Introduction
Enterprise Resource Planning (E.R.P.) attempts to integrate all departments and functions across a company to create one software that runs off one database. With E.R.P., Canada Post can centralize information and operations into one Information Technology (I.T.) system.
Scope:
This report deals with the implementation of E.R.P. within Canada Post. More specifically, this report highlights the benefits of E.R.P. on communication and information, customer service and operations within Canada Post.
This report does not deal with the cost of the implementation of E.R.P.
Assumptions and Limitations:
This report is based on the following assumptions:
▪ The members of Canada Post’s executive team have basic knowledge when comes to E.R.P terminologies.
▪ Although this report is addressed to the Canada Post’s executive team, all of the employees will be informed.
This report is limited by the following:
▪ Given the fact that Canada Post differs greatly from other organization’s products and services, the implementation of E.R.P. and the adaptation of the system to Canada Post is limited.
Discussion of Findings
E.R.P. is a valuable tool to improve customer service, efficiency and effectiveness at Canada Post. The implementation of an E.R.P. system is a long (two years) and expensive process but there are several long-term advantages that can not be quantified in money or time.1
Communication and Information
Communication and adequate information are keys to an organization’s success.
Effective communication is crucial to effectively implement a course of action and transmit instructions and directions from the higher levels to the lower levels of management. With E.R.P., employees and managers will be able to communicate effectively: once a memorandum is posted on the E.R.P. system, everybody will be able to access the memorandum regardless of the department or the level of management.2 Feedback will also be enhanced: since information is centralized, feedback will be easier and again accessible to all. Another positive consequence of E.R.P is the elimination of redundant communication and feedback.
Stocking and sorting out information is also important. Up until this point, human relations, finance and accounting, marketing and sales as well as Information Technology (I.T.) had separate databases. The databases included information on employees as well as records of the different operations but only within the same department. The departments could share information but in a limited amount. This situation created a lot of duplication of data. In addition, information available in one department that could be useful in another department had to be transferred. A branch manager that needs information from Information Technology (I.T.) and finance and accounting to make decisions is an illustration of the information-sharing problem. With E.R.P., information can flow seamlessly between the different departments and data duplication is avoided.3
Tracking
Sharing information within Canada Post is not the only way to guarantee the delivery of mail and packages to the right destination. Canada Post delivers mail across Canada and relays mail to international post offices for foreign destinations and vice-versa. E.R.P. can enable Canada Post to share tracking information to the sending post office and the receiving post office can track and follow mail bundles and packages to ensure a successful delivery. By doing so, retrieving lost mail bundles or packages will be simple and less time-consuming.
The E.R.P. component that handles the operations mentioned is Supply Chain Management (S.C.M.).4 By definition, S.C.M. is the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. Since Canada Post is a crown corporation, S.C.M. will not be used to maximize profits but rather to effectively deliver mail and packages by coordinating all of the steps of a delivery. S.C.M will also plan delivery trips more efficiently to avoid useless trips and maximize the number of letters and packages delivered in one trip.
Tracking information can also be shared with customers through the Canada Post website. That way, customers will know where packages are at any point in time and if the package has been delivered.
Other E.R.P. components
In addition to S.C.M., E.R.P. contains other I.T. systems than can improve Canada Post as an organization.
Business Intelligence (B.I.) collects information from within and outside the organization, organizes it into data warehouses then applies analytical tools to assist management in decision making.5 B.I. essentially provides managers with relevant information to assist them in decision making. For example, B.I. can assist managers to decide if a new branch should be opened in a remote area or if an existing branch should be closed or merged with another branch in the same area code. B.I. is also useful when a manager decides to buy new supplies.
Another E.R.P. component specializes in accounting and finance. Accounting and finance E.R.P. components includes functions such as general ledger, accounts payable, accounts receivables, budgeting and asset management. Instead of working on separate accounting and finance software, accountants can enter numbers directly into the E.R.P. component, making the results available for the whole organization to see.6
Human resources E.R.P. components track employee information including payroll, benefits, compensation, performance assessments and assure compliance with the legal requirements of multiple jurisdictions and authorities.7 Human resources E.R.P. components even offer features that allow the organization to perform detailed analysis on its employees to determine such things as whether the most talented people are working in areas with the highest priority or where they would have the greatest impact on profit.
Conclusion and Recommendations
The implementation of an E.R.P. system within Canada Post presents many advantages.
E.R.P. improves communication, stocking and sharing of information, tracking mail bundles and packages and other operations that are essential to Canada Post.
From this point on, the implementation will take approximately two years but the long process will be worth the wait. During the two years, due to the installation and operations of the E.R.P. system and the high cost, operations at Canada Post will be slowed down. All deliveries will be done but the delivery time will be longer.
After the implementation process, Canada Post will be able to operate than before with the help of the different E.R.P. components. There are different components but all of the components are part of one system.
The decision to implement an E.R.P system is a though decision but with the help of the board of directors, the different departments and all of the employees of Canada Post, the process should be a success.
Endnotes
1. Michael Donane, “A blueprint for ERP implementation readiness”, 17 October 2003, , 20 October 2009
2. “ERP success: the importance of communications”, 27 September 2007,