Use of ERP in Supply Chains

Speed and collaboration are the basics for a smooth supply chain process. As the network expands, track and control become hard-to-reach tasks. It is here the Enterprise Resource Planning (ERP) software becomes the game changer. Simply put, ERP simplifies and optimizes the supply chain management using smart technology. The gap between the desired and actual in targets thus gets filled. By using a cloud-hosted ERP solution, the system can be accessed anywhere, anytime and the decisions are taken on the spot without the need for team members to be together. This ensures speed and collaboration beyond one’s guess.

Role of ERP in SCM

Supply chain management helps organizations to plan supply of vivid components and finished goods and raw materials, across the entire supply chain for fulfillment of demand commitments. ERP contributes to managing the sources of supply and demand with an integrated look across the organizational needs and movement of goods ERP integrated with SCM functionalities can estimate automatic supply and demand forecasts using big data analytics and allied predictive analytical statistical approaches on real-time and historical data.

ERP to Intelligent ERP

Intelligent ERP can be defined as the set of ERP applications or suites that use machine learning and advanced analytics built on a large, curated data set to forecast, track, learn, route, analyze, predict, report, and manage resources and business processes.  Intelligent ERP is the new backbone of digital transformation. Intelligent ERP has the characteristics like:  Capability to connect to devices with data information appearing in the ERP interface, Using built in algorithms to handle analytics of big data, leveraging machine learning collected massive datasets, working with cloud deployment to manage continuously increasing amount of data, and capability to deliver more intuitive user experience.

Intelligent ERP and SCM application areas

Intelligent ERP on cloud can meet multiple demands of various enterprises like Manufacturing, FMCG, Retail, Healthcare, Printing and Packaging, and many more seamlessly in their SCM operations. Intelligent ERP will comprise of different technologies like Cloud, Autonomous Systems, and Enterprise Automation and by leveraging these technologies, business intelligence can be built into SCM business processes.

Machine Learning and advanced analytics being the backbone of Intelligent ERP, applications can effectively predict, track, study, analyze, report, and manage, supply chain business operations and company resources.  Predictive analytics optimizes scheduling/ planning and increases   the fulfillment, material sourcing, and logistics of supply chain, enhancing delivery of products and services.   At production as part of SCM, iERP can proactively identify potential machine issues helping address prevention of downtime, increase product quality, and increase yield using IoT. The iERP systems are adaptive, assisted, conversational user experience and in-memory computing technology, benefitting streamlining of organization’s SCM business processes. IERP creates a leaner oriented accurate operations and provides a complete, 360 view into the ins and outs of SCM business.   

Intelligent ERP for SCM agility: Automotive industry in India

IERP solutions can automate business processes, help to eliminate human-induced errors, and make automobile companies competitive in the market.   The intelligent ERP allows companies to adapt and scale with the agility needed to stay at the forefront of ever-shifting automotive markets.   IERP software has built in capability to integrate multiple business management activities in automotive like, product development, manufacturing, warehouse and inventory, marketing and sales, finance and accounting, vendor/supplier/distributor relations, human resource management, customer relationship management, and supply chain management into a single system and thus reduces cost of multiple software and allied training. IERP systems break information silos as together with Automotive CR software, can significantly enhance the communication and information-sharing capabilities of all business departments to work as a cohesive force. 

 iERP software help do high-quality analytics in Automotive sector, by understanding Changing customer behavior,  Transforming market trends, Inventory update status etc. iERP reports help automobile company’s business processes, by removing redundancies eating up a lot of time, money, and resources.  IERP software improves the manufacturing production line by automating each process and making them fast, efficient, and less prone to human errors, and at Supply Chain they help maintain excellent relations with vendors, suppliers, and distributors.  

IERP, also referred as software-as-a-service (SaaS) ERP, provides needed agility in automotive area, to sustain and embrace ‘next-gen technologies’ leading to innovation and smooth digital transformation in SCM applications.  By integrating an iERP solution into their business system, automotive manufacturers can anticipate the demand for products and materials well in advance enabling optimized stock operations and the right products delivered at the right time to the right person.   IERP solutions have advanced quality control features, which assist automotive industry in the quality aspect from the planning stage to the delivery of products.


An Intelligent ERP system empowers automotive companies with advanced insights, aids in digital transformation exercises, lends a competitive edge over others, and provides critical cloud and mobile computing capabilities.

Learners’ Opportunity     

Identifying customer requirements and addressing them with right solutions is a challenging management task. ICFAI Online MBA can guide you in this journey.  For more details check our program @

Discussion Question    

Do you agree cost factor could be preventing small and medium size firms from adopting ERP solutions? Why?  

Key Words

#onlinembainindia #onlinembaprogram #icfaimba #icfaionlinemba #onlinemba #onlinembadegree #mbadegreeonline #onlinembacourse

 Source Articles
1. Stu Johnson, (May, 2022), the Importance of ERP in Supply Chain Management,
2. What is Intelligent ERP, (2022)                                                                                         
3. Admin, (April 4, 2018), Intelligent ERP: The Rise of New Opportunities for Businesses, retrieved from
4. Improved value creation thanks to intelligent ERP systems
5. Revolutionise Your ERP System with intelligent applications to all your data (2021)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Post

%d bloggers like this: