ERP software for Supply Chain Management (SCM)

ERP software for supply chain management an important role when you are into Manufacturing business. Since producers who create products from scratch with various Bill of Materials is highly dependent on partners and vendors who supply right amount of Raw Materials at a right time in order to move according to the schedule. SCM can be a time consuming process if not managed effectively and efficiently that can cause delays and production units may need to bear unnecessary cost and expenses.

Therefore a proper software that includes S.C.M process is important to streamline the workflows. Since manufacturing business grows very quickly based on the product quality offered by the company. Supply chain on the other hand can become one of the most important factor. That is where ERP solution comes into picture. As it simplified the SCM Process with ease and positive outcomes.

How ERP System Implementation helps in Supply Chain Management

Implementing Enterprise grade software for business helps to enhance the operational efficiency in all the departments and especially for manufacturing industry it has become an important business component.

The integration of SCM within ERP allows distribution businesses and manufacturing to enhance the ability by gaining great visibility in all respective operations while increasing speed, efficiency, and focus on customer satisfaction.

There are various methods through which ERP systems are needed necessarily to enhance the Distribution management in the company. SCM software as it offers advantages to companies involved in the production of a goods.

For example : Enterprise Resource Planning software helps the decision-maker to monitor different departments including employees working on shop floors in real-time. The data generated by ERP software helps the managers to understand the needs and requirements in the business and similarly improvise their daily tasks by increasing company output with more efficiency.

SCM highlights the businesses need to interact with various suppliers and partners in order to obtain the raw materials, subcontracting and resources needed to guide finished goods to market. An ERP plays a crucial role in counter inefficiency, reducing waste and ensuring that workers are better able to direct their efforts.

Advantages of Combining SCM & ERP Systems.

Supply Chain Management is an integral part of any ERP solution that you implement for your business. In the manufacturing industry, there is need to interact with suppliers regarding raw materials and resources needed to ensure the finished product reaches the consumer. This entire process involves SCM strategies that serve to enhance product quality and overall service.

As business operations become more wide range as per the scalability, global SCM becomes indispensable. An ERP can be incorporated to support multiple modes, streamlining the movement of products from supplier to the warehouse and then to the customer. Many organizations are finding enhanced operations by choosing Enterprise solutions for the supply or distribution and operation management.

Benefits of ERP software integrated with Supply Chain Management :

When ERP & SCM combined the more streamlined and efficient workflow of an effective Logistics + Materials handling + Operation Management can be handle with other range of important advantages as follows:

Role of ERP in Sustainable Supply Chain

Major issue with supply chain management is materials management. In order to ensure a sustainable SCM system decision makers needs to implement a powerful ERP software in place that can handle current inventory levels including the new purchases and accounts payable activities with suppliers. Implementing an Enterprise Resource Planning system allows the organization’s department to keep every single piece of information handy which ultimately increases efficiency.

Apart from inventory – ERP software also helps manufacturing business to plan their production activities. These system helps to ascertain the crucial materials which are not in stock or stocks which can replenish soon. With this information in hand, businesses can schedule buying of materials with quick decision making.

ERP system increases sustainability in an intracompany collaboration that helps businesses to be more innovative in their manufacturing activities. It helps to create transparency that improves internal as well as external compliance.

One of our client example who has implemented ERP software for small manufacturing business and increased the on-time delivery to around 95% including lowering the excess raw material cost by 65%. Further, the lead time was reduced to 5 days from 25 days.

Although an improved Distribution management department cannot be overlooked as the effective supply chain department is the efficient production activities are done which further enhances the customer satisfaction.

Difference between ERP and SCM?

Now that we have all the details about ERP and SCM, here is a look at how the two systems differ from each other:

Focus:
- ERP focuses on managing internal business processes, including product planning, production, and core administrative tasks.
- SCM deals with managing external workflows, particularly the procurement and flow of raw materials from suppliers to inventory.
Scope:
- Enterprise Resource Planning offers a comprehensive solution, integrating various aspects of business operations, from finance to HR to production.
- In contrast, supply chain management systems focus specifically on managing the supply chain, including supplier collaboration, inventory management, and procurement.
Comprehensive vs. Task-Specific:
- ERP provides a broad system that handles multiple business functions across departments, making it a holistic tool for businesses.
- SCM software, however, zeroes in on the detailed processes involved in getting raw materials into inventory and managing the flow of goods.
Relationship-Based vs. Task-Based:
- SCM is relationship-driven, focusing on managing interactions with suppliers, sourcing materials, and assessing supply chain risks.
- On the other hand, ERP systems are more task-driven, concentrating on managing internal company processes like finance, HR, and production.

Enhancing Supply Chain with Globalteckz

Globalteckz’s Expertise:
- Globalteckz, based in Mumbai, specializes in offering tailored solutions that help businesses analyze demand, allocate resources, and optimize production schedules while maintaining cost efficiency.
Custom Solutions:
- Depending on the client’s needs, Globalteckz implements either a custom-built ERP solution or the highly customizable Odoo platform to streamline supply chain operations.
Odoo Partnership:
- As an authorized Odoo partner, Globalteckz offers open-source ERP solutions suitable for small and large enterprises. Our solutions help businesses forecast demand, plan inventory, and enhance product availability to boost sales.
Proven Track Record:
- We have successfully helped manufacturing businesses modernize their operations, moving from outdated legacy systems to efficient, cutting-edge software that improves overall business processes.

For more information, contact us at sales@globalteckz.com.

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