5 ERP Features to Reduce The Risk Of SCM
Supply Chain Management is a set of procedure to flow the information in a sequential array. Material/Cash/Information flows from one node to end node i.e. from raw material plant to manufacturer, then to a warehouse to dealer/suppliers to end customer. This is designed to enhance the effectiveness and productivity of the processes of Material Flow, Monetary Flow, and Communication Flow.
Hence SCM is a parameter which can be a useful resource for business owners.
Risk involves in key areas of SCM such as shipment, delivery, internal conflicts, geographical location, may damage overall objective of the company. For sake of risk mitigation or precautionary measures, integration of SCM with ERP is much needed for the organizations.
Following are the prime features of ERP, which can ensure the smooth functioning of SCM:
1. ERP with the Capable Migration of data and information:
The owner, who has turned for ERP, must have awareness about the integration of type of data for their SCM. Otherwise, effective functionality will go on a threat. To analyze the huge data at a glance, integration of ERP with SCM plays a major role with functional data transition.
2. ERP with Real Time-Geographical Tagging:
Even in a small scale business, owners have a huge dependency on the manufacturer and raw material provider. Location of different manufacturers of different countries, suppliers and their warehouse can be easily mapped through this feature of ERP Materials. The owner can have real-time tracking of the location of the first node of stakeholders and material also. It provides location wise statistics of inventory, supply, cash flow, the material in transit.
3. ERP with User-friendly and Customized Access Tool:
This helps especially with upper-level management. Regardless of many efforts, this tool is to understand most crucial information i.e. the record of inventory, location wise statistics and surplus material at warehouses, an imbalance in supply and demand at a different location. It gives the overview of the whole financial flow according to the material availability. Once again the selection of customized needs has to be very precise.
4. ERP with Forecasting Optimization:
Projection is the key factor for the successful business model. If supply chain needs are not in synchronization with the correct projection of SCM characteristics, likely chances for business owner getting into the dilemma. That is one of the reasons to go for ERP tool which can optimize the forecasting to make a transparent business process. ERP with this feature is nothing but a key performance indicator for owner’s business to achieve the financial goals within time frame.
5. ERP with the Features of Logistics, Procurement & Inventory:
Easy accessibility to get the Logistics details is the major area to look into. Just in Time capabilities of this feature can retrieve the relevant ad needful records against booked order vs billed order. Further procurement becomes an easy task to meet the real-time demand. This feature can provide the information on the physical security of the material and warehouse. All such features can provide the easy display of dashboard at owner’s Supply Chain Management System for close monitoring.