Signs that Show Your Supply Chain Needs an ERP Software

by Alex Forsyth Developer

Do you need an ERP for your supply chain management? Don’t know or are you confused whether you need an ERP or not? Then here’s what you need to know shared by an Odoo expert.

Product distribution and supply chain management is one of the integral functional areas of most of the businesses irrespective of their types, sectors, verticals, or levels, and needs robust support and proper management. When it comes to the supply chain management process of a business, every business owner needs to maintain their relationships and contacts with their vendor partners, and suppliers and keep on interacting with them regularly for consistent and quality supply of materials in the required amounts. In this way, they also have to manage and maintain their relationships with their retail distributors and dealers for trading the finished products in different prospective markets. Apart from these, there are logistics, which come under the supply chain area. Supply chain logistics are responsible for managing and transporting the finished materials and goods. Overall, the supply chain involves and manages a big chain of pivotal and complicated processes of business while maintaining transparency for all small, medium, and large businesses.

So, that was the brief about supply chain management and logistics. And now comes the question of whether your business and supply chain needs an ERP software or not. To ease out your confusion, an Odoo expert has shared a few signs that will reveal whether your venture needs it or not for SCM, which is supply chain management.

Here are the signs to help you to assess.

You are not enough competent to efficiently utilise your resources:

One of the major drawbacks medium and large businesses often come across is the improper distribution of materials and resources among the different departments. Here again, an ERP software comes to play its role. The right ERP software will promote proper communication and collaboration between the different departments of the businesses and will promote complete implementation and integration between them, thereby helping the users to get complete visibility of those materials required. In simple words, there will be no chance of collaboration and communication gaps that will lead to the appropriate distribution of the resources.

Improper distribution and poorly-defined supply chain activities:

When you, being an entrepreneur, involve too many human resources for managing your supply chain processes, and they are not proficient and efficient enough to track the distribution and supply of finished and distributed goods, ERP software can come to the rescue and can prove to be the best solution with its inherent features and modules. Only ERP software can ensure an efficient and well-defined supply chain management because of its distinct modules and features.

Supply chain processes are not performing well:

Poor performance and running of your supply processes can be the major roadblock in your business growth and efficiency of your business workflow. Every operation in your supply chain needs to be aligned properly and assigned to some of the user groups who all have the required skills and abilities to manage the processes. A failure in this can also result in decreased productivity. This is when it becomes essential to get an ERP implemented with a separate module for supply chain management to ensure the proper and smooth running of all the supply activities and processes.

When it becomes difficult to track the performance of the vendors:

When your business expands, it becomes even more important to keep tracking the performance of all the vendors. However, with ERP software, you can get the opportunity to track these aspects using significant metrics such as error rates, cycle times, costs, etc.

ERP software can not only save a huge amount on the operational costs of supply chain management and more but can also maximise the revenue of the business. While most of the businesses believe that ERP software solution is only for the hardcore internal advantages, they might feel pleased to go through these above-mentioned benefits that can be leveraged by integrating the software into the supply chain of a business. Overall, the software empowers businesses to manage the supply chain well and ensure fast and efficient delivery of products and services to the consumers.

Alex Forsyth is an Odoo expert and is associated with the best ERP services provider in Australia, Envertis Software Solutions. The author has written this article to make businesses understand and realise the worth of integrating ERP software for enhanced supply chain management.