Integrated Supply Chain Management (SCM) and real time decision making are essential in order to keep place with rapid changes in supply and demand. When data is shared with other players, the enterprise becomes extended. Integration is thus taken beyond the walls of the organization itself. Here the company not only automates its own processes, but integrates them with the automated processes of supply chain partners. It is called Extended ERP system. It is necessary to come to an understanding of open standards across the industry to have an extended ERP system. Apart from open standards, we must have decision support tools that understand business relationships and help automatically redefine and synchronize the business functions which support these relationships. One such tool is Advanced Planning and Scheduling (APS). It takes ERP beyond transaction data processing. APS considers various operating constraints .ERP is integrating with APS. Manufacturing then becomes customer driven. There is better utilization of plant capacity, and material. But this integration is nit so easy. When ERP and APS tools are separate the data must be synchronized between the two systems.
Oracle Supply Chain Management (SCM) solutions is the software available to create a demand driven organization by connecting an extending the values chain, streaming the business process and eliminating non value added activities. One can contact Oracles e-business solutions on 9622-123456.
Thermax Philips and Calcomp are companies which have installed ERP. ERP investment is costly too. Its benefits must be greater than cost in installing it. We have a legacy of hardware. It is not always necessary to upgrade them. Instead, we can follow the low cost route of running new software on already existing hardware.
ERP benefits are classifiable into two categories – the benefits of automation, like data entry elimination, fewer billing errors, pay roll and process cost avoidance and reduced account receivables and the benefits of transformation like inventories, improved customer services, lower distribution costs and improved product margins.
Activities which add no value are eliminated. Along with these the cost of performing these activities are also eliminated. Accurate demand forecast integrate production to demand. It means lower inventories. Co-ordination amongst functional departments enables change occurring in one to be reflected as a change in all other processes. The cost of delay and confusion are avoided. The cycle times for manufacturing and distribution are reduced. This liberates capital. Customer service improves a great deal.
In EPP, infotech becomes the foundation for all functional departments. The basic objective of ERP is to integrate all the information generated by different process into a streamlined seamless flow. A piece of data just entered once if crucial, gets reflected in the information flow everywhere in the organization. To illustrate a new sales order is featured on the computer screen of very executive affected by it. Production department comes to know that it has to produce this. Purchase knows it has to take steps to keep stores ready. Logistics knows it has to gear up for delivery at a particular time. Accounts knows that it has to bill for the order. Instead of sequential processing there is parallel processing. This liberates cash from unproductive cells. ERP makes it possible to deliver to the customer the best quality at the lowest cost. Real time information means we act on market realities rather than depend on dated information and guess work.
You must have experienced what it is like when you enquire your current balance in the bank account, and the clerk gives you a sorry look as the system has blacked out. These days it is better to prevent such breakdowns; and be alerted about an impending breakdown. Enterprise System Management is an integrated solution that controls centrally all elements of the system like PCs, servers, networks and application software. It helps detect a flaw before it occurs. UniCenter PCs, severs, networks and application software. It helps detect a flaw before it occurs. UniCenter TNG software package and Trivdli software package help prevent unscheduled breakdowns and loss of operation time. It ensures automatic data saving across all operating systems. It takes care of security both internal as well as external. It has the capability to take the necessary corrective action on its own. It ensures 24 hour availability of IT system. Stanchart in India has introduced ESM. ESM is costly to install, say for 1,000 PCs, the software package costs Rs 1 crore and implementation costs Rs 20-30 lacs. It is possible to design cheaper versions costing a few lacs of rupees for medium and small firms.