ERP & E-supply Chain Management – In the first hand you must understand what supply chain management (SCM) is. Traditional SCM used the telephone, fax and regular mail to keep contact between suppliers and customers. It involved lots of time and costs. With the advent of computer technologies support for supply chain relationship became Electronic Data Interchange (EDI) systems. But EDI is an inter-organizational process, so business partnerships have been shown to be very important in the adoption and use of EDI.
Supply Chain Management (SCM) in today’s Internet environment, especially the e-business is important to create significant competition advantages to firms and business partners worldwide. Since the objectives and goals are essential factors in the use of supply chain management in the e-business.
ERP being a business tool that manages day-to-day business process and is usually comprised of several modules such as financial module, distribution module, production module and supply chain management module as well as many other modules. Each of these modules share information that is housed within the database structures on which the ERP system was coded. ERP helps to break down barriers between departments within a company.
At a broader context, you must understand that ERP is an integrated system which holds many modules and SCM could be considered as one of the modules.
