How to Survive a Supply Chain Crunch with the Right ERP System


During these uncertain times, many companies are assessing the prospect of survival. Supply chain shortages are challenging businesses, particularly in manufacturing and distribution, to meet order deadlines. Backlogged orders and unsatisfied customers can lead to disaster. A robust Enterprise Resource Planning (ERP) system not only helps to improve efficiency and therefore develop business resiliency, but it may give your company a competitive edge. This blog will provide tips on how to weather the turbulence of supply chain shortages.   

What is causing the supply chain issue?


Supply chains comprise of multiple entities, such as e-commerce sites, transportation service providers, financial institutions, suppliers, and distributors. Factors that can cause a shortage usually relate to global issues. For example, covid 19 was the star quarterback that kicked off the start to supply chain shortages, with factory shutdowns and a shortage of workers. This caused a backlog of orders that is still felt today as companies try to catch up. 


Consumer behavior and demand have also been attributed to supply chain shortages. Customers have increasingly switched to online shopping sites like Amazon. Producers face the logistical nightmare of transporting their products from the factory to customers’ hands in a short turnaround. According to a trading economics report, China’s exports grew 27.1% year on year to $300.22 billion in October 2021, following a 28.1% surge in September. Due to this shift in demand dynamics, businesses must find ways to address the supply chain shortage issue.


3 ways the right ERP system can ease supply chain disruption 

1. Better Inventory Management


The right ERP system will provide visibility of every action across your supply chain. The most effective systems track orders and shipping statuses with ease thanks to SCM technologies, which also increase forecast accuracy for customer order fulfillment and warehouse delivery schedules. Accuracy and cost-effectiveness in relation to inventory management are assured by crucial data that compares the amount of inventory required for real demand vs predicted demands.

2. Increased Customer Service Levels

A poorly planned distribution network causes unnecessary delays in shipments, which lowers consumer satisfaction. A comprehensive ERP system should provide data reporting to analyze key metrics such as landing costs, cycle counting, and warehouse activities. Providing your customers with accurate delivery time data will keep a healthy rapport. Build strong relationships with your customers by staying on top of your manufacturing production.  


3. Integration of Internal Business Processes


A top-notch ERP system should integrate seamlessly with other enterprise applications. For example, billing is among the most often used interface points between accounting software and manufacturing ERP systems. A good ERP system should create invoices from sales orders automatically, and send them right away to customers or suppliers. Even the money receipt and refund distribution processes can be automated. This will help to smooth out operations during supply chain shortages. 



Strengthening and growing your company for the future is critical. Installing the right ERP solution can help your company survive not only a supply chain shortage but, contribute to its survival against other uncertain times ahead. If you are unsure how to select the right ERP system try speaking to an expert at BAASS

Amanda Diflorio

About The Author

Amanda Diflorio

Amanda has an extraordinary comprehension of Sage and Microsoft Business Management Software Solutions. At BAASS Amanda works inside the Marketing Department as a SEO Specialist, she utilizes her insight and innovativeness to design and execute showcasing insurance with her group to teach clients on the administrations and arrangements that BAASS brings to the table.