The American Journal of Applied Sciences
8
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TYPE
Original Research
PAGE NO.
08-19
10.37547/tajas/Volume07Issue07-02
OPEN ACCESS
SUBMITED
13 May 2025
ACCEPTED
27 June 2025
PUBLISHED
07 July 2025
VOLUME
Vol.07 Issue 07 2025
CITATION
Rushabh Mehta. (2025). Automating Order Processing and Inventory
Management in Supply Chain ERP System. The American Journal of Applied
Sciences, 7(07), 8
–
19. https://doi.org/10.37547/tajas/Volume07Issue07-02
COPYRIGHT
© 2025 Original content from this work may be used under the terms
of the creative commons attributes 4.0 License.
Automating Order
Processing and Inventory
Management in Supply
Chain ERP System
Rushabh Mehta
Financial Analyst, Hammerton, Inc., USA
Abstract:
The manufacturing industry in the US is
changing quickly because of things like tariffs on both
sides, more people wanting to buy things online, and
complicated supply chains around the world. The fixed
costs of each department go up, which lowers the
margins on products and, in the end, the bottom line.
The key to making order processing, inventory
management, and carrying costs more efficient is
automation. ERP systems have created important tools
for making important business processes, like order
processing and inventory management, more efficient
and automated. This article looks into how ERP's use of
AI in order processing and inventory management can
boost productivity. This, in turn, helps manufacturing
companies make more money and keep their customers
happy.
Keywords:
ERP Automation, Supply Chain Optimization,
Order Processing, Inventory Management, Artificial
Intelligence (AI), Machine Learning (ML), Robotic
Process Automation (RPA), Internet of Things (IoT),
Warehouse Management Systems (WMS), Predictive
Analytics.
1.
Introduction:
An ERP system automates order processing and
inventory management because people want supply
chain operations to be more efficient, accurate, and
cost-effective. Companies can use technology to make
their jobs easier, make fewer mistakes, and see their
whole supply chain in real time. Before automation,
people had to do things by hand to process orders and
keep track of inventories. This was slow, prone to
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mistakes, and didn't give you real-time information. ERP
(Enterprise Resource Planning) solutions give businesses
one place to connect and keep track of everything they
do, like managing their supply chain. For automation to
work best, order and inventory management systems
need to work perfectly with the ERP system. Automation
makes things easier, saves workers time, and lets them
focus on more important tasks. People are less likely to
make mistakes when they enter data, process orders,
and keep track of inventories when they use automated
systems. By using resources more efficiently, reducing
waste, and speeding up processes, automation could
help lower costs. Automated systems show you
important supply chain metrics in real time, like how
much stock you have, how many orders you have, and
more. Automation lets you react to changes in demand,
interruptions, and other market forces more quickly.
Automated solutions give you real-time data and
analytics that let you make choices based on what you
see. This makes the supply chain run more smoothly.
Automating your business can help you fill orders faster,
make fewer mistakes, and keep better track of your
stock, which will make your customers happier.
Automation makes it easier for people in different
departments and even people who work with the
company to work together. A lot of businesses still use
their current ERP system to process orders and keep
track of their inventory by hand. Because people are
always involved, this costs more for products and parts,
creates a lot of waste, and makes mistakes more likely.
It takes a lot of time and work to manually enter orders,
keep track of stock, and fill orders, which leads to delays
and bottlenecks. When people do things by hand, they
make mistakes all the time. This can lead to wrong
orders, wrong inventory records, and unhappy
customers. When you can't see your inventory in real
time and keep track of how much you have, it's hard to
make the most of it. This can cause stockouts,
overstocking, and higher costs for holding goods. It's
hard for manual processes to keep up with changes in
the needs of the business or the needs that change.
Customers may be unhappy and you may lose money if
you take too long to process orders or make mistakes
when filling them. Implementing a completely
automated system for processing orders and managing
inventory within the supply chain ERP system
a. Things will go more smoothly and cost less if you
automate manual tasks.
b. Make it easier to process orders and keep track of
inventory by making fewer mistakes.
c. Enhance real-time visibility and management of
inventory levels to facilitate improved demand
forecasting and optimization.
d. Let people process and finish orders faster, which will
make them happier.
e. Make it easy to change and grow the business as its
needs change.
