ENTERPRISE RESOURCE PLANNING (ERP) AND SUPPLY CHAIN MANAGEMENT(SCM)

AHAMED FAYEZ Roll no.21 IInd sem.

MBA (TT)

Why ERP ?ERP attempts to integrate all departments

and functions across a company into a single computer system that can serve all those different departments’ particular needs.

ERP automates the tasks involved in performing a business process.

If installed correctly, it can have a tremendous payback.

Benefits of ERPReduction of lead-timeOn-time shipmentReduction in cycle timeBetter customer satisfactionImproved supplier performanceIncreased flexibilityReduction in quality costsImproved resource utilityImproved information accuracy and

decision-making capability

ERP Implementation (phases)Pre-evaluation screeningPackage evaluationProject planning phaseGap analysisReengineeringConfigurationImplementation team trainingTestingGoing liveEnd-user trainingPost-implementation

LIMITATIONS OF ERP

ERP MARKET

Supply Chain Management“A supply chain is a network of facilities and

distribution options that performs the functions of procurement of materials, transformation of these materials in to intermediate and finished products and the distribution of these finished products to customers.”

ERP Vs SCM

contd..

ERP SCM Integration

ERP applications help in the effective SCM

in the following ways……….

Share data: They can create opportunities to share data across supply chain members, which can help managers in making better decisions. They also provide wider scope to managers of the supply chain by making available much broader information .

Real-time information: ERP systems can provide real-time information, which can be of great help in supply chain decisions. For example ordering raw materials can be based on the inventory details provided by the ERP systems.