Integrating your ERP and Supply Chain Management can make a world of difference. Consider this scenario:
The Supply Chain Director shows up at your desk asking who manufactures that cable. He wants to know how many we usually order, too. Your reply startles him.
You tell him the company you buy the cable from doesn’t manufacture it, they’re a 3rd party distributor. You usually order 100. And all that information is in the ERP system. He’s surprised by those answers, even though he’s familiar with the ERP system.
This interaction does not need to take place if you integrate your ERP system and Supply Chain Management. Chances are your ERP system already contains SCM (Supply Chain Management) components.
SCM encompasses production planning according to forecasts through shipment to the customer. This requires execution of all the bits in between, including procurement, production, balancing inventory, and shipment logistics.
All these bits require monitoring and measuring as they progress to avoid any choke points or delays. Your ERP system runs your finance and accounting and general corporate workflow at the least. It pays the bills for much of your SCM activities so integration with your SCM is a natural next step.
The advantages of integrating your ERP and Supply Chain Management are many. Information flows freely between the systems and users only need look one place for the data to do their job.
It eliminates manual reporting or combining reports from two systems. This in turn reduces reporting errors and frees up employee time for other important projects.
Process problems are easier to identify and trace due to the seamless flow of information. This means they’re easier to fix, too.
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