ERP Production and SCM Modules
Enterprise Resource Planning Production and Supply Chain Management
Introduction
Over the past few decades, organizations have been deploying smart business automation software to enhance productivity, gain operational efficiency, and achieve profitability. Today, world-class organizations use ERP software for supply chain management (SCM) to integrate various disparate systems, manage business information, gain efficiency, and streamline workflows (Kurbel, 2016). The building blocks of SCM are demand planning, strategic planning, supply planning, warehousing, procurement, order fulfilment, production, and transportation business processes. Due to the need to improve efficiency, the commitment to automate and streamline the SCM business processes have necessitated the need for ERP modules deployment. This paper explains the production and SCM processes from an ERP perspective.
1. Functions of the Production and Supply Chain Management Modules of ERP System
These SCM modules of ERP systems include salesforce automation, central inventory management, customer relations management (CRM), and sales, invoicing, and dispatch, among others.
Salesforce automation: The salesforce automation ERP module of SCM enhances product configuration, order management, sales prediction, quotation accuracies and efficiencies, lead management, and contract management (Yang & Su, 2009). Also, ERP modules of SCM allows the logistics team to track sales order status, process sales order reports, track payments and do sales performance analysis in an automated manner.
Central inventory management: The central inventory SCM module of ERP ensures accurate tracking of inventory and management of the distribution process without losing track of costs (Yang & Su, 2009). The catalog received to a specific location is drilled down to change item serial numbers, default lot, accounts, and valuation methods swiftly with the help of an ERP software. In the SCM process, the ERP module includes item database, quality control, automated verification of stock, and other records.
Customer relations management (CRM): The CRM software functions to improve customer service relations, attract new customers, increase sales, and aid in customer retention. In the SCM processes, CRM modules help to generate sales orders with delivery schedules, track customer history, track order status and report (customer wise and executive wise), and in the follow up with customers (Kurbel, 2016). All follow up history with a customer is maintained in the CRM software for planning and control.
Sales, invoicing, and dispatch: In the SCM processes, the MIS software is used to analyze sales orders pending approval and sales orders with deliveries status. The synchronized nature of this module enables the organization to process and print reports related to sales order status automatically, customer and consignee listing, list of invoices (date wise, item wise, and customer wise), and MIS (Ho, 2007)….End of Preview….
2. Why ERP is Vital in Creating Overall Efficiencies and the Supply Chain Management Process
3. Process for Entering and Processing Production Planning Data in ERP System
4. How Information can be shared with Suppliers to Increase Supply Chain Efficiency