The role of ERP in the Automation of Supply Chain

The role of ERP in the Automation of Supply Chain

By Manufacturing Technology Insights | Tuesday, January 29, 2019

Businesses today are using smart business automation software to improve operational efficiency, enhance productivity, and gain profitability.  Businesses should adapt to changes to remain agile. They need to automate the operations across various departments and functions as finance, accounting, production, distribution, and sales. Organizations use Enterprise Resource Planning (ERP) software to manage data, integrate disparate systems, streamline workflows, and achieve productivity.

ERP combines information from business functions into a common system to earn improved access for the business. Modern ERP technologies don't depend on data entry and can collect a huge amount of data to determine companies' needs.

ERP in Supply chain: ERP solution takes care of the physical aspects of supply to meet customers' needs. It adds value to the chain from material procurement to end-customer product delivery. Also, supports multiple modes as make-to-order, engineer-to-order, and configure-to-order and provides operations supports in real-time. Following are some of the ways that ERP solutions assist in the supply chain:

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Robotics: Robots make great strides in the industry. They perform enterprise tasks with accuracy and efficiency. And appraise businesses through monitoring activities and distributing information in real-time throughout the ERP system. 

IoT: Internet of Things (IoT) sensors fetch and transfer data to an ERP system. The sensors are located outside of business transmitting data to the ERP system. They support the system by providing current and real-time data to achieve better efficiencies.

Cloud computing: Cloud computing offers security and innovations to the business. Incorporation of cloud-based operations with IoT and robots has revolutionized the ways of doing the business of online retail companies.

Role of ERP in supply chain management:

Planning: ERP in supply chain management automatically create demand when orders are received. It creates job scheduling that makes the supervisors know what resources are being consumed and used. 

Procurement: The smart solution in supply chain comes with effective ways of managing procurement and supply of goods, services, and resources. Also, handles manufacturing and warehousing, managing transportation, and executing processes.

Production: The solution allows the creation of the bill of material (BOM) for each item. It aids in recording all shipping documents and eliminating manual errors and ensures the products' delivery maintaining date and time.

Companies should implement ERP technologies to win the race and capture market share. The technology offers manufacturers to create innovative ways to capture, process, and use data to serve their customers in a better way and improve profits.

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