Difference between ERP and SCM

Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) are two essential systems for managing business operations, but they serve different purposes and focus on different aspects of a business. ERP (Enterprise Resource Planning) integrates internal business processes like accounting, inventory, and HR to boost efficiency and reduce costs. SCM (Supply Chain Management) optimizes the flow of goods from suppliers to customers, managing external supply chain activities. ERP focuses on internal operations, while SCM manages the entire supply chain. Both aim to improve business performance.

What is Enterprise Resource Planning (ERP)?

ERP stands for Enterprise Resource Planning. Many businesses are opening up day by day and business environment is growing so faster. So in current market strategy it is important to be in business race by providing customer satisfaction and proper functioning of organization to be best in current competitive business environment. So mainly to manage to the business activities like accounting, inventory, human resources, supply chain, Enterprise Resource Planning (ERP) software has been developed. The main purpose of Enterprise Resource Planning is to manage business and to improve efficiency of business process. ERP aims to reduce overhead and cut costs and increasing visibility of the business.

What is Supply Chain Management (SCM)?

SCM stands for Supply Chain Management. Supply Chain refers to a connected network of individuals, organizations, resources, activities, and technologies, all of which are involved in process of manufacturing to supply of product or service. Supply Chain Management refers to management of flow of all processes and goods and services starting from supply of raw materials to delivery of final product. Supply Chain Management is the active management of supply chain activities which includes required integrated planning and execution of processes for optimizing flow of material, information and capital in functions. It is inter organizational system which allows companies to efficiently handle the entire production flow of a good or service.

Difference between ERP and SCM