How ERP abets the supply chain with automation

How ERP abets the supply chain with automation

By: Retail CIO Outlook | Friday, January 11, 2019

Businesses are using smart business automation software to gain operational efficiency, enhance productivity, and gain profitability.  Businesses should adapt to changes to remain agile. They need to automate and streamline operations across various departments and functions as finance, accounting, production, distribution, and sales. Organizations use Enterprise Resource Planning (ERP) software to manage business information, integrate disparate systems, streamline workflows, and achieve efficiency.

The purpose of ERP is to combine information from business functions into a common system to earn improved access for the business. Modern ERP technologies don't depend on data entry and collect a huge amount of data to determine companies' needs.

ERP in Supply chain: ERP solution takes care of physical aspects of supply as storage and transportation managing demands and supply to meet customers' needs. ERP software adds value to the chain from material procurement to end-customer product delivery. The solution supports multiple modes as make-to-order, engineer-to-order, and configure-to-order and provides operations supports in real-time. Following are some of the ways that ERPs assist in supply chain:

Robotics: Robots are making great strides in the industry. Robots perform enterprise tasks with accuracy and efficiency. Robots appraise businesses through monitoring activities and distributing information in real-time throughout the ERP system. 

IoT: Internet of Things (IoT) sensors collect and transfer data to an ERP system. IoT smart sensors are located outside of business transmitting data to the ERP system. They support ERP systems providing current and real-time data to achieve better efficiencies and create predictive analysis.

Check Out : Top Supply Chain Companies

Cloud computing: Moving cloud computing offers security and innovations to the business. Incorporating cloud-based operations with IoT and robots has revolutionized the ways of doing business of online retail companies.

Role of ERP in supply chain management:

Planning: An ERP system in supply chain management automatically create demand when orders are received. It creates effective job scheduling that makes the supervisors know what resources are being consumed and used. 

Procurement: An ERP in supply chain comes with effective ways of managing procurement and supply of goods, services, and resources. It handles manufacturing and warehousing, managing transportation, and executing processes.

Production: An ERP allows creation of bill of material (BOM) for each item. Records for machine and labor resources are created and updated in real time after the starting of production. It helps to record all shipping documents eliminating manual errors. Also, ensures about the products' delivery maintaining date and time.

Nowadays companies are implementing ERP technologies to win the race and capture market share. Manufacturers create innovative ways to capture, process,  and use ERP data to serve their customers in a better way and improve profits.

Weekly Brief

Read Also