SCM & Erp
SCM & Erp
SCM & Erp
PRIMARY USERS
PRIMARY BENEFITS
ERP systems are often incorrectly called back office systems, indicating that customers and the general public are not directly involved. This is contrasted with front office systems like customer relationship management (CRM) systems that deal directly with the customers, or the eBusiness systems such as eCommerce, eGovernment, eTelecom, and eFinance, or supplier relationship management (SRM) systems
2. To support business growth requirements New products/product line, new customers Global requirements including multiple languages and currencies 3. To provide flexible ,integrated, real time decision support Improve responsiveness across the organisation 4.To eliminate the limitation in legacy systems century dating issues Fragmentation of data and processing Inflexibility to change Insupportable technologies
5. to take the advantages of untapped midmarket Increased functionalities at a reasonable cost Client server /open systems technologies Vertical market solutions
SCM
Supply chain management is an integrated management of various functions in the areas of materials, operations, distributions, marketing, and services after sales with a customer focus in perspective so as to synergize various process in the organization with a view of optimizing the total cost. Supply chain managements performance is depend upon the inventory, warehouse, transportation, facilities and information. For a company to improve its supply chain performance in terms of responsiveness and efficiency, they must examine these factors and its functioning.
Supply Chain Execution: Execution-oriented software applications for effective procurement and supply of goods and services across a supply chain. It includes manufacturing warehouse and transportation execution systems, and systems providing visibility across the supply chain.
Supply Chain Monitoring: The ability to review supply chain activities in realtime, whether to identify the current status of individual activities or review overall performance
. Supply Chain Measurement: Measurement is comparison of the actual activity against targets. This is often used with scorecards of benchmarks so that unusual or undesirable variances can be identified and investigated.
SCM-ERP integration
Total ERP and supply chain management (SCM) integration is a goal for most manufacturers, but companies take different paths to achieve that integration. Some manufacturers buy a complete packaged ERP system that includes all the SCM tools they might need. Other companies choose a third-party SCM package with best-of-breed functionality to plug into their existing ERP system. Still other businesses have performed some system integration, but are transferring data between ERP, SCM and other systems.
Methods of integration
1. Notion of conformity It requires all of the members of the supply chain to embrace the same system. In a large supply chain this form of integration should be viewed as impractical. Issues of trust and security further complicate any chance of success with this method
2. Middleware
This method, though very practical, is very expensive. Programmers are required to establish links between various systems. The benefits are strong, but the cost must be weighed
3.use specialized integration technologies or software (SIS) to extend ERP functionality The mapping of different packages is already done in these technologies. The software is preprogrammed to integrate SCM software with ERP system packages. By doing this, the ERP system will become a business-services framework, a central information repository, and a data-distribution facility.In other words, this integration solution depends upon how data are kept consistent between ERP and SCM systems
ERP IN SCM
ERP & Supply Chain Management extends beyond the four walls of the factory to include a companys trading partners suppliers and customers. Develop better customer insight and interaction Achieve global visibility in a demand-driven supply chain Lean manufacturing, global sourcing, and supplier integration.
CONTD..
Helps in coordinating the resources. Managing for higher performance. ERP facilitates coordination and connectivity Identifies mistakes. Manages change Maximization of profits.
CONTD..
Ensures that the errors are minimal. ERP has also enabled companies to rectify the flaws. The various tools and techniques help ERP to forecast the positives and negatives and thereby make the concerned alterations in the supply chain process. ERP has helped in adding value to the whole process of SCM.
Functionality
Relatively slower
Faster
Set metrics The organizations will be able to visualize and introduce some parameters. These parameters will become effective means for measuring ERP, its impact and the level of change, if it is compatible or in tune with the quantity desired and so on.
Issues concerning ERP for supply chain management Assistance and results ERP helps these organizations to deliver the necessary results. It also helps in the functioning of the supply chain process. The supply chain process will continue uninterrupted whether or not ERP exists in the organization. ERP helps to increase the results, productivity and helps to ease the supply chain process.
SCM solutions
Providing proactive solutions Perhaps the principal problem ERP system solutions face is their inability to process data real time .The packages are often overburdened with information and are forced to process information in cycles, rather than in real time. This forces ERP systems to be reactive instead of proactive. It is this reactive processing that makes it difficult for demand and factory planning.
These functions rely heavily on the constant evaluation of information regarding processing, materials, and constraints within the process. Without real-time processing, the data for these functions become obsolete and relatively useless for planning. SCM offers a more proactive solution to the ERP system These software packages do not conduct nearly the number of transactions at one time as ERP systems do, thus giving them the ability to process in real time. SCM systems can consider all evaluation of information regarding processing, materials, and constraints within the process. Without real-time processing, the data for these functions become obsolete and relatively useless for planning.
SCM offers a more proactive solution to the ERP system . These software packages do not conduct nearly the number of transactions at one time as ERP systems do, thus giving them the ability to process in real time. SCM systems can consider all relevant constraints in the process simultaneously and order the necessary raw materials at the same time. This is an essential function for the supply chain of any large corporation.
CONCLUSION
ERP and SCM together form a great role in the success
of any firm. ERP supply chain software market is encouraging Many SCM applications are reliant upon the kind of information that is stored inside enterprise resource planning (ERP) software. It provides up-to-date information. ERP has helped to reduce their inaccuracies and increased the performance of "the chain /plan of action".
REFERENCE
Anonymous, 2009 features of ERP http://www.erppandit.com/erpfeatures.html downloaded on, August 24 2012 ,Shery George & Vijay Kumar, Inatech Solutions Limited Oracle Customer Relationship Management for Tourism Industry downloaded on August 24, 2012 , Abdullah S. Al-Mudimigh, B. Farrukh Saleem, C. Zahid Ullah International journalof Education and information technology Issue 2, Volume 3, 2009 ,Dimitris N. Chorafas www.auerbach-publications.com CRM downloaded on August 24, 2012 Anonymous, 2009 www.hills.com ERP downloaded on August 24, 2012 Anonymous 2009 www..wikipedia.org/wiki/Enterprise_resource_planning ERP introduction downloaded on August 25 2012 Anonymous, 2006 www.erp.comERP advantages downloaded on August 25 2012\ Anonymous, 2006 www.wikipedia.org/wiki/Customer_relationship_management CRM introduction downloaded on August 25 2012 Anonymous,Casey Gollan http://www.evancarmichael.com/BusinessCoach/163/Advantages-Of-CRM.html advantages downloaded on August 26 2012 Anonymus 2007 www.customerservicepoint.com/crm-system.html benefits of CRM downloaded on August 26 2012
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