What Is Supply Chain Management & Why Is It Important?
The supply chain is the network of vendors, third-party logistics providers, and other freight handling services that deliver raw materials to you, and finished products to your customers. Not only is the care and accuracy of these logistics critical to your business, but the speed at which it happens clearly affects your bottom line. The supply chain can be expensive, so monitoring costs is important.Luckily, an ERP system’s job is to make the supply chain work as efficiently and accurately as possible.
What is ERP in Supply Chain Management?
In a modern ERP system (such as Epicor Kinetic),the system encompasses procurement, warehousing, logistics, shipping, distribution, and delivery of product to the customer. Specific requirements such as vendor and customer managed inventory, fulfillment, replenishment, integrated forecasting, demand management, traceability at all levels, and management of related information are all part of the ERP system. It should not be necessary for you to use third party systems, or extensive modifications to provide functionality for supply chain needs.
What is the Benefit of ERP on Supply Chain Management?
Now that we know what ERP is in supply chain management, let’s talk about the benefits. An effective ERP system with supply chain functionality can benefit your company in a very simple way. Every dollar saved by leaning out inventory levels goes right to the bottom line. Why would you want to overstock anything? When overstocking, you risk product obsolescence and damage, while your inventory ties up your money. Wouldn’t you rather have your money in the bank instead of your warehouse?
Contact EpiCenter Today to Learn More About Our Supply Chain Management and ERP
Every business should strive to learn what supply chain management is and why it is important in their industry; so, call us. EpiCenter can explain how Epicor Kinetic can impact your supply chain, and your wallet. We also have partnered with SourceDay to offer a robust automated solution as well; so, if you have any questions regarding our services, or why supply chain management matters, please contact us below, and one of our systems experts will explain what we can do for you!
written by Jeffrey W. Glaze, President