SCM Lowdown

3 Phases Implementation of ERP for Small And Medium Sized Businesses

While on the steps of introducing ERP (Entrepreneur Resource Planning) into a Supply Chain Management system starts from the implementing Basic ERP that took about nine to twelve months to complete and bring about desired results. The steps of Basic ERP include Sales & Operations Planning, Demand Management, Rough Cut Capacity Planning, and Material Requirements Planning. The other steps which are included in the implementation of Basic ERP are the support functions of inventory accuracy, bill of material accuracy and structure, feedback system from the plant floor and purchasing.

After the initial introduction of ERP its integration with supply chain management includes with both backward and forward direction. In the backward direction its implementation towards suppliers include techniques like supplier scheduling and Internet-based business-to-business e-commerce whereas forward processes goes towards customers as by the distribution requirements planning and vendor managed inventories (VMI). This integration of ERP with supply chain management took nearly three to six months depending upon complexity of applications.

Now in the final phase of integrating ERP with supply chain this stage include extensions and enhancements to Support Corporate Strategy. Here ERP software capabilities thus are extended to the total organization with link to other business units within the global organization, HR applications, maintenance, product development and other related areas.

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