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ERP systems are multimodal application software platforms that help organizations manage the important parts of their businesses. Initially concentrated on manufacturing issues, ERP systems now focus on integrating information and activities across the organization (i.e., the enterprise) via a common software platform and centralized database system. Key business processes linked via ERP include accounting and finance, planning, engineering, human resources, purchasing, production, inventory/ materials management, order processing, and more. The centralized and shared database system ties the entire organization together, allowing information to be entered once and made available to all users. Business processes can also be automated for rapid, accurate execution.
As the ERP systems branch out to include supplier relationship management, customer relationship management, and other supply chain components, the connections between SCIS and ERP grow stronger. Supply chain members can access the organization through the ERP system to assess inventory availability, production schedules, and delivery information. In short, the ERP system provides a mechanism for supply chain members to efficiently share information so that visibility is improved, transactions are completed with more speed and accuracy, and decision making is enhanced.
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