For any company, managing the flow of goods and services within the company as well as to the end user is a very crucial process. Be it purchasing goods for internal use or making finished goods, keeping the flow of inventory unhindered and smooth is very important. Goods flowing in the company and especially flowing out of the factories for supply purpose needs to be monitored constantly to avoid any wastage or duplication. Here is where the importance of Supply Chain management for all companies and industries comes in picture.
A good Supply chain management can help the company grow faster, have good channel partner relations and also a good inventory management process. It provides a systematic flow of goods to ensure no process is ceased due to unavailability of the required resources. Moreover, it helps in delivering the finished product to the end user at the right place and the right time.
However, with increase in competition, the traditional methodology to manage supply chain cannot suffice the needs of a modern day industry and a better supply chain management is needed. That is where enterprise resource planning (ERP) can come in handy. ERP are prodigiously known for their ability to simplify and efficiently plan and manage various complex tasks in an organisation. Thus, can bring about the desired change in the supply chain management of the company.
Let us see how ERP can help supply chain management
- Planning: a supply chain simply does not mean delivery of goods and services, it means providing the right good at right place and at right time and so a proper planning is needed to execute the entire process. Moreover, the policies, procedures and the course of action has to be decided for a seamless flow, and an ERP software can efficiently aide the planning process for the same.
- Execution: ERP can automate various processes like sending email, reminders, and any other repetitive or schedulable tasks. To add more to it, it can help to locate idle transport resources, assign task in time effective manner, and eventually deliver service on time.
- Tracking: ERP for Supply Chain management can track the flow of goods and services with ease, to ensure timely delivery of the product. In addition, every good that is supplied from or within a company needs security as well, thus, ERP can monitor the transportation process with its real time tracking metrics.
- Reports: As they say, “there always is a scope for improvement”, ERP software can generate precise reports of the supply chain, which can help in sales forecasting, finding better and efficient ways and maintain budget, which can enhance future supplies.
Advantages of ERP software in supply chain management
- Improved efficiency: with a smart planning and automation, the efficiency of the supply chain can be substantially improved.
- Secure Distribution: Tracking the process can ensure secure and on time distribution of goods and services.
- Flexible solution: the real time data and business intelligence help in finding flexible solution
- Automation: ERP software can automate all the trivial and repetitive tasks.
- Save cost and time: it can process the flow in cost and time efficient manner
- Enhance sales: on time and secure delivery ensures customer satisfaction, and with that retaining and making new customers comes in as an added advantage.
Hence, the nexus of ERP software with supply chain management cannot only ease the complex processes of supply chain but also help in saving cost and automating various processes. Moreover, it can provide sales forecast, which can help in preparation for the future orders and supply requirements. Thereby taking the supply chain management to the next level.
