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Writer's pictureMike Hanna

5 Ways ERP SaaS Has Changed Supply Chains

With 8 billion people on the planet, Santa has a lot of deliveries to make in one day—certainly more than Amazon’s daily 16 million daily deliveries.


If you think about it, Santa is the final link between the consumer and the increasingly complicated supply chains that contributed toward their gifts—unless of course, they’re getting a lump of coal this year. But even that raw material has its own supply chain!


Supply chains have increased in complexity over the last several decades. Software is a vital part of holding these tenuous networks together, while facilitating the delivery of goods in a timely manner. Let’s look like at 5 ways ERP software has changed the supply chain. 


Enhanced Visibility and Collaboration:


Did you know that domestic supply chains are ranked as the most vulnerable to global disruptions, while Chinese and German supply chains are ranked as the most secure?


Thankfully a robust ERP can minimise the impact of disruptions. ERP systems provide a single source of truth across the entire supply chain, from raw material sourcing to final delivery.


This real-time visibility allows for better communication and collaboration between suppliers, manufacturers, distributors, and customers. Issues can be identified and resolved more quickly, leading to improved efficiency and reduced disruptions.


Improved Demand Forecasting and Planning:


Poor inventory management not only impacts cash flow, but damages customer loyalty and decreases retention. ERP can also help manage the natural ebb-and-flow of a given ecosystem.


By analyzing historical data, market trends, and customer demand, ERP systems can help businesses forecast future needs more accurately. This enables better inventory management, reduced stockouts, and minimized excess inventory costs. Optimized production schedules and resource allocation can also be achieved.


Streamlined Procurement Processes:


According to McKinsey, supply chain automation can save businesses up to 30% of their operational costs. ERP systems automate many procurement tasks, such as purchase order generation, vendor management, and invoice processing.


This reduces manual effort, minimizes errors, and speeds up the entire procurement cycle. Businesses can also leverage ERP systems to identify and negotiate better deals with suppliers.


Increased Agility and Resilience:


Did you know that 28% of global retailers underwent shortages and out-of-stocks due to COVID-19? Although the pandemic provides an extreme example, supply chains must be part of disaster recovery plans for business continuity.


In today's dynamic market, supply chains need to be agile and resilient to disruptions. ERP systems can help businesses quickly adapt to changing market conditions, such as unexpected demand surges or supply chain disruptions. They can also facilitate faster recovery from unforeseen events.


Data-Driven Decision Making:


The average business has a myopic overview of their own supply chain, with only 6% reporting full visibility. A good ERP can provide a more panoramic view, which facilitates better decision-making.


ERP systems generate a wealth of data that can be used to make informed decisions about the supply chain. Advanced analytics capabilities within ERP systems can identify areas for improvement, optimize processes, and reduce costs. This data-driven approach helps businesses gain a competitive advantage.


Current Workplace: Naughty or Nice?


How do you feel about your current workplace? Does it make you think of eggnog and gingerbread cookies, or a burning lump of coal?


If you’re a manager, what about your employees? Are they on the nice list or naughty list year? Needing some new and/or fresh talent?


Whether you’re a job seeker or a hiring manager, I’ve got you covered with almost 4 decades of software sales recruiting experience. Leave me a note via mike@michaelblair.com and let’s see what’s coming down the chimney for you in 2025.

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