Managing ERP Implementation Issues by Understanding SCM

Abstract

Today, ERP provides the critical edge in industry’s battle to reduce turnaround time; increase efficiency manifold; and tremendously improve badly hit profit margins. It will help organizations in managing inventory and meeting all internal requirements. But organization does not have much control on external agencies who supply raw material, manpower for manufacturing and distribution of final products. All manufacturing industry and service houses mostly depends on Management of Supply Chain. As a result of SCM and its problems, we need to understand situations and will have to take appropriate decisions. Every company performs five basic activities or processes within a supply chain: Buy, Make, Move, Store and Sell. In simple words, SCM is the process of managing every phase of production starting from demand survey, Material Requirement Planning (MRP – I), purchase of raw material, applying quality checks for incoming goods and outgoing products and on time supply it to customer and offering sales after quality service. The main problem seems to be of Marketing – Manufacturing conflict, which is very natural. Changes in market demand have always been a major problem. In a changing world with a dynamic business environment, request for change are unavoidable and therefore ERP systems should be horizontal so that any sort of modification can be applicable based on needs and tolerant to SCM changes. Some of the Specific Problems of SCM logistics operations were identified for study. To overcome the specific problems and understanding critical logistics operation with the help of various case studies has been the root of motivation for taking up the research. I am sure the findings will help all sectors of industries and society as whole.