Difference between ERP and SCM?

One of twoWhat does ERP mean? ERP stands for Enterprise Resource Planning. ERP is an enterprise information management system mainly focused on integrated management of material resources, capital resources and information resources in manufacturing industry. ERP is an enterprise management software that can integrate real-time information across regions, departments, and even companies whose core is management accounting. Enterprise management software for integrating material resource management (logistics), human resource management (human flow), financial resource management (financial flow) and information resource management (information flow). What does SCM mean? SCM is supply chain management. It is an integrated management idea and method that performs functions such as planning and controlling logistics from suppliers to end users in supply chain.

2.Difference between ERP and SCMA simple analysis mainly includes following three points:1.Miscellaneous content: ERP aims at systematic management of an enterprise's internal business process, while SCM covers all parts of supply chain, including integration of external logistics, movement of capital and information flow of enterprise. 2. The direct goal is different: ERP focuses on optimal allocation of enterprise resources, and SCM focuses on optimal links in supply chain. 3. The entities involved are different: ERP is targeted within enterprise and its main optimization behavior is self-interest, while SCM is targeted at entire supply chain, which is altruistic. 3. Specific differences between SCM and ERPThe main differences are as follows:1. In terms of theoretical models and methods, SCM uses more algorithm models and optimization rules, and plans are based on theory of constraints. Yes, this means that it has considered more variable constraints, including people, property, venue, and even time technologies and so on. Therefore, an SCM-based plan will be more accurate. However, theoretical ERP model is somewhat outdated. ERP usually uses a linear model. The biggest disadvantage of this model is that it cannot integrate multiple variables and algorithm tends to be simple. A simple linear model cannot reveal deeper economic facts. 2. The goals are different, mainly because SCM is aimed at supply chain, while ERP is aimed at internal part of enterprise. Another benefit of SCM over ERP is its ability to model and improve financial performance, especially revenue, cost, and asset utilization. This is not just cost reduction, but use of various methods to meet needs of market and customers, maximizing profitability of company and entire supply chain, as well as realization of equity capital by improving key factors in income statement and maximizing balance sheet. Hence, ERP maximizes value of just one enterprise, while SCM maximizes value of entire supply chain and even society. 3. In terms of scope and planning time, SCM includes an entire supply chain that can plan one or more goals, while SCM plan also covers almost all businesses, and ERP is a single plan, business covered is not comprehensive; in terms of time, SCM plan is simultaneous and continuous, and most importantly, its accuracy can reach year, month, week, day, hour, or even minute; while ERP plan is intermittent Yes, and level of accuracy is not high, and even planning a day is difficult. 4. SCM is faster in terms of running speed SCM adopts 4th generation memory resident technology, which reads all necessary data from main server into memory, avoids frequentth access to hard disk and significantly improves server performance. and service efficiency response speed. 5. Internal Processing: The benefits of SCM have been mentioned above. The last point may be a disadvantage of SCM. SCM is more decision-supporting, so it has functions to process specific internal transactions and maintain data. Performance is not as good as ERP, such as receiving, inventorying, and delivering goods, and there are still shortcomings in features and data, such as BOM trees. 4. What are links between SCM and ERPIn fact, these two relationships are complementary. ERP does not pay enough attention to supplier management, and SCM effectively complements this aspect of ERP. flaw. ERP, SCM and other customer relationship management (CRM) systems can only form a perfect closed loop if they are used together and integrated together and truly bring best value to enterprise and supply chain.

The ultimate goal is to reduce costs, increase efficiency, reduce inventories, accelerate capital turnover, improve enterprise management and increase company's responsiveness to market.