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Role of Open source ERP in Supply Chain Management

By: SpellBound Posted on: May 17, 2016 Tags:

Introduction to supply chain management

Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

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⦁ What role does Open source ERP play in a supply chain management strategy?

The integration of supply chain management and Open source ERP enables the manufacturing and distribution businesses to gain more visibility to all operations while increasing speed, efficiency and overall customer satisfaction.

A growing number of businesses recognize the many potential benefits of Open source Enterprise Resource Planning (ERP) when it comes to manage business informations, integrating various systems and working processes, and ensuring optimal operational efficiency.

When it comes to Supply Chain Management (SCM), business needs to interact with numerous suppliers and partners in order to obtain the raw materials and resources needed to bring finished goods to market.

Open source ERP plays a vital role in combating inefficiency, reducing waste and ensuring that workers are more able to direct their efforts. It is in your company’s best interest to ensure that you and your staff fully understand the role of Open source ERP within the SCM process.

⦁ Benefits of Combining Supply Chain Management and Open source ERP Systems

An efficient workflow of an effective SCM can provide a range of important advantages.

  • Improved efficiency across multiple departments of organizations
  • Improved customer service
  • Automation of workflow for reduced overhead and operational costs
  • Less IT issues and problems
  • More flexible supply chain solutions

⦁ Utilize Open source ERP Systems to Ensure Superior Supply Chain Management 

A Supply Chain Management system is essential for accessing real-time operational information across multiple departments and businesses.
Open source ERP systems play a key role in several aspects of the creation and maintenance of a superior Supply Chain Management process.

1. Supply Chain Planning

Supply chain planning includes the selection of marketing channels, promotions, determining the stock quantity, required inventory, ensuring replenishment and production policies which are able to keep up with demand.
Open source ERP systems offer an easier and more flexible way to establish and change the parameters within which a supply chain needs to operate

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2 .Purchasing, Procurement and Execution

Feature-rich Open source ERP software applications provide a more effective way to handle procurement and supply of the goods, services and other resources that are needed across the supply chain. From manufacturing and warehouse resources to transportation and execution processes, Open source ERP systems offers cross-platform visibility on all aspects of the supply chain.

3. Monitoring & Maintenance

The ability to monitor, review and change supply chain efforts and activities in real-time is Crucial to ensure your business which enables to maintain the competitive flexibility and ensure cost-effective operations.

4. Measurement & Assessment

Comparing actual activity against projected goals and targets can be all but impossible for those who rely upon a supply chain that utilizes multiple stand-alone systems and workflow processes.

Open source ERP systems offer to an organization to gather superior information and also ensure that if any undesirable variances are there in the supply chain are quickly identified and effectively addressed.

⦁ Choose Open source ERP and Supply Chain Implementation Strategy

For organizations that have already implemented an Open source ERP system, the collected information and macro-view of the organization’s existing workflow and processes may be used in order to construct a more effective and efficient SCM process.

Businesses that already utilize multiple stand-alone supply chain management systems stand to benefit from the integration and implementation of an Open source ERP system that offers cross-platform access to the inventory, financial and manufacturing information needed to design a SCM process that will offer superior performance.

There are no hard and fast rules when it comes to determining which system to implement first and the specific needs and circumstances of your business must be considered carefully before you reached to any decision.

⦁ Open source ERP Systems Offer Superior Supply Chain Solutions

The intra-departmental and multi-organizational nature of supply chains makes effective management very difficult for businesses that lack the right resources. Open source ERP systems are a crucial asset in the creation and implementation of a more efficient supply chain process.

An inefficiently managed or outdated supply chain process is a liability that no business can afford to overlook. The integration of SCM and Open source ERP means that you can deliver your products and services to end-line consumers with greater speed, efficiency and overall quality.

2 thoughts on “Role of Open source ERP in Supply Chain Management”

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