Role of ERP in supply chain management –  Do you know the role of the ERP in supply chain management? Are you done finding of it in the various articles on the internet? If the answer is no, then we have the perfect solution for you. Most of the contents present are not only complicated but confusing as well for the obvious reasons. If you do not know much about the role of ERP in supply chain management then we have done it all for you here in further.

Role of ERP in SCM

ERP has set a trend in every sector, business and service for all the good reasons. It is extremely beneficial and effective when it comes to handling the business, accounts, and departments. Every small and medium-sized business is now using ERP to manage their services and accounts to get better outcomes and profits.

The role of Enterprise Resource Planning in Supply chain management

ERP is basically software that is now being used by multiple businesses to manage their accounts. This is used by several schools, colleges, hospitals, hotels etc, to name a few of them. But now, these things are slowly becoming a thing of the past. Now, people are using it for managing the supply chain. ERP System has various functional modules that help in various business functions. The most important function of ERP is Integration. It integrates data and process from all functions of an organization. Therefore, if you still are not using it then this is the right time to do it.

What is Supply Chain Management?

Supply Chain basically consists of suppliers, manufacturers, distributor, retailer, and customer. It aims to match supply and demand, profitably for different products and services. The supply chain management involves planning, execution, control, and monitoring of supply activities. The purpose of supply chain management is to improve trust and collaboration among supply chain partners and much more. The integrated value creation process can be easily achieved with the help of ERP. Below mentioned are some of the types of flow in the supply chain management.

  • Material flow is the movement of the products from the sellers to the buyers.
  • The information flow is the information about the delivery system.
  • Financial flow as the name indicates is the control over every financial activity of the business.

The list of top benefits of ERP on supply chain management?

Enterprise resource planning is the full form of ERP. This is extremely beneficial for the supply chain management due to a variety of reasons. It has a great role to play in bringing the better results when it comes to supplying chain management. Below mentioned are some of the benefits of ERP for managing the supply chain.

  1. Improved efficiency.
  2. You can track your orders which will further help you a lot in managing the accounts.
  3. It helps in the decision-making process.
  4. This helps in minimizing the delay.
  5. One of the best benefits of using ERP for supply chain management is that it helps in improving the productivity of the whole business.
  6. Also, one of the other advantages is that it helps in reducing the errors and mistakes.
  7. Inventory optimization also helps a lot for the business to grow in the right direction.
  8. This is easy to use and also reduces the cost which further helps your business to get the best results and profits on the efforts made.


ERP has now become an important part of the businesses and almost every sector for all the good reasons. People are insanely using it for the many benefits it has to provide to the people. Aforementioned are the best benefits and role of the ERP in supply chain management. So, go ahead and now use ERP to take your business to the next level.