6.

0 ENTERPRISE RESOURCE PLANNING (ERP) IN SUPPLY CHAIN MANAGEMENT (SCM)

6.1 ENTERPRISE RESOURCE PLANNING (ERP) AS AN INTEGRAL PART OF SUPPLY CHAIN
MANAGEMENT (SCM)
The integration of ERP and SCM helped businesses to achieve operating excellence by
automating the process of SCM using ERP software. Rather than using separate different
systems to operate SCM and other important business operations, an ERP solution will help
merge them into one single dashboard. ERP also streamlines business management by merging
different systems, combining workflows, and handling information to confirm optimal
efficiency. Its solution can support multiple modes like make–to–order, engineer–to–order, and
provide support for operations across multiple sites in real-time. This results in a more efficient
and effective system as the ERP solution keeps up to date with the process that products
undergo, from supplier to the warehouse and eventually to the store for patrons. Thus, businesses
can improve their guard against supply chain disruption with the assistance of ERP.

6.2 EXAMPLES OF ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS IN SUPPLY

CHAIN MANAGEMENT (SCM)

There are quite a number of well–known ERP systems that are much preferred by
organisations to help manage the control of the SCM process. The first one is Oracle ERP or also
known as Oracle Fusion Cloud ERP. It is one of the leading software solutions for ERP as it
enables unceasing innovation and ensures that companies can adapt to changes in the market. On
the SCM part of the solution, the system merges innovative functionalities onto different
processes such as planning, inventory, maintenance, and order management.

The next one is Microsoft Dynamics 365, a suite of interconnected ERP solutions that
help companies by enabling them to achieve agility. It helps businesses by building agility into
their SCM so that the operations are more flexible and quicker to react under any circumstances.
The software also links the entire business through a smart software that optimises operations.

The third one is the SAP system. This system is widely known for its software solutions
that enable companies to easily merge and handle critical business processes. SAP ERP links
SCM to other departments such as manufacturing and procurement for process transmutation.
The system has both ERP and SCM software making it the most popular ERP system in SCM.

The last one is Kinetic which is formerly known as Epicor ERP. It is an all-inclusive
solution for all businesses, regardless of size, and is described as a future-focused, intuitive, and
scalable ERP application. Its target is to help businesses become more profitable by creating an
efficient supply chain on the SCM side.

6.3 ROLES OF ENTERPRISE RESOURCE PLANNING (ERP) IN SUPPLY CHAIN

MANAGEMENT (SCM)

ERP plays various roles in SCM to assist with the key functions of the process. The first
role of ERP in SCM is demand and planning. As part of its many automated features that help
ease SCM processes, ERP solutions can create demand as the orders are received and precisely
plan dates for product delivery and ensure that all production jobs are in order with demand. As a
result, supervisors will know what resources are being consumed and used instantaneously.

The next role of ERP in SCM is procurement. An ERP used for SCM offers a more
successful way to handle procurement and supply of goods, services, and other resources beyond
the chain. With the help of ERP, simple tasks such as warehouse resource management and
vendor communication can be automated to accelerate processes for better efficiency.

Another role of ERP in SCM is production. ERP software can hasten the production
processes, covering the supply chain operation from creating a bill of materials (BOM) to
supplying real-time data for labour and mechanical resources. The system can also help ensure
that products are dispatched on time and delivered before or on the due date. It also easily
accommodates all last-minute alterations required for certain jobs or orders.

The last role played by ERP in SCM is shipment. ERP system can create invoices that are
later sent to the customer when the products have arrived at them and maintain a complete record
of shipment and delivery data to verify that all orders are delivered according to the schedule.
With ERP, companies can execute quality assurance investigations on packaging while solving
disputes in the task list.
REFERENCES

Jde, I. S. D. C.-. (2021, March 14). What is the role of ERP in supply chain management?

Corning Data. https://corningdata.com/erp-supply-chain-management/

Krivoruchko, G. (2021, September 22). ERP and Supply Chain Management System: Improve

Efficiency of Your Business. ProCoders. https://procoders.tech/blog/supply-chain-

management-and-erp/