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How has the Supply Chain for a high demand product benefited from the use of an ERP system?  

Business Apr 14, 2021

How has the Supply Chain for a high demand product benefited from the use of an ERP system?

 

Expert Solution

Answer:

ERP Plays a major role in ensuring there is a continuous and reliable supply of high demand product through the following processes.
1. Demand and planning
When orders are issued, an ERP system designed for supply chain will automatically generate demand. ERP improves supply chain by allowing for more efficient product production. As a result, managers will see what resources are being used and which ones are being used in real time. This aids in the planning of product delivery dates. When inventory and raw materials are both complete, production should begin. ERP ensures that manufacturing policies are in line with demand, that replenishment occurs at the appropriate time, and that inventory is kept to a minimum.
2. Procurement
An ERP designed for SCM allows for more efficient procurement and supply of products, services, and other resources in the supply chain. ERP software manages all aspects of the supply chain, from production and warehouse services to logistics and execution processes. Several manual activities can be easily automated with ERP, such as communicating with vendors and suppliers and keeping track of messages.
3. Production
Each item's bill of materials (BOM) can be created using the ERP framework. For proper supply chain management, all shipping records are registered via the ERP system, removing errors caused by manual processes. The system should ensure that goods are shipped out in a timely manner and that they are delivered on time. Work orders and job tasks may be modified with the aid of a feature-rich ERP to accommodate any last-minute changes, ensuring that the development process is completed on time.
4. Shipment
After the item has been delivered, the ERP program will generate an invoice, which must then be submitted to the customer. To ensure that goods are shipped on schedule, an ERP system assists in maintaining a central repository for customer shipments and all distribution information. Companies can overcome resource disputes in the task list with the aid of ERP.
References:
https://www.noitechnologies.com/10-benefits-integrating-erp-software-with-supply-chain-management/
https://www.compudata.com/understanding-the-role-of-erp-in-supply-chain-management/

 

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