Role of Erp in Supply Chain

ROLE OF ERP IN
SUPPLY CHAIN
PRESENTED BY: ANISHA
KUMARI
AKANSHA
KUMARI
AAMIR ALI
Introduction to ERP
Enterprise resource planning (ERP) is

a type of software system that helps
organizations automate and manage
core business processes for optimal
performance. ERP software
coordinates the flow of data between
a company’s business processes,
providing a single source of truth and
streamlining operations across the
enterprise.
Introduction to ERP in Supply
Chain Management
Enterprise Resource Planning (ERP)
systems play a crucial role in modern
supply chain operations. ERP integrates
and automates key business processes,
enabling real-time visibility and control
across the entire supply chain.
Role of ERP in Supply Chain
Optimization
Integrated Data Management Automated Processes
ERP systems consolidate data from
ERP streamlines workflows, reducing
across the supply chain, providing a
manual effort and human error in
single source of truth for inventory,
tasks like procurement, production
orders, logistics, and supplier
planning, and order fulfillment.
information.
Real-Time Visibility
ERP dashboards and reporting give Collaborative Capabilities
supply chain managers ERP enables seamless information
unprecedented visibility into KPIs, sharing and coordination between
bottlenecks, and optimization departments, partners, and suppliers
opportunities. for enhanced supply chain agility.
Improved Inventory
Management
• Leverages real-time data from ERP to maintain
optimal inventory levels, reducing costly
stockouts and excess stock.
• Automated replenishment systems triggered by
ERP, ensuring timely procurement and delivery
of supplies.
• Detailed inventory tracking and reporting
through ERP dashboards, enabling data-driven
decisions on inventory strategies.
Enhanced Demand Forecasting
Historical Data Analysis
• ERP systems aggregate and analyze past sales, inventory, and

market data to identify trends and patterns that inform future
demand forecasts.
Predictive Analytics
• Advanced analytics within the ERP platform leverage machine

learning to generate more accurate demand predictions based
on numerous variables.
Scenario Modeling
• ERP software allows supply chain managers to model different

demand scenarios and optimize inventory, production, and
logistics accordingly.
Streamlined Order
Processing
• ERP systems play a crucial role in
optimizing order processing, ensuring
accurate and efficient order fulfillment.
They automate the entire order lifecycle,
from receiving customer orders to
inventory management and shipping
logistics.
• By integrating with other supply chain
modules, ERP streamlines the order-to-
cash process, reducing errors and
improving customer satisfaction through
faster delivery times.
Supplier Relationship
Management
Collaboration
Streamlined Inventory
Contracts Visibility Quality
ERP enables
Assurance
seamless
Centralized Real-time
collaboration
contract access to ERP-enabled
with suppliers,
management in supplier quality controls
fostering
the ERP system inventory levels and inspections
stronger
ensures and order status help maintain
partnerships
consistent terms improves supply high standards
and joint
and accurate chain with suppliers.
problem-
tracking. coordination.
solving.
Challenges in Implementing
ERP in Supply Chains
Change Management
Overcoming employee
resistance and ensuring
successful adoption of new
Data Integration ERP systems can be a
Seamlessly integrating major hurdle in supply
data from multiple legacy chain organizations.
systems into a centralized Process Optimization
ERP platform is critical Aligning ERP capabilities with
but often technically existing supply chain processes
complex. requires careful analysis and
redesign to drive maximum
efficiency.
CASE STUDY
Nike's Implementation of ERP in Supply Chain
Management
Background:
Nike, Inc. is a global leader in athletic footwear,
apparel, equipment, and accessories. With
operations spanning multiple continents and a
complex global supply chain, Nike faced challenges
in managing its supply chain efficiently and
effectively. In 1999, Nike embarked on a project to
overhaul its supply chain management system,
aiming to streamline processes, improve visibility,
and enhance coordination among various
Challenges Faced:
• Lack of coordination: Nike's supply chain was
characterized by disparate systems and processes
across different departments and regions, leading to
siloed operations and poor coordination.
• Limited visibility: With decentralized systems, Nike
struggled to obtain real-time visibility into inventory
levels, production schedules, and supplier
performance, leading to inventory imbalances and
stockouts.
• Inefficient processes: Manual processes and
outdated technology hindered the efficiency of Nike's
supply chain, resulting in delays, errors, and
Solution:
Nike decided to implement an ERP system to

address these challenges comprehensively. After
careful evaluation, Nike selected SAP ERP as the
core platform for its supply chain transformation
initiative. The implementation involved
integrating various modules of SAP ERP, including
materials management, production planning, sales
and distribution, and finance, to create a unified
and synchronized supply chain management
system.
Key Features and Benefits:
• Centralized Data Management: By consolidating data from across the supply chain into
a single system, Nike gained a centralized repository of information, enabling real-time
access to critical data for decision-making.
• Process Automation: ERP automation streamlined core supply chain
processes, such as order processing, procurement, and inventory
management, reducing manual effort, minimizing errors, and accelerating
cycle times.
• Enhanced Visibility: With SAP ERP's reporting and analytics capabilities, Nike
achieved greater visibility into key supply chain metrics, such as inventory
levels, order status, and supplier performance, empowering stakeholders to
make informed decisions.
• Improved Collaboration: The ERP system facilitated seamless collaboration
among internal teams and external partners, enabling better communication,
coordination, and alignment of activities across the supply chain.
• Optimized Inventory Management: By accurately forecasting demand and
synchronizing production and distribution activities, Nike was able to optimize
inventory levels, minimize stockouts, and reduce carrying costs.
• Cost Reduction: The efficiencies gained through ERP implementation led to
cost savings across the supply chain, including reduced inventory holding
Nike's implementation of ERP in its supply chain management
yielded significant results:
• Streamlined operations and improved efficiency
• Enhanced visibility and control over supply
chain processes
• Better alignment of production with demand,
reducing inventory costs
• Strengthened collaboration and communication
among stakeholders
• Cost savings through process optimization and
automation
Conclusion:
Nike's successful implementation of ERP
demonstrates the pivotal role of technology in
transforming supply chain management. By
leveraging SAP ERP to streamline processes, enhance
visibility, and improve collaboration, Nike was able to
overcome the challenges posed by its complex global
supply chain and achieve greater efficiency, agility,
and competitiveness in the market. This case study
underscores the importance of ERP systems in driving
digital transformation and unlocking value across the
supply chain.

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ROLE OF ERP IN

Enterprise resource planning (ERP) is

• ERP systems aggregate and analyze past sales, inventory, and

• Advanced analytics within the ERP platform leverage machine

• ERP software allows supply chain managers to model different

Nike decided to implement an ERP system to

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