But first, let's understand what Are the Supply Chain Management Challenges?
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Rapid Changing Market Demands
Nowadays, customer demands change at a hectic pace, which is one of the most
profound reasons for the dramatic shrinkage of product life cycles. The shift in
preference imposes pressure on the enterprises to keep up with the latest trends
and
replace available products with new ones that have innovative and advanced
features.
This change in the environment requires designing an agile supply chain that can
respond swiftly to spikes and dips in demand needs for accommodating product
replacement. An efficient tracking system is a key to success here and in the
absence of this, the whole supply chain would crumble.
-
Unforeseen Transit Delays
With numerous environmental factors impacting the transit, products or raw
materials
are not always delivered on time. Arranging delivery schedules beforehand or
maintaining buffer stocks are proven ways to avoid any potential supply chain
disruptions.
This distinct advantage can be attained only with an appropriate monitoring
mechanism. Again, the goods when left unattended for long, lose their value and
so
despite being stored in the warehouse, businesses would not be able to make them
available to their customers. This brings a negative impact on customer
experience
and even the profitability of the firm.
-
Supplier Relationship
Modern supply chain business requires working with multiple suppliers or
vendors.
Maintaining a harmonious relationship with them enables enterprises to provide
high
standards of service to the customers on time.
On the contrary, inconsistency in supplier relationships often gives rise to
ineffective
communication, late notification, delays or cancellation of delivery, and other
underlying weaknesses of the sector that can bring loss to any supply chain
business.
Benefits of ERP in supply chain management
When ERP systems are used in supply chain management, the planning, monitoring,
and control are intense yet effortless. Let's find out the key advantages of ERP in
supply
chain businesses.
-
Simplify Process Monitoring and Management
ERP in supply chain management offers to monitor and track activities across the
channels in real-time, from a single platform. This improves information
sharing,
boosts interdepartmental communication, and minimizes the delay in decision
making. Together, rendering power to your business to act appropriately and stay
competitive.
-
Accurate and Detailed Order Tracking
Every order is crucial and delivering them on time is the secret to supply chain
business growth.
Implementing ERP software for the supply chain enables you to automatically
record
and store every piece of information related to orders. This allows you to
perfectly
track old orders that are in transit as well as keep an eye on the new ones that
are
yet to be processed. This meticulous detailing further aids in analyzing the
customers’ needs in the future and enhances their experience.
-
Insightful Computation and Estimation
ERP systems accommodate a huge volume of real-time data, which you can use to
generate insightful reports. This provides greater clarity about the operations
and
makes market predictions much easier.
Moreover, an in-depth monitoring structure also facilitates identifying the
undesirable
variances in the supply chain quickly and adequately addresses the problems.
-
Easy Handling of Supplies
ERP software includes advanced features to enable error-free tracking and
managing inventory. This efficiency in managing supplies removes order
fulfilment
mistakes and reduces overhead costs, thereby increasing the turnover of the
business.
-
Reduce order times
Automated sales order process available in ERP solutions, eliminates delays in
order
fulfilment and shipping. It also enables you to set up rules to handle credit,
returns,
drop shipments and so forth across multiple warehouses.
-
Run an efficient warehouse
A Warehouse Management System (WMS), lets you streamline your distribution
processes. The system covers workflows across receiving and inventory
management as well as the operation of tools like barcode scanners and mobile
devices. The distribution business will be more profitable if the warehouses are
run
efficiently.
-
Stay on top of your supply chain
ERP enables you to ensure a steady supply of goods to distribute by automating
and
optimizing purchasing processes, purchase order management and supply chain
management.
-
Know your true costs
A modern ERP suite gives you the ability to determine profitability by warehouse
as
well as by-product line or business unit. Reporting and data visualization tools
help
you spot cost overages and other drags on profitability that may elude standard
financial reports.
