Supply Chain Management (SCM) and Enterprise Resource Planning (ERP) systems work hand in hand to enhance the efficiency and optimisation of businesses, especially in relation to transport and distribution processes in the oil and gas industry. Both systems aim to improve productivity through the digitisation and automation of different business processes. By integrating Supply Chain Management in ERP you can enhance business and operational efficiency, create better visibility, ensure customer satisfaction, improve productivity and ultimately increase profitability.
In order to understand how supply chain management in ERP systems work together to enhance business operations, it is important to first look at the individual software functions and benefits.
This is a software solution that has been designed to manage and optimise all the key processes within a business, including finance, HR, supply chain, services, procurement, purchase orders, customer orders and more. ERP software can integrate all processes into one centralised system while making use of machine learning and artificial intelligence to enhance visibility and efficiency across every part of the business. The benefits of this type of software include:
Supply Chain Management (SCM) is the management of the flow of goods, data and finances related to a product or service, from the procurement of raw materials to the delivery of the product at its final destination. In terms of the oil and gas industry, this includes processes relating to order fulfilment, inventory management, routing, scheduling, transport, logistics and distribution processes. The benefits of this software solution include:
From the above, it is clear that both ERP solutions and SCM software have many similar benefits, but there is one primary difference between the systems. ERP software focuses on a business’s internal administrative process while SCM software manages the processes related to the planning, sourcing and delivery of the product to customers. Both impact the efficiency and operations within the downstream supply chain, which is why many businesses choose a solution that combines Supply Chain integration in ERP software. This integrates business and operational processes and gives you an overview of the entire business system rather than its separate parts.
A business has many different moving parts and operations, and keeping control of each is often a challenge. The implementation of an integrated supply chain management in ERP solution enables you to manage these different operations with enhanced real-time visibility as it integrates data and processes from all functions of the organisation to give you a holistic view. This improved visibility allows you to identify problems or issues that may be affecting performance, productivity and profitability. By using this insight, you are then able to implement processes and adjust operations to reduce operational costs and increase performance. Another benefit of this integrated solution is that it is scalable which means that it can grow with your business and adapt to what your needs and requirements are at different stages.
An integrated software solution that combines Supply Chain Management in ERP also can transform the effectiveness of several supply chain strategies and operations. These include the following.
An ERP system that is integrated with an SCM solution provides businesses with automated purchasing tools that have been designed to improve collaboration, order accuracy, streamlining order fulfilment processes, and performance. The result of this is improved on-time delivery, a reduction in inventory levels and costs, and enhanced profitability.
This type of SCM software assists in optimising inventory management by using statistical forecasting and planning tools that allow for collaboration, consolidation and adaptation. This software provides critical analytics and insights into inventory and stock management, which enhances flexibility, improves fill rates and ensures customer satisfaction and on-time order delivery.
These management solutions allow you to digitise, automate and simplify inventory management processes. This software provides you with increased visibility to save on operational costs by enhancing inventory control processes and optimises the use of resources which includes equipment, space, time and people.
These systems link warehouses with order processing and manufacturing operations to optimise the picking, distribution and transport processes. This assists in reducing errors and wasted resources while also providing greater visibility and better utilisation of resources, thereby enhancing profitability and reducing operational costs.
From the above it is clear that an integrated supply chain management in ERP software solution has the ability to enhance productivity and help optimise the downstream supply chain, but what are some of the other benefits to an oil and gas company?
Software solutions that integrate Supply Chain Management in ERP continue to provide businesses with enhanced visibility throughout the whole organisation. This integrated solution contributes to organisational growth by enhancing performance, data management and operations across the downstream supply chain. Adapt IT Energy is a trusted SCM and ERP software solutions provider. With extensive experience in the oil and gas industry Adapt IT Energy will help you find an integrated software solution that will drive growth and performance.