ERP for Distribution Software Comparisons |
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About Warehouse Management
Today’s warehouses are complex, and businesses have unique requirements. To ensure faster production cycles and to keep the flow of goods steadily streaming through the supply chain, manufacturers must first understand where their problems lie. To do that, they need to review the following internal business processes:
- warehouse practices, such as receiving, put-away, picking, kitting, packing, repack, cross-docking, and shipping
- current systems
- equipment
- inventory
- staff
- information
All these areas can have a significant impact on the performance of your warehouse. Neglect in any of these areas can have serious consequences.
The warehouse distribution solution
One of the biggest problems most businesses have today is an inability to access real-time data. What many manufacturers and distributors lack is a central repository for storing their global supply chain data. Without proper access to real-time inventory updates, it is virtually impossible to accurately determine inventory levels. Total transparency throughout every department is essential; the best way to achieve this is to use the same management system throughout the enterprise. This is where ERP systems designed for warehousing and distribution operations provide real value.
ERP software for distribution is able to track the processes of manufacturing goods and distributing components, even if the manufacturer has facilities in North America and the Far East. With the SCM component in ERP software, manufacturing and tracking goods becomes manageable. Distributors and manufacturers can now work together in order to better meet customer requirements.
ERP distribution processes
ERP - distribution software has integrated SCM functionality into its existing functionality to navigate through the complex global manufacturing environment. SCM software maps five processes into one solution: planning, sourcing (obtaining materials), producing, delivering, and returning final products if defective. These processes help to track and manage the goods throughout their entire life cycles. In addition, ERP solutions are used to manage the entire operations of an organization, not only a product's life cycle. This gives users the broad capability to manage operations and use the SCM functionality to manage the movement of goods, whether components or finished product.
With the ability to gain accurate inventory visibility and SCM production, ERP - distribution software is able to see the whole chain of manufacturing and distribution events, from supplier to manufacturer, all the way to the final consumer. The figure below illustrates this process.
The merging of a distribution and manufacturing business model
Figure 2 depicts three business models. The first is the SCM model,
which includes the manufacturing process. The second is the retail
model, which is the distribution of final products to the consumer,
business, or retailer. The third model is a combination of the first
two business models, joined by the ERP - distribution software
solution into one seamless process.
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