Production schedule delays-Even though an automotive parts manufacturer had the systems in place to receive EDI (Electronic Data Interchange) orders, there was no integration to push the orders into the production schedule. Challenges from the accounting system Like many functions of your business, order management is a process — orders enter the business and flow through multiple departments. If you don't have integrated systems that support that flow, your company has to overcome the disconnect. For the automotive parts manufacturer, manual entry of orders caused:  Production schedule delays  Production schedule inaccuracies which led to short builds  Rush orders that incurred premium freight and overtime  Loss of confidence from customers and suppliers, and even the loss of a very important contract How ERP solves the challenge Full automation of EDI with Microsoft Dynamics ERP allows the auto parts manufacturer to route orders directly into the production schedule using demand management logic. With timely production schedules and the errors caused by human data handling eliminated, premium freight costs have become a headache of the past.

Indicate the number of the red flag and summarize the red flag discussed. As future auditors and advisers, it is important to pay attention to warning signals and let companies know when they should consider updating their information technology. Add to the details in the article by using information from the text and other outside resources. Please use a business report format for your response and properly cite this article, your text, and other sources you use (at least one other source is required).

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Red Flag 1 Summary The article highlights a red flag in the automotive parts manufacturers or... View the full answer