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Why Supply Chain Management Features are Crucial for an ERP System

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An enterprise resource planning (ERP) system that contains integrated supply chain capabilities allows companies to optimize supply chain processes by minimizing cost, time and effort required when integrating multiple, disparate systems. Another benefit of an ERP system is that an ERP system integrated with supply chain management technology will eliminate the need for expensive add-ons for businesses down the line. Business decision makers should find an ERP system that includes supply chain functionalities to manage warehouse operations, transportation, and demand forecasting. Each system provides its own set of unique benefits for businesses.

Warehouse Management System (WMS)

By having an ERP system with a built-in WMS, users can access a single source for all business data. Other benefits:

  • Offers customers choice and flexibility with responsive processes for inbound and outbound orders
  • Lowers inventory costs and improves turnover with progressive inventory distribution
  • Increases productivity with RF support and picking systems

Transportation Management System (TMS)

Having TMS functionality embedded into an ERP system enables the support needed for the changing and growing demands that are associated with transportation management. Other benefits for having an ERP system with TMS integration would be:

  • Ability to manage inbound and outbound shipments
  • Consolidates shipments
  • Ability to Schedule and manage driver appointments
  • Shopping freight rates

Demand Forecasting

Incorporating an ERP system with demand forecasting integrated is ideal because it eliminates the need for data migration and integration. Other benefits:

  • Capability to generate a statistical baseline forecast based on historical data
  • A dynamic set of forecast dimensions.
  • Ability to visualize demand trends and adjust the demand forecast
  • Ability to remove outliers.
  • Tracking the forecast accurately with KPIs.

Bridging the gap between an ERP system and supply chain management allows businesses to maximize IT dollars and resources. Accessing a single source of data is an instant benefit to business decision makers. Companies that are in need of supply chain management functionalities should seriously consider the option of a single ERP system to lower cost-to-ownership and remove the need for third party supply chain solutions in order to avoid additional costs and labor associated with integrated disparate systems in the future as needs change.

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