The Significance of ERP for Your Supply Chain

  • 4 May 2016
  • CTND
Categories: ERP

Supply Chain Management and ERP

An effective ERP system is a great benefit to helping businesses increase vendor performance, automate purchasing, negotiate costs, streamline processes, communicate more effectively, and more. By offering better visibility into the operation of your supply chain specifically, you can increase your productivity by identifying roadblocks and bottlenecks.


Supply chains include a large number of moving parts. In order for all parts to operate efficiently, they must work together with operational transparency. Proper management of a supply chain requires a high-level of interaction with partners, vendors, and customers alike. With greater communication across the supply chain, raw materials come together with ease to bring the product to market faster, cheaper, and more reliably.


Automation is the key to reducing operational costs, and ERP systems are important partners in efforts to automate the supply chain. Workflow automation can help scrub human errors out of your business and provide seamless processing that gets completed the same time, every time. Administrative errors can slow down your business and also negatively impact your customers, but by automating processes, repetitive or slow workarounds get eliminated and processes become shortened altogether. Automation also results in better, more reliable communication between one team and the other. By automating data transfers and communication of key information, knowledge transfer becomes more complete, predictable, and efficient.

Planning & Prediction

With a system in place that touches all parts of the supply chain process, the business benefits from being able to adjust processes downstream and plan accordingly in response to changing circumstances upstream. By being able to track changing market conditions and match them to similar historical data, suppliers can effectively stock their inventory, adjust promotions, and scale production up or down. With an ERP system that offers a snapshot of the supply chain, your business can predict the impact of changing market conditions and plan in response.

Data Analysis

Without a comprehensive ERP system, it can be difficult to match information between one operational workflow and another, and prevent redundant or insufficient data provisioning from incongruent applications. With the help of an ERP system, your business can access data from any point in the supply chain through one single system. This makes successful analysis and operational efficiency much easier, and helps all parties stay on the same page in real-time without having to rely on the expeditious and appropriate sharing of information.

Carbon Footprint Reduction

Every business is under pressure to be a little greener these days. A paperless ERP system can reduce waste and lower overhead while simultaneously lowering your supply chain’s impact on the environment. By eliminating paper from your processes, electronic documents can be better organized, distributed, generated, and corrected.

ERP systems can help you run your business more efficiently, reduce errors, lower your carbon footprint, more easily and reliably aggregate and analyze data, predict and plan for changes in the market, and make adjustments to your supply chain on the fly. And these are just a few of the many benefits of adopting one comprehensive system to manage a supply chain full of separate moving parts. The ability to understand what is happening throughout the supply chain at the exact moment it’s taking place reduces waste, allows for quicker redirection when necessary, and helps inform workers and decision-makers at all levels on the best courses of action. An ERP system equips every decision-maker within the supply chain with a bird’s-eye view that helps support a system of efficiency, transparency, expeditious communication, and cost-effectiveness.

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