Erp Implementation

Erp And Supply Chain Management

Erp And Supply Chain Management Processes

Erp And Supply Chain Management

Supply chain management refers to the process that sources the components to make the products and services for delivery to the customer. With companies operating different business models, no one has a complete erp and supply chain management package that fills the business needs of each company. The main core aspects of erp and supply chain management include:

(a) planning

Erp And Supply Chain Management

(b) procurement for pricing, delivery and payment processes

(c) manufacturing operations including scheduling, packaging and preparation for delivery

(d) logistics

(e) Return and disposal procedures

Erp business tools for supply chain management are fragmented and require integration to centralize business operations. Centralization eliminates manual intervention which can create bottlenecks in a companies operations and information flows. Erp and supply chain management solutions can focus on any of the above pillars of the companies operations. Some supply chain management examples follow:

Using the internet to connect global supplier's

One company that has used ERP and supply chain management very effectively is Dell. The internet now provides the ability to connect multiple information sources that are dispersed geographically. By linking to multiple component suppliers, Dell has created a real time on demand application that can submit quotation requests and initiate procurement among multiple vendors. This has resulted in significant costs savings and provided the ability for Dell to more effectively manage its inventory.

The advantage of business supply chain management is that it creates greater transparency between a companies operations. By establishing metrics to monitor demand, supply, sourcing, logistics and distribution, companies can make more informed decisions that save time and money. An example of this is just in time manufacturing that reduces the costs associated with holding inventory levels. If a company is able to forecast departmental operational needs, capital that is otherwise tied up in idle production components can be deployed elsewhere. This results in a superior return on investment and measurable consequences for a companies bottom line.

ERP supply chain solutions integrate company information flows into a single application. In the past, interfacing with legacy systems to extract information and sourcing multiple spreadsheets to forecast business dependencies make managing a companies operations more cumbersome and time consuming. By using Erp supply management tools in combination, companies can make more informed decisions that improve business efficiency and supply chain management. In the years to come, with the ability to connect via the internet, companies will be increasingly integrated through interlinked web based solutions.

Privacy Policy | Contact Us |