The high demands of customers and in the modern world raises the competitiveness of businesses. Big firms with thousands of workers and several affiliated branches need an automated system for productive results. Enterprise Resource Planning (ERP) implies the administration of business processes by relying on the software that gathers and analyzes the statistical data (Bahssas et al., 2015). It is a vast industry that generates supporting systems for proper business functioning. ERP covers many aspects of the working procedure, such as human resources, marketing, auditing, manufacturing, and many more. Supply Chain Management (SCM) is one of the spheres that can be boosted through optimization by the strategic tool.
The organization receives many benefits from using the Enterprise Resource Planning system. For instance, the workers can always get reliable data in a short time just by accessing the software. Furthermore, ERP ensures a high-quality connection between different company branches (Bahssas et al., 2015). This influences the cooperative collaboration of the staff and the exchange of ideas. Nonetheless, there are some challenges when working through the system. One of the most significant disadvantages is the high cost of technology. The installation of the software is highly expensive, taking more than half of the business’s budget. Additionally, the constant advancement and change in the system require the continuous education of employees (Bahssas et al., 2015). The firms have to conduct training to synchronize the business process with the software abilities.
Supply Chain is the route of the goods from production to sails. It is constructed of the providers, engineers, delivery, exporters, and buyers (Sutduean et al., 2019). Supply Chain Management expects effective planning and careful guidance to facilitate a trustworthy relationship between the company and the customer. Businesses use ERP for better integration of information and processes of the supply chain. According to Sutduean et al. (2019), Enterprise Resource Planning develops a quick reaction to changes in the market. The real-time data’s accessibility promotes rapid decision-making and secures the organization from unwanted financial losses. The system also has a smart operation that suggests the user the alternative suppliers in case of an emergency. Furthermore, it excludes human error since the program is fully automated. ERP assists in precise targeting due to a thorough analysis of customer details (Sutduean et al., 2019). Therefore, the planning system provides control over the Supply Chain and secures from undesirable risks.
Consequently, ERP is suitable for any enterprise that involves any kind of trading. Large wholesale, retail, and manufacturing businesses frequently base the computational processes on this system. Moreover, healthcare organizations also profit from using the automated platform. Enterprise Resource Planning monitors the timely supply of necessary medicaments to patients (Fiaz et al., 2018). The clinics can view the novel data on the providers of equipment and drugs.
To sum up, Enterprise Resource Planning promotes accurate production and dynamic systemization, thereby developing the company’s efficiency. It is especially helpful in the administration of Supply Chain Management. ERP secures the firm from potential risks such as price change and supplier unavailability. It accelerates decision-making procedures and improves the targeting of clientele. As a result, it is convenient to apply the system in the spheres of merchandise and healthcare. Despite the benefits, Enterprise Resource Planning has several drawbacks, such as high cost for installation and demand on workers’ constant training.
References
Bahssas, D. M., Albar, A. M., & Hoque, M. R. (2015). Enterprise Resource Planning (ERP) systems: Design, trends and deployment. The International Technology Management Review, 5(2), 72–81. Web.
Fiaz, M., Ikram, A., & Ilyas, A. (2018). Enterprise resource planning systems: Digitization of healthcare service quality. Administrative Sciences, 8(3), 38.
Sutduean, J., Singsa, A., Sriyakul, T., & Jermsittiparsert, K. (2019). Supply chain integration, enterprise resource planning, and organizational performance: The enterprise resource planning implementation approach. Journal of Computational and Theoretical Nanoscience, 16(7), 2975–2981. Web.