A mid-sized retail company uses separate software systems for its online sales, in-store point of sale (POS), and warehouse inventory management. This leads to frequent discrepancies between reported stock levels and actual inventory, causing fulfillment delays and customer complaints. Based on the sources, what fundamental problem is the company experiencing that an ERP system is designed to solve?

Question

BlackTom AI · Accepted Answer

The scenario describes separate software systems for online sales, in-store POS, and warehouse inventory, which do not share data in real time. This fragmentation leads to data silos and stock discrepancies, causing fulfillment delays and customer complaints.

Option 1: 'Excessive employee training on a single system' — This is not the core issue here. The problem is not about training requirements, but about integrating disparate systems so data can flow smoothly across channels.

Option 2: 'Difficulty in automating simple tasks like payroll' — Payroll automation is generally a function of HR/payroll modules and might be impacted by integration, but the described problem is inventory and order fulfillment accuracy, not payroll automation.

Option 3: 'Over-customization of existing systems' — While over-customization can create maintenance and integration challenges, the primary fault described is lack of real-time integration across systems, which leads to data silos. Customization may exacerbate integration complexity, but it is not the fundamental problem highlighted.

Option 4: 'A lack of real-time integration leading to data silos' — This directly matches the described symptoms: separate systems not communicating in real time cause data silos and inconsistent stock levels, causing fulfillment delays and complaints. ERP systems aim to provide integrated, real-time data across functions, mitigating these issues.

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