Supply Chain Management

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If you go to the supermarket and pick up a few items off the shelf from electronics or clothes, the chances are that you will find them having been produced in China or India. The tea maker that we buy has been manufactured in different country. Computers have been shipped from China to America and soft furnishings and handcrafts have been exported from India. The global markets are expanding and therefore, there arise the necessity to meet the demand by following the strict rules and responsibilities of supply chain management with ERP application.

In commerce, supply chain management is resembles the management of the flow of goods and services. It includes the movement and storage of raw materials, finished products and work-in products in the stock inventory. It includes all the aspects from the point of origin to the point of consumption. Supply chain management with ERP software interconnected or interlinked networks, channels and node businesses to combine the provision of products and services required by end customers in the supply chain enabling online ERP.

Definition of Supply Chain Management

Supply chain management can be defined as the planning, execution, monitoring, control and leveraging the global logistics. The definition further stretched to synchronizing the supply with the demand and measuring performance globally. The practice of supply management draws heavily from the areas of industrial engineering and operations management. Besides, the ERP systems for supply chain management have even included information and technology, marketing, and strive of an integrated approach. All these industries are playing a vital role in the supply chain management. The advanced research in the supply chain management is concerned with the subjects related to the sustainability and risk management amongst others. It even includes internal integration, visibility, transparency and human capital.

With the above scenario that businesses will procuring materials globally from various vendors to supply raw materials to their factories situated in another country. These finished goods out of these different factory locations, then pass through various chains of distribution network including exports to different countries, warehouses, distributors, retailers, and in the end the customers. In simple meaning, managing all the described activities to manage the demand and supply on an international scale is also known as Supply chain management. So, according to the definition, the sales chain management with ERP solutions is a management of network of all business processes and activities involved of manufacturing, raw materials, finished good, warehouse and distribution. It is also called as the art of management of providing the right product as the right time at the right place to the right customers on right costs.

Importance of Supply chain management

Supply chain management with enterprise business processes is the backbone of any business operating regular activities. The effective market coverage, available at locations that are the key to revenues is the best thing about this ERP management. It is very simple, when a product is introduced in the market and marketed, the entire market in the country needs to cater the sales in order to make the product available for the customer to buy and take delivery for it. If the product is not available in the right time, it can lose the interest of the consumers and which ultimately decreased the demand of the products. Supply chain management on web ERP even includes transportation networking design and management assuming importance of support sales and marketing strategies.

Furthermore, inventory control and inventory visibility are two very critical elements in any operations, as they both are cost effective and provide a direct impact to the bottom lines of the balance sheet. Here, inventory means value and it is an asset for the company. Each business has a standard for inventory turnaround that has an optimum with ERP for small business. It even resembles the number of times and is old and replace over a period of times. The more the inventory is healthy, the more the business is.

The finished goods inventory is held at many locations and distribution centers across the world. Inventories like pipelines for transportation are also necessary. Besides, the inventory with distributors and retail stocking points are vital. The loss of inventory adversely affects the control and visibility of inventory gains, as it is the important key for supply chain management and ERP planning.

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