According to a survey from Finances Online, the most common KPIs used for supply chain monitoring include daily performance, cost reduction, production service rate, inventory turn, production time, lead time, return rate, and ROA. Due to the complexity of tasks and the need to analyze data from several sources, ERP software providers include a well-integrated supply chain management module with their ERP packages.
And over the last few years, organizations all over the world have recognized the multiple benefits of ERP in supply chain management, particularly in the COVID-19 situation (SCM). ERP has been shown to have a number of advantages, including improved customer service, process automation, and cost savings. Certain aspects of ERP are particularly significant in the supply chain.
What is supply chain management?
The management of a product’s or service’s entire manufacturing flow, from raw materials to delivery of the finished product to the client, is referred to as supply chain management. A business creates a supplier network to move products from raw material suppliers to businesses that deal directly with customers.
Benefits of ERP in Supply chain management (SCM)
Supply chain ERP software integrates several parts, from inventory to logistics. As a result, employees from diverse departments and units can exchange supply chain analytics in real-time. As a result, each individual can act more quickly on any information they get. People will have to jump through hoops to get to the other side of the divide if there is no ERP system in place.
Predict to act more efficiently
You may acquire end-to-end supply chain predictive analytics and use machine learning and artificial intelligence with operations data in the cloud. In this scenario, connected warehouses and factories give data points across the organization, which is a practical application of AI. It can also help with more accurate forecasting and scenario modeling in order to gauge demand and determine whether product lines should be changed as a result. Having faster access to more information allows you to take immediate action rather than responding to changes or potential disruptions.
Enhance security and protect personal information
Security concerns are becoming more prevalent, with organizations that rely on older systems bearing the brunt of the impact. Without connected analytics and predictive algorithms recognizing dangerous behaviors, many businesses are unable to detect or mitigate today’s sophisticated cyber threats. Firms can use an intelligent supply chain to detect areas of vulnerability that impact security, compliance, and reliability.
To keep up with the market, move quickly
With real-time access into customer and supplier actions and a linked infrastructure, you have the visibility and flexibility to optimize sourcing and boost production. This information can also help you adjust schedules and inventory as needed with agile planning. A flexible modern ERP can temporarily simplify and shape product portfolios while responding with high-demand products when a big market shift is predicted. The supply chain risk analytics provided by this technology can aid in the alteration of work and production settings by automating procedures and allowing workers to make quick changes.
Innovate to suit the needs of your customers
Agile planning and more effective use of manufacturing lines and human labor, organizations that use current ERP may experience lower maintenance charges and total cost of ownership (TCO). Profitability can be increased by improving efficiency and realizing operational efficiencies while expanding to meet rising client demand. Unnecessary operational spending can be transformed into capital, which can then be used to fund more strategic expansion plans.
Get in touch
Today the way the world is moving, we need better predictive analytics in the shipping industry. The supply chain is not conventional anymore, each process is fast and if you are still using old models, you can go obsolete with no recovery option. This is why a custom ERP solution can fit all your needs. Automate, innovate and serve the best to your community by connecting with the supply chain professionals of DHRP for ERP solutions.
