Supply Chain Management’s biggest contribution to the corporaton’s bottom line is to improve the order to cash process. It is so important that order to cash improvement should be the first line in SCM’s mission statement.
The amazing thing many organizations fail to realize is that the tools to improve order to cash are probably in place. No, you don’t even need to build an SCM Control Tower. These tools: ERP and EDI. The catch is that EDI and ERP must be INTEGRATED!
In corporate histories, EDI and ERP were many times implemented separately by separate groups for different motives. Attempts to bring the two together were answered with “customization”.
ERP (Enterprise Resource Planning) software typically consists of multiple enterprise software modules that are individually purchased, based on what best meets the specific needs and technical capabilities of the organization. Let’s assume they are linked together as necessary; and have the ability to create, receive and manage the supply chain business.