The supply chain is the backbone of any manufacturing business, regardless of size or nature. Industries across the globe continue to struggle with supply chain issues, and utilizing digital transformation capabilities is more critical than ever before. Organizations that do not have end-to-end visibility into their operations can find themselves at a severe disadvantage. Supply chain management in ERP systems should be an essential consideration for any business.
Supply Chain Management is Essential
The rules that govern the global supply chain are becoming increasingly complex. Changes in business processes, fluctuating demand, changes in customer behavior, new regulations, and shorter product life cycles are all threatening the sustainability of traditional supply chain management. Enterprise resource planning, or ERP systems, coupled with artificial intelligence, can enable a seamless digital transformation to better supply chain management. The right ERP system can help with business management by running efficiently and providing an environment for security, innovation, and agility.
The Role of ERP in Managing Supply Chains
Enterprise Resource Planning (ERP) solutions are widely available, and choosing the right one can be challenging. Careful attention is needed when selecting an ERP solution for your business requirements. That includes your supply chain management needs. ERP software improves supply chain management by coordinating associated processes. With the right system, vendor management, purchases, orders, and deliveries from supply chain partners integrate with other critical business functions, including accounting, purchasing, and manufacturing. It helps with demand planning, forecasting, procurement, production planning, scheduling, and shipping.
How Does ERP Help with Supply Chain Management?
Supply chain management in ERP systems can benefit any business. When looking for the right ERP system for your company, consider one that seamlessly handles your supply chain management needs. The primary goal of efficient supply chain management is proper inventory management and cost reduction. The right solution enhances trust and collaboration between supply chain partners by helping businesses plan, manage and execute supply chain activities.
Choosing the Right ERP Solution
Managing suppliers and vendors, purchasing or supplying materials and parts from or to third parties, and ensuring compliance and quality with your supply chain partners, are just a few essential considerations. If your business needs to streamline, automate, and better manage its supply chain, there are many factors to consider. Here are three important considerations when choosing an ERP solution for your business:
1. Ensure It’s the Right Solution for Your Industry
The ERP you choose should effectively support and fit your supply chain management functions and processes. Understanding if it will disrupt your current activities and how much is essential. You should choose a system that works well with your suppliers, shippers, and other vendor systems and maintains harmony throughout your supply chain.
2. Make Sure the Solution Will Grow With Your Business
ERP is central to the success of your business. It’s important to realize that your choice can impact your supply chain for years. As your business grows, your supply chain management must evolve to adopt improved practices. The solution you choose must handle that growth and be agile enough to adapt to any new direction your business and supply chain may need. The question to ask is, “can the system scale?” In addition to scaling, can it support multiple approaches to fulfilling your supply chain management functions?
3. Vendor and Product Support
Appropriate product support from your ERP vendor should be non-negotiable. Having the proper support helps to ensure your system will be properly configured to your specific needs. With the proper support, your company can maximize your ERP software solution. Your vendor should be willing to partner with you on your most critical supply chain challenges and, most importantly, have industry-specific experience.
Most businesses now understand the benefits of acquiring or updating an ERP system regardless of the industry. The benefits can be immense for supply chain management, so it is imperative to remember this when evaluating ERP systems for your company. Selecting an ERP system that meets your supply chain management and other business systems will allow total control of what happens inside and across your supply chain.
Using ERP, companies can manage customer needs more effectively. It can also improve billing, sales and service, and accounting, which are integrated into an ERP system. ERP systems can provide customized reports to help with faster and better decision-making, risk management, automation, and accessibility. With better control over your business operations, it’s easier to improve performance and gain a competitive edge.
Begin Your Journey With E3 Consulting
Working with an experienced consultant who can help you select the right tools and create a plan that meets your company’s unique needs and goals is essential. With over 35 years of experience, E3 Consulting can help your business implement digital transformation initiatives and create sustainable growth.
We’ve helped Microsoft, Sony, Wastequip, Paramount Cosmetics, and more than 150 manufacturing companies achieve growth while reducing costs. We deliver solutions that increase efficiency and revenue by implementing better processes and technology. Book online or call (732) 334-3995 to schedule a consultation.