The Role of ERP in Supply Chain Management

Supply chain management plays an important role in the overall success of a company, mainly in the manufacturing industry. Manufacturers rely on partners and suppliers to provide the right type and amount of resources at the right time to keep production on schedule.

Supply chain management can be a time-consuming process if not managed efficiently, and if managed ineffectively it can lead to lost productivity, delays, poor quality, and unnecessary loss of costs or profits may occur.

As manufacturers scale, supply chain management can become an even more important part of their intelligent business plans. Enterprise resource planning (ERP) software can greatly help companies simplify and streamline their supply chain management processes for smoother, more profitable results.

What Role Does an ERP System Play in Supply Chain Management?

The important role of ERP in supply chain management cannot be overemphasized. ERP software is having a dramatic effect on how businesses operate and is correlated to business growth. Effective supply chain management and ERP are important to business expansion and success.

The system consolidates supply chain operations into a single dashboard, providing visibility and streamlined coordination with suppliers and vendors. Manufacturing ERP software can also automate supply chain processes, reduce costs, enhance inventory management, and make other employees more productive.

Benefits of Using ERP in Your Supply Chain Management Strategy

Adding ERP software to your supply chain management strategy is the real deal. Below are some of the key ERP supply chain benefits that customers and users experience and that lead to measurable business growth:

Efficient Management of Demand and Procurement

ERP automates requirements planning and creates requirements at the time of order placement. When an order comes in, the software does the scheduling. Team members can see real-time data about how resources are being used in production and product delivery dates. 

Material movement, warehouse resource management, and other supply chain tasks can also be automated and streamlined to improve efficiency.

Reliable Processing and Documentation

Your ERP system can also generate invoices that are sent directly to your customers after the products are shipped. Alternatively, a customer can prepare and submit the necessary import and export documents for cross-border shipments. Also, the customer can collect shipment and delivery data to reduce errors and ensure on-time delivery and better customer service.

Improved Collaboration

ERP and supply chain management processes are essentially useful for streamlining coordination and workflows between companies and vendors. When suppliers are connected to her ERP system, they can co-act more effectively to meet targets and reduce barriers. For example, identifying when certain material stocks are low and ensuring resource availability.

Increased Visibility

With greater visibility and transparency, organizations can strategize smarter about how they use their resources. ERP software gives teams a detailed, real-time view of their operations so they can see where things are going wrong, they can target specific inefficiencies, and drive better results.

Cloud Function

ERP systems are available as on-premise solutions yet cloud ERP software has become increasingly popular in recent years. A key benefit of cloud ERP is dedicated data security and mobility.

With a cloud-hosted ERP solution, you can access your system anytime, anywhere via your mobile device, as long as you have an internet connection. This allows for faster action without the need for team members to be together. This is valuable on the fast-moving side of the supply chain.

A Recap

To drive your business towards operational excellence, you need an ERP solution that connects directly to your SCM system. Tecomsa’s cloud-based ERP solution provides a limitless scalable single source of truth for a seamless and easy user experience across SCM, ERP, and beyond.

Request a cloud ERP demo today to learn more about what Tecomsa can do for you and your business.

Written by: Venus Marwani