Introduction
The process of final product getting delivered to the customers has various stages into it. Based on the demand the manufactures makes the goods and this is distributed by dealer distribution management and this reaches to the final customer. With the increasing role of the enterprise resource planning software there is enhancement of operation in every space. The Vendor management ERP provides a very effective solution to this.
Traditionally first based on the demand the raw material were used and the supplier use to supply the raw material to the company. Then after it goes to the company for manufacturing process. After the manufacturing process is done then it gets distributed at various regions by the distributer and finally the customers get the product.
The role of Vendor and the distributer is important to bridge the gap of supply and demand. On one hand company will decide the amount to produce is based the number of order the distributer place it to them. Critical decision of manufacturing the amount of goods is done by the figures vendors give to the company. Below is the process of supply chain.
In the whole process of supply chain first the raw material gets supplied to the company. This is the amount told by the company to the raw material supplier. Then after the manufacturing process occurs and then final material gets distributed to the distribution channel. After which it gets distributed to the customers.
This whole process is based on demand and supply. Along with that there is no fix figure of what would be the number of packets needed on daily or monthly basis. There are chances that the amount of supply is not equal to the supply. Along with that the company may not have clear figures as how much to produce.
The Vendor management ERP has a solution to this. The vendor management ERP makes clear understanding to the vendor as to how much amount of goods are needed. Like if you go to a super market to buy various products. Here it is very difficult to maintain record of each and every item as how what are the daily demand of the product. Some days some products are sold in bulk and it may not be the same for next week. There are so many such products available in the super market making it difficult to maintain supply demand on daily basis.
In Vendor management ERP system we have a system for maintaining such records. Here the ERP makes it easy to record the demand of not only one product but different other products in their shop.
On the other hand the vendor gets information as to how much supply is needed to a specific shop or market. Following is information that can be obtained from the vendor management ERP:
- Payment processing
- Invoice verification
- Goods receipt
- Order monitoring
- Supplier selection
- Source determination
- Purchase order processing
Such information can be maintained in the software by this a clear idea can be obtained supply and demand of product. By getting such information sales of the product can be increased. Following is the way vendor management ERP has its impact and its effect on sales:
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Know the accuracy of the demand of the product
There are various type of products in the supermarket, on daily basis their sales item figure differ, now if suppose on day 1 the amount of product sold of AMUL GOLD milk is 78 bags, this is not the same on day 2. Let it be 84 bags in the other day. The expiry date of such product is of 3 days. Now here it is difficult to maintain accuracy of the demand of the product. To this if we have the vendor management ERP we can maintain all such records.
The Vendor gets all the information noted on its system as to what is the demand in which shop or supermarket. Now in one city there 100 bags available in one shop and in the whole day around 92 are sold. Now only 8 are left and still there is demand.
This is reflected to the vendor and he can arrange the product from the nearby source of the agency available from its system itself. Thus in some adverse case of corona with the help of vendor management system the demand of the product could be easily known. Sales of the product remain unaffected even in adverse condition. Companies thus have a clear idea as to amount to produce based on the demand of the product.
If the demand graph is lowering then the raw material supply will also lower. The company will only produce based on the demand and thus performance of non perforating assets can be monitored.
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Flexibility of supply based on season
The vendor management ERP has a complete solution as to the number of orders provided by the distributer. This keeps on changing on day to day basis and also on monthly basis. There are fluctuation based on season of the demand and supply of the products. This are very well maintained through vendor management ERP.
Like for example, if the month of April there are more purchase of school bags in a super market. This is then considered as seasonal sales of the items. Here there will be various suppliers who would reach the vendor for the purchase of the school bags. There will be bidding process the one with the highest bid will be selected by the vendor. This process is available in the vendor management ERP.
The sales of the school bag will be increased as at an affordable prices supply will take place. It only becomes possible when we have a centrally digitized system of procurement of goods and services in the market.
Vendor management ERP thus provides an effective solution for supply in any product base on season. Thus at low price goods and services are available and sales are increased.
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Increase your business by distribution management
The vendor management ERP provides an effective solution as to know the supply as well as the demand. Moreover it can effectively maintain the records of all the details related the product order. It provides security of various data by any illegal practice cannot occur.
The Vendor management ERP software has a proof with all the paper work being recorded in the system. It allows to select more appropriate supplier and to get details of the history of business associated with the supplier. The pattern of supply, demand, maintaining records of every order and activity is known. All this allows the vendor to think in a new direction as to increase in the sales of the business.
The vendor has all the information of the demand based on the geographical region for any product. So which product will definitely be sold is also known with more accuracy. This leads to increase in sales and increase in business of the product. Vendors thus generate more profit by use of vendor management ERP. There will a big difference seen when all the information is handled properly with details in the software. With knowledge they can go for expansion of the business in other fields.
The risk management to vendors can also be calculated. This leads to a better decision making process as to which product should be selected. The payment from the suppliers are recorded and also this feature allows to make a selection as which supplier is better for doing business.
Thus there is increase in business when we make better decision as to whom should be selected as business providers for the product. Increase in business leads to increase in sales of different product making happy customer and happy vendors.
Taking business at global level by distribution management
When we have a well arranged data of the supply and demand of the product, we always make efforts to bridge the gap. With vendor management EWP we can successfully attempt to do this. As this gap is filled then companies can get clear idea as to what should be produced. At what time product should be produced. This leads to increase in sales of the product and the company can get very good position in the business.
When this happens the business can get good chance of expansion. When expansion occurs then again we have a new set of suppliers and our system of vendor management ERP will also have more data into it.
This all can be effectively managed by the ERP and provides a very good solution of decision making process.
It provides safety of data along with solving complex business problems of supply chain management.
Let’s say a global company of oil production and supply has so many important decisions to be taken when they have a vendor management ERP for their business. Based on cloud computing technology all the data is maintained well and is accessible from any place. So if the oil production id from Iran and supply is needed in India then through vendor management ERP they can effectively make decision.
They can easily access the demand based in time from different suppliers and this leads to decision in price of the product.
Overall at global level vendor management ERP is a boon for the vendors to know the supply chain management of the product. One can get competitive advantage and sales of the product can increase considerably.
Conclusion
The distribution management ERP provides detail information of the suppliers and their need. In which time interval which product is having high demand can be easily known. The bridge between supply can demand can be filled leading to increase in sales of goods and services. One can revised the prices based on the data of the competitors and can get competitive advantages of the sales of the product. When this happens business can expand globally and strategic position can be obtained in business.