2 Fundamentals of ERP-Based Order & Inventory
Processes
2.1. Core ERP Architecture and Modules
The Structure of ERP in the Supply Chain The ERP system
uses modules for managing inventory and processing
orders to make things run more smoothly and speed up
processes. Finance and accounting, procurement,
inventory management, order management, and
warehouse management are all important parts. These
modules work together to make sure that goods,
information, and resources move smoothly through the
supply chain. An ERP system is a central place to store
all of your financial and operational data. It gives you a
complete picture of the supply chain. It connects
different systems and processes, making operations
more efficient and easier. ERP takes care of everyday
tasks like processing orders, keeping track of inventory,
and making invoices. This cuts down on mistakes and
saves
time.
Order
processing
and
inventory
management depend on finance and accounting,
procurement,
inventory
management,
order
management, warehouse management, and supply
chain management.
2.2. Traditional Order Processing Workflow
Many manufacturing companies have a team whose job
it is to handle orders, keep track of them, and manage
inventory. In manufacturing and supply chain
companies, a normal order processing workflow starts
with placing an order, then the inventory and sourcing
team checks it, then picking and packing, shipping, and
finally delivering the order. Automation is necessary to
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make every step better, boost productivity, and cut
down on errors.
2.
Compelling Benefits of Automation
Benefits to automating order processing and inventory
management in an ERP system, such as making things
faster, more accurate, and less expensive. These
benefits come from automating tasks that are done
repeatedly, cutting down on mistakes made by people,
and providing real-time updates on inventory levels and
supply chain activity.
3.1. Increased Efficiency and Productivity
In a supply chain and manufacturing company that uses
an ERP system, employees usually pick up parts when
they need them and start working for their department.
It's really hard to know when stockouts will happen
because of this. To avoid this, manufacturing companies
count their inventory every month. This helps them keep
track of their accounting, figure out the work in progress
report, and find out how much the inventory is worth at
the end of the month. The main goal of the ERP system
is to make it easier and less likely that mistakes will
happen when placing orders, keeping track of inventory,
and restocking. Reordering algorithms, prioritizing
products with ABC analysis, and tracking inventory in
real time with RFID and barcoding are some of the best
ways to automate the whole process.
3.2. Reduced Cost and Overhead
One advantageous thing about automation is that it cuts
down on the costly mistakes that happen when people
enter data and process orders by hand. It also helps us
find the best inventory levels, which means we don't
have to pay more to store our goods, use up more
warehouse space, or risk having our goods go out of
style. Businesses can save a lot of money on labor costs
by automating routine tasks and not needing as many
people to handle more orders. Automation also
improves the procurement process, which could lead to
better deals with suppliers and lower costs through
unified purchasing. It has been said that automating
digital supply chains could save a lot of money.
Automation has more economic benefits than just
saving money on labor. They also mean less waste, fewer
mistakes, and less inefficiency in the supply chain.
3.3. Improved Accuracy and Reduced Errors
Numerous manufacturing firms employ a crew
responsible for processing orders, monitoring them, and
overseeing inventory management. In manufacturing
and supply chain enterprises, a standard order
processing workflow starts with order placement,
followed by verification by the inventory and sourcing
team, then proceeds to picking and packing, shipping,
and ultimately culminates in order delivery. Automation
is essential for enhancing each phase, increasing
productivity, and reducing mistakes.
3.4. End of Customer Satisfaction and Retention
Automation speeds up the processing and filling of
orders, which means that delivery times are shorter and
meet the needs of more and more customers. When
orders are more accurate, customers get the right items,
which means fewer returns and complaints. Customers
have a much better time when they can see where their
orders are and get updates on their status. Automation
makes sure that the business runs smoothly and reliably,
which keeps customers coming back and builds loyalty.
In today's competitive market, one of the most
important things that makes a business stand out is how
customers see it. It is very important to automate this
process because it makes sure that the order fulfillment
process is quick, correct, and easy to understand. This
makes customers happy and makes them want to stay
loyal for a long time.
3.5. Improved Visibility and Real Time Insights
ERP systems with automation provide a single and
complete picture of supply chain activities, including
real-time data on essential factors like inventory levels,
order statuses, and shipping information. Businesses
may use real-time data to make educated decisions
about inventory levels, purchasing tactics, and sales
campaigns. Enhanced visibility aids in the identification
of possible bottlenecks in the supply chain and enables
proactive problem-solving methods. Furthermore,
automation improves demand forecasting and planning
skills,
allowing
businesses
to
predict
future
requirements and optimize resource allocation.
