HRM 3400 Lecture Notes - Lecture 36: Fortune 1000
23 May 2018
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HRM 3400 Lecture 36 Notes – Supply Chain Management (SCM), ERP for Small and Medium-
Size Enterprises (SMEs]
Introduction
ERP for Small and Medium-Size Enterprises (SMEs]
• It is not only large Fortune 1000 companies that are successful in implementing ERP.
• SMEs (both for-profit and not-for-profit) can achieve real business benefits from their
ERP efforts.
• Many of the SMEs elected to implement open-source ERP systems.
• With open-source software, anyone can see and modify the source code to customize it
to meet their needs.
• Such systems are much less costly to acquire and are relatively easy to modify to meet
business needs.
• A wide range of organizations can perform the system development and maintenance
• Some of the open-source ERP systems geared for SMEs.
• The following sections outline how an ERP system can support supply chain
management and accounting, two major business processes.
Supply Chain Management (SCM)
• Supply chain management (SCM) includes the planning, execution, and control of all
activities involved in raw material sourcing and procurement, conversion of raw
materials to finished products, and the warehousing and delivery of finished product to
customers.
• The goal of SCM is to reduce costs and improve customer service, while at the same
time reducing the overall investment in inventory in the supply chain.
• The ERP system for a manufacturing organization typically encompasses SCM activities
and manages the flow of materials, information and finances.
• Manufacturing ERP systems follow a systematic process for developing a production
plan that draws on the information available in the ERP system database.
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