GUest lecture at Faculty of Computer ScienceFaculty of Computer Science Brawijaya University (FILKOM UB) in collaboration with Biji Inovasi, a Software Innovation and Development House organized a guest lecture on Friday (11/May/2018). A speaker who attended on the event was Danu Budi Wisudana Praba, S.Kom as a business consultant at Biji Inovasi. The presentation to be raised on the occasion was Connecting Enterprise Resource Planning (ERP) and Supply Chain Management (SCM).
Presented by Danu that ERP is an integration of various business processes into a single system (Software) which afterwards produces visibility, analytics and efficiency among business aspects. ERP system itself consists of several modules that communicate and sharing data each other. Thus, ERP in its implementation is beneficial to eliminate data differences between departments in a company and provide reliable information source to everyone. Meanwhile SCM is management of goods and services flow which is aimed at minimizing losses and reducing costs, meet the needs of consumers in the most effective ways and improving profits.
In SCM implementation, a company or organization interacts with many business entities including suppliers, partners, stakeholders, goods/services items and customers. More entities then SCM will be more complex, thus feature-rich system in ERP system is necessary to overcome business operational. ERP system operational can increase SCM implementation success. Therefore, ERP implementation is need to be done first prior to SCM. ERP and SCM implementation in each organization or company is different depended on each of the business types, in form of retail business, services or manufacture. With the assistance of ERP system then management boards of the company/organization can be more focused on business strategy.
Explained by Danu that some function of ERP system which is able to increase SCM implementation effectivity are including four kinds. The first is supply chain planning namely selection of marketing channel, promotion, determination of stock and warehouse quantity as well as ensuring stock addition to meet customer demands. The second is functions of purchasing, procurement, execution namely ERP capabilities in providing more effective ways to make purchases, goods and services supply as well as other resources needed to support the success of SCM that is applied. The third is monitoring and maintenance function namely ERP system capabilities in monitoring and reviewing all business process in real time. The last is measurement and assessment function of which ERP system has information which could be presented to measure target and achievement along with all activities within.
Several success factors in ERP and SCM implementation according to Dani consisted of three things. The first is understandings for business owner implementation success could be reached due to partnership of all entities including business owner, managerial, end user and consultant. The second is must be a high awareness of managerial entities about the importance of implementation success. The third is managerial should be able to encourage/forcing the ranks below to be able to adapt with changes made. [*/Humas UB/trans. Denok]