Business Logistics & SCM

Get to Know about Logistics and the Industry

Enterprise Resource Planning market to exceed $21 billion April 24, 2007

Filed under: Enterprise Resource Planning — SUKUMARAN @ 1:08 am

Article Dated: 5/16/2006

BOSTON—The global market for Enterprise Resource Planning (ERP) solutions continues to grow with numerous acquisitions and is expected to grow at a Compounded Annual Growth Rate (CAGR) of 4.8 percent over the next five years, says Steve Clouther, senior analyst at ARC Advisory Group in a recent report.

The market was $16.67 billion in 2005 and is forecasted to be more than $21 billion in 2010.


China is the emerging market for many ERP solutions, Clouther says. China is starting to dominate global manufacturing—already producing 50 percent of the world’s cameras, 30 percent of air conditioners and televisions, 25 percent of washing machines, and 20 percent of refrigerators.

China is adding state-of-the-art production capacity in cars, specialty steel, petrochemicals, and microchips.These plants are initially aimed at meeting Chinese domestic demand, however when growth stalls, the surplus will turn into an export surge.

Beyond manufacturing

Historically, ERP was exclusive to the manufacturing domain, but for the past decade, major portions of ERP solutions (such as financials and human resources, and, supply chain management applications) found their way into other sectors like government, banking/finance, health, retail, and education. In India, ERP is now being sold into the real estate and construction markets.



What is the relationship between ERP and SCM ? March 23, 2007

Filed under: Enterprise Resource Planning,Supply Chain Management — SUKUMARAN @ 12:29 am

Many SCM applications are reliant upon the kind of information that is stored in the most quantity inside ERP software. Theoretically you could assemble the information you need to feed the SCM applications from legacy systems (for most companies this means Excel spreadsheets spread out all over the place), but it can be nightmarish to try to get that information flowing on a fast, reliable basis from all the areas of the company. ERP is the battering ram that integrates all that information together in a single application, and SCM applications benefit from having a single major source to go to for up-to-date information. Most CIOs who have tried to install SCM applications say they are glad they did ERP first. They call the ERP projects “putting your information house in order.” Of course, ERP is expensive and difficult, so you may want to explore ways to feed your SCM applications the information they need without doing ERP first. These days, most ERP vendors have SCM modules so doing an ERP project may be a way to kill two birds with one stone. Companies will need to decide if these products meet their needs or if they need a more specialized system.

Applications that simply automate the logistics aspects of SCM are less dependent upon gathering information from around the company, so they tend to be independent of the ERP decision. But chances are, you’ll need to have these applications communicate with ERP in some fashion. It’s important to pay attention to the software’s ability to integrate with the Internet and with ERP applications because the Internet will drive demand for integrated information. For example, if you want to build a private website for communicating with your customers and suppliers, you will want to pull information from ERP and supply chain applications together to present updated information about orders, payments, manufacturing status and delivery.