ERP And Supply Chain Management – Generate Rapid Improvement In Business

Supply chain management is an old concept but Enterprise Resource Planning has aided in reducing the inaccuracies. ERP has increased the performance of the supply chain. ERP and Supply Chain Management is a way of planning all the resources in the business enterprise effectively. The organizations establish operating systems and operating performance which help them in managing the business operations and meet the objectives of the business. ERP and SCM includes the trading partners of the organization also which are the customers and the suppliers. It is for the companies who are looking to generate rapid improvement in their operations. The assessment of ERP and SCM depends on the size of the operations and takes about three to four days. The organization’s intent, implementation and effectiveness of the existing operations are assessed based on an ERP model.

SCM or Supply Chain Management is essential to have an edge over the competition in the market. It improves the way the organization finds raw components it requires to make a product to deliver to the customers. The components of Supply Chain Management are Plan, Source, Make, Deliver and Return. Many of the SCM applications rely on the information which is with the ERP or the Enterprise Resource Planning software. ERP integrates the data in a single application and therefore benefits SCM applications. The SCM applications have a single source for the data which makes it easy. It is beneficial to implement ERP first to get the information in order. Nowadays the ERP vendors offer SCM modules too.

Investing on ERP systems provides a platform that enables effective response to the changing Supply Chain Management. An integrated ERP system can aid in improving the performance of the Supply Chain Management by achieving a global visibility. It is essential to optimize the investment on inventory and offer great customer service in today’s market. It is important to know about the inventory throughout the Supply Chain and this data is available with an ERP system. The manufactures can develop the best plan for production and make only what is required by having the knowledge of the inventory location and availability. This information also helps to provide the customers with inventory and product availability information. Real time data helps to make quick and correct decisions with the help of ERP.

ERP and SCM work together by developing a better customer interaction. It is important to know about the views of the customer and to obtain such information one needs to interact with the customer. This data can be achieved from different sources such as sales, marketing and supply chain systems. ERP offers this integrated view and helps the manufacturers to understand the customer needs better. They can provide better products and services which help the company to increase its profits. ERP and Supply Chain Management help in lean manufacturing, supplier integration and global sourcing. It helps to achieve a higher performance as the measurement and performance are linked together. ERP systems include analytics which enable to standardize metrics thereby bringing about speed and better quality.

Peter Filinovich PhotoAbout Author
Read about Types of ERP. Also know What is ERP System. Read information about Importance of Communication in Business.

Supply Chain ERP Selection Tools

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SAP vs. Oracle

Here is an interesting comparison between the two leaders in the ERP space, SAP vs. Oracle. This is a hotly contested debate between the two giants in Enterprise Resource Planning Software. A company that is considering moving to an ERP will likely have one or both competing for their business.

They have distinctly different approaches to both the software business and to their software architecture. Once only for the Fortune 500, the mid-sized marketplace is looking more frequently at these software offerings. This is due to the consolidation of ERP software offerings, post 9/11, and due to the increased focus that SAP and Oracle have placed on this mid-market space.

SAP vs. Oracle
Alisher Muhammadiev

Both ERP rivals Oracle and SAP are different as their products

Enterprise Resource Planning system was designed and implemented in more than 20 different industries and all ERP companies together generate every year a $60 billion dollars profit on the global market. The biggest part of this pie is shared by two software giants Oracle and SAP. Although they compete on the same market and target their products for common industries, they have very distinguished strategies, corporate culture and distinctive offers.

Information Technology has become an important part of any current business. The Enterprise Resource Planning system is a software package that was specially designed to help companies to run their businesses better. It consists of many modules. Each of the modules is used at different departments within one corporation. All those modules are interconnected with each other in one coherent system. According to the common definition of ERP – it is a system that processes all transactions in an organization and facilitates the planning, production and customer responses. It represents the companys culture. Moreover it can be thought of as the companys backbone coded into the software. That is why the ERP is so important and at the same time very expensive. Depending on the size of the project some companies spends from $2 to $130 million dollars for ERP implementation. Building an ERP package requires a lot of time and resources. ERP vendors develop, supply, and implement the ERP system as package software for enterprises. Some companies are loyal to one vendor and use all modules from same vendor. Others decide to mix together compatible modules from different vendors. This approach is called a best of breed system. When the vendors product is built in-house all work including software development, implementation, customers support and training are done by the vendor alone with no help from the outside or from outsourcing.

