ERP (enterprise resource planning) systems are the technology equivalent to the body’s vascular and nervous systems.  Interdependent upon one and other, these systems act as a supply and communications network. Similarly, supply chain software is a subsystem of the larger erp system. Supply chain software is the tool by which transactions and data move linking department to department and supplier to supplier.

ERP Software

How important is Supply Chain Software to the Inventory-based Manufacturing Business?

If one considers the definition of supply chain as “…a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996).” It is easy to see the crucial role that supply chain and supply chain software necessarily plays in a business.  It is the engine that drives the customer service, production and delivery processes of any business.

Supply chain software like any other business system is a tool by which transactions are done and data managed but it is not a substitute for phone and face to face relationship management. Rather, supply chain software packages free up supply chain professionals for human interaction, the space least served by technology.  Supply chain software also increases the transactional possibilities in volume, value giving individuals greater latitude and bandwidth.

The Internet and intranet have become the provided an information conduit.  Updates and status checks are now possible with just a few clicks. Depending upon the relationship between the companies, information is shared by interfaces, links and account dedicated web pages that did not exist a decade ago. Only limited by configuration, supply chain software can provide snapshots from all members of the chain into where an order is at a given moment and lead times for future orders.  Planning and procurement can look at materials their parts inventory and obtain lead times for materials to get the most accurate delivery dates possible.

Real and near real time information is now available to customers in ways that it never has been in the past and supply chain software is a major reason for this advance. Planners can look at production and delivery schedules well into the future.  Supply chain activity and scheduling can be automated and pre-programmed for much more accurate forecasting.  

A company producing pintle hooks for the heavy trucking industry might well have an interest in steel production schedules and, in turn, the end customer might want to track order status from order placement up through delivery in order to schedule tooling changes and production runs on their end.  

The sophisticated technology of supply chain software comes in a variety of sizes from mega systems like SAP and Oracle down to specialized supply chain software packages for food, beverage and formula-based manufacturing.  Supply chain software ensures product consistency of materials by purchasing from vendors approved and established in the supply chain system.

Supply chain software enhances accuracy in planning, procurement, production and logistics that are highly compatible with today’s lean initiatives. Supply Chain software is an excellent investment in a company’s future regardless of company size and the importance of the role played by supply chain software in any inventory is substantial and should not be underestimated.