Supply Chain in ERP#
Supply chain modules manage the flow of goods from suppliers through to customers. Effective supply chain management is critical for cost control, customer service, and operational efficiency.
Module Architecture#
Procurement#
Supplier-facing processes.
Components: - Requisitioning - Purchase order management - Supplier management - Contract management
Integration points: - Inventory (requirements) - Accounts payable (invoices) - Receiving (receipts)
Inventory#
Stock management.
Components: - Item management - Inventory tracking - Valuation - Planning
Integration points: - Procurement (receipts) - Sales (issues) - Production (issues/receipts) - Financials (valuation)
Warehouse Management#
Warehouse operations.
Components: - Receiving - Putaway - Picking - Shipping - Inventory location
Integration points: - Inventory (stock updates) - Sales (orders) - Procurement (receipts)
Planning#
Demand-supply balancing.
Components: - Demand planning - Supply planning - Distribution planning - Production planning
Integration points: - Sales (demand) - Inventory (supply) - Procurement (purchase plan) - Production (production plan)
Procurement Design#
Requisition to PO#
Requisition workflow: - Requisition entry - Approval workflow - PO generation - PO approval
Supplier Management#
Supplier master: - Basic data - Contact information - Bank details - Terms and conditions
Supplier qualification: - Onboarding workflow - Due diligence - Category assignment
Contract Management#
Contract types: - Blanket orders - Scheduling agreements - Fixed price contracts
Contract execution: - Release against contract - Compliance tracking
Inventory Design#
Stock Control#
Stock parameters: - Reorder point - Safety stock - Economic order quantity
Stock monitoring: - Stock levels - Slow-moving stock - Stock accuracy
Valuation#
Costing methods: - Standard cost - Moving average - FIFO
Cost management: - Cost updates - Variance analysis
Inventory Analysis#
ABC analysis: Value-based classification.
XYZ analysis: Variability-based classification.
Turnover analysis: Stock turn metrics.
Warehouse Management Design#
Location System#
Location structure: - Warehouse - Zone - Location type - Bin
Location attributes: - Capacity - Product restrictions - Pick sequence
Process Design#
Receiving: - Appointment scheduling - Receipt processing - Quality inspection - Putaway
Picking: - Wave planning - Pick routing - Pick confirmation - Packing
Shipping: - Load planning - Shipping documentation - Carrier integration
Technology Integration#
Data capture: - Barcode scanning - RFID - Voice picking
Automation: - Conveyor systems - AS/RS - Robotics
Planning Design#
Demand Planning#
Demand sources: - Sales orders - Forecasts - Promotions - New products
Forecast management: - Forecast input - Forecast consumption - Forecast accuracy
Supply Planning#
MRP logic: - Net requirements - Lot sizing - Time phasing - Action messages
Advanced planning: - Finite capacity - Optimisation - Scenario analysis
NZ/AU Considerations#
Geography#
Distance: Long supply lines, extended lead times.
Multiple locations: AU/NZ distribution networks.
Import/export: International trade complexity.
Seasonality#
Retail peak: Christmas season.
Agricultural: Harvest cycles.
Tourism: Seasonal demand patterns.
Conclusion: Design for Your Supply Chain#
Supply chain module design must match your supply chain reality. Understand your processes, requirements, and constraints before designing or selecting supply chain modules.