Defining ERP Role-Play in Supply Chain Management

ERP, Enterprise Resource Planning, turns to be a term used by the Information Technology Industry Association to distinguish products of an ERP system from those of a traditional management software product. ERP software is designed to integrate all aspects of a company’s internal and external information management systems, including finance, human resources, and manufacturing. In essence, ERP does away with the difference between a product’s role in the overall logistics and supply chain management processes. ERP, on the other hand, integrates all the modules of an ERP system. ERP also helps to streamline an organization’s operations, making the decision-making process faster and less cumbersome.

Importance of ERP

Many companies have failed because of not having implemented ERP, especially in the manufacturing sector. ERP software has the potential of transforming companies in the industrial sector to become more cost-competitive, efficient, and productive. The supply chain management module in ERP can help a company in three ways – reducing cycle times, increasing throughput capacity, and lowering costs. ERP plays a key role in improving the company’s overall profit margins, but only if it is implemented in the right manner and according to the company’s requirements.

Implementation of ERP

Many companies have failed to implement ERP, probably because the management was not clear about the direction that the company wanted to take, or perhaps because management did not have the requisite staff in place to oversee the implementation. When implemented correctly, ERP can reduce costs and improve efficiency while enabling a company to gain greater control over its products. Therefore, whether you want to run a company smoothly or want to become more competitive, ERP would be the best route to take. Implementing ERP in your company needs careful planning because you cannot go back later and change your ERP implementation if it doesn’t work out as you planned.

ERP ROLE-PLAY & ITS BENEFITS

In an ERP, a company has one main department, which usually performs all the company’s functions. The role of open source inventory management would be to implement the plans and strategies of inventory management. It becomes easier to understand ERP role-play? As we know, ERP software applications have the idea of modules which contain functions and applications.

• Fulfilling Decision-Making Purposes

These modules would be stored in a central database, making it easier for the managers to access the necessary information for planning purposes. Besides, it can provide users with the necessary reports, which can be used for decision-making purposes. However, when it comes to implementing these modules, many things have to be taken into consideration. The planning of these activities should start from the top-level of the company.

• Better Distribution of Responsibilities

For proper planning, the managers would need to divide the various projects according to their scope of responsibilities. Once the scope has been established, they can start planning for each project to determine its modules. For example, if the project deals with streamlining processes, then a group for implementation will be created. The people involved in this process will include the project manager, the CIO, sales, technical, and support people. They are responsible for mapping out the steps that should be taken to complete the task.

• Elevated Utilization of Modules

One of the most important things that come up during the planning process is the question of ERP role-play. This is mainly because planning is not just about implementing the needed modules but also about using these tools effectively for company development. The ERP inventory system needs to perform at its optimum level to give positive results to the company. And one way of maximizing the functions of the ERP software is through the utilization of modules.

• Better Implementation of Different Processes

Some of the activities that are done during ERP role-play would involve implementing different processes depending on the size of the company. For instance, large companies may need to use project management, while medium-sized enterprises can use the concept of enterprise resource planning. Even small projects require an ERP application with processes like real-time data processing, human resource management, and production planning.

Final Words

ERP role-play is not just limited to implementing the ERP application. The team should also determine that ERP role-play is good for the company. In this case, the company should determine which processes need automation and which ones can be outsourced. It should do away with unnecessary processes that will not serve any purpose in the end. Finally, the team should also define ERP role-play and how it should be integrated into its present working situation.