ERP systems such as Sage ERP X3 have long played an important role in manufacturing operations. The capabilities of this software have helped manufacturers monitor costs, improve communications and teamwork, and enhance customer service. Now, a new study points to the many ways in which ERP systems are making an impact on supply chain management.
The Study: Three Surprising Results
The Delphi Group asked 23 global manufacturers about the impact of enterprise resource planning (ERP) systems on their supply chain and supply chain management. The answers can be grouped into three main findings that include the following impacts on supply chain management:
- Integration of information across the entire supply chain between customers and suppliers
- Increasing “mass customization” of products
- Supply chains consisting of several independent entities, making the entire supply chain more complex to manage
The supply chain has been shifting over the past few years from a few large suppliers to a network of smaller, independent suppliers. This flexible approach has made it easier for small to mid-sized companies to offer lower prices, faster turnaround time, and newer services such as mass customization to their clients so that they can remain competitive in the global marketplace.
New Concepts in Supply Chain Management
Manufacturers have always worked hard to improve their operations. All improvements can lead to more sales, lower costs and happier customers. The last challenges that manufacturers are addressing are the challenges of improving supply chain management.
Improving supply chain management is one of the last frontiers for improving manufacturing processes. The supply chain is integral to all aspects of quality control, from the quality of raw materials to the timeliness of delivery. It’s also important for cost control. The better the suppliers, the lower the cost of raw goods. The cost differential can be used as part of a sales strategy of lower prices or to shore up profits.
Relying upon a broad, vast network of suppliers is becoming the norm instead of relying on a few chosen suppliers. Changing marketplace conditions, lower costs, and faster shipping have put specific suppliers at the head of the list for future orders. This is creating a new dynamic among suppliers who recognize they need a flexible approach to ensure customer satisfaction. You can no longer rely on one or two companies for your main business: it’s beyond putting all your eggs in one, two, or even three baskets. Now, you need to be able to access every basket in the farmyard!
Information Integration in Sage X3
ERP is a natural extension of materials requirement planning (MRP) systems from past decades. An ERP system provides a comprehensive management system that integrates transactions, materials planning, and many other functions into one complete system.
Research has shown that fragmented information is the source of many delays across the supply chain, according to the Delphi report. With one seamlessly integrated ERP system, much of the fragmentation is removed and information becomes cohesive and shareable.
Sage ERP X3 fits the bill perfectly. It brings together many aspects of your business, including supply chain management and communications, for one powerful, seamless base of operations.
Demand for Mass Customization Increases
It’s no longer enough to keep plenty of basic items on hand and customize them as the need arises. The sunk cost of producing such excess inventory “just in case” as well as the cost of warehousing the items just doesn’t add up. Now, mass customization is the name of the game. Being able to respond to customer requests for customization on a large scale is a requirement for all size manufacturers.
Sage X3 can help you meet the demands for mass customization. Its ability to manage multiple vendors, keep track of inventory, and track orders from start to finish make it easier to offer customization. It also offers great control of your costs and real-time views of orders, invoices, purchases and more, so you can keep tighter control over your costs.
Manage and Deploy Resources Efficiently
Sage X3 also offers you the ability to manage and deploy resources from multiple vendors. Parts from a supplier in Toronto, raw goods from a Manitoba warehouse, it doesn’t matter where the resources are being deployed from; they can be deployed effectively. You can also manage the flow of goods from one central dashboard as well as manage prices, costs, and more.
Enhancing Your Supply Chain through ERP Systems
It’s time to enhance your supply chain management through a great ERP system. Sage X3 offers a multi-faceted ERP system that’s flexible to meet the needs of many industries. Food manufacturing, pharmaceutical manufacturing, and many other manufacturers can all benefit from Sage X3’s integrated data. It’s the right way to manage your supply chain and improve operations.
IWI Consulting Group
IWI Consulting Group helps businesses gain insights into their operations, inventory, and profitability. We provide software and support for a wide range of industries throughout Canada. For more information, please visit IWI Consulting Group or contact us today.