Automated Supply Chain Management: An Overview
Forward-looking organizations rely on different types of information systems to manage their daily business operations. They use ERP systems for HRM (Human Resource Management), CRM (Customer Relationship Management), SCM (Supply Chain Management) and other essential business functions. These systems automate business operations and integrate core business processes.
This blog discusses the merits of integrating SCM and ERP systems to gain better operational visibility and efficiency for greater customer satisfaction. Organizations that implement such integrations significantly improve their business operations and boost revenues.
Integration of ERP and Supply Chain Systems
ERP solutions add value at every phase of supply chain management by achieving efficient interactions between key stakeholders including logistics providers, warehouse and distribution center operators, and suppliers. Automation of the entire workflow from procurement to product delivery leads to the reduction in operational costs.
ERP solutions meant for supply chain management enables retailers to control storage costs and meet customer demands effectively.
Competitive Benefits of ERP in Supply Chain Automation:
Enhanced Transparency:
Consolidated view of the supply chain enables key stakeholders to make balanced and informed decisions.
Demand Forecasting and Lean Inventory:
Integration of ERP and supply chain management improves the accuracy of demand forecasting. It also minimizes the cost of inventory associated with large batch production processes.
ERP and SCM integrations are instrumental in supporting lean inventory practices to fulfill just-in-time production requirements. They minimize production costs and ensure supply chain flexibility.
Role of ERP in Supply Chain Automation
Real-time Tracking and Monitoring
ERP system in supply chain management enables real-time data-driven decision making. It provides instant updates about the condition and location of cargo in-transit.
For instance, seaports around the world unload containers from trucks and carry these containers dockside. These containers move along wired tracks to a spot where quay cranes can load them onto cargo ships. The receiver and shipper both know the status of their orders among many other orders in the container.
Automated guided vehicles move the warehouse racks up and down picking and putting away stocks. It records transactions exactly in ERP systems in real-time.
Demand and Planning
ERP system for supply chain management automatically creates demand when orders are received. It streamlines supply chain management by creating a job schedule. As a result, supervisors can easily know what and which resources are being used in real-time. It enables supervisors to plan product delivery dates.
ERP system ensures production policies are consistent with demand.
Robotics Innovations
Traditionally, companies were dependent on people to perform routine tasks. But now robots are making rapid inroads in the SCM industry. Several tasks such as monitoring, making data entries, and generating notifications can now be performed by robots.
In the past, manual efforts were essential for monitoring inventory reports to assess inventory levels and notify procurement to adjust order volumes accordingly. Now, robots can automatically check this information and adjust inventory levels.
Procurement
ERP system for supply chain management provides an efficient way to manage procurement and supply of goods, services, and other resources. Whether it is about handling manufacturing or warehouse resources or managing transportation, ERP solutions play a critical role.
Other manual tasks such as communicating with vendors and suppliers and keeping track of communications can be automated easily with ERP.
Shipment
An ERP software creates and automatically sends an invoice to the customer whenever an item shipment occurs. It maintains a central repository for customer shipments and all delivery details to ensure timely delivery of orders.
ERP system functionalities also enable organizations to decide packaging methods and set criteria for quality check of both internal and external packages.
Oodles ERP Services in Supply Chain Management
Our ERP experts empower organizations to effectively organize demand management procedures and maintain scheduled break free chain of communication. They develop solutions to monitor and manage every link of the supply chain, automate processes, and derive actionable insights from Big Data. We, at, Oodles ERP provide unparalleled end to end services from supplier to customer collaboration and global trade management to supply chain execution.
Our seasoned team of SCM solutions develops custom solutions with open source platforms like Odoo, Opentaps, and Ofbiz.
Concluding Thoughts
ERP and SCM systems integration is essential for automating supply chain processes. An ERP system enhances the management of business processes and improves supply chain automation. It improves the supply chain management processes such as supply chain planning, purchase, procurement, monitoring, and maintenance. ERP in supply chain automation increases productivity improves efficiency and inventory optimization.
Also Read: Cloud Computing to Revolutionize Supply Chain Management
