Analyzing ERP with reference to supply chain, warehousing and logistics

Enterprise Resource planning has been a boon to the manufacturing sector. All the elements of the sector share the benefits of ERP. However there are some elements

that are core to the manufacturing process. Similarly the benefits of ERP have been enjoyed subtly in these three departments.

ERP benefits the departments in the following ways:

ERP and Supply chain

The plan of action for an organization in terms of mobilizing resources and related activities besides its direction and flow is referred as supply chain. In that context supply chain need not necessarily be for a manufacturing company alone. Supply chain exists everywhere tangibly/intangibly irrespective of the type of industry and business carried by the organization.

The functioning of supply chain is very important to the success of the business and the routine process. There should be perfect coordination in the whole process. The supply chain process will include all activities right from procuring an order and ensuring that it reaches the ultimate consumer.

It includes the set of tasks that are carried from convincing and canvassing the customer, communicating the order to the production department followed by the production department's communication to the department of inventory and raw materials followed by their communication to purchases and once things are ready the flow of communication will operate in the opposite direction in order to hand over the manufactured process.

In the meanwhile any technical problem should be consulted with the concerned people and clarified. Similarly any delays in production should be communicated and corrections made accordingly. This whole process will be jeopardized even if there is even a small mistake in one area. ERP has helped in adding value to the whole process. In addition ERP has ensured that the errors are minimal. ERP has also enabled companies to rectify the flaws without affecting the schedule or manufacturing process.

Firstly ERP facilitates coordination and connectivity in the whole process. This ensures that there is constant monitoring of each and every arrow in the supply chain. It is easy to minimize the errors and maximize the profits as one gains control over the process. This is the contribution of ERP in supply chain process. Since supply chain is a key factor of productivity controlling supply chain equals commanding productivity. The various tools and techniques help ERP to forecast the positives and negatives and thereby make the concerned alterations in the supply chain process.

ERP and warehousing

Warehouses refer to the place where inventory is stored in an organization. The management of warehouses is crucial for the success of a manufacturing company or any other organization that deals with tangible commodities. Any other department that deals with the warehouses directly or indirectly should be able to access the details regarding the status or requirements (in the case of purchase department).ERP has facilitated that by a click of mouse and has successfully weeded the inconveniences faced earlier in not being able to reach the concerned person s of warehouses at the appropriate time.

ERP and Logistics

Logistics refers to the transport setup in the organization. A company that does not manage logistics properly will not be able to reach the customers in time or even receive the raw materials from the suppliers. The operation of logistics could be more complicated in bigger organizations that use hundreds of lorry trucks and even other forms of transport like airways and shipping. ERP helps in setting up a common database that helps to trace the status of "goods in transit". ERP logistics software helps in conveying this vital information to all stakeholders and others dealing with the company. ERP Logistics software has helped in achieving that.

Conclusion

ERP is not meant to help the supply chain warehousing and logistics departments of warehouses alone. The fact is that their use occupies prominence in that industry. Hence the benefits are equally high.

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