Introduction
The 20th century, 60's,EnterpriseStart the management information the application, from the MRP to the ERP, And gradually realized the procurement, inventory, production, sales, finance and human resources management of the business to make internal business processes and processing achieved automation for the internal management of the foundation of vertical integration. In the economic globalization today, ERP in supply chain management of horizontal integration across the enterprise powerless. Global 500 companies after several years of ERP applications one after another, after the introduction of SCM(Supply chain management), ERP will be extended to all of the logistics chain in the industry.
ERP and supply chain management, the status quo
In economically developed countries, ERP applications have been involved in almost all industries, especially in the tertiary industry in the financial industry, retail, telecommunications, high-tech industries. ERP is no longer confined within the enterprise supply chain management, but extended to the entire industry, raw material supply, production and processing, distribution sectors, supply chain and ultimately consumers, that the entire supply chain management.
India in circulation in the field of ERP management is still very much lacking, small number of ERP management has also been confined to manufacturing sectors of the enterprise, which limits the enterprises particularly on the circulation enterprises make better use of the industry's resources to achieve optimal operation and management.
ERP extension in the supply chain management
First, the entire industry to create an interlocking of the supply chain, so that many companies in the ERP as a whole under the management of the collaborative operation and co-operation with. Decentralization of these enterprises into the entire supply chain plan, thereby greatly enhancing the supply chain in large market environment as a whole benefits, but also between enterprises so that each individual can be achieved with minimal cost and conversion costs cost advantages. ERP in the supply chain, a unified scheme, the upstream and downstream businesses can minimize inventory, so that all the upstream company's products can be accurate and timely manner to reach the downstream enterprises, which not only accelerated the pace of the supply chain logistics, but also reduced the corporate inventory and amount of funds used. With this the total supply chain management, optimization of the role of ERP, to reach the entire value chain, value-added.
Secondly, in the market, processing, assembly areas and the circulation between the establishment of coordination of dynamic enterprise alliance-related businesses (also known as virtual companies). Through information technology to these companies together into a network in order to more effectively provide goods and services to the market to complete a single enterprise can not afford the market's functions. This will not only enable each company to maintain its technological superiority, but also expanded the scope of its use of resources, so that individual enterprises can enjoy the league other enterprise resources. The supply chain can be realized in-time production of products, timely delivery, timely delivery, timely delivery to achieve the ultimate consumers, basically realized inventory management.
Finally, the advanced IT technology has been such a comprehensive supply chain management provides the underlying technical means, such as network technology, Internet / Intranet technology, EDI technology, barcode technology, E Technologies that enable firms in the business and data transfer process to achieve electronic connectivity; in the management of technology, ERP is also provided for the enterprise from internal to external management tools on the various links, especially on today's ERP systems, the above-mentioned the advanced IT technology into its own system.
ERP and supply chain advantages of integrated management
Practice has proved that such a supply chain management can reduce the level of total logistics costs and expenses, speed up capital turnover rate and the transmission of information, so that the supply chain to maximize the rational utilization of resources. Therefore, industry-wide supply chain management is to adapt to the trend of international economic development, improve the level of scientific management, the best choice.
The current market economic trends international, regional economic trends of globalization, the production environment will become more complex, fast-changing consumer demand, more intense and diversified enterprise in order to meet this demand, one after another for help ERP management. According to the American Advanced Manufacturing Research Report, 1996, the global enterprise resource planning and supply chain management software, with annual sales of more than 50 billion U.S. dollars, and will continue at an annual growth rate of more than 30%. The results show that the application of foreign enterprises after the adoption of supply chain management, improving service quality, reduce costs. For example, the U.S. Hewlett-Packard in a number of related projects in the application of supply chain management, each project per year for the company to save 1-4 million dollars.
With the development of India's market economy, macroeconomic regulation and control and gradually put in place, the initial shift from a shortage economy surplus economy, a seller's market to a buyer's market, resource-constrained to demand constraints, diversification of consumer demand is also becoming obvious trend. Cultivate new demands of consumers to adapt to its diverse development has become an economic development enterprise problem resolution is a strong force. In the management of the implementation of industry-wide, cross-regional ERP supply chain management, able to maximize the product market, offering a complete product portfolio, greatly reducing the production and circulation of the cycle, the product supply chain to further closer to the circulation, which greatly reduce the supply market and demand from the market in order to effectively improve India's enterprises in the world market more competitive.
Conclusion
Although part of India's internal supply chain management to implement the ERP, but also achieved good results. But not yet in any industry to form the upstream and downstream integrated supply chain management to implement ERP. India's products and distribution costs are relatively high switching costs, circulation too much, market information, the transmission delay and opaque, resulting in product supply lagged behind the market and consumer demand, leading to a large backlog of the product. To further expand and improve supply chain management, scope and level of ERP to achieve industry-wide inter-regional supply chain management has to bail out after all enterprises to enhance their capabilities as a good policy.
The ERP management integration in supply chain management is the only way for Indian enterprises, as modern enterprises should seize the opportunity, recognizing its importance. Markets to Indian enterprises is not much time, companies should first start from the analysis of the status of their own, and gradually the development and application of ERP and supply chain management method of combining, the overall rules, step by step, in order to cope with international competition and demand for lay a solid foundation.
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