A majority of businesses today, in manufacturing and distribution sectors, are facing numerous challenges in the form of economic sanctions, pandemic-induced shutdowns, and scarcity of resources. Apart from that, the supply chain crunch is yet another crucial factor that is majorly impacting the manufacturing and distribution industries across the globe. A large number of businesses in the US and Canada have encountered whopping losses due to a supply chain crunch precipitated by the sharp rise in import tariffs. Furthermore, many countries are still recovering from the economic slowdowns caused by the COVID-19 pandemic. That said, it is now more important than ever to implement a scalable enterprise solution for effective supply chain management.
Custom ERP development has become an indispensable need for businesses in the manufacturing industry to sail through complex operational challenges. Therefore, developing a supply chain ERP software is an effective way to deal with the challenges imposed by the supply chain crunch. Here you will learn how implementing a supply chain ERP software would help enterprises sustain the supply chain crunch.
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Top Factors Impacting The Global Supply Chain
There are multiple factors that are collectively responsible for the supply chain crunch that most enterprises are facing today. Below are the top factors that are impacting the supply chains worldwide, causing major disruptions the manufacturing industry.
Rising Prices For Raw Materials
Over recent years, there has been a substantial rise in the cost of raw materials and the procurement process has also become more complex and cumbersome.
Growing Requirements For Energy and Fuel Consumption
The crude oil prices have hit an all-time high, thereby disrupting the supply chain across manufacturing and distribution industries. To make matters worse, the increasing fuel cost is putting up too much pressure on transportation and logistics infrastructure.
Changing Trade Policies
The rapidly increasing import tariffs are majorly impacting trade policies across the globe, thereby precipitating changes in trading patterns across different industries.
Growing Number of eCommerce Platforms
There has been a substantial increase in the number of eCommerce platforms worldwide, catapulted by the pandemic. As a result, it has imposed an immense burden on global supply chains to achieve faster order fulfillment rates.
The Importance of Supply Chain ERP Software
Developing and implementing the supply chain ERP software has become an inevitable need for enterprises in the manufacturing and distribution industries. It is an effective way to sail through the complexities of supply chain management and build resilience for the future. In the following section, we highlight the best ways that ERP systems can help improve supply chain management and streamline operations across the SCM value chain.
Efficient Supply Chain Management
The supply chain ERP software is designed to enhance the productivity and efficiency of diverse SCM activities. It includes planning, purchasing, procurement, sourcing, manufacturing, shipping, and logistics. Implementing an ERP software would render automation at different levels, enabling enterprises to accelerate their SCM processes, eliminate manual complexities, and build resilience for the future. At the same time, it helps truncate operational expenses and brings significant time and cost savings.
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Improved Inventory Management
Inventory/warehouse management is a crucial aspect of supply chain management that requires utmost attention throughout the manufacturing and distribution lifecycle. Implementing an ERP-based inventory module enable manufacturers to gain real-time visibility into their inventory data. At the same time, it helps them keep close tabs on SCM activities while keeping track of inventory movements.
Automated Purchasing Process
Supply chain ERP software automates the purchasing process, allowing businesses to efficiently manage a multitude of activities including vendor selection, material procurement, and inventory management. At the same time, it streamlines an array of different processes like contract negotiations, purchase requisitions, and order fulfillment.
Integrated Business Processes
The supply chain ERP software seamlessly integrates with a wide range of ERP modules, applications and enterprise systems. For instance, manufacturing and distribution companies may integrate their SCM application with the accounting software, inventory module, and many other similar applications to centrally track and manage different business processes.
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Wrapping Up
In today’s hard-pressed business environment, a majority of enterprises in the manufacturing and distribution sector require intelligent software tools to stay afloat. ERP software development is an ideal way to edge ahead of your competitors and sustain the cut-throat market competition. That said, supply chain ERP software is a crucial component that enables manufacturing companies to significantly improve supply chain management. Besides, it enhances business productivity by streamlining an array of processes under supply chain management and helps generate steady revenue streams.
Why Choose Us For Supply Chain ERP Software Development?
We are an ERP application development company that specializes in building custom enterprise software solutions for diverse business needs. Our seasoned developers use the latest tech stack and next-gen technologies to build performance-driven business applications with custom features. We use open-source software platforms like Odoo, ERPNext, and Apache OFBiz to scrupulously develop high-quality supply chain ERP solutions. Our end-to-end supply chain ERP software development services are conducive to addressing supply chain complexities through data-driven software automation techniques. To learn more about our supply chain ERP software development services, contact us at [email protected].
