Today’s supply chain looks entirely different than it did even a few years ago. Changing customer expectations, the cloud, social media, mobile technology and the Internet of Things (IoT) have all disrupted the supply chain and forever changed the way vendors, manufacturers, retailers and customers interact with each other.
Fortunately, Enterprise Resource Planning (ERP) software is evolving alongside the supply chain to accommodate for these developments. Below, we highlight some of the advancements in ERP software and how leading businesses are using integrated business management solutions to address changes in the supply chain.
Technology for Optimizing Service Parts Inventory Management is Advancing
Although managing service parts inventory is critical for developing positive customer relationships, many businesses are still failing. For companies that sell complex products (like heavy machinery), this is particularly challenging.
Material Requirements Planning (MRP) is indispensable for companies across a wide range of industries. In the service industry, for example, MRP functionality built into an ERP solution can help businesses better predict both product and service demand, optimize scheduling and create systems to monitor the supply chain and ship products to customers quickly.
Predictive Analytics are Penetrating the Supply Chain
In recent years businesses have collected massive amounts of data on customers and internal operations. The advent of predictive analytics will convert this data into actionable business insights. By 2025, predictive analytics will be worth $21.5 billion globally. Predictive analytics will impact the supply chain by enabling forecasting and trend analyses that can be used in real-time decision-making, not just post-hoc analysis.
Imagine, for example, that a particular product tends to trend during the summer months. In combination with a robust ERP system that supports material requirements planning and supply chain management, predictive analytics can help you prepare for fluctuations in demand with laser-like precision.
The Internet of Things (IoT) is Reshaping the Supply Chain
As IoT technology increases in adoption, there are exciting possibilities for the supply chain. IoT technology will affect fleet management, logistics management, shipment tracking, inventory management and more. As today’s customers expect faster service and have less patience for long ship times, IoT technology will enable organizations to optimize the supply chain with speed and agility to meet these demands.
Automation Will Grow Further
Technology that automates manual, time-consuming tasks lets employees focus on value-added work that makes a difference to your bottom line. Gartner predicts that by 2023, over 30% of operational warehouse workers will be supplemented, not replaced, by robotic technology.
Supply chain automation creates better customer service, protects your supply chain by mitigating risk and helps you keep up with shipping demands.
Businesses are Expanding into New Markets
Economic growth in China and India means that major markets are opening up to new possibilities, but also posing new challenges. Businesses will need to arrange supply chain logistics management, determine how new customers differ from existing customers and develop strategies for competing in increasingly crowded markets.
Modern ERP: The Key to the New Supply Chain
Modern ERP solutions will help businesses optimize the new supply chain now and in the future. These ERP platforms go beyond data storage to provide businesses with data-driven insights. Cloud-based ERP is growing in popularity and functionality, enabling business leaders to access more data in real-time than ever before. Companies that are quick to embrace modern ERP solutions will better serve customers and bring products to market much quicker and more affordably.
Finding the right ERP and supply chain management solution for your business is challenging. NexTec Group has over 26 years’ experience implementing ERP solutions for businesses across dozens of industries. We work with you to make informed buying decisions and stand by you through ERP implementation and beyond. For more information, reach out to us. We’d love to chat.