Erp’s Role in Scm
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. . 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 service packages required by end customers. Between the end customers and the original supply there has many activity and control by the supply, manufacturer, distributor and retailer. So the ERP in the supply chain management role was to link the information between different part, and it was an accelerator to make the information flow in each part.
Through to rationally allocate enterprise resources to make it achieve the maximize use. 1. Advantages & Disadvantages of ERP 2. 5. Advantages One of the most important advantages of ERP is integration of all the business solution in a single platform, which reduces unnecessary paper work, documentation, repeated entry, cycle time etc. The other was reduced operating costs. Once the startup costs of ERP are navigated, users may discover rewards for their efforts in the form of reduced operating costs.
ERP enables companies to have greater control over marketing, production and inventory. This reduces costs as well as reliance on help desk support. Also the advantage is its accounting applications, it can integrate the cost, profit, and revenue information of sales that are made, and it can be presented in a granular way. It can also be responsible for altering how a product is manufactured, a dating structure can be set up which can allow the company to be in informed of when their product should be updated.
This is important, because it allows the company to keep better track of their products, and it can allow the products themselves to be produced with a higher level of quality. * Disadvantages The one of the disadvantages is startup cost. The implementation requires new hardware, training and consultants to give instruction in addition to the software itself. This creates a high price tag that may not be acceptable to a company—especially for a system that cannot guarantee profit The other disadvantage is external security.
Designed with internal security as a No. 1 priority, ERP is disadvantaged by its vulnerability to external security threats. External attacks can come in the form of dictionary attacks that aim to crack weak passwords or applications flooded by buffer overflows allowing hackers easy access. Other methods include duping users into divulging credentials—this can lead to hackers entering a system as authorized users * Reference Erosey. (2008, Jun 26). ERP. Retrieved 12 4, 2011, from it. toolbox: http://it. toolbox. om/wiki/index. php/ERP Inc, E. (2006, Dec 4th). The advantages and disadvantages of ERP. Retrieved 12 4, 2011, from exforsys: http://www. exforsys. com/tutorials/erp/the-advantages-and-disadvantages-of-erp. html Mukherjee, J. (2008, 10 20). Role Of ERP In Supply Chain. Retrieved 12 4, 2011, from slideshare: http://www. slideshare. net/JD_04/role-of-erp-in-supply-chain Net, E. (2008, 5 13). inforcenter. Retrieved 12 4, 2011, from enet. com: http://www. enet. com. cn/ediy/inforcenter/enet_z. jsp? articleid=20061012244613