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Explain the importance of supply chain management
Explain the importance of supply chain management
Basic concept & philosophy of supply chain management
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INTRODUCTION: 20th century is a competitive, fast growing and continually changing era. Many new business departments evolved out of which supply chain management becomes one of the major and core function of modern business. According to the entrepreneurs the mantra of success depends on the integration among various business departments. i.e. ( Hrm, Marketing, Finance and Scm ). Supply chain management is the flow of goods and services from company suppliers to product/services users. The Supply chain varies from company to company the long it is more complex it is. Supply chain management includes the coordination of different intermediaries having different objectives from each other; therefore, So, for this effective and efficient coordination of different intermediaries, organizations are now moving towards the implementation of electronically managing the supply chain activities so that not only customers but also the other stakeholders of the organization must be willing to have long term business relationships with all the entities in a supply chain. This e-based supply chain management has its implication in the ERP systems, which not only automates important transactions but also results in better long and short term planning as well. Supply chain management has three components that are: 1. Materials flow from suppliers and their “upstream” suppliers at all levels. 2. Transformation 3. Distribution of products to customers and their “downstream” customers at all levels. In that diagram suppliers that providing raw materials categorized as upstream activity in supply chain management, the departments involved in any kind of purchasing decisions are categorized as transformation and last sets of ... ... middle of paper ... ...ting maximum revenue for the organizations and also maintains the information of the entire department in organization separately, and makes the win-win situation for both organization and suppliers. ERP system also builds up a long relationship with the suppliers and customers which not only benefits organizations, its external and internal partners but as well as industry. Specially for manufacturing organizations who are involved in both upstream trading and downstream trading ERP is providing them a complete solution of all their worries regarding delivery on both ends, suppliers, vendors and retailers. ERP’s major strength in manufacturing is day to day controlling your business. Once it is implemented in the enterprise it will become the HEART of the manufacturing process and the Wheels of the distribution channel and the BRAIN of the planning activities.
ERP stands for Enterprise Resources Planning. ERP is a term used for software that controls whole organizations different departments. SAP is the world leader in ERP systems followed by Oracle.
Like in the Bombardier case, what an ERP does is it makes “one company”. In the Bombardier case this was not only just different parts of the same company, but many companies that bombardier has acquired over the
Conclusion ERP software can assist corporations in the effective management of resources and maintain smooth operations. The accounting cycle can be integrated into the ERP systems so that all aspects can be maintained and verified. Requirements to maintain system to verify that all transactions are valid, authorized and properly recorded is required when completely the accounting functions and financial statements. Enterprises that have used ERP systems have seen increase in growth, effective production and increased sales. Customer service is increased with proper pricing, shortened delivery time and products available when needed.
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
This report starts off with outlining CISCO as a company, then it explains the problems they had with their previous system and what drove them to implement an ERP system. Subsequently, this report describes the newly implemented system (what is ERP?) and detects some of the TRIZ trends addressed through the implementation. What could the new system deliver, which the old clearly failed to do? After this the UTAUT model is described, which focuses on the question if the individuals who are going to use the system actually want to use it. What the ERP system did for Cisco specifically is described in the competitive advantage section of this report. Finally a conclusion will f...
ERP is a business system that joins all the aspects in the business world such as planning, manufacturing, sales and marketing, projects. The ERP has become more popular in the software which used to help the business actives including order tracking, customer service, finance, inventory control and human resources. The ERP databases contain all the data about the business whi...
Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM).
To understand these factors, it is helpful to gain an understanding of Hershey’s basic business operations and think about what the ERP system was intended for exactly. Hershey’s is a huge company with an incredibly complex supply chain and complex logistics. Hershey’s has to concern itself with manufacturing, inventory management, and distribution. In the last few years of the 20th
In order to survive in this competitive business world, every business must produce or offer not only a better product or service, they must also offer better customer service, reduce their production costs and overhead costs, have a more well-planned management system, a highly reliable infrastructure, and the list is endless. Many of these can be achieved through a customized enterprise resource planning system (ERP). ERPs serve as “one comprehensive database to house all of the company’s corporate information”. However if these systems are not used correctly with the necessary change in management of people and technology it can result in failure.
Therefore to keep its customers happy, they must use ERP to help them plan for the future. Instead of having departments work individually, ERP helps them interact and help each other for the good of the company.
With ERP, it gives the company the ability to pull out a list of good clients that have not bought for six months of the company’s products for example, so in order to make them come back and purchase, the company can send them an email through the ERP system offering a discount.
ERP systems are meant to make companies and businesses operate more efficiently when they are not. The main goal for a company is to choose a vender that will give them the safest and easiest way to operate efficiently and achieve their business goals.
ERP is software that manages information for all departments within a company. Its objective is to get the right information to the right person at the right time. ERP software is typically modular but integrated. It consists of multiple modules that are connected to each other so there is a communication flow. Each module is focused on one area of business procedures. Companies may pick which modules they want integrated into their specific system. Some of the many options of areas of operations include: product planning, manufacturing processes, sales, marketing, finance, human resources and procurement (Davenport, 1998).
Chiat, L.T. & Ching, L.K.S. (2004, September). Critical elements for a successful ERP implementation in SMEs. International Journal of Production Research, 42(17), 3433 3455.
Enterprise resource planning (ERP) is a system that integrates all the departments and function across an organization into a single computer system that can serve the different department particular needs. The common functional areas covered in an ERP system are finance, accounting, and manufacturing, sales, service and customer relationship management. One of the companies that use ERP system is Coca Cola Company. This company use Genesys program which is an integrated SAP Enterprise Resource Planning (ERP) solution.