SCM can be thought of as the management of "warehousing processes," in which the movement of goods occurs through multiple warehouses or manufacturing facilities. Tracking the costs of moving products and components through the maze of warehousing and manufacturing facilities is a tricky process, and many organizations lose money at each warehousing step.
Within the flow of goods in the manufacturing sector, the warehouse is a crucial part of the supply chain. Traditionally, the warehouse has been a source of frustration because the manufacturer or supplier pays for the use of the warehouse (whether owned or rented by the company). This leads to two possible scenarios: 1) the costs of the warehouse are incurred by a 3PL or manufacturing company, or 2) the costs are passed from one warehouse to another warehouse, and the original warehouse charges for these costs.
The typical warehouse process includes the following steps: receiving, put away, picking, kitting, packing, repacking, cross-docking, and shipping. ERP - distribution software is able to track costs across the entire organization and to aid companies in reducing costs that were previously tough to track.
As seen in figure 2, an ERP - distribution system encompasses the entire production of the final good. The ERP - distribution system is able to include inventory visibility from points "A to Z" (start to finish) and to track each warehouse cost from supplier to manufacturer to user, whether consumer, business, or retailer.
Within the flow of goods in the manufacturing sector, the warehouse is a crucial part of the supply chain. Traditionally, the warehouse has been a source of frustration because the manufacturer or supplier pays for the use of the warehouse (whether owned or rented by the company). This leads to two possible scenarios: 1) the costs of the warehouse are incurred by a 3PL or manufacturing company, or 2) the costs are passed from one warehouse to another warehouse, and the original warehouse charges for these costs.
The typical warehouse process includes the following steps: receiving, put away, picking, kitting, packing, repacking, cross-docking, and shipping. ERP - distribution software is able to track costs across the entire organization and to aid companies in reducing costs that were previously tough to track.
As seen in figure 2, an ERP - distribution system encompasses the entire production of the final good. The ERP - distribution system is able to include inventory visibility from points "A to Z" (start to finish) and to track each warehouse cost from supplier to manufacturer to user, whether consumer, business, or retailer.
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