Free Which Enterprise Application Should A Business Install First: ERP, ScM, Or CRM? Essay Sample
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In order to better see which of the three enterprise applications a business should install first, we must primary define each of them. Starting with the ERP enterprise application, which is the acronym for Enterprise Resource Planning. It is an industry term for a broad set of activities helping a business by managing its most important parts. Also, the information made available through an ERP system ensures maximum visibility of the key performance indicators (KPI), which are necessary to meet the company’s objectives.
SCM, standing for Supply Chain Management is the planning and management of all the activities involved in determining the sources and the purchase of the products, their conversion and the management of the logistics activities. SCM includes the coordination and the collaboration between the business partners, such as the product suppliers, the intermediate channels, the service providers and the clients, to integrate and achieve effective management of the supply and demand.
CRM or the Customer Relationship Management is a set of tools, procedures and strategies that are considering improving the relationship with the customers. The CRM system is designed to manage both external activities of a company, as well as the internal ones, contributing in this way to implement an integrated CRM strategy. Moreover, CRM unifies the interactions with the clients, maximizing the value of information held about them, helping to attract new customers and generating new opportunities for the existing ones.
After defining each enterprise application listed above, now we can have a clear picture and see that the ERP system should be installed before the other 2, as it integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprise wide information on all business operations.
Many ERP vendors offer modules for distributors. There are many software companies marketing warehouse management systems. They represent a key part of the supply chain and control of the movement and storage of materials within a warehouse. They process the logistics transactions, such as shippment, receival and picking. Lastly a lot of companies use their ERP to power their other applications like SCM and CRM systems which can be installed afterwards.
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