Why You Need ERP Software For Supply Chain Management

Why You Need ERP Software For Supply Chain Management

ERP might not be the first thing on your mind when you think about supply chain management, but it should be. The software can provide an umbrella for you to efficiently manage and track all of your operations, right from the manufacturing line to shipping your product out of your warehouse. What’s more, you can aggregate the data stored within your ERP to get a complex, sophisticated understanding of the flow of production and sales within your business. With this knowledge it will be easier than ever to more those processes more efficient and make sure every link of your process is tighter and adding value to the next link.

After all, the crux of supply chain management is information flow between all the stages of your business processes, so it only makes sense that software which allows you to connect and keep track of your business processes will give you a huge advantage on the supply chain playing field. Read on for more information on why using ERP software for supply chain management should be the next decision you make for your business.

Supply Chain Outsourcing

The reality of many small to midsize businesses is that much of your supply chain may be outsourced to other companies, be it global shipping or distribution through a certain channel that you business doesn’t have the capacity for. When your supply chain is not under your company’s exclusive jurisdiction, ERP software can help retain a firm grasp on what is happening with your product in a single place. Instead of trying to maintain folders upon folders of paper BOMs and shipping labels, this kind of data can be put into your ERP and kept there; as long you need it. Long story short: it’s time to ditch the filing cabinet. You can use ERP software for supply chain management at every stage—tracking suppliers which deliver the goods you need to make your product or filing away new orders so that you can plan for demand quickly and accurately. Supplier relationships will be easier than ever; ERP will handle pricing, delivery and payment for your raw materials and keeping a record of every transaction, so that you monitor the relationship and make sure your suppliers are staying up to your quality standards.  If you have multiple warehouses you will also need a system in place keeping an eye on what is stored is where, how much of it is stored and how long the product has been there. ERP will allow you to bring in all the disparate and wide-ranging processes of your company and store them in one convenient system.

Know Everything About Your Product

There’s no such thing as too much data; especially when it comes to your business and your products. By allowing you to manage and view back-end business data from a single source of truth, ERP will give you access to more information on your operations and your product than you ever thought possible; and control of those operations.  Quality assurance schemes and regulations can be built into your software—like mandatory scanning and quality data at each work station—so that you can rest assured when it comes to your high standards of excellence.

And, in the unlikely event of an audit or a recall incident, you will have all the relevant data you need at your fingertips, allowing you to trace the root of the problem and deal with it quickly. With ERP, you will have virtual eyes on every corner of your shop floor; you’ll be the first to know if anything isn’t running as it should.

Total Visibility

Opening up the business supply chain is one of the often-overlooked assets that can come along with ERP systems. Any employee with access to your platform can view and maintain your business’ operations; data and information that can prove crucial to their job functions no matter where they work. Whether it’s live updates on current demand and inventory or a notice about a slowdown on a certain line, both your sales team and shop floor will always be prepared for orders and to meet demand when they know what is happening at every other stage of your supply chain.

Slim Down Your Operation

ERP gives you the power to eliminate waste from your supply chain and operate as a lean producer. Your inventory will be stocked only with what is most essential—components that will be used, work-in-process products that have been ordered and finished products due to be shipped. Inventory decay is one of the largest sources of waste a business can have; using ERP for supply chain management will cut this cost dramatically. With in-depth knowledge of your business processes you truly will have the power to drive your revenue while also cutting back on the waste and unnecessary costs.

Wrap Up

Your SCM system shouldn’t be operating as an isolated island—it involves every process of your business after all! When you use ERP for supply chain management help, you can leverage the valuable data and information to truly become an interconnected enterprise; a company that communicates and increases value through total transparency and integration of systems of processes.

If this sounds like something you want for your own business, get in touch with an expert at Datix today. We have over 18 years of experience with implementing and integrating ERP systems to truly help clients reach their full earning potential.

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