Automation's transparency and real-time insights give
firms the agility and responsiveness they need to
efficiently handle market swings, predict possible
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disruptions, and make data-driven choices that
eventually optimize the whole supply chain.allocation.
Automation's transparency and real-time insights give
firms the agility and responsiveness they need to
efficiently handle market swings, predict possible
disruptions, and make data-driven choices that
eventually optimize the whole supply chain.
Table 1(Own Table): Comparison of Benefits of Automated Order Processing and Inventory Management
The table looks at the good and bad sides of two
important areas of automation: managing inventory and
processing orders automatically. This is a story that tells
you
both automation technologies are very efficient because
they reduce the amount of work that needs to be done
by hand and speed up processes. These two systems also
help things be more accurate. Order processing makes
sure that orders are filled correctly, and inventory
systems help keep stock errors to a minimum. On the
other hand, automated inventory management has a
bigger effect on lowering costs. It helps businesses keep
track of their money by making sure they don't have too
much or too little stock. On the other hand, Automated
Order Processing only has a small effect on lowering
costs. Automated Order Processing has a more direct
impact on how satisfied customers are. Fast and
accurate order fulfilment makes the customer
experience better, which is why it gets a high rating. On
the other hand, inventory management has an indirect
effect and gets a medium rating. Last but not least,
inventory management systems give you better
visibility, which means you can see and follow
operations as they happen. Most of the time, they have
better dashboards and analytics for keeping track of
stock levels and trends. On the other hand, order
processing only gives you a little bit of information
unless it is linked to bigger systems. Both types of
automation are very useful, but Inventory Management
is better at saving money and making things clear, while
Order Processing is better at making customers happy.
Together, they make the workplace very responsive and
data-driven.
4 Navigating Challenges and Potential Drawbacks
4.1. High Initial Investment Costs
The design may cost a lot of money up front to add new
software to existing ERP systems and use automation
technologies. These costs generally include the price of
software licensing, the hardware that is needed, and the
hard work of getting systems to work together. Small
and medium-sized businesses may have a hard time
with the initial cost. Cloud-based solutions, on the other
hand, have lowered these expenses by getting rid of the
need for expensive hardware and infrastructure on-site.
To fix this, businesses need to carefully consider the
projected return on investment and search for other
methods to get the product out there. This is because
the long-term advantages that are expected generally
surpass the expenditure that come up front.
4.2. Complexity of Implementation and Integration
Implementation and integration may be quite hard.
Adding new automation technologies to existing ERP
systems and other essential software programs can be
very hard for businesses. Automation programs need a
steady and effective flow of data across these many
different systems to work, but this may be a difficult job.
Successful integration generally needs a lot of planning,
specific expertise, and, in many cases, certain changes
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to the system. Problems like incompatible data formats
and complicated operational procedures might make
the integration process harder, which could lead to
operational bottlenecks and greater costs. To get over
these problems and make sure that automation
technology is integrated smoothly and successfully,
businesses need to either hire educated workers or get
help from outside experts
4.3. Resistance to Change and Need for Training
Resistance to Change and Need for Training The
introduction of automation sometimes leads to
significant alterations in traditional work practices,
which may encounter opposition from individuals
apprehensive about job displacement or reluctant to
acquire and adapt to new technology. To get past this
hesitation and make sure that the system is used
correctly, end users need to have the right training and
ongoing help. Not getting enough training might cause
errors, waste time, and not use new systems as much as
they should. So, it's really important to use good change
management techniques to deal with staff worries, get
them to like automation, and make sure the transition
to new methods of working goes smoothly.
4.4. Data Security and Privacy Concerns
As we rely more on technology and automated
processes become more connected, people are worried
about cyber threats and data security. Supply chain
operations handle a lot of private information about
customers, suppliers, and the organization as a whole,
therefore they need to have robust security measures in
place. Data breaches may have catastrophic effects,
such as huge financial losses and damage to a company's
brand that lasts forever. Because of this, it is very
important
to
establish
strong
and
complete
cybersecurity measures in order to automate order
processing and inventory management in ERP systems.
