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Process Modeling, Process Improvement, and ERP Implementation
ANOTHER LOOK

ERP Implementations Help Nonprofits
Direct Relief International, a nonprofit organization providing medical supplies and
assistance to people affected by poverty, disaster, and civil unrest around the world, has
used its recent implementation of an online community network to help those in need.
While many nonprofits are well intentioned, they often lack the information they need to
be effective. For instance, in the aftermath of the Haitian earthquake disaster in January
2010, many containers of medical supplies sat at airports, unable to reach their
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destination. With its online network, which is built on a foundation of SAP software,
Direct Relief was able to supply victims of the earthquake with over $50 million in
support—due to the organization’s close attention to supply chain and logistics details.
Direct Relief initially implemented some SAP ERP modules in 2008, with a second
phase in 2010. In the second stage, a new online community network interface was built
using SAP’s NetWeaver Portal. In addition, SAP’s CRM, BusinessObjects, and Business
Warehouse tools were used to create the online network, which brings donations
together with need. Direct Relief’s goal was to bring the efficiency of a profit-oriented
company to its nonprofit organization. After users are registered and screened, they can
log on to a secure portal to donate medicine and volunteer medical services. Those
requesting aid can do the same to determine what supplies and services are available.
The network was initially rolled out to users in the United States only; however, the new
system was so successful that it has since been expanded to 70 countries.
According to Direct Relief’s President and CEO, Thomas Tighe, the nonprofit has
been “able to increase the flow of aid provided, help more people at a lower cost, and
produce more precise reporting,” all of which helps the organization match the needs of
a particular group to that of a supplier of that required product or service. The new
system also proved it is scalable. During the Haiti earthquake crisis, donations made
through the network doubled in a two-week period, and over the course of a few days,
the number of system users (donating and supplying) grew by 300 percent.
Ross Comstock, the IT director, also explains how the new system is highly user-
friendly, “Because our product donors are offering products that are in many cases
already in our warehouse, we decided to adapt the e-commerce functionality to have it
face upstream as well—so we can take product donations through it, which I think is
pretty innovative.” The efficiency of running a real-time system with a single database
and integrated processes has paid off in helping those in need.
Questions:
1. Do you think implementation of an ERP system into a nonprofit organization
is different than in a traditional for-profit company? Why?
2. List at least three ways an ERP system can help nonprofit organizations, and
support your answers using news articles that illustrate the problems that ERP
would solve.

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