Enterprise Resource Planning (Erp) and Supply Chain Management (Scm) -Application in Retail Industry Supply Chain (Marks and Spencer)

2349 Words Nov 2nd, 2012 10 Pages

ABSTRACT: This report examines Supply Chain Management (SCM) and how it enhances the supply chains in the Retail Industry. Also the report examines how the supply chain is a link of suppliers and buyers and customers in turn becoming supplier. The report examines the problems associated with the supply chain a major one which is bullwhip effect. This study focuses on how ERP and SCM work together to help in solving supply chain problems and making the supply chain management of the retail industry efficient. The aim of this report is to explore various Information technology applications/solutions
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Viswanddham et al. He also emphasises how the growth of internet has changed the nature of business operations especially the way they compete. For instance is of a manufacturer who is aware of the inventory level of the retailer via e-supply chain platform. When inventory falls to a certain criteria level the manufacturer can immediately know and automate the replenishment



This rapid growth in the market and supply chain has necessitated e-supply chains which enables visibility of all supply chain participants. Information pertaining to supply chain is easily seen by all the supply chain partners and they can share the information in real-time through direct integration.

PROBLEMS OF SUPPLY CHAIN: Uncertainty in demand forecast is a major concern in the supply chain and this is because a lot of unpredictable factors influence demand of supply chain. Some of these factors include competition, prices, weather conditions technology development and customer’s general confidence. Poor customer service is a problem faced by the supply chain and this hinders business and people from getting products or services when needed. (Turban M.U, n.d.) The supply chain also faces problems of high inventory cost, loss of revenue and more. One nagging problem of the supply chain related to uncertainly is bullwhip effect.


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