Answer to Question 1
Enterprise resource planning (ERP) systems incorporate internal and external systems into a single unified solution that spans the enterprise. ERP systems includes the software that supports business functions and processes, computing hardware for hosting and executing software applications, and back-end network architecture for data communication across and within information systems.30 A centralized and shared database system links the business processes, allowing information to be entered once and made available to all users.
Though they can be quite expensive and challenging to implement, ERP systems are widely used. A primary appeal lies in the ability of ERP systems to update and share accurate information across business processes. ERP-linked processes typically include accounting and finance, planning, engineering, human resources, purchasing, production, inventory/materials management, order processing, and more. Primary benefits include: process automation, technology cost savings, improved visibility of sales, inventory, and receivables, standardization of processes, and regulatory compliance.31
Over time, the traditional separation of supply chain technologies from ERP systems has faded. First, the boundaries are blurring as supply chain tools need to share the information stored in an ERP system. Second, the major ERP systems vendors offer supply chain software that can be readily linked to the ERP system. Though these ERP vendor versions of WMS, TMS, and other tools may not be quite as robust as best-of-breed supply chain software, they do have the advantage of being a one-stop solution and offer common structure that reduces the installation time and effort.32
Answer to Question 2
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