Enterprise Resource Planning in Supply Chain Management

Keywords

1) enterprise resource planning

2) enterprise resource planning in supply chain management

3) Supply Chain ERP Software

4) Role of ERP in Supply Chain Management

In the manufacturing industry, supply chain management can make or break the business. All manufacturers rely
on vendors and partners to supply resources that are the right quality in the right amount at the right price.
However, supply chain management takes up a lot of the employee’s time. Supply chain management can be
time-consuming and highly cumbersome. If supply chain is not managed properly, there can be delays in
production, halts, quality deterioration and loss of profits among other huge problems. Therefore, enterprise
resource planning in supply chain management becomes important.

Enterprise resource planning (ERP) can help a business to simplify and optimize their supply chain management
so that the business can produce goods at a higher quality and gain large profits. The role of ERP in Supply
Chain Management can be varied. Supply chain ERP software can change the way businesses conduct work and
propel businesses forward in terms of growth and profit. Enterprise resource planning in supply chain
management are both necessary for a business to grow and succeed. With supply chain ERP software, supply
chain operations can be managed under one dashboard, so that there is more streamlined communication with
suppliers and vendors and there is more visibility. The software can also free up employee time by automating
certain tasks within the supply chain management process. This will help employees focus on other tasks and
get more done.

There are great benefits to using enterprise resource planning in supply chain management. For one thing,
enterprise resource planning can automate certain processes like creating demand upon receiving orders and
demand planning. The supply chain ERP software will implement scheduling when an order is received so that
workers are able to see real-time information about the resources being used in production. They can then
effectively plan how resources are being used and can better plan production jobs and product delivery. There
are some other tasks that can be automated as well, such as supply chain tasks, warehouse resource management
and transporting materials. These tasks can be efficiently managed so that they improve quality and production.

Supply chain ERP software can create invoices directly sent to the customer’s email after the products have
been shipped to them. They can also effectively manage the side of creating import and export documentation
that are needed for shipments that cross a border. The ERP software also creates an archive of shipment and
delivery data so that in the future there are fewer errors, deliveries are on time and there is better customer
service.

Enterprise resource planning in supply chain management processes are helpful in streamlining the conversation
that takes place between businesses and their vendors. Once the suppliers are connected to the ERP system, they
can help to reduce constrictions and meet goals. For example, let’s say that the supply chain inventories are low.
With the supply chain ERP software, you can ensure that resources are available at the right time and in the right
quantity.

Enterprise resource planning software can be available at premises or as a cloud solution. The latter has become
very popular. Cloud ERP software can enable data security and mobility. The system can be accessed anywhere,
at any time, on all mobile devices that support an internet connection. So, team members working remotely can
also access the data and work together with team members on field. The communication doesn’t stop. This way,
and with the fact that the supply chain ERP software can increase visibility, businesses can now create better
strategies on how to utilize resources, whether they are human resources or otherwise. So, with this software the
business can also decide where their strategies are working and where they are failing so that they can then
target specific inefficiencies for better outcomes.
Role of ERP in supply chain management can be described with the below four things:

1) Demand

Once orders are received, the ERP software can create demand. Enterprise resource planning can streamline
supply chain management by creating effective job scheduling. Supervisors can then analyse in real-time
whether their resources are being consumed or used properly. So, they can accordingly plan delivery dates for
the products. Once the inventory and raw materials are at the level they need to be, production can begin. The
ERP software will ensure production policies are consistent with demand and there is proper replenishment at
the right time.

2) Procurement

A supply chain ERP software can show a better way to manage ad supply goods after procurement is done. ERP
software can help with the handling of warehouse resources, transportation and execution. Essentially, the
software can handle all aspects of the supply chain eliminating the need for certain manual tasks such as talking
to vendors and suppliers and keeping track of the communications that can be automated with ERP.

3) Production

The ERP software can help to create the BOM or Bill of Material for the items. Once the production phase has
begun, the machine and labour resources are kept in records that can be created and updated in real-time with
the software. Once all the shipping documents are recorded through the ERP software, there are fewer risks of
errors that are caused manually. The ERP system can send out products on time so that deliveries are made on or
before the due date and not after. ERP software can also modify work orders and job tasks so that any last-
minute alterations are accounted for.

4) Shipment

The ERP software can finally create an invoice after shipping has taken place. This can directly be sent to the
customer. There is a central repository maintained within the software for customer shipments and delivery
details.

Enterprise resource planning in supply chain management are the right solution for businesses. An agile supply
chain can improve productivity and enable better tracking of resource utilization.