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Exercises · Q12

Q.A growing trading company keeps separate records for stock in the store, sales in the sales office, and accounts in the accounts department. The three sets of figures often disagree, and managers cannot get a clear, up-to-date picture. Suggest a suitable solution and explain how it would help.

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The problem: The company is running on separate 'islands' of information — the store, the sales office, and the accounts department each keep their own records. Because these systems are not connected, the same event is recorded separately (or not at all) in each, so the figures disagree, effort is duplicated, and no one has a single, current view. This is precisely the situation ERP was designed to fix.

The suggested solution: The company should adopt an integrated ERP system.

How it would help:

  1. Integration and one shared database — stores, sales, and accounts would all work on a single central database, so data is entered once and shared by all.
  2. Consistency ('one version of the truth') — when a sale is recorded, the stock is reduced and the accounts are updated automatically, so the three sets of figures always match.
  3. Real-time, up-to-date information — managers can see the current stock, sales, and financial position at any moment, without waiting for departments to reconcile records.
  4. Better decisions and control — accurate, timely information helps managers plan purchases, avoid stock-outs or over-ordering, and control the business. …

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