Benefits of using Enterprise Resource Planning (ERP) tool In Supply Chain Management

Benefits of using Enterprise Resource Planning (ERP) tool

In

Supply Chain Management

 The Internet's value-added chain covers both the upstream and downstream business through which a

product travels — from raw materials to manufacturing and from manufacturing to marketing and aftersales service. At each stage of operation, an intermediary performs functions that add value to products and services, facilitate their flow, and compensate for them through a counter flow of money.

A contribution of the Internet supply chain is to eliminate paperwork and cut overhead in both directions of this flow. Enterprise Resource Planning (ERP) software application have being built and improved upon over the year to facilitate operations such as Supply Chain Management (SCM), Logistics, Financial Management, Warehousing Management, Project Management, Customer Relationship Management, etc.in its full cycle of operational documentation, processes and quality reporting.

What you should appreciate in this information age is that while Internet commerce helps to reduce the involvement of intermediaries, greater efficiency skill enhancement round around time and increase value to customers.

Benefits of Implementing ERP software in Supply Chain Management (SCM), Logistics, Warehouse Management and Financial Management:

1.     It helps the human resources, organization and industry to re-engineer their processes, learning & professional skills to work efficiently and adopt new standards.

2.     It helps to increase the Return On Investment (ROI) for the government and business owners

3.     Reduction in overhead financing and increased productivity most especially in the aspect of documentation, reporting and communication.

4.     Business process integration with other units, departments, partner companies, etc. example of such activity the maximization of information technology in DHL  Courier company, such that customers can view & track their goods/consignments via the internet which is integrated with their ERP applications.

5.     Complete visibility of all activities captured within the ERP software. Government of Today should harness  ERP technology for activities such as:

a.       Project Management: All project across all ministries, states and the entire country can be capture and track and monitored via an Enterprise Project Management Module of an ERP. The project owners, vendors, budget and actual cost, etc. will   give the Government online real-time reports.

b.      Supply Chain activities on the commodities like AGO from production - to – revenue.