Supply chain management SCM involves planning, execution, control, and monitoring of supply activities. An ERP solution takes care of physical aspects of supply that includes storage and transportation and the market aspect of effectively managing demand and supply to meet customer demands. Feature-rich ERP software adds value to the entire chain starting from material procurement to end- customer product delivery.
An efficient ERP solution coordinates and integrates three key flows: material flows, information flows and financial flows. Need advanced features with powerful, off the shelf tools?
Book a demo now. Supply chain management has been an integral part of ERP solutions adopted by several enterprises. Manufacturers need to interact with various suppliers and partners to obtain the raw materials and resources at the right time and at the right amount to bring finished goods to market. Businesses are actively focusing on several supply chain strategies to boost plant productivity, enhance product quality, and cut down on manufacturing costs.
As the operations become more extensive and globalized, the integration of SCM becomes all the more important. ERP solution can support multiple modes, such as make-to-order, engineer-to-order and configure-to-order and provide operations support across multiple sites in real time.
ERP solution streamlines the path their products go through from supplier to warehouse and finally to store for customer. As a result, businesses can avoid supply chain disruption. An ERP system meant for supply chain management can automatically create demand when orders are received. ERP streamlines supply chain management by creating effective job scheduling. As a result, supervisors can know in real time what resources are being consumed and which resources are used.
This helps them to plan product delivery dates. Production should ideally begin when inventory and raw materials are full. ERP ensures that production policies are consistent with demand, replenishment is done at the right time, and inventory is lean. An ERP meant for SCM offers more effective way to manage procurement and supply of the goods, services, and other resources across the chain.
From handling manufacturing and warehouse resources to managing transportation and execution processes, ERP solution takes care of all elements of supply chain. Several manual tasks such as communicating with vendors and suppliers and keeping track of the communications can easily be automated with ERP.
After production starts, all records for machine and labor resources are created and updated in real time. All shipping documents are recorded through the ERP system for proper supply chain management, eliminating errors due to manual process. The system can ensure that products are sent out in time which can be delivered on the due date. Change Language. Related Articles. Table of Contents. Improve Article. Save Article. Like Article. Last Updated : 03 Sep, Recommended Articles.
Article Contributed By :. Easy Normal Medium Hard Expert. Specifically, it examines whether organizations still need SCM software, given that ERP systems are becoming increasingly sophisticated in response to increasing user demands. In fact, some vendors are touting the inclusion of full supply chain management functionality within their ERP systems. Industry Change Drives Software Functionality ERP software is far from unique in offering increasing levels of functionality along with complexity in response to the changing demands of industry.
Not surprisingly, supply chain software is keeping pace, and the newest SCM systems are supporting increasingly sophisticated technologies. Competitive markets and the expectations of increasingly sophisticated customers drive the business decision to embrace emerging technologies.
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