Enterprise Resource Planning (Erp) and Supply Chain Management (Scm) -Application in Retail Industry Supply Chain (Marks and Spencer)

2353 Words Nov 6th, 2012 10 Pages
ENTERPRISE RESOURCE PLANNING (ERP) AND SUPPLY CHAIN MANAGEMENT (SCM) -APPLICATION IN RETAIL INDUSTRY SUPPLY CHAIN (MARKS AND SPENCER)

ABSTRACT: This report examines Supply Chain Management (SCM) and how it enhances the supply chains in the Retail Industry. Also the report examines how the supply chain is a link of suppliers and buyers and customers in turn becoming supplier. The report examines the problems associated with the supply chain a major one which is bullwhip effect. This study focuses on how ERP and SCM work together to help in solving supply chain problems and making the supply chain management of the retail industry efficient. The aim of this report is to explore various Information technology applications/solutions
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(Donavan, 2002/2003 cited in Turban M.U n.d.) defines bullwhip as the erratic shift in orders up and down the supply chain. Bullwhip effect is prevalent in the manufacturing industry as distributors send distorted information about demand forecast to the manufacturers. A bullwhip problem is a supply chain problem hence the major solution is bridging the information gap between the suppliers and manufacturers in the supply chain. Supply Chain Management and (ERP) Enterprise Resource Enterprise together have provided a number of IT solutions to supply chain problems.

ERP AND CRM INTEGRATION-SOLUTION TO SUPPLY CHAIN PROBLEMS

Kumar et al (2000) cited in Micheal J. Tarn, David C. Yen, & Marcus Beaumount defined ERP systems as “configurable information systems packages that integrate information and information based processes within and across functional areas in an organisation”. He explains that ERP systems are designed to connect the various business functions such that data can be shared across the divisions within the firm. An example He cited is a customer service department who will be able to access the information used by the finance/accounting division of the same firm. This integration increases flexibility and gives room for efficiency in firms more than ever before.

In this global age, most companies are steadily

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