time of ordered material. WIM purchases materials near the time of consumption, which leads to a reduction in maintenance of inventory levels in the organization.

Furthermore, accurate information from all departments is recorded on the system, and this allows WIM to measure performance against key indicators in order to improve the quality of its business.

WIM’s goal is to increase in the visibility and sharing of all reports on manufacturing; improved coordination across functional departments to increase efficiency; better management of procurement and inventory processes; the facilitation of day-to-day management; and the 24x7 availability of financial information of the entire firm. Management also demanded standardization of data formats across the company, and greater accuracy, along with remote access and improved security. All of these have been achieved by adopting the ERP system.

3: How has Epicor’s ERP system helped WIM to make its production process more efficient?


ERP at WIM has changed the way the firm functions. The role of ERP in managing manufacturing processes now extends from procurement all the way to consumption. Holistic information on material, machinery, and labor, such as the cost structure of all raw materials, can now be accurately assessed. WIM is able to utilize its resources to reap maximum profits. ERP has also integrated different departments at WIM, resulting in increased efficiency in operations at the firm which cannot be done in the past.

The software tracks and controls all procurement activities, schedules production processes, manages costs, and generates information that helps WIM to manage its inventory. It accurately forecasts the demand for materials and provides clear visibility into the lead time of ordered material. WIM purchases materials near the time of consumption, which leads to a reduction in maintenance of inventory levels in the organization.

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