Many businesses are learning the benefits of Enterprise Resource Planning, or ERP software. It serves various functions, including managing business info, ensuring optimal operational efficiency, and integrating multiple systems/working processes.
Supply Chain Management, or SCM, is one of those processes. SCM is the need to interact with suppliers and partners to obtain raw materials and resources to bring the finished products to market. ERP combats inefficiency, reduces waste, and ensures that workers can direct their efforts in better ways. According to a recent report, approximately 50% of businesses already use ERP for SCM.
This article will explain the benefits of combining ERP with SCM. Goldfinch ERP offers the ideal solution to assist manufacturers by integrating all processes into one platform. Let’s explore how we can help your business with supply chain management.
How Beneficial is Combining SCM with ERP?
There are many benefits associated with combining SCM with ERP, which includes:
- Improvements in efficiency across the various departments/organizations that are involved in the supply chain
- Improvements in customer service, increasing customer retention, and chances of repeat business opportunities
- Automated workflow, reducing overhead and operational costs
- Reduces risk of IT issues/problems causing bottlenecks, impeding efficiency
- Increases flexibility in supply chain solutions that can adapt to meet the needs of future business growth, expansion, and changing circumstances.
How Can an ERP System Ensure Superior Supply Chain Management?
An SCM system is critical for obtaining operational information across various departments and businesses and doing so in real-time. If you don’t have clear insight into the activities and processes that make up your supply chain, you can’t create procedures that give you a competitive edge. An ERP system plays a vital role in creating and maintaining a superior SCM process, including the following:
Facilitates Supply Chain Planning
This part of the process involves choosing your marketing channels and promos and then determining the inventory required to ensure replenishment and production policies can keep up with demand. An ERP system provides an easy, flexible way to create and adjust the parameters in which your supply chain operates.
Assists with Purchase, Procurement, Execution
An ERP system gives you an effective way to handle the purchase and supply of goods, services, and resources needed across your supply chain. From manufacturing resources to warehouse resources to the processes related to transportation and execution, an ERP system gives you visibility across all parts of the supply chain.
Monitoring and Maintainance
An ERP system allows you to see and make changes to activities within your supply chain in real-time. This power means your business remains flexible and competitive by ensuring cost-effective operations.
It helps Measure and Assess
If your supply chain uses several different standalone systems and processes, it can be nearly impossible to compare your actual activity with your projected goals. However, an ERP system pulls everything together, making it easier to see any undesirable variables within the supply chain, which allows you to address and mitigate them.
Choosing the Best Implementation Strategy for ERP and SCM
If you have already implemented an ERP system, you can use your collected information to create an effective, efficient workflow process. Businesses that use multiple standalone methods can benefit from integrating and implementing an ERP system that can provide cross-platform access to all manufacturing, inventory, and financial information required to create a superior SCM process.
There are no rules for determining which system to implement first. It would be best if you took the time to assess your needs and circumstances before deciding.
Goldfinch ERP offers an all-in-one system to take your manufacturing business to the next level. We can help you grow by integrating your SCM, CRM, operations, sales, planning, and procurement into a single platform. Contact us today and let us show you what we can do.