Operations Management: An Integrated Approach, 5th Edition

THE SUPPLY CHAIN LINK

Enterprise resource planning provides the structure for common databases across the organization, its suppliers, and its customers. Suppliers can access the master production schedule (MPS) to see projected build dates for products that use materials supplied by them. The current trend is to integrate e-commerce and ERP systems. Tangible benefits of an ERP system include reduced inventory levels, reduced staffing, improved order launching, reduced IT and purchasing costs, improved cash flow, and increased profits. Intangible benefits include improved visibility of system demand, improved customer responsiveness, and improved flexibility. Enterprise resource planning systems provide the structure needed for effective supply chain management.