Benefits Of ERP

Specifically, key business benefits of ERP software are:

  1. Enhanced Business Reporting:
    • Better reporting tools with real-time information
    • A single source of truth – one integrated database for all business processes
  2. Better customer service:
    • Better access to customer information
    • Faster response times
    • Improved on-time delivery
    • Improved order accuracy
  3. Improved Inventory Costs:
    • Only carry as much inventory as needed, avoid these common issues
      • Too much inventory, and higher overhead costs
      • Too little inventory, and longer customer fulfillment times
  4. Boosted Cash Flow:
    • Better invoicing and better collections tools to bring cash in faster
    • Faster cash means more cash on-hand for the business
  5. Cost Savings:
  6. Better Data & Cloud Security:
    • Dedicated security resources
    • Avoid installing malicious software
    • Data distributed across multiple servers
  7. Business Process Improvements:
    • Automate manual or routine tasks
    • Implement smarter workflows
    • Gain efficiency
  8. Supply Chain Management:
    • Effective demand forecasting and lean inventory
    • Reduce production bottlenecks
    • Transparency through the business

SCM 

Supply chain management (SCM) is the optimization of a product's creation and flow from raw material sourcing to production, logistics and delivery to the final customer. 

SCM encompasses the integrated planning and execution of processes required to manage the movement of materials, information and financial capital in activities that broadly include demand planning, sourcing, production, inventory management and storage, transportation -- or logistics -- and returning excess or defective products. Supply chain management relies on both business strategy, specialized software and collaboration to work.

Because it's such an expansive, complex undertaking, each partner -- from suppliers to manufacturers and beyond -- must communicate and work together to create efficiencies, manage risk and adapt quickly to change.

In addition, supply chain sustainability -- which covers environmental, social and legal issues, in addition to sustainable procurement -- and the closely related concept of corporate social responsibility -- which evaluates a company's effect on the environment and social well-being -- are areas of major concern for today's companies.

Five stages of supply chain management

Supply chain management can be broadly categorized into five steps or areas:

Plan. Using supply chain analytics and materials management features in ERP systems, organizations create strategic plans to meet customer demand for product and avoid a bullwhip effect.

Source. Organizations identify and select vendors that can supply materials in a streamlined and efficient way according to agreements. Supply chain collaboration starts at this stage and is important throughout the supply chain management process.

Make. In this stage, products are manufactured. It includes scheduling the production, testing, ensuring compliance requirements are followed, packing, storage and release. Multiple machines are likely to be involved, especially for larger companies, and these increasingly use technologies such as IoT and AI to work more efficiently.

Deliver. The delivery stage pertains to logistics and focuses on getting finished goods to consumers, in whatever manner of transportation is needed. As the Amazon effect has grown, especially as a result COVID-19, more focus is on doorstep delivery. Greater emphasis is now also on supply chain leaders working more closely with customer service. Inventory management and warehouse management systems are especially crucial at this stage.

Return. The return stage includes all product returns, including defective products and products that will no longer be supported. This stage also includes elements from other stages, including inventory and transportation management.


What is Software Quality Management?

Software Quality Management ensures that the required level of quality is achieved by submitting improvements to the product development process. SQA aims to develop a culture within the team and it is seen as everyone's responsibility.

Software Quality management should be independent of project management to ensure independence of cost and schedule adherences. It directly affects the process quality and indirectly affects the product quality.

Activities of Software Quality Management:

  • Quality Assurance - QA aims at developing Organizational procedures and standards for quality at Organizational level.

  • Quality Planning - Select applicable procedures and standards for a particular project and modify as required to develop a quality plan.

  • Quality Control - Ensure that best practices and standards are followed by the software development team to produce quality products.