The world second-largest software supplier Oracle was founded in 1977 in the United States and by 1999 the company was serving 5000 clients in over 140 countries. Oracle is well known for their database systems rather than enterprise resource planning system. It is rating as the second ERP package vendor after SAP on the ERP market. Oracle has a reputation as a company with strong software support, a large financial budget and stable position among the competitors. At the same time the corporate culture of Oracle is conservative on benefits from revenues. Which causes such problems as inflexibility and slow implementation of their ERP products. In other words, the company lacks partners and consultants for technical expertise.

Hence the main player on ERP market is the German company SAP (Systems, Application, and Products in Data processing) which was founded in 1972. It was the first time in software history that a company outside of the United States had gained such success. In 1999 SAP had more than twice as many customers as Oracle in 100 countries around the world. Unlike Oracle, SAP decided to work in close collaboration with many other companies. The companys success derives from the fact that SAP invests 20 percent of the profit on research and shares 80 percent of the total revenues with their alliance partners. Moreover, SAP has many consultants who provide help and training to their customers. And there are even third party developers who supply a large number of add-in programs that can work together with SAPs products. As a result, customers enjoy more flexible and fast implementation of their ERP systems. There is no doubt about why SAP became a leader.

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Because Oracle products are built in-house in contrast to SAPs solutions they are based on one database system. Oracle became popular as a manufacturer of developing products that can be easily integrated with other models from other vendors, enabling them to build a best of breed system. The ERP packages from Oracle are based on three main parts: Supply, Demand and Finance with several included modules. Oracle offers a strong enterprise system that is able to accommodate more than 1000 users whereas the ERP package from SAP can be scaled from 25 to 1000 users. Such scalability is possible because of the high granularity of the SAP modules. The downside of the SAPs ERP systems is that the SAP vendor forces its customers to change or adapt their corporate culture to match how SAP software works. However as SAP as Oracle, both provide incredible enterprise resource planning systems which help many companies to operate more efficiently and more effectively these days.

Both vendors offer great ERP packages but choosing the right package among both is not an easy job. For SAP, being a leader on the market it does not always mean that SAP can offer the right software that customers want to have; and Oracle can appear as a good alternative for this case. If the company is limited in resources and restrained in time the best solution would be to go for SAP products. However the company with distinguished values which creates a competitive advantage would prefer to choose the Oracle to build a unique system that will fit well to their businesses. The lesson is that before moving to ERP the senior manager needs to balance all constraints and needs for the companys future.

Alisher Muhammadiev Hanyang University, Seoul, South Korea tel: +82-10-2304-0074 email: so***@ih******.kr web site:

sap vs. oracle

sap vs. oracle

ERP Software Vendors

This is a more general article, but it has some interesting history on a few ERP packages. Trivia time… Do you know what QAD stands for?

ERP Software Vendors
Jennifer Bailey

Enterprise resource planning systems are management information systems that integrate and automate business practices associated with the operations, production and distribution aspects of a company engaged in manufacturing products or services.

Some of the well-known vendors of ERP systems are SAP AG, Oracle Applications, Microsoft Dynamics, SSA Global Technologies, QAD and Exact Software.

Founded in 1972, SAP AG is the largest European software enterprise, headquartered in Walldorf, Germany. SAP is an acronym for Systems, Applications And Products in Data Processing. It is the largest ERP solution software provider in terms of revenue. SAP products focus on ERP systems. Its main product is SAP R/3. R stands for real-time data processing, and the number 3 relates to the three-tier application architecture of its database, application server and client. There are over 91,500 SAP installations at more than 28,000 companies. Over 12 million people in more than 120 countries use SAP products.

Oracle Corporation was founded in 1977. It is one of the major companies involved in the development of database management systems, tools for database development, and enterprise resource planning software. The Oracle e-Business Suite includes software that perform financial, manufacturing and Human Resource Management Systems related functions. User access to these facilities is provided through a browser interface over the Internet or corporate intranet.

QAD produces Enterprise Resource Planning software for six main industries — Automotive, Consumer Products, Electronics, Food and Beverage, Industrial Products and Life Sciences. QAD product, MFG/PRO is an ERP software containing multiple optional modules and add on products like AIM Warehousing and Trade Management.

Exact Software was founded in 1984. It is involved in developing software for logistics, Human Resource Management, Customer Relationship Management, e-business and Enterprise Resource Planning.

Every company needs a core transactional system that records the information from its most important business processes. Prior to choosing a vendor for an enterprise, it is important to plan the budget since it is extremely difficult to upgrade already installed ERP software.

ERP Software provides detailed information on ERP Software, ERP Software Solutions, ERP Software Companies, Manufacturing ERP Software and more. ERP Software is affiliated with HR Software Solutions.