ERP suites offer many benefits, but they can’t easily collect, aggregate, and analyze supply chain and material requirements data. The answer lies in a cloud-based supply chain solution that enables collaboration, visibility, planning, and execution between supply chain business partners by having a digital twin for the physical supply chain and intelligent applications for decision-making.
Cloud based SCM-During the past two decades, enterprise resource planning (ERP) systems became the big dog in many corporate data centers. By providing integrated suites encompassing everything from financial operations to sales and marketing to manufacturing—with all the elements sharing a common database and a consistent user interface—ERP suites managed to displace many best-of-breed point solutions.
Despite the ERP suites’ many benefits, however, not every component provides the top-level visibility and control required in today’s fragmented supply chain, where brand owners are working with multiple trading partners. Many business operations now involve multiple collaborating players spread across different geographies and time zones. ERP’s limitations are especially evident in the complex, diverse, and interdependent realms of supply chain management (SCM) and material requirements planning (MRP).
Many organizations have established global outsourcing operations and have critical components and products being manufactured by different companies at different stages throughout the supply chain. The supply chain itself encompasses not just primary manufacturers but also contract manufacturers, distributors, retailers, and other channel partners.
Each one of these independent cogs powering the supply chain may well have its own ERP system, of course. And the central company’s ERP system often doesn’t have the ability to collect data from the systems of all of its supply chain partners in real time and to aggregate that data to produce a common, end-to-end view and make intelligent decisions by using this information.