Erp's Role in Scm

Topics: Enterprise resource planning, Supply chain management, Warehouse management system Pages: 3 (775 words) Published: December 5, 2011
1. Enterprise Resource Planning (ERP)’s roles in Supply Chain Management. 1.1. The Strong Integration function
ERP systems integrate all data and processes of an organization into a unified system. A typical ERP will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules. ERP and SCM integration help organizations track and analyze key information, improve productivity, and drive accurate decisions. 1.2. Managing the total supply chain resources

It would loss the competitiveness within the market if one company relies on its own resources alone. They should put all participants, such as supplier, manufactories, distribution network and clients, into a close-linked supply chain in the business process. This enables to arrange efficiently actives of produce, supply and sale; and to meet the requirements of enterprise, ability to utilize all marketing resources of the whole society in order to produce and manage fast and effectively. Moreover, it will help increasing the efficiency, achieving the leading position on the market. Applying ERP system into the entire enterprise’s supply chain management it can got the marketing competition in the knowledge economy era. 1.3. Embodying the thoughts of pre-planning and controlling during the process The planning structure in ERP system includes: main production planning, material requirement planning, capability planning, purchasing planning, selling execution planning, interests planning, finance budget and human resources planning, etc... Furthermore, all of planning and value controlling functions have already integrated into the entire supply chain. 1.4. It was a drive source to link the information

We know the Supply chain management (SCM) is the management of a network of interconnected businesses involved in the need of product and...
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