Question

what is the utility/role of SCM software, and how does SCM differ from first generation ERP?

Answer 1

Supply chain management is a cross-functional enterprise system that uses information technology to help support and manage the links between some of a company’s key business processes and those of its suppliers, customers, and business partners. The goal of SCM is to create a fast, efficient, and low-cost network of business relationships, or supply chain, to get company products from concept to market

Role: Usually an accessible, web-based software solution that can provide up to date, real-time data to link suppliers and distributors to the home base business process that is hosting the SCM database

Usually, for service and manufacturing organizations (although varies from firm to firm), the SCMPC is a network carrying different flows to satisfy the customer demand. The flow is owned by the single firm yet coordinated with others needing data, such as customers, suppliers, and manufacturing personnel

The first generation of ERP systems focused on improving the manufacturing process through automation, primarily addressing back-office business processes such as inventory ordering and product distribution. One of the biggest challenges of an ERP system is cost. ERP systems contain multiple complex components that are not only expensive to purchase, but also expensive to implement. Costs can include the software itself, plus consulting charges, hardware expenses, and training fees

SCM systems are newer generations of ERP systems, with higher functional capabilities to process ERP processes and integrate a firm’s value chain with those of its stakeholders (eg suppliers and (org) customers)