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The paper “ Midwest Airlines   - Business Information Systems, Competitive Advantage, and Service Improvement ” is an intriguing example of the report on management. Business information systems are vital for companies in gaining competitive advantage and edging their competitors. More important is the need to conduct portfolio analysis of companies and industries they operate. In service improvement, quality is a critical concept that has to be approached keenly by any company intending to leverage and increase their performance. In this report, special attention is given to the use of Enterprise Resource Planning (ERP) systems and the Kraljic matrix in performing portfolio analysis.

Finally, service improvement exploits the value chain analytical approach and benchmarking. 1.1 Procurement objectivesTo develop and use systems that improve procurement and supply chain of Midwest airlines by 97% in the next two yearsTo assess some categories of expenditure used and suggest to buy Midwest airlines for implementation in the next financial yearTo identify suitable approaches for service improvement in supply chain management and recommend to senior management of Midwest airlines1.2 Developing and use of systems to improve and control expenditure1.2.1 OverviewThis section explores Enterprise Resource Systems (ERP) and its deployment and application in Midwest airlines.

The aim is to understand ERP systems and how it is applied in a company context. 1.2.2 ERP systemsEnterprise resource planning (ERP) is a management software used in business to collect, store, interpret and manage data for activities such as product planning, manufacturing, sales and marketing, inventory management, and shipping and payment (Gill, 2011). ERP supports Supplier Relationship Management (SRM) in procurement to maximize cost savings in logistics processes and an end-to-end procurement. Essentially, ERP systems manage connections to external stakeholders and facilitate information flow between all business functions.

In the procurement department, ERP standardizes the business process by using massive databases for decision making in business management and planning. Users of ERP systems in the company will use online analytical processing (OLAP) present in multidimensional databases to analyze information one at a time (Sheilds, 2005). The cost of the software will be based on user numbers since it is typically made for multiple user environments.

References

Brewer, A.M., Button, K.J. & Hensher, D.A. (2001). Benchmarking and performance measurement: the role of quality management. in: handbook of logistics and supply-chain management, Amsterdam, Netherlands. p.325-329.

Cooper, M.C. & Ellram, L.M. (1993). Characteristics of Supply Chain Management and the Implications for Purchasing and Logistics Strategy. The International Journal of Logistics Management. 4(2):13 – 24.

Gill, R. (2011). The rise of two-tier ERP, Strategic Finance, 93(5): 35-40.Wong, W.P. & Wong, K.Y. (2008). A Review on benchmarking of supply chain performance measures, Benchmarking: an International Journal. 15(1):25 – 51.

Loh, T.C., Koh, L. & Ching, S. (2004). Critical elements for a successful ERP implementation in SMEs. International Journal of Production Research. 42(17): 3433–3455.

O'Brien, J. (2011). Management Information Systems(MIS). New York: McGraw-Hill, Irwin.

Padhi, S.S., Wagner, S.M. & Aggarwal, V. (2012). Positioning of commodities using the Kraljic Portfolio Matrix, Journal of Purchasing & Supply Management. 18: 1-8.

Porter, M.E. (1980). Competitive Strategy, Free Press, New York.

Porter, M.E. (1985). Competitive advantage: creating and sustaining superior performance. The Free Press.

Porter, M.E. (2008). The Five Competitive Forces That Shape Strategy. Harvard business Review, New York.

Sheilds, M.G. (2005). E-Business and ERP: Rapid Implementation and Project Planning. John Wiley and Sons, Inc.

Bibliography

Aircraft commerce (2008). MRO IT market suppliers survey, Issue no. 56. February/March 2008.

City of SandDiego (2012). Fiscal Year 2012 Adopted Budget.

http://www.sandiego.gov/fm/annual/pdf/fy12/39v2erp.pdf

King. W. (2005). Ensuring ERP implementation success, Information Systems Management, Summer 2005.

Turban et al. (2008). Information Technology for Management, Transforming Organizations in the Digital Economy. Massachusetts: John Wiley & Sons, Inc., pp. 300–343.

http://www.swiss-as.com/files/news/AircraftCommerce_MRO%20IT%20market%20survey_March08.pdf

http://www.naspo.org/dnn/portals/16/documents/NASPOERPandeProcurementSystems6313.pdf

http://www.sap.com/australia/pc/bp/erp/software/procurement-logistics-execution/index.html

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