ENTERPRISE RESOURCE PLANNING SYSTEM & ITS ROLE IN SUPPLY CHAIN MANAGEMENT

INTRODUCTION:

20th century is a competitive, fast growing and continually changing era. Many new business departments evolved out of which supply chain management becomes one of the major and core function of modern business. According to the entrepreneurs the mantra of success depends on the integration among various business departments. i.e. ( Hrm, Marketing, Finance and Scm ).

Supply chain management is the flow of goods and services from company suppliers to product/services users. The Supply chain varies from company to company the long it is more complex it is. Supply chain management includes the coordination of different intermediaries having different objectives from each other; therefore, So, for this effective and efficient coordination of different intermediaries, organizations are now moving towards the implementation of electronically managing the supply chain activities so that not only customers but also the other stakeholders of the organization must be willing to have long term business relationships with all the entities in a supply chain. This e-based supply chain management has its implication in the ERP systems, which not only automates important transactions but also results in better long and short term planning as well.

Supply chain management has three components that are:

1. Materials flow from suppliers and their “upstream” suppliers at all levels.

2. Transformation

3. Distribution of products to customers and their “downstream” customers at all levels.

In that diagram suppliers that providing raw materials categorized as upstream activity in supply chain management, the departments involved in any kind of purchasing decisions are categorized as transformation and last sets of ...

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...ting maximum revenue for the organizations and also maintains the information of the entire department in organization separately, and makes the win-win situation for both organization and suppliers. ERP system also builds up a long relationship with the suppliers and customers which not only benefits organizations, its external and internal partners but as well as industry.

Specially for manufacturing organizations who are involved in both upstream trading and downstream trading ERP is providing them a complete solution of all their worries regarding delivery on both ends, suppliers, vendors and retailers.

ERP’s major strength in manufacturing is day to day controlling your business. Once it is implemented in the enterprise it will become the HEART of the manufacturing process and the Wheels of the distribution channel and the BRAIN of the planning activities.