What is the role of enterprise resource planning systems in SCM?

Enterprise resource planning (ERP) systems incorporate internal and external systems into a single unified solution that spans the enterprise. ERP systems includes the software that supports business functions and processes, computing hardware for hosting and executing software applications, and back-end network architecture for data communication across and within information systems.30 A centralized and shared database system links the business processes, allowing information to be entered once and made available to all users.
Though they can be quite expensive and challenging to implement, ERP systems are widely used. A primary appeal lies in the ability of ERP systems to update and share accurate information across business processes. ERP-linked processes typically include accounting and finance, planning, engineering, human resources, purchasing, production, inventory/materials management, order processing, and more. Primary benefits include: process automation, technology cost savings, improved visibility of sales, inventory, and receivables, standardization of processes, and regulatory compliance.31
Over time, the traditional separation of supply chain technologies from ERP systems has faded. First, the boundaries are blurring as supply chain tools need to share the information stored in an ERP system. Second, the major ERP systems vendors offer supply chain software that can be readily linked to the ERP system. Though these ERP vendor versions of WMS, TMS, and other tools may not be quite as robust as best-of-breed supply chain software, they do have the advantage of being a one-stop solution and offer common structure that reduces the installation time and effort.32

Business

You might also like to view...

Identify three ways that organizations use internal resources for disaster recovery

What will be an ideal response?

Business

Rhonda May was transferred to London three months back to oversee the opening of a new branch of the retail chain she worked for

Rhonda, who had never been to London, adjusted well with her British colleagues but received quizzical looks from many of her British colleagues every morning in the initial weeks in London. After asking one of her subordinates to explain what caused her colleagues to look at her in that strange way, she discovered the reason. When her British colleagues greeted her by saying, "How are you today?" every morning, she typically replied by saying "I'm good," while Britishers typically say, "I'm well" in response to this greeting. This is because "I'm good" can have multiple meanings like "I'm not a bad person" or "I'm suitable," while "I'm well" only gives a sense of mental and physical well-being. Rhonda then realized how subtly cultural barriers can operate. From the information provided in the scenario, this is an example of barriers caused by ________. A) tone differences B) semantics and connotations C) intolerance toward other cultures D) situational and physical cues E) power distance

Business