The New Spectrum of the Cross-Enterprise Solution: The Integration of Supply Chain Management and Enterprise Resources Planning Systems

Supply chain management (SCM) is the process of optimizing a company's internal practices and improving the interaction with its suppliers and customers. The philosophy of SCM is to have the right product in the right place, at the right price, at the right time, and in the right condition. The major business value of an enterprise resources planning (ERP) system lies in its ability to integrate information across an organization and to model and automate its fundamental processes. ERP systems improve the efficiency of management decisions and operation plans and increase the flexibility with adjustments of functionality to react to changes in business needs. This research aims to compare SCR with ERP in terms of their evolution, application and functionality, investigate their relationship, and explore their potential system integration. This study is concluded with the future implications of SCM and EPR systems and the industrial trend toward their integration.