Role of ERP system in supply chain

ERP is a category of business-management software where an organization can use applications to collect, store, manage and interpret data from many business activities. Due to ERP system cross functionality is possible. It binds all the departments that are involved in the manufacturing or operations into a single functioning system. This incudes accounting, strategic management, marketing, human resources as well as warehousing, information technology, logistics and production. ERP systems help to define roles and responsibilities of different users and ensure that ownership is assigned at various levels. Web-enabled technology allows to access information, sell products, run business processes and communicate with customers and partners at any time and from anywhere in the world. By using ERP systems, managers can gather correct information and make the right decision.
It helps a company maximize the efficiency of business process across the entire organization. It helps to improve customer service, increase order capacity and increase the ability to forecast demand for supplies.
ERP enables a company to manage the relationship with vendor results in lower cost for purchased items. Better resource management result in more inventory turns and decrease the level of inefficiencies. Enterprise Resource Planning (ERP) can provide a lot of benefits to the organization such as lower cost, increase the level of data consistency, enable different departments such as Marketing, Distribution, and Manufacturing etc. to share information together, increasing ability to do e-business. Earlier inventory count within the company was handled manually which lead to errors but now by introducing ERP systems, we can know the inventory at each station in a manufacturing company. This helps in inventory count with accuracy and the