What is SAP ERP.
A big opportunity for ERP to help manufacturers is in the supply chain management area. DRP, or distribution resource planning, refers to the management of inventory throughout the supply system. Due to the many sources of variation throughout the supply chain, current inventory management practices tend to be extremely reactive. Many firms today consistently target the logistics and distribution areas as processes that could provide significant future cost savings. In most organizations, there are very large gaps between both upstream and downstream logistics and the manufacturing operation. The hand-offs can be very difficult to manage. By integrating the output of an MRP II module with a raw materials inventory management tool, one has much better insight into the raw materials warehouse functioning (upstream integration). Likewise, by having a better production schedule, variance from the production plan can be reduced. Production information directly feeds a finished goods invento
