Difference between SAP ERP and SCM?

This report will first explain the functionality of an ERP (Enterprise Resource Planning) system with SAP R/3 as an example. Then it contrasts SCM (Supply Chain Management) software such as I2 and Manugistics. Finally, integration between the two types of systems will be discussed, as well as future prospects for suppliers of ERP and SCM.

The most characteristic of ERP systems is their completeness. SAP covers wide sales and distribution, business planning, Production Planning, Shop Floor Control, and logistics. On the surface, which seems to cover everything that claims to provide SCM. Therefore, it allows you to review the functions of SAPin detail, in order to contrast as a result of SCM software. First, sales and distribution covers the entry of orders and delivery scheduling. This module also naturally controls on the availability of products to ensure timely delivery, and verifies the customer’s credit. Business planning consists of the  application forecasting, planning for production and capacity, and terms of delivery information that describes the case and in what order the product effective.

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