Effectiveness of Enterprise Resource Planning in Supply Chain Management

ERP and SCM are two important systems for any organization. ERP is concerned with the internal data generated by various departments of an organization, whereas the scope of SCM is extended beyond the boundary of the organization. SCM deals with both internal as well as external stakeholders of the organization. ERP is more of task based whereas SCM consists of many processes that are relationship based. Both the systems deliver immense values to the organizations individually. But if the organizations want to derive the maximum benefit from these two valuable business models, then a common understanding should be in place. A fully integrated model, though is very much desirable, has not been successful till date. Organizations have to deal with multiple challenges in order to have a fully integrated SCM and ERP system.