Supply Chain Management within Enterprise Resource Planning
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Supply Chain Management within Enterprise Resource Planning

Technology has its fair share of usefulness in almost every field of work these days. In fact, companies have chopped and changed according to the software updates and have always wanted to make the best use of the latest technologies. Enterprise Resource Planning, better known as ERP is one such software that has helped companies in almost every which way possible. But, the one aspect that has attracted the attention of millions is its role in Supply Chain Management. It has been noticed that business organisations have been able to gain their full supply chain management with the help of ERP. Want to know how? Let?s find out.

Focusing on the minute details

One of the reasons why ERP is so vital for supply chain management is because you will be able to see each and every detail about partners, suppliers, resources, raw materials and finished goods in one single platform. There is no need to fetch physical documents for each and every department. ERP provides the most accurate and the latest details about your business dealings. Here are few more benefits of ERP for supply chain management:

Supply Chain Management

There is more efficiency in all the departments that work within the supply chain.

Customer retention increases because of improved customer service. This in turn increases repeat business opportunities.

Better management and easy order tracking. It also helps to eliminate any errors while posting any entries for a particular order.

How ERP help companies

They help maintain important business related information for various business units such as Supply Chain, Manufacturing, Finance and Human Resources etc.

Such services on an ERP help get access to advanced capabilities for various work domains such as Accounting, Supply Chain Management, Production, Material Management, Quality, Sales, Distribution, HR and Project Management.

Orders can be entered once and information related to this can be shared between all departments of the organization. In addition to this, the ERP immediately raises a Purchase Order request if enough goods are not available in inventory, for the Production team to follow up and manufacture the same. Furthermore, the Finance Team can go ahead and issue an invoice for the same. This data can subsequently be used to forecast future demands.

This procedure helps cut down on lead time, brings down manufacturing costs and accounts for higher customer satisfaction.

ERP SCM Software

Using an enterprise resource planning solution offers additional benefits:

Companies get greater visibility into their business processes.

They get to track inventory levels on a daily basis, which includes both the one in transit and future consignments to be received.

They get to have firmer control over their working capital requirements. They get to run their company according to their strategy.

Businesses get to decide faster.

Operating Costs come down remarkably, which includes control inventory costs, production costs, and marketing costs. Data Duplication is also avoided. This invariably begins resulting in increased margins.

ERP Services on a solution help standardise business processes.

A Consistency in processes helps get a consolidated view of the business, encouraging the organization to drive further upon improvements thanks to some healthy synergy between departments. Human Errors also come down steadily which is good news for the overall health of the business.

Support to Resource Planning

Resource planning forms an integral component of the strategic planning process that is carried out in an organisation and can include human, finance and capital. Enterprise Resource Planning (ERP) systems are therefore designed to take on the tasks involved in planning resources effectively and efficiently, and over the years, this functionality has improved in leaps and bounds.

SCM Software System

Easy tracking

In a big company, it often becomes difficult to keep track of the stock that is being sent to another factory or customer. You may not even know if the stock is being robbed or not in the middle. But, with ERP, you have the facility to track every shipment of the stock that you send. It can be a customer or a supplier; the software will let you know where your stock is at the current moment and the expected delivery and arrival time.

As you can see, ERP can be very beneficial for the supply chain management of your company. There are benefits that you simply can?t ignore. So, be quick and get this software installed to make more profits from your business.
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