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Last Updated: Sunday, August 14, 2005
Copyright © 2003 by PC Nolan, Inc. All rights reserved.

Logistics, Supply Chain and ERP Systems

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ERP ( enterprise resource planning) -- Software is so named because it controls functions across the entire enterprise -- financials, marketing, logistics, manufacturing, and human resources.   SAP with 33% of the ERP market, is the world's leader.

• Supply Chain Process Integration Facilitators and Business Consultants - Supply Chain Management (SCM), Logistics and Transportation Consulting.

• Mangers involved in SCM should consider five fundamental SCM processes (Lambert):
  1.  Selling.
  2.  Customer order fulfillment.
  3.  Manufacturing flow.
  4.  Procurement.
  5.  Product development.

• SAP R/3 -- "An integrated business system, encompassing a single process flow throughout the supply chain is one way to make sure that all functional areas have access to the same view of data, and through this may get a solution to a problem that is of benefit to the entire organization."

• The applications of the SAP R/3 System have been designed to include the following principle:  Complete business processes with consistent quantity and value flows:  R/3 applications allow  complete processing of business events.  The quantities and values of a process are represented consistently and up to date in all business components at all times.   They are available with up-to-the-second accuracy for control of business processes and for corporate planning.  This complete approach is also known as "Enterprise Resource Planning " (ERP), which has evolved from the "MRP II Philosophy" (Manufacturing Resource Planning), with its expansive planning and control methods for logistics. (Buck-Emden and Galimow)