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( votes)Supply chain issues continue to dominate the news. Whether it is the shortage of baby formula or the empty shelves in the pet food aisle, consumers too are worried about supply chain issues.
Manufacturers and distributors who adopted cloud ERP were in a much better position to handle the supply chain snarls during the pandemic. Now, with continuing hiccups in supply chains for many industries, cloud ERP has become a necessity. Here are 4 ways cloud ERP can help manufacturers, distributors, and many other industries build a nimble and responsive supply chain that can adapt quickly to changing circumstances.
- Interconnected Supplier and Buyer Networks
Many years ago, the only thing connecting supplier and buyer networks was the telephone or snail mail. Today, cloud ERP enables all parties throughout the supply chain to access vital information, make updates or changes, and communicate in real time.
Such interconnectedness goes a long way toward building a nimble and responsive supply chain. An offshore supplier can see when stock is low in one of their best customer’s warehouses and immediately contact them to see if they want to reorder. Another company can increase production of key items to meet anticipated demand simply by tapping into the cloud ERP system. When all areas of a business, including accounting, finance, operations, and warehouse and inventory are connected to the supply chain, all parties can respond promptly to demands or proactively manage against anticipated demand.
- Improved Communication
A good supplier understands that communication is the key to customer satisfaction. Poor communication leads to unnecessary stress, lost productivity, and missed opportunities.
With cloud ERP software, all parties in the supply chain can easily communicate around orders. Alerts, updates, and orders can be sent; prices and supplies updated; and shipping times adjusted to provide accurate information. Cloud ERP facilitates communication in ways that enhance every corner of a business but especially customer service, where clear communication is essential.
For example, American Image Awards increased data visibility and customer satisfaction with cloud ERP. “If a customer calls me and wants to know where one specific item is, and there are 600 items in an order, I can find that single item in 30 seconds.” John Paragian, President (American Image Improves Service, Reduces Costs and Strengthens Operations with Mindover Software)
- Adjust Orders Quickly
Another benefit of supply chains connected with cloud ERP software is the ability to adjust and adapt quickly to changing circumstances.
Consider a company whose main supplier is located offshore. A port strike in the country of either the buyer or supplier can immediately snarl the supply chain, creating order delays and unknowns.
Companies connected via cloud ERP can respond to such incidents quickly and decisively. They can tap into their network of suppliers and find a substitute or, if that is not possible, at least post alerts on their website and inform customers of impending delays.
- Quality Control and Traceability
Lastly, one of the ways in which cloud ERP excels at building a nimble supply chain is through its ability to trace shipments back to each individual supplier. For industries such as food manufacturing, pharmaceuticals, and medical devices, for example, this level of traceability and quality control ensures that any product defect can be traced back to the individual supplier and corrected at the supplier level. Batches or lots can be identified and eliminated from the supply chain before the problem multiplies.
Cloud ERP Offers Much Opportunity to Businesses
As the world continues to grapple with supply chain issues, businesses need the clarity, accessibility, and flexibility of cloud ERP software. Without it, we may as well go back to the days of paper-based forms and snail mail or waiting for days for a delayed shipment without any notification. No one wants that. Cloud ERP helps companies build nimble, responsive supply chains.
By Mindover Software – Acumatica Gold Certified Partner
The post Build a Nimble, Responsive Supply Chain with Cloud ERP appeared first on ERP Cloud Blog.
