Background:

Company XYZ is a medium$-$sized manufacturing company that produces various industrial equipment and machinery. The company has been in operation for over a decade and has experienced steady growth over the years. However, as the company expanded, its operations became increasingly complex, leading to challenges in managing various aspects of the business.

Challenges:

Data Silos: The company had multiple departments, each using its own software and databases. This resulted in isolated islands of data, making it difficult to share information across departments and leading to inefficiencies in decision$-$making.

Inventory Management: With the growth in product lines and increased demand, inventory management became a challenge. Stockouts and overstocking were common, affecting both customer satisfaction and the company's bottom line.

Order Processing: The manual order processing system often led to errors in order fulfillment, delayed shipments, and dissatisfied customers.

Financial Reporting: Generating accurate and timely financial reports required consolidating data from various sources, consuming a significant amount of time and effort.

Solution:

Recognizing the need for a comprehensive solution, Company XYZ decided to implement an ERP system. The ERP system was customized to address the specific needs of the company's manufacturing operations. It integrated various departments and functions, including production, inventory management, order processing, finance, and human resources.

Required:

You are required to prepare a report to indicate that the implementation of the ERP system led to significant improvements in Company XYZ$\text{'}$s operations, operational efficiency, inventory costs, order processing, and financial reporting accuracy. Furthermore, you should refer to the implementation results regarding customer satisfaction, profitability, and agile business operation.

Your report should include answers to these questions $($in separate paragraphs; $5$ Marks per each$)$

In your introduction show: Why did Company XYZ decide to implement an ERP system? What were the driving factors behind this decision?