Page 172 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure

Notes From the view of the management concept and design, we can see that ERP and CRM are not
completely different, but are also very closely related. The important point lies in the fact that
they want to maximize and prolong profit making for the enterprise, and to achieve a maximum
return of investment (ROI) rate.
With time, CRM is becoming a vital part of ERP, which was not true until early years of this
decade.

Did u know? The requirements and possibilities of implementation depend from business
to business. If you (or your IT department) are smart enough, you can tweak the model of
the combination favouring your business.

Task Explain the collaborative relationship of CRM and ERP.

Self Assessment

Fill in the blanks:
4. ........................................ is a software designed to manage all customer interactions in an
organized way.

5. For an ........................................ who is planning to expand his business, it seems to require
a great deal of software which benefits for the organization in terms of profits, expansion
and accuracy.
10.3 ERP and SCM

Supply chain refers to the flow of materials, information, payments, and services from raw
material suppliers, through factories and warehouses, to the end customers. A supply chain also
includes the organizations and processes that create and deliver products, information, and
services to the end customers. The function of supply chain management (SCM) is to plan,
organize, and coordinate all the supply chain’s activities. Today the concept of SCM refers to a
total systems approach to managing the entire supply chain.

Enterprise Resource Planning and Supply Chain Management is a formal method to effectively
plan all the resources in the business enterprise. Through the implementation of Enterprise
Resource Planning and Supply Chain Management manufacturing companies establish operating
systems and operating performance measurements to enable them to manage business operations
and meet business and financial objectives. ERP and Supply Chain Management extends beyond
the four walls of the factory to include a company’s trading partners – suppliers and customers.
It is the company architecture for formal business systems and best in class business processes,
practices and procedures.

Example: Buker client companies implementing Enterprise Resource Planning & Supply
Chain Management business practices are achieving the following results:

250% return on the ERP & Supply Chain Management implementation
Achieve 98% inventory record accuracy and eliminate the physical inventory

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