Implementation of the ERP system brings about a number of changes in the organizations structure. These changes have to be managed in the proper manner by the top management.
The direction of the resource movement and control is done by supply chain management and ERP aids in enhancing the performance of the plan of action. Implementation of the Enterprise Resource Planning system brings about a number of changes in the organizations structure.
These changes have to be managed in the proper manner by the management. To be a successful supply chain partner for your customers, regular information visibility is demanded. Information regarding the production planning, scheduling, supply chain inventories, etc have to be collected, analyzed and shared.
Enterprise Resource Planning system aids the manufacturers to effectively and efficiently use the assets and provide the customers with the visibility they require. The information along with its interaction points and boundaries required is available to the customer. Enterprise Resource Planning enables them to offer a platform that enables effective response to the changing supply chain.
The ways in which an ERP system aids in improving the supply chain management performance are as follows:
1. Global visibility: An enterprise resource planning system enables the manufacturers to know the location of the inventory throughout the supply chain. This allows the manufacturer to develop the best plan for production. The inventory can be re-supplied and shipped in critical customer relationships. This helps the manufacturer to use the inventory in an optimum manner and still provide excellent service to the customers. Having real time information helps to take the right and timely decisions. With the ERP implementation, the customer can be provided with the visibility of the inventory and availability.
2. Improvement in performance: The ERP systems provide with business analytics that help to standardize metrics to measure performance. The new metrics and benchmarks can provide with warnings of problems that may occur in the operations.
3. Improved Customer Interaction: ERP helps to provide a better understanding of the customer needs for the customized services and products. This integrated view enables the company to increase its profits and build long term relationships with customers.
4. Low manufacturing costs: Low manufacturing costs is important by having the best suppliers. Global sourcing and locating good supplier needs a comprehensive database by which a manufacturer can look for lower costs. ERP helps to ensure lean operation and provides with real time data.
By having visibility, standardizing the process and integrating the data, an Enterprise Resource Planning system provides the manufacturer with improved customer satisfaction, increase in profits, reduced costs and transparency. ERP offers a platform for scaling with the competition on an international level and thus benefits the manufacturer. ERP and supply chain management extends to include the suppliers and customers. It is a formal way to plan the resources of the business enterprise. The company can establish operating performance measurements to manage the business operations and meet the goals.
The high performance organizations worldwide are integrating ERP and supply chain management into their business strategy. This allows the companies to generate fast and sustainable improvement in their business operations. The companies implementing ERP and supply chain management business practices enable to achieve inventory record accuracy and eliminate physical inventory and improve productivity.
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