Entrprise resource planning Essay Example | Topics and Well Written Essays - 500 words

Entrprise resource planning - Essay Example It also helps maintaining adequate inventory levels within the organization. There are three primary factors or influencers in aggregate forecast accuracy include regulation changes, economic conditions and analyst characteristics changes. 2. Explain the Outsourcing Decision process used by the major US Automotive OEMs in Shedding most component manufacturing (e.g. Delphi, Visteon), while maintaining Most Metal Stamping and Powertrain Manufacturing. Outsourcing remains firmly entrenched in the business. Therefore, companies mostly focus on the significance of the decision-making process during outsourcing. By engaging in the Outsourcing Decision Process, most US Automotive OEMs aim at increasing efficiency and saving costs in shedding component manufacturing during powertrain manufacturing and metal stamping. In doing the decision process, most OEMs tend to use the Outsourcing Decision matrix, which entails the operational performance. The processes, in this case, include forming a strategic alliance, retaining, and outsourcing. On the other hand, using the matrix tool entails first identifying the tasks strategic importance, identifying the contribution of the operational performance and plotting the automotive OEMs tasks on the matrix. A more detailed insight in reference to outsourcing decision process used by most automotive OEMs includes preparing, selecting the vendor, transition, managing relationship and reconsideration. During the preparation phase, the automotive OEMs engage in sourcing options, strategies, and the configuration activities. On the other hand, during the selection of the vendor, most automotive companies do the negotiation after choosing the vendor. The transition process entails defining the communication and knowledge exchange. It also entails assets, people and information transfer. Managing relationship, in this case, entails ensuring that the relationships last thus management of the success