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SCM needs ERP

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 20 May 2008

Effective supply chain management (SCM) needs a solid enterprise resource planning (ERP) system, says Ashley Ellington, MD, Softline Enterprise.

Manufacturers must optimise their supply chains because expectations are increasing, and companies need to be responsive to change, he notes.

"A thriving ERP implementation can launch real collaboration between partners by enhancing services, flow of goods and information among internal and external business partners.

"ERP solutions reduce inventory levels by optimising every node in the multiple flows of goods and information across the complex of players in a supply chain and, ultimately, improve top line growth and profitability."

Ellington believes that much valuable information occurs at "the edge" of the corporation, at the boundaries between manufacturer, customer and supplier, and much gets lost due to poor ERP.

He also suggests introducing key performance indicators, to allow quick response to problems.

"The bottom line is that today's ERP systems have become an operating platform that can scale and deal with the global competition that is knocking at every manufacturer's door," says Ellington.

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