ERP and Its Impact on Supply Chain Management

ERP systems can have a profound impact on supply chain management. In one study, The Delphi Group asked 23 global manufacturers questions about the impact of ERP on supply chain management. The study found many interesting results. Among these results, three stood out as the perceived impact of ERP upon the supply chain.

  1. Integration of information across the supply chain.
  2. Increasing “mass customization” of products.
  3. Complex supply chains.

Thanks to the advent of cloud technology, ERP systems can now be used to manage complex supply chains including multiple vendors, suppliers, and resources. The items outlined above from the Delphi study can be tackled with cloud ERP, which enables anyone with an internet accessible device to input data and view information on other points along the supply chain. The result is an effective way to manage the supply chain to accommodate customer demand.

Supply Chain Management Innovations

Lean manufacturing has come a long way since the 1990s and early 2000s. Today’s manufacturers have incorporated many concepts to help them focus on quality, improved production, and lower costs. What’s left to improve? The supply chain.

Supply chain management has always been challenging for manufacturers. Logistics and timing are the most involved aspects of many projects. Improving one or more of the parts of the supply chain can lead to substantial cost reductions. When costs go down and prices remain stable, profits go up.

Manufacturers today deal with a highly fragmented marketplace. Various suppliers offer unique capabilities, and you may find yourself using a big array of vendors for any given project. Changing marketplace conditions, lower costs, and faster shipping have put specific suppliers at the head of the list for future orders. It’s a rare company today who works with only a handful of selected suppliers. By managing the supply chain through a cloud-based ERP system, you’re in control of your suppliers.

Integrating Information through an ERP System

According to the Delphi Report, fragmented resources are often one of the great challenges in supply chain management. A central point of information via a cloud based ERP eliminates fragmented resources and brings everything together. This integration is vital for improved supply chain management

ERP systems today are better at integrating information than software found in any previous generation. Integrated information means one comprehensive report on a business’ activities, including the supply chain. Such data is invaluable for manufacturers seeking to improve delivery times, product quality, and item price for their customers.

Mass Customization in Greater Demand

Older methods of maintaining high inventory for specific customers to meet uneven demand no longer work. Manufacturers can’t afford to keep excess inventory on hand. To meet demands for mass customization, an ERP system can help. With an ERP system, you can manage multiple vendors, keep track of inventory, and track orders from start to finish to make it easier to offer customization.

Manage and Deploy Resources

ERP systems are also useful to help you deploy resources from multiple vendors. From your central vantage point, you can see who has what and how quickly you can get it out to those waiting for it. This ability to manage a complex assortment of goods across multiple orders provides a strong competitive advantage.

ERP Resources Improve the Supply Chain

The right ERP can improve collaborative planning, enhance your supply chain strategies, and help you meet the growing demands from a global customer base. Manage multiple vendors with ease, save costs, and increase time to market. Cloud-based ERP makes it possible for manufacturers.

Emerald TC

Emerald TC specializes in helping mid-market, multi-location companies increase efficiency, productivity, and profits. We support Sage and Acumatica ERP products and offer Sage 100, Sage 500, Acumatica Cloud ERP, and more to help your business manage supply chain needs, improve productivity, and remain competitive in a global marketplace. Let’s discuss how we can help you. Contact us or call 678-456-6919 today.

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