ERP and Supply Chain Management Produce Rapid Business Improvements

Posted by Gerry Poe

supply chain erpERP and Supply Chain Management Produce Rapid Business Improvements.
Supply chain management is a mature concept which Enterprise Resource Planning (ERP) increases accuracies. (Wikipedia: Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996)). ERP has greatly increased the performance of the supply chain.

Treating your customers, suppliers and the company as an integrated supply chain provides the best return on investments in systems, processes and supporting technologies like ERP and SCM software.

ERP connects Supply Chain Management enabling planning of your resources in the enterprise effectively. Establish working systems and operating performance which helps manage operations achieving your business objectives. Defining your ERP and SCM includes your trading partners; internal and external customers and suppliers. ERP and SCM is for companies seeking rapid operational improvements.

An assessment of ERP and SCM depends on the size of your operations and may take about three to five days. Careful measurement of your organization’s objectives, implementation and effectiveness of the existing systems and processes are assessed based on an ERP model well-matched to your business.

The components of Supply Chain Management are Planning, Sourcing, Producing, Delivering and Returns management. Proper SCM relies on integrated information in ERP (Enterprise Resource Planning) software. ERP integrates the data in a single application and therefore benefits SCM management. When SCM and ERP applications have a single-source-data it makes implementation faster.

Investing in ERP systems provides a platform enabling effective answers to the changing supply chain. An integrated ERP system improves Supply Chain Management performance by achieving global visibility. It is essential to optimize the investment in inventory and offer great customer service in today’s global market. It is important to know about your inventory throughout your Supply Chain and this data is available with an ERP system. Manufactures develop the best plan for production and make only what is required by having the knowledge of the inventory location and availability. This information also helps to provide customers with inventory and product availability information. Real-time data helps to make quick and correct decisions with the help of ERP.

ERP and SCM work together by developing a better customer interaction. Data analyzed from different sources such as sales, marketing and supply chain systems enable product decision support. ERP offers this integrated view to help understand customer needs better. Providing better products and services which helps increase profits. ERP and Supply Chain Management help in lean manufacturing, supplier integration and global sourcing. Achieving higher performance as the measurement and performance systems are linked together. ERP systems include analytics, enabling standard metrics bringing speed, accuracy and increasing quality.

Some ERP and SCM Models:

  • Job Shop - Job Shops have a unique manufacturing model. They need to perform like fast turn manufacturers, but each job is unique and typically built to customer specifications. Finding the right ERP solution accommodating job or batch process in manufacturing is critical.
  • Process Manufacturing - Process Manufacturing is a batch oriented method of manufacturing liquids, chemicals, foods, or other formula/recipe based products. Traditional MRP software does not work due to the unique requirements such as yield factors, re-blending, and container management.
  • Semiconductor - Semiconductors have a manufacturing process that is unlike any other. Managing the photolithographic and chemical processing steps in your fabrication require specialized software. Wrapping that with a financial system creates a set of industry specific requirements.
  • General Manufacturing - This focuses in on the discrete manufacturer. This is a company which is using or would like to use MRPII in their manufacturing process. This type of manufacturer makes discrete products. This covers most general manufacturing.
  • Aerospace Manufacturing - The Aerospace Industries are complex supply chain with unique requirements. Often under OEM (original equipment manufacturer) constraints, the typical aerospace manufacturer delivers on time in a cost competitive environment.

ERP and SCM are part of a larger system of enterprise technologies, process management, lean objectives and profit centers. Within businesses of every type, ERP is key to their successful sustainability. With an ever increasing playing field, software and operational technologies are coming together forming an integrated enterprise. Purchase, lease, renting, pay-as-you-go, hosted or on premise are a few of the options offered to help businesses benefit from the unrestrained management tools within ERP. Getting started, from the beginning, with the best ERP software is our wish for every business in every industry.

Did you know that SYSPRO continues to receive awards for its ERP software?

SYSPRO was in the news which said they had recently received another award.  

SYSPRO Wins Golden Bridge Award for Software Innovation: SYSPRO Honored in Global Competition for SYSPRO STARS FastTrack Implementation Methodology

Do your Enterprise Supply Chain Management Software Components Include:
(procurement, logistics, demand planning, supply chain visibility, demand optimization)

  • Purchasing System
  • Requisition System
  • Technologies: EDI /XML/ E.Net
  • EDI - Trading Partner Management
  • Supplier Performance Analysis
  • Customer/Supplier Web Portal
  • Consignment Inventory
  • Supply Chain Transfers Processing and Documentation
  • Approved Supplier/Manufacturer Management
  • Supply Chain Planning
  • Inventory Forecasting and Optimization

These questions are but a few in the Complete Enterprise (ERP) Self Assessment which includes over 300 questions. You can download the complete ERP self assessment here:

Download the Checklist: The Complete Enterprise  (ERP) Self Assessment



Tags: ERP, Supply Chain Management, SYSPRO

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