Remain competitive is for firm to have constant improvement

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Reference no: EM132244040

Enterprise Resource Planning

It has been stated that the key to remain competitive is for a firm to have constant improvement. At the same time, many firms are implementing enterprise resource planning (ERP) systems. ERP systems are software programs that gathers various components of the company into one place. Then allows information to be shared throughout the company. Most importantly this information is shared by individuals involved in the supply chain.

ERP systems enables companies to become more cohesive and more efficient. ERP systems, in turn, help enable firms to develop more of an efficient supply chain. At first glance, it may seem that by thereby implementing the use of an ERP system it would hinder a company’s ability to continuously improve. However, ERP systems, if used correctly, can help firms continuously improve. This is due to the available information provided by these systems. This information can be used by management to develop products that are developed as a response to the market. For example, these systems when used by companies in the healthcare industry, can provide, “better visibility into all aspects of the supply chain” (Costello, 2018). Companies in the healthcare industry can use this improved visibility to modify their products or services to better appeal to the market.

As stated above, an ERP system can result in the supply chain in becoming an efficient supply chain. This does have the consequence of limiting innovation. This is due to the nature of an efficient supply chain- continuously improving the current supply chain. However, the proper use in an ERP system can result in the supply chain becoming responsive to the market in the environment. The proper use of the ERP system would be to use the sales information to improve products to appeal to more customers.

If I was an ERP vendor, I would use Fuse Energy Drinks as an example. Fuse Energy Drinks was looking for a way to better manage planning and production of their product to match supply and demand. The company then implemented an ERP system. They were then able to use this system to improve their production reporting. This “resulted in full control on product lines, improving supply and demand status” (Seth, 2018).

Reference no: EM132244040

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