Create A Conduit For Cost Savings Within The Supply Chain

Information sharing within the supply chain is a great strategy for cost savings. Often, organizations working with one another have redundant systems creating double entries of the same information, duplicate paper work and double handling of the product.

The reproduction of tasks costs both entities money, increasing costs to produce a product. Additionally, the opportunity for errors amplifies at each step in a process where duplication is present.

Information sharing can be as simple as referencing order information, such as purchase order numbers, in the subject line of an email or referencing design specifications by including drawings and or specification numbers, in proposals and estimates. Sharing and referencing information helps reduce the amount of administrative time taken to locate and refresh memories regarding the details of a project or product.

While these simple steps may make our jobs easier, the real opportunity for cost savings is in integrating information technology systems. Allowing business partners within the supply chain, to complete work directly within Enterprise Resource Planning (ERP) systems has many advantages.

One set of advantages is in the quality of the information. Work performed directly in ERP systems has the following benefits:

• Relevant information is delivered to the appropriate people. Layers of people within an organization are accessing information contained within an ERP; each with particular tasks or decisions to make based on information obtained from the system. Often it is difficult to understand who needs which components of various information. Less time is consumed figuring out who needs what and ensures relevant information is shared with appropriate departments and personnel.
• Timely work directly performed in an ERP means that real-time information is in the system. Time sensitive information necessary for processing proper accounting functions is available. Timely information also reduces wait time for professionals to keep projects moving forward and focus on their primary work load functions.
• Accuracy increases as dual data entry points decrease, by limiting the number of times the same information is entered.

Integrating information systems with business partners increases the quality and efficiency of information, leading to cost savings by reducing additional steps in business processes.