What does ERP supply chain management mean? What are its functions? In economically developed countries, the application of ERP has almost covered all industries. Including financial, retail, communication industries. ERP is no longer limited to internal supply chain management. It extends to raw material supply, production, processing, and distribution. Above all, it is the management of the entire supply chain.
What is Erp in Supply Chain Management
Firstly, the so-called ERP is shorthand for Enterprise Resource Planning. It is a new generation integrated management system developed from MRP (Material Resource Planning). Therefore, it expands the function of MRP. So, its core idea is supply chain management. It jumps out of the traditional enterprise boundary and optimizes the enterprise from the supply chain. All the resources depend upon the new generation of information systems. According to the new era of the network economy. It plays a crucial role in improving business processes. As a result, improving the core competition of enterprise.
ERP Supply Chain Management Functions:
Sales management function
Formation and maintenance of customer data. The ability to import data (customers, sales orders) in batches. Avoiding wasted time input, error-prone and other issues.
Provide price management, sales order management. As well as, delivery plan, return order, and sales invoice.
Linking the receivable accounts, invoices, and receipt information. Therefore, avoiding the occurrence of bad debts. Regulating the credit and credit period in the entire sales process. Reviewing the amount and usage of the deposit paid by each customer at any time.
Procurement management function
The system supplier management manages the price and supply information. Managing purchase orders, warehouse receipt, purchase return, purchase invoice processing, and other functions. Therefore, reducing the time cost required for procurement. And play a regulatory role, effectively preventing errors in the procurement process. As well as, helping to control costs.
Using decision Support System for evaluating suppliers. On the basis of the supplier’s timeliness, quality, and payment methods. Evaluating the KPI (key indicators). As well as, managing blacklisted suppliers. Blacklisting suppliers trade helps to reduce procurement risk.
Warehouse management function
Control and management of daily works. Such as delivery, transfer, and inventory of stock materials. To reduce capital occupation, avoid backlogs or shortages of goods. Therefore, ensure smooth trade/production. The system function provides the quantity, cost and capital occupation of the warehouse items. As a result, the enterprise can timely understand and control aspects of the inventory business.
Customizing inventory cost calculations methods like monthly weighted average, first-in, first-out, etc. Calculating the inventory cost of various products and materials. According to the defined cost method.
Quality control (invoicing) function
Quality Control (Invoicing) includes incoming inspection, inventory re-inspection. Sales return inspection management functions to control quality for different situations.
The system has a built-in international standard sample inspection as a preset sampling mechanism. Enterprises can customize inspection standards and projects according to actual quality control needs.
The document batch transfer function eliminates the need for quality inspection and warehouse personnel. This will help in the quality inspection of documents. The inspection/warehouse personnel can easily complete the receipt of goods inspection.
Batch number control management
The system provides thorough batch management functions. Such as batch management settings, batch number coding rule setting, daily business processing, report query, etc. It accurately tracks production, sales, returns, materials, to provide complete batch information.
It provides an “accurate cost” calculation method and shelf-life management. Making cost control more precise and effective. As well as, meeting the application needs of different aspects of business management.
Enabling enterprises to further improve quality tracking management. Moreover, to achieve higher level monitoring in the transaction of incoming and outgoing goods.
ERP management in the internal supply chain provides good results. Still, ERP has not been implemented in man integrated supply chains. Enterprise product transfer costs and circulation costs may be high. Implementing ERP helps in expanding and improving the scope and level of the enterprise. Implementing supply chain management across the industry has become a good strategy for enterprises. This helps the enterprises to get rid of difficulties and enhance their strength.
Integrating ERP management into supply chain management is the only way for companies to succeed. As a modern enterprise, it should seize the opportunity and realize its importance. The market does not have much time for enterprises.
Enterprises should start by analyzing their current situation. For instance, to develop and apply the combination of manufacturing ERP and supply chain. Implementing steps to meet competition and demand. This will ensure a solid foundation for the company.