SCM (Supply Chain Management) and ERP (Enterprise Resource Planning) are two distinct systems that serve to automate and manage business processes within companies.
SCM specializes in managing the entire supply chain and operational processes of production, including material accounting, production operations, logistics, and shipping. It enables precise control at each stage of the production process, optimizing inventory, reducing lead times, and minimizing costs.
On the other hand, ERP covers a broader range of functions, including financial management, accounting, and overall resource management within the company. While ERP provides a comprehensive view of the company, SCM specifically focuses on the operational processes related to the supply chain.
Due to its specialization in supply chain management and operational processes, SCM enables more precise cost control, resource utilization optimization, reduced lead times, and improved overall business efficiency. This makes SCM a more effective tool for cost optimization and increasing company profitability.