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What is the Role of ERP in Solving Supply Chain Challenges?

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Enterprise Resource Planning (ERP) software has many benefits for supply chain management. An ERP system eliminates the need for error-prone manual spreadsheets and islands of automation by streamlining accounting, sales, HR, inventory, supply chain, and customer management processes, among others. Distributors and manufacturers who use ERP solutions, like Attivo All-in-One, benefit from having all their data in a single, comprehensive integrated business management solution.  

However, efficiency is just one benefit of utilizing a comprehensive ERP solution. For distributors, the challenges are many and varied. Here are 3 major challenges faced by manufacturers and distributors in the supply chain and the role of ERP in overcoming them.   

Challenge 1: Inventory Management 

Inventory management is a challenge for any distribution or manufacturing business; having excess inventory or inventory shortages can be disruptive and challenging in their own ways. While it is common for distributors to use consumer purchasing data to help forecast inventory levels, there are several variables that can affect this, particularly the economy; as we all know, 2020 was a particularly volatile year for supply chains. In turn, supply chain management interruptions and issues affect a company’s bottom line.  

If you have a proper ERP solution in place, you can mitigate supply chain issues related to inventory with the help of an integrated WMS, or integrated warehouse management system, that automates many of your operations (ie order fulfillment, receiving, etc). A comprehensive ERP system that includes WMS provides a high level of visibility and real-time traceability which helps mitigate and manage inventory challenges. 

Challenge 2: Compliance 

Maintaining compliance is a growing concern for manufacturers and distributors attempting to meet the need for high-speed fulfillment in 2021. Whether purposeful or not, businesses that violate industry rules face debilitating financial penalties and expose themselves to a great deal of business risk. However, adhering to the vast number of compliance regulations that exist is a daunting task for any organization, particularly small to mid-size businesses with fewer resources.  

Maintaining visibility, traceability, and reporting functions is foundational in comprehensive ERP software solutions. Businesses that invest in ERP software increase the visibility, security, and traceability of their data, which is the key to maintaining compliance. 

Challenge 3: Data Errors/Reporting 

Does your business rely on many independent software systems and manual spreadsheets? 

If so, there is a high probability of human error and data repetition, which causes an unbelievable amount of inefficiency in any business. Not only does re-entering data (and completing extra rounds of quality assurance) take up valuable time that ought to be spent focused on revenue-generating activities, but repetitive information can cause confusion, increase order times, and cause compliance issues and customer service and chargeback situations. 

An ERP system eliminates error-prone, inefficient islands of automation and puts all your data in one place where it can be accessed quickly and accurately for reporting and traceability. 

Stop Settling for Inefficient Islands of Automation 

In today’s unpredictable economy, having an ERP system to support your business amid the disruption in supply chains around the world is essential. In 2021, companies in manufacturing and distribution have no choice but to adapt to the continued challenges brought on by the coronavirus pandemic.   

Attivo All-in-One is a powerful, comprehensive software solution that can contribute to the resilience of your company in 2021 and beyond. With unlimited ongoing support, leading-edge security, and personalized online learning systems at no additional cost, Attivo All-in-One can be fully functional in a matter of weeks with a specially designed, automated implementation process.  

Click here to learn more about how Attivo All-in-One can help your company harness technology for effective supply chain management. 

Interested in learning more?

Our consultants are ready to answer any of your questions.

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