Enterprise systems provide value by both increasing operational efficiency and providing firm-wide information to help managers make better decisions.
SCM – Supply chain management systems automate the flow of information among members of the supply chain so they can use it to make better decisions about when and how much to purchase, produce, or ship (Laudon & Laudon, 2019). For example, Nike’s supply chain management is so elaborate, that it enables the company to coordinate the activities involved in buying, making, and moving a product. Nike’s contract suppliers do not manufacture sneakers from scratch. They obtain components for the sneakers from other suppliers and then assemble them into finished sneakers. These suppliers in turn have their own suppliers and so on, and Nike can track it all.
ERP – Enterprise resource planning systems secure enterprise resources for effective distribution and provide accurate data for sustainable development in enterprise (Huang et al., 2019). When new information is entered by one process, the information is made immediately available to other business processes. This type of planning systems take place in major organizations such as Nike, Pepsi and Nestle.
CRM – Customer relationship management system enables to know exactly who the company’s customers are, how to contact them, whether they are costly to service and sell to, what kinds of products and services they are interested in, and how much money they spend on the company. Large companies, for example Hilton hotel chain or McDonalds, with many operating units in different locations have used enterprise systems to enforce standard practices and data so that everyone does business the same way worldwide.
Whilst all the systems are important, the first one to install should be ERP, since without correct resource allocation, the business will struggle with the rest of its activities. Sustainable business development should be first business concern, whereas customer relationship management has to come second. The last to install should be SCM, when the company grows to the extent, when such management system will become necessary.
References
Huang, S. Y., Chiu, A.A., Chao, P.C. & Arniati, A. (2019). Critical Success Factors in Implementing Enterprise Resource Planning Systems for Sustainable Corporations. Sustainability, 11(23), 6785. Web.
Laudon, K. C., Laudon J. P. (2019). Management Information Systems: Managing the digital firm (16th ed.). Pearson.