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Lower cost
- Supply chain management cut cost by managing inventory, speeding up production, and making process efficient, saving money for both makers and buyers.
Reduce bullwhip effect
- Supply chain management reduces stocks and costs due to coordinated planning and better sharing of information.
Higher customer services levels
- Supply chain management saves money by getting the right stuff at the same time, making things quicker and cheaper for everyone to improve satisfaction.
Higher profits
- Optimized supply chains minimize costs, boots efficiency, and enhance profitability through improved resource allocation and reduced wastage.
Better product quality
- Effective supply chain management ensures continued access to high-quality materials, helping to improve product quality and customer satisfaction.
Advantages of ERP system
- Optimization of business processes
- To improve performance and save time
- More competitive in the environment
- No duplicate records or playback operations
- Ability to share information between all components of the organization
Disadvantages of ERP system
- ERP consultants are very expensive
- Does not guarantee the total success of the company
- The effectiveness of the ERP system may decrease
- The systems can be difficult to use
- Resistance in sharing internal information between departments can reduce the efficiency of the software
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