Enterprise Resource Planning Technology

Question: Discuss about theEnterprise Resource Planning Technology. Answer: Introduction: The competition in the business field is quite fierce and aggressive today and business have to look for innovative ways to stay afloat ad remain competitive. Business entities have turned towards various innovative initiatives and strategies to streamline their practices and hence improve their productivity. Technological advancements have played a significant role in streamlining business practices. One area in business that has benefited from these technological advancements is the supply chain. Supply chain management is an important aspect in a business and with the emergence of the internet and other advancements, new concepts have emerged such as electronic supply chain management (e-SCM). E-supply chain management has been identified as a source that can create competitive advantage for the firms that adopt it. New needs emerging in an organization have seen most of these organizations adopt e-SCM. Some of these reasons include a need to cut down in costs and improvement of the processes for easy management, computerization, and digitization of functions within the organization (Gimnez Loureno, 2006). Others are the need for efficiency in management to respond to the ever changing and increasing customer demands, and the tendency to outsource some of the operations not directly linked to the company (Ince, et al., 2013). To make this processes easier there have been a number of technologies which have been incorporated into e-supply chain management. These technologies include electronic data interchange (EDI), bar coding and scanning, enterprise resource planning (ERP) systems, warehouse and inventory management systems, and transportation management systems. This paper seeks to examine how enterprise resource planning systems have streamlined e-supply chain management and how the systems can enhance e-supply chain coordination in a very competitive environment. Enterprise resource planning systems (ERP) are information systems that find application in the automation of all activities, processes, and functions in the company (Shatat Udin, 2012). The systems are based on all the transactions the company is involved in and can thus be used in the management of all departments including the supply chain. Key business activities such as client orders, inventory, and revenues can all be captured into a single package to produce a single source for all activities of the organization. These systems have reduced manual input in activities mentioned above. This implies that the systems are highly integrated since they use a single data model that provides a unified understanding of the data shared (Yanchao Diew, 2010). The systems are also capable of providing rules governing access to the information stored in the system. Procuring an ERP is quite costly as it involves a complete overhaul of how the organization manages and runs its operations. The business processes of the company will need to be revised and restructured. The organizational structure of the firm besides the management of personnel will also be changed. In most cases, for these changes to be effective, the organization will need to train its employees on how to use the system and customize some of the features to fit the companys business model and practices (Shatat Udin, 2012). Customization is done in a manner that maximizes the productivity and efficiency of the business processes including supply chain management (Aggarwal Garg, 2014). For most organizations that have incorporated ERPs, the results have been positive. The productivity and competitive edge of the companies have increased significantly. However, just how and why are enterprise resource planning systems crucial in e-supply chain coordination in the overly competiti ve business environment? Analysis and Discussion The supply chain is a robust network consisting of manufacturers, suppliers, customers, and distributors. From this network, three crucial flows need dedicated coordination. There is the material flow that represents the movement of products from suppliers to the customers and from the customers back to the suppliers, and information flow that represents the transmission of ordered items and the subsequent tracking of the orders (Nemati, 2013). Finally, there is the financial flow, which incorporates the payments, credit conditions, and ownership consignments and arrangements with respect to the orders. All these areas need untimely coordination among all parties in the supply chain. An ERP system can help a firm to improve these three flows and help he company to function as one entity and enhance e-supply chain coordination (Lidija Kaleshovska, 2013). This can be done by reducing costs, enhancing collaboration, minimizing delays, and improving the e-supply chain network. Reducing Costs An ERP helps the organization to manage its inventory in a more efficient way. For example, a quick response model or a just in time model can serves to eliminate the pressure directed at the availability of raw materials. Consequently, inventory management can be enhanced since raw materials will not be stored in the warehouses for long periods (Jenatabadi, et al., 2013). The ERP system will also help the department to plan accordingly with respect to demands. Thus, the production processes can be improved to ensure that the enough materials are produced to meet the customers demands. The relationship between the firm and its vendors stands to benefit from enhanced inventory management as it provides numerous cost cutting opportunities such as volume discounts (Gimnez Loureno, 2006). Enhancing Collaboration One major problem faced in supply chain management is lack of information or accurate communication. However, with an ERP system in place, an organization can keep track of its suppliers and distributors hence bridging the gap between all parties. The parties can thus plan their activities better because they share information freely such as the forecasting reports, demands, inventory health, and transportation plans among others (Ince, et al., 2013). When such information is readily available, operations within the e-supply chain network run flawlessly. Minimizing Delays Before emergence of e-supply chain management technologies, management of the supply chain faced challenges such poor relationships between the parties due to delays in shipments, slow production processes, and logistical errors. The effects are severe since they usually circle back to the customers who are the main players in the supply chain (Gimnez Loureno, 2006). Hence, an ERP system can coordinate all internal affairs of the firm and thus bring about fluidity in the operations. Timely delivery and production of orders will be realized and this will help the entities involved to grow. Improvement of the Supply Chain Network The supply chain network has faced complications arising from a failure to monitor all processes in a manual system. However, an ERP system solves this problem because it condenses and centralizes all the networks processes. This enables all parties in the supply chain network to plan and execute their roles more efficiently since it is easier to monitor the processes and communicate concerns with other players in the network (Aggarwal Garg, 2014). Tracking and management of the processes is thus made easier when an ERP is used. Conclusion A supply chain is a robust network that ensures products reach an end user. The success of the whole endeavor hinges on the cooperation and coordination between the players in the network such as the suppliers, manufacturers, distributors, and clients. E-supply chain management technologies such as the enterprise resource planning systems have served to improve coordination in the e-supply chain. This has been achieved through the automation of processes and activities, which have helped the organizations to improve service delivery through careful planning and execution of their activities. References Aggarwal, A. Garg, L., 2014. 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