SCM And ERP, hand in hand?
You must have heard quite often that SCM relies on ERP. Now, the first question is, what exactly is ERP? ERP stands for enterprise resource planning and is a software that integrates all the functions and departments of a company into a single database holder, that is a computer system.
For an SCM to be efficient, it requires data from different departments. This data can be compiled from different sources but this would be a difficult task. With ERP, the information is stored onto a single computer system, thus it is easy to access the information as and when required. This simplifies the SCM process and therefore makes it more efficient.
The issue here is that implementing an ERP software is difficult and expensive, do ideally before investing in it, you should determine if you really need it. So, do take an informed decision.
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