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The importance of ERP in supply chain management

ERP technology can alleviate the burden of supply chain management, increasing efficiency, productivity and adaptability with a suite of automation tools.

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Whether you run a multi-location enterprise or operate out of one warehouse, supply chain management (SCM) is a key component of business success and expansion. However, having to manually handle the many aspects of a supply chain–such as the flow of materials, information, and financials–can place unnecessary strain on your operations. Enterprise resource planning (ERP) technology can alleviate this burden, increasing efficiency, productivity, and adaptability with a suite of automation tools. 

Supply chain management is the process of planning, executing, and monitoring all supply chain processes. This includes activities such as planning, inventory or warehouse management, procurement, and purchasing, as well as internal and external communication or collaboration.

With supply chain efficiency becoming more and more important in an increasingly fast-paced business environment, ERP software helps organizations streamline processes and meet customer demands. Thus, a robust ERP system is critical for effective supply chain management.

ERP technology enables companies to monitor inventory, delivery data, and other business insights as they move their products from supplier to manufacturer to retailer–and, ultimately, to the customer. There are many steps throughout this process where data (or even sometimes inventory) is lost, and many activities may be long and labor-intensive. The ERP system eliminates data loss by improving workflow and making it easier to coordinate different business areas.

Clear and complete inventory visibility at every point in the supply chain is vital to business success. A sophisticated ERP will also provide delivery management functionality, so you don’t have to worry about whether the right stock is delivered at the right time. This real-time data enables suppliers to quickly give customers accurate information about the availability and delivery of a product or service.

In addition, one of the most significant benefits of an ERP solution is its automation capabilities. ERP software allows organizations to automate core business functions and monitor supply chain activities from one central system. This automation offers many benefits: reduced manual labor, fewer data errors, accurate reporting, and lower costs.

Other benefits of using an ERP to manage your supply chain include:

  • Make data-driven decisions with advanced business intelligence technology
  • More efficient workflow, freeing up staff and reducing redundancies
  • Accurate processing and documentation, such as customer invoicing or generating international documents like export or import forms
  • Reliable demand planning and procurement with real-time insights and better resource management
  • Delivery drivers can easily communicate with branch staff, suppliers, and manufactures
  • Secure data storage and reduce cybersecurity risk with cloud-based ERP technology
  • Enhanced customer service and overall customer experience through accurate inventory and delivery information

Interested in seeing these benefits for yourself? Contact Kerridge Commercial Systems (KCS) to learn more about our ERP offerings and how they can streamline your supply chain management. You can request a free demo today to experience the power of KCS ERP and SCM technology!

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