| The primary function of an organization is to be | | | | greater productiveness and responsiveness. This will |
| responsive to the demands of the customers and be | | | | lead to lowering of inventory levels in proportion of |
| efficient in production. In order to implement a lean | | | | inventory turns. |
| supply chain program, it is important to understand | | | | Inventory Management System: In any given time |
| the basic operation processes of the organization. | | | | framework, the inventory turns will be higher when |
| While low cost per unit is always a brilliant idea, but it | | | | the speed of the supply chain is high. Moreover, the |
| conflicts the ideas of marketing. | | | | movement of the raw materials should be high in a |
| Efficiency is Important for Marketing: Efficiency is the | | | | supply chain in order to create lesser number of |
| keyword for marketing, while serving customers is | | | | obsolete items. |
| regarded as the holistic duty of the sales department. | | | | Why ERP? |
| The latter in turn leads to a greater revenue | | | | ERP is essential to augment the development of the |
| generation and commissions. For large scale | | | | company in a positive way. The positive aspect |
| production which is not directly linked to the | | | | includes an overall growth of the company as regards |
| customers, there may be some inherent problems. | | | | the position, production, sale, marketing including |
| Requirement of the Customers all Along the Year: | | | | recent technological outburst in the IT Space. It has |
| They mainly arise due to fluctuations in the needs of | | | | been a common observation that companies which |
| the customers along the year, leading to shortage of | | | | are gradually emerging to great heights relied on ERP |
| the item in times of requirement and excess stock | | | | Management system. The system acted as a ladder |
| when there is no demand. Moreover, these products | | | | for their development process. |
| require a large amount of capital which is wasted | | | | The Bottleneck of the Process: |
| once the products do not sell well in the market. | | | | The process, in spite of its extreme high efficiency |
| Production vs. Sale: Therefore need was felt to tie a | | | | has a bottleneck of disconnected internal scheduling |
| bond between production and sales. This means, you | | | | process and external suppliers. This is perhaps the |
| are aware of the customer demand and can produce | | | | greatest blessing of IT that through ERP |
| effectively those items with optimum efficiency. | | | | Management System, one can remove the |
| Customer service is enhanced thereby and leads to | | | | disconnection through technological means. |