ERP And SCM: Benefits Of SCM Integration

Multiple supply chain processes tracked to represent the link between ERP and SCM

Today, ERP integrations are vital for most companies. We’ve already covered ERP and CRM. But, there’s one often-overlooked connection. ERP and SCM overlap extensively.

Thus, it’s only natural to expect compatibility. Unfortunately, we skipped it in our 5 crucial integrations. That’s why we’re making up for it today.

Are ERP and SCM two sides of the same coin?

Arguably, supply chain management relates directly to ERP. After all, it tackles your inventory’s lifespan. That includes from where it comes and where it goes.

In that way, ERP and SCM share a close relationship. So, linking both should be a primary consideration.

How do you benefit from ERP and SCM integration?

Now, the main benefit should be obvious. You can link each inventory item with your overall supply chain. With ERP’s financial features, you can optimize operations considerably.

But, what are the specific benefits? Let’s see.

  • Linking inventory with distribution

Firstly, you can visualize your current inventory and its relationship with SCM. In other words, managers get to assess their procurement and distribution. It sheds light on your supply chain’s financial efficiency.

  • Better coordination

Secondly, we can’t forget about information sharing. This primary ERP feature is crucial for communication among teams. Supply chain partners can coordinate more effectively. That’s due to plenty of automation and sharing features in ERP software.

  • Minimizing cost and effort

ERP software excels at spotting room for financial improvement. Again, automation and file sharing play a crucial role here. Facilitating supply chain management also minimizes production and distribution costs.

How can you guarantee ERP and SCM work together?

ERP and SCM software overlap in many ways. For instance, both deal with roughly the same assets and areas. Yet, integrating both systems can be challenging if you lack experience.

Now, not everyone works with supply chain management. That’s why we neglected the topic in our first article. But, it can be an outstanding integration for countless firms.

In those cases, we’re here to help. Go ahead and book your free consultation if you have any questions!

Topics:

Zero Point ERP Solutions

Subscribe to our Newsletter

Share to

Recent Post

NetSuite Best Practices for Retail Businesses

NetSuite Best Practices for Retail Businesses

Read more

NetSuite vs. SAP S/4HANA: Which One Is Better?

NetSuite vs. SAP S/4HANA: Which One Is Better?

Read more

SAP Data Intelligence Moves Enterprise Businesses Forward

SAP Data Intelligence Moves Enterprise Businesses Forward

Read more

SAP S/4HANA Trial Systems: Discovering It’s Potential

SAP S/4HANA Trial Systems: Discovering It’s Potential

Read more
Share to