Enterprise Resource Planning System (ERP), also referred to as the traditional management system, was generated from the MRP or the Material Requirement Systems. Companies have utilized this system for well over 25 years. In its primary set up, the MRP stores data related to inventory control and production planning. The system is widespread with the use of one its system with the largest market share, the SAP system is the primary base system for over 60 percent of multinational companies. Many companies have been influenced by ERP over the years, including both small and medium size businesses; it is the core of their information processing landscape.
Benefits of the ERP Systems: * Improvement to the quality and efficiency of a firm * Improvements to Customer Service and Manufacturing outputs. * Upper Level Management can benefit with critical decision making information * Firms become more alert after incorporating the ERP systems.
Supply Chain Management Systems (SCM) captures the relationship between a firm and its database of suppliers. The processes allows for records of production, sales of goods and services, delivery of goods. With this process, a firm can improve on lead times, production values and on-time deliveries of goods and services. Strategies are put in place to allow companies to document inventory control data, along with financial resources require to produce quality goods and provide services in an efficient manner. As a collaborative process, SCM depicts activities where sales of products or goods and services are closely linked with consumers. The solution derived from the process allows customers and vendors to connect inventories, order distribution and order production. The processes are distributed between partners who collaborate on different aspect of supply chain management
References: * Financial Decision Making for Managers: Volume 1, 2011 * Supply Chain Management Vs. Customer Relationship Management – htt://www.smallbusiness.chron.com/supply-chain-management-vs-customer-relationship-management.chron.com * Managing relationships in the Supply Chain http://scm.ncsu.edu/scm-articles/article/managing-relationships-in-the-supply-chain * Studying the Customer Relationship Management: A Case Study at Persian Technology Firm. An Executive Summary of Supply Chain Management: Processes, Partnerships, Performance * Douglas M. Lambert