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What is ERP Supply Chain Management?
By Robert Tylor
Co-Founder & CTO – Salesorder.com | Software and expertise for wholesaler optimization
Streamlined supply chain management is essential to wholesaler success. From the procurement of resources to the shipment of finished products, every aspect of the supply chain must be optimized for efficiency and accuracy. This is where Enterprise Resource Planning (ERP) software comes in.
ERP supply chain management provides a centralized platform for managing and optimizing the entire supply chain process. This software integrates and automates the core functions of a supply chain. These core functions include planning, procurement, creation of bills of materials, manufacturing, inventory management, and shipment.
The system enables businesses to streamline their supply chain operations, reduce costs, and improve efficiency. ERP supply chain software provides real-time visibility into the entire supply chain process, allowing wholesalers to make data-driven decisions.
In this blog, we will explore everything you need to know about ERP supply chain management for wholesalers, including:
- The Role ERP Plays in Supply Chain Management.
- The Benefits of ERP Supply Chain Management.
- How to Find the Right ERP Supply Chain Management for You.
What Role Does an ERP Play in Supply Chain Management?
The importance of supply chain management that is efficient and accurate cannot be understated. ERP systems play a crucial role in supply chain management by helping to streamline business operations, increase productivity, and improve decision-making capabilities.
Here are some of the key functions that an ERP system performs in supply chain management:
Planning for Demand of Resources
An ERP system helps wholesalers to accurately plan for the demand for resources.
An ERP software will provide real-time data on inventory levels, customer orders, and production capacity. This data enables wholesales to optimize production processes and inventory levels to meet forecasted customer demand. This ensures that wholesalers are producing the right products at the right time for customer demand, minimizing waste and improving efficiency. (Check out how to generate sales forcast with salesorder.com using Aartificial Intelligence)
For example, if an ERP system shows that a particular product is in high demand, the system can automatically generate purchase orders for the raw materials required to produce that product. This ensures that wholesalers have the necessary resources available to meet demand, reducing the risk of stockouts and lost sales.
Procurement & Supply of Resources
ERP systems help wholesalers to manage the procurement and supply of resources needed to produce and distribute products.
ERP systems automate the procurement process to increase efficiency and accuracy. With an ERP system, wholesalers can automatically create purchase orders based on inventory levels and demand forecasts. The purchase orders will be sent electronically to suppliers in a timely manner, reducing the risk of stockouts and delays in production.
ERP systems also help wholesalers to manage the supply of resources. ERP systems provide real-time data on inventory levels, allowing wholesalers to optimize their stock levels. This can help to minimize storage costs and reduce waste, while ensuring that the necessary resources are available to meet customer demand.
Creation of Bill of Material (BOM)
The Bill of Material (BOM) provides a detailed list of all the components and raw materials required to produce a finished product, making it an important element of supply chain management.
An ERP system allows wholesalers to create and manage the BOM for each product, ensuring that all the required components and raw materials are listed accurately. This information can be used to generate accurate production schedules, purchase orders, and inventory tracking information.
ERP systems automate the shipment process, reducing the risk of delivery delays and improving customer satisfaction.
ERP systems optimize the order fulfillment process by providing wholesalers with real-time data on inventory levels and customer orders. With an ERP system, wholesalers can automatically create shipping documents based on customer orders and send them to carriers electronically. This ensures that products are shipped efficiently.
The Benefits of ERP Supply Chain Management:
Implementing an ERP system for supply chain management has numerous benefits for wholesalers.
Here are some of the key advantages of ERP supply chain management:
360° Supply Chain Visibility
From resource procurement to shipment, an ERP system provides wholesalers with a comprehensive and integrated view of their entire supply chain process. The system collects and analyzes data from various sources, including suppliers, manufacturers, distributors, and customers, to provide a 360° view of the supply chain. This allows wholesalers to make informed decisions about production, inventory, and logistics, based on real-time data.
Streamline Purchase Processes
ERP software can streamline purchase processes by automating the procurement process. The system can automate tasks such as generating purchase orders, tracking shipments, and reconciling invoices. By automating these tasks, an ERP system can reduce the lead time for ordering and receiving resources, which can improve overall supply chain efficiency.
Measure Vendor Performance
An ERP system can provide real-time data on vendor performance. This includes any information on delivery times, pricing, and quality issues, allowing wholesalers to measure and monitor the quality of goods and services provided by their vendors. With ERP software, wholesalers can make more informed decisions about which vendors to work with and optimize their purchasing decisions.
Data Driven Decisions
An ERP system provides real-time data about various aspects of the supply chain, including production, inventory, and logistics. By leveraging real-time data provided by an ERP system, wholesalers can make informed decisions that improve the efficiency and effectiveness of their supply chain operations. This can ultimately lead to reduced costs, improved customer satisfaction, and increased profitability. Business Intelligence Reporting
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Finding the Right ERP Supply Chain Management for You
Choosing the right ERP system for your supply chain management needs is critical to ensuring success for your wholesale business.
Consider these key factors when selecting an ERP system for your business:
Easy to Use
An ERP system should have a user-friendly interface that is intuitive and easy to navigate. The system should be designed to meet the specific needs of your business, with customizable workflows and features that can be tailored to your requirements.
Cost to Use
The ERP supply chain software should be affordable for your wholesale business. The cost of using an ERP system will depend on the provider and the features included in the system. It is important to consider the upfront cost of the system as well as the ongoing maintenance and support costs.
ERP integration is an essential factor to consider when selecting an ERP system. The ERP system you choose should easily integrate with the other systems and software that your business uses. The system should be designed to work seamlessly with these systems, minimizing the need for manual data entry and reducing the risk of errors.
You can choose between an on-premise ERP or Cloud ERP. Cloud-based systems are hosted in the cloud and accessed through a web browser, allowing users to access the system from anywhere with an internet connection. With On-Premise vs Cloud ERP, cloud-based ERP systems offer more advantages, including lower upfront costs, greater flexibility, and easier scalability.
Improve Your Supply Chain Management with Salesorder
Salesorder offers a cloud-based ERP system designed specifically for wholesalers. With our ERP software, wholesalers can improve their supply chain management processes to increase efficiency, accuracy, and reduce costs.
Our ERP software provides a complete suite of tools for managing the supply chain. This includes real-time inventory tracking and management, automated purchase orders and order fulfilment, integrated shipping and tracking, and more. Our ERP software will streamline your supply chain management by enabling you to make data-driven decisions for your business.
Our ERP supply chain software is easy to learn and fast to implement in your business. No matter how big or small your wholesale operations are, our software is an affordable solution to improving your supply chain management.
Get in touch to discuss with one of our experts how our ERP software can enhance the efficiency of your supply chain management.
ERP stands for Enterprise Resource Planning in logistics. ERP logistics is a system that integrates all the core functions of logistics into a centralized system. This includes planning, procurement, inventory management, and shipping.
ERP is software with a centralized system designed to manage, plan, and analyze a business. System Application Products (SAP) is an ERP software provider. SAP ERP is known for its robust features and capabilities, but it can be complex and expensive to implement.
The five components of ERP are financial management, human resource management, supply chain management, customer relationship management, and inventory management. These components are integrated into a single, centralized system that provides a unified view of the organization’s data and operations.