Supply Chain ERP Challenges- Enterprise resource planning (ERP) tools help supply chain professionals overcome numerous obstacles. However, deciding to use an ERP for improvements brings challenges, too.
1. Choosing an ERP to match your order volume
Maybe you’ve noticed an increase in recent orders. Getting more business seems like a good thing, and it’s generally a positive occurrence.
However, it’s important to select an ERP that can keep pace with the orders coming in and allow you to scale up even further if required. Consider how certain ERP supply chain features could streamline the workflow, too.
For example, some products can brand and print shipping labels and packing slips as part of the order-picking process, eliminating the need to switch between tools. Think about any slowdowns currently happening that affect order volume, plus how an ERP could mitigate them.
2. Determining the required features
An ERP tool may have dozens of features relating to several departments within your business. For example, some products have tools for accounting and customer relationship management. There’s also a trend of ERP tools offering artificial intelligence (AI) capabilities.
People already rely on AI in the supply chain, even outside of an ERP. One study confirmed a 25 percent reduction in fulfillment errors when companies used AI.
While evaluating ERP features, you’ll want to consider the most applicable ones for your business and its supply chain. Think about what you need immediately and how your requirements could change in the relatively near future.
3. Giving and getting the necessary data access
Using an ERP can make you aware of what happens within your supply chain. However, if you don’t request data from suppliers and share some with them, opportunities get missed.
One survey found that 53 percent of managers use ERP software. Moreover, 59 percent of people had their data consolidated into a central location. However, only 21 percent share their information with suppliers.
If you don’t currently have data-sharing in place, investigate why not. Information sourced from suppliers can help you spot bottlenecks and proactively engage with suppliers. If you give some data to those parties, confirm they have adequate cybersecurity measures.