The essence of supply chain management is applicable to any kind of manufacturing business. For example, an often common sight in America is the young children manning a lemonade stand alongside any street in any town in the US. In this example, the children have to decide how much lemonade that can be sold and after that estimation, they have to get the lemons. How the children go about getting the lemons, arranging for other suppliers should the primary one run out and estimating how many lemons for the next day is part of supply chain management.
In a modern business, demand planning and forecasting estimates the sales and translates that to an available inventory to meet prospective business requirements. In the traditional business of the 1950's and 1960's, companies planned a year's supply of inventory and asked manufacturing to build for that amount of inventory. If mid-year corrections were needed, then either the primary or secondary suppliers needed to change their own capabilities to match the required materials needed.
In today's cyber business where transactions are accumulated at a furious pace, order management must be swiftly translated to the amount of goods that must be available. To feed that rapid fire pace of order management, a robust manufacturing arm must also have an adaptable supply chain management component. By automating the stages of order management to order fulfillment, the buyer is unaware of the complex nature of supply chain management.
In the case of a service or of information, supply chain theory can also be applied because information that is required needs someone or someplace to supply it. There is a prediction and a forecast of how much that is. Supply chain theory means there is collaboration amongst all of the sources of information that is needed to fulfill a request. For instance, in a hospital, if a program was needed to screen by records a thousand patients, having that information available requires all of the suppliers of information to be able to supply it whether it is the hospital or its affiliated doctors.
Enterprise resource planning (ERP) software delivers the ability to manage and standardize business processes across your entire organization. The increased efficiency from this can generate an impressive ROI. But there are hundreds of ERP vendors to choose between. more
The hidden costs associated with implementing an ERP system can add up quickly. Businesses frequently find that these projects go over budget despite being well planned. You can avoid this problem by preparing for these overlooked expenses ahead of time. This allows you to develop a more accurate budget and even reduce some of the costs. more
Although the SaaS model is becoming increasingly prevalent for all types of business software, many organizations have been reluctant to switch to SaaS for ERP (Enterprise Resource Planning) application modules. The thinking goes that ERP functions are too important to be left to the cloud. more
Among all of the business software applications necessary for business operations, ERP is undoubtedly one of the most important. Making the wrong selection can have a disastrous impact on your accounting, manufacturing, and supply chain. With so much at stake, it is crucial to make a well-informed decision. more
Selecting an ERP system is no easy task. You have to select and configure a system that fits your exact business needs. Getting it right means a myriad of benefits, from increased productivity to reduced costs. Getting it wrong can be a quagmire. Our new comparison guide gives you the data you need to make an informed decision, all in one easy-to-use Excel file. more