The procurement process at JLSB is divided into two areas, which are supported by different system a ...

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The procurement process at JLSB is divided into two areas, which are supported by different system and application as follow I. The direct material purchase is using a customized manufacturing system to manage the purchase of raw materials and parts. II. The indirect material purchase is using a manual system to manage the buying of office supplies, equipment, and other materials that support the company's internal operations.In managing the increase in operation cost, JLSB has decided to consolidate the procurement system and application under ONE (1) comprehensive ERP system. The information of the cost between the existing system and the consolidated system is attached as follows Based on figure 1 and figure 2, i) measure the saving of the consolidation in thepurchasing system, ii) Using stack column chart as a reference, explain thedifference in cost before and after the implementation of the system consolidation. Discuss FIVE (5) main success factors of cost reduction in implementation ofsystem consolidation in JLSB.