Question: 1. For a small company like NDI, why is an ERP better than SCM applications?
Answer:
ERP supports internal supply chain within an enterprise, while SCM applications support just certain part of internal supply chain. Therefore, for small companies like NDI, it’s more efficient and effective to implement one system, namely ERP, instead of more SCM systems.
Further, ERP software support several functionalities for supply chain management, and small companies like NDI could choose which functionalities they would like to implement, i.e. to support by IT advantages.
Also, unlike SCM applications, ERP system of new generation provides new opportunities for enterprises in (near) future: to connect to their business partners, to integrate new functionalities (open ERP), to use Internet capabilities, to integrate with CRM solutions, etc.
In practical sense, maintenance/servicing and training for one –ERP- software instead of several –SCMs- is better for NDI in financial and time sense.
Finally, kind of industry (high-tech) within NDI operate demands efficient supply chain management, with high turnover of assets and inventory, so as precise and efficient production and inventory planning.
Question: 2. Identify the supply chain segments that the ERP supports; be specific.
Answer:
In the case of NDI enterprise, implemented ERP system would support those activities which produced greatest costs in previous period, putting customer satisfaction at risk and making internal moral decreasing.
Also, the ERP supports the segments in NDI as well as its environment. First, ERP optimizes the production processes in NDI; including taking into account the needs of its employees. Second, ERP contributes to better forecasting of demands and, additionally, better processing of their orders. Third, ERP efficiently coordinates upstream activities between NDI and suppliers.
In the company, the