Benefits of an ERP in supply chain management




As a customer or client, we always expect and love the certainty that comes with knowing that a particular product will be available, and in the best possible quality, when we need (to purchase) it. Because we’re prepared to pay for the particular product, it’s always our expectation (and perceived right) to get the product in perfect form whenever we need it.

As consumers, the stages and processes required to get the needed product(s) to our shopping outlets is the least of our concerns. This, we believe, is the sole responsibility of the seller (and or the manufacturer) of the finished product to take care of. And rightly so.

From the above, it then follows that as a manufacturer (or vendor of a product or solution in the case of technology and IT services), you have to ensure that your processes and systems – from the sourcing of raw materials, to the initial production phase, up to the time the product or solution gets to the consumer and subsequent customer support – are efficient.

This series of processes and procedures is what is called Supply Chain Management. Simply put, the term encompasses all the processes that a business undertakes in order to deliver a final product to the consumer, whether directly or indirectly by working with third-party suppliers, resellers or distributors.

Businesses – be they small-sized SMEs or large Corporate entities – ultimately strive to get their products and services to consumers and clients in a timely and efficient manner. And to ensure this is achieved, and just like we’ve highlighted above, this calls for an effective and efficient Supply Chain Management system to be put in place.

The benefits derived from this efficiency can’t be understated, as they have an impact on revenue growth. A report by SYSPRO indicates that 8 in 10 companies with high-performing supply chains have revenue growth that’s well above their industry average while only 8% of organizations with limited supply chain capabilities manage to do the same.

“Most of today’s organizations are recognizing the key role that their supply chains play in their ability to garner a competitive advantage in the marketplace. Perhaps this accounts for the 11.2% growth for the supply chain management market predicted between 2020 and 2027 as recently reported by Research and Markets, a global provider of market data,” notes SYSPRO in a Supply Chain Management report.

“Practiced properly, supply chain management can achieve multiple objectives. For instance, controlling manufacturing processes can improve product quality, reduce the risk of recalls and lawsuits, and help build a trusted consumer brand… At the same time, controls over shipping procedures can improve customer service by avoiding costly shortages or periods of inventory oversupply. Overall, supply chain management provides numerous opportunities for companies to improve their profit margins and is especially important for those with large and international operations.”

In order to ensure that your processes within the Supply Chain are even faster and ultimately more efficient, businesses have to implement other systems. Remember that as a large Enterprise or SME in a given sector (or industry), you’re not playing alone in the said sector but have to stay competitive and ensure that you sufficiently meet your customers’ demands, retain them and prevent cases of customer churn.

And there are various ways to achieve this. A business can either choose to price its products and services below what is offered by other competitors, provide attractive aftersales incentives to customers or just enhance its internal processes for overall customer satisfaction.

Enhancing internal processes means that the business at this point opts to analyse its procedures to identify existing issues and challenges within the supply chain that have resulted in its products and services not getting to the customer maybe as faster, cost effectively or efficiently as it would wish them to. Such concerns and challenges can also be identified by gleaning through frequent customer complaints and feedback.

Here’s where the business management decides go out and source for an Enterprise Resource Planning (ERP) system that can be integrated with its existing Supply Chain Management system to boost efficiency and enhance customer satisfaction.

Basically, an ERP system (or software) is a tool that consolidates a business’ trove (or database) of information. It also automates routine tasks while at the same simplifying business processes, thereby enhancing operations and ultimately releasing some of the company’s staff to concentrate on more critical tasks and duties.

Put differently, whereas Supply Chain Management involves the transformation of the raw material(s) to the final product, the integration of an ERP tool into Supply Chain Management system leads to better coordination between the supply chain activities and internal business processes for better overall output.

The overall objective of implementing an ERP, like we have already mentioned, is to help the business enhance its efficiencies, ensure better communication and collaboration within the company, and boost customer satisfaction and retention.

Just like in any industry, we’ve numerous ERP systems, all from different vendors, developed to address specific business challenges. Meaning that the ERP you select and implement should address the challenges you’re grappling with, not a generic solution for every industry. There’s no one-size-fits-all.

With a rich history spanning over 40 years, SYSPRO makes it clear to clients that its ERP solutions are not a one-size-fits-all. Designed in a modular format, SYSPRO has a suite of over 50 individual ERP components which a potential business client can integrate seamlessly into their operations, but selecting and implementing only what they need.

The SYSPRO ERP for Supply Chain Management is a secure and efficient solution for manufacturers and distributors. The solution provides the client with the necessary control and experience during the supply chain journey.

For clients in the Manufacturing industry keen to explore new horizons and move into new territories but worried about Customer Support, rest easy as SYSPRO has offices in various markets, including Kenya.

It then follows that using SYSPRO ERP, you can still be able to manage and streamline all the critical operations of your business efficiently. You can also gain a 360-deree view of all the business activities – from Financial, Warehouse and Inventory Management, to your Supply Chain and Business Operations – effortlessly, enabling you to have peace of mind.

The SYSPRO ERP, targeted at the Manufacturing and Distribution sectors, offers the client the solutions and tools necessary to enable them manage their data and gain insights into the business.

In conclusion, SYSPRO ERP is the perfect solution to ensure that you’ve a secure and efficient supply chain. The fit-for-purpose solutions ensure that your supply chain business operations are improved by:

  • providing improved organizational and internal operational control; connectivity across the factory floor, branches, sites and regions; and enhanced information and intelligence for faster and better decision-making.
  • offering the flexibility to choose the solutions that will address your unique business needs throughout the supply chain.
  • enabling manufacturers to connect both internally and with suppliers and customers across their entire supply chain, and to easily communicate, adapt and scale.
  • effortlessly integrating with existing systems, ensuring that you can digitalize your business practically and at your own pace.
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