Optimizing Asset Transfer Process in ERP Using Business Process Management Technique

Abstract

Enterprise Resource Planning (ERP) systems are critical for managing enterprise-wide business processes, including asset management. Yet, many ERP platforms lack efficient mechanisms for bulk asset transfers, leading to high manual effort, increased costs, and data inconsistencies. This study applies Business Process Reengineering (BPR) techniques as the methodology to optimize ERP asset management, focusing on workflow optimization and automation, contributing both practical and methodological insights. A mixed-method approach was adopted, analyzing a financial organization with 256 branches and over 450 Oracle ERP users. Data from 51 representative branches identified inefficiencies such as manual transfer delays, approval bottlenecks, and synchronization issues. The proposed solution introduces automated bulk asset transfers, optimized approval workflows, and real-time data synchronization, along with new metrics for evaluating efficiency, compliance, risk, and asset utilization. Compared to the As-Is system, the reengineered framework achieved a 100% reduction in operational costs per user ($7,500 annual saving), an 80% reduction in compliance incidents, a 67% reduction in asset transaction errors, and a 20% improvement in asset utilization. These results demonstrate a scalable, adaptable, and effective framework that enhances ERP operational efficiency, strengthens data integrity, and advances both academic understanding and industrial practice of asset management process reengineering.