Value Of Supply Chain Management and ERP for your business

July 10, 2014

Supply chain management applications help you in creating plans and developing strategies for your business in a more efficient manner. It enables you to assess your manufacturing capabilities with well thought out logistics by planning and carrying out the necessary tasks. Profit generation largely relies on these two aspects because by managing these properly you will dramatically increase the efficiency. There are a number of links in the chain in business therefore by missing or not staying on top of one part this may cause an unnecessary waste of resources.

Supply chain management is a tried and tested method but Enterprise Resource Planning (ERP) has aided in reducing the inaccuracies and improved the performance of the supply chain. ERP and Supply Chain Management is a way of planning all the resources in the business enterprise effectively. The organisations determine which operating systems and operating performance will assist them in managing the business operations and meet the objectives of the business. ERP and SCM also includes the trading partners of the organisation which are the customers and the suppliers. It is for the companies who are looking to generate rapid improvement in their operations. The assessment of ERP and SCM depends a great deal on the size of the operations and takes about three to four days. The organisation’s intent, implementation and effectiveness of the existing operations are assessed based on an ERP model.

ERP and Supply Chain Management for the Manufacturing Industry

ERP and supply chain management have greatly helped the manufacturing sector. The shortcomings of this process in the manufacturing supply chain however often need to be improved in order to make it more effective.

Managing you supply chain effectively ensures you stay on top of your competitors, lower your costs and improve your customer service by getting your products to customers on time. The advance of technology now enables you to electronically track your shipments and merge this information into your management systems making the SCM process an area providing advantageous opportunities.

 Avoiding bottlenecks at various stages proves for an effective supply chain management. There is simply no point in having a fantastic component in the supply chain, when an awful part in the chain weakens the complete structure elsewhere.

It’s also advisable to compare ones own supply chain management system with the competitors to find out what can be done to help reduce various wastage’s in the system.

Today a market is flooded with supply chain management and business forecasting software as vendors are in constant pursuit to separate their products from the rest. But not all of them deliver same amount of efficiency. While selecting a business forecasting software solution, as a user, you must ensure it is adaptive and appropriate for your business size.

Risk management for your business

Risks must be minimized to avoid loss and costs. Supply chain management deals with very complex process that a “broken link” stirs up a chain of risks and problems. A lot of the risks can be minimized or totally eliminated through inventory control, efficient and effective monitoring and tracking, back up plans or alternative options, and maintaining the quality of packaging and moving items handled.

Customer care is in the top list of priorities. When you deal with providing service, your reputation will depend on how you deal with your customers. Surely, customers prefer logistic companies who provide easy and convenient access to their tracking system one that is updated in real time. Customers require updates especially for delays and reason for the delays must be communicated. Some delays are beyond the control of supply chain management. One of the examples here is when a package sits in the customs for few days for inspection.

The overall strategy that will be followed in the distribution network, the supply chain management systems need to be very well thought out so that they can be used as a source of competitive advantage, this would also make them a profit center rather than a cost center.

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