To keep their important information safe and keep the
trust of stakeholders in a world that is becoming more
digital, businesses need to focus on data security
methods like encryption, access restrictions, and regular
security audits.
4.5 Possible Mismatches with Real World Complexities
Automated systems are designed to run using
established algorithms and historical data analysis. But
because real-world supply chains are continually
changing and can be hard to predict, these systems may
not always be in line with current market trends or be
able to adapt quickly to new or unexpected patterns.
Algorithms could have trouble adapting to sudden and
big changes in client demand, as well as outside events
that could change how people buy things in ways that
weren't planned. Because of this, businesses need to
keep an eye on their automated order processing and
inventory management systems all the time and be
ready to make changes as needed to make sure they
work well even when the market changes or something
unexpected happens.
5
Technological
Enablers
of
Automation
5.1. Artificial Intelligence (AI) and Machine Learning
(ML)
Smart supply chain automation is making these new
technologies required very soon. Artificial Intelligence
(AI) and Machine Learning (ML) Predictive analytics are
feasible because of AI and ML algorithms. These are
incredibly crucial for things like figuring out how much
demand there will be, making sure you have the right
amount of stock, and managing risk. They let you
automate hard activities like smartly routing orders,
choosing suppliers, and managing warehouses, which
helps everything work much more smoothly. AI and ML
also help you make better choices by looking at big sets
of data in real time and offering you knowledge that you
can use to make choices. These technologies also enable
you to uncover unusual sales or inventory patterns,
which are called anomalies. They also let you undertake
predictive maintenance, which involves finding out
when equipment is likely to go down. AI also drives
powerful chatbots that can make it simpler to talk to
customer service
5.2. Robotic Process Automation (RPA)
Robotic Process Automation (RPA) is a helpful and
effective approach to automate many of the repetitive
processes that are crucial for maintaining stock and
processing orders. This covers things like inputting
information, taking orders, and paying invoices. RPA
helps cut down on mistakes, save money, and make
supply chain operations run more smoothly by
automating these daily chores. One of the nicest things
about RPA is that it can run all the time, every day of the
week. This implies that it always operates the same way
and can execute chores more quickly. Companies may
make their processes more effective and save time
without having to worry about how many hours their
workers work.
5.3. Internet of Things (IoT)
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The Internet of Things is particularly useful for supply
chain management because it helps them view and
control their operations in real time. IoT devices, like as
sensors and linked devices, enable you keep track of and
keep an eye on items as they move through the supply
chain, such shipments, inventory levels, and other
things. This technology is what makes smart warehouses
possible. In these warehouses, sensors and networked
technology keep an eye on the stock and the
environment to make sure the items maintain high
quality. IoT transmits a continual stream of data, which
makes it easier for businesses to keep track of their
inventories and operations. IoT devices also provide you
data in real time, which lets you put up systems that
automatically restock. The user doesn't have to do
anything to keep the inventory filled because these
systems can automatically place fresh orders based on
how much stock is on hand
5.4. Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is still an important
technology for automating the sharing of business
documents and data between companies and their
trading partners. It lets you automatically handle
important documents like purchase orders, invoices,
and shipment notices, which makes it easier to talk to
suppliers, customers, and logistics providers. EDI makes
order management far more efficient and makes sure
that the data being sent is correct by automating these
exchanges. One of the best things about EDI is that it
cuts down on the need for manual data input. This, in
turn, lowers the chances of making mistakes while
processing information by hand. This automated
document processing and data interchange makes the
supply chain more efficient and dependable.
5.5. Warehouse and Order Management Systems
WMS and OMS are forms of software that assist
automate specific sections of the supply chain. WMS is
designed to make running a warehouse easier by helping
with tasks like keeping track of stock, swiftly selecting
and packaging orders, and managing the shipping
process. On the other hand, OMS is in charge of taking
care of an order from the time it is placed until it is
delivered and any returns that may arise later. To have
complete control over order processing and inventory
across the supply chain, it is vital to link WMS and OMS
with ERP systems.
5.6. Autonomous Mobile Robots (AMRs) and
Automated Guided Vehicles (AGVs)
Autonomous Mobile Robots (AMRs) and Automated
Guided Vehicles (AGVs) AMRs and AGVs are becoming
more common in contemporary warehouses and
distribution centers to transport products on their own.
These robots pull goods off the shelf, sort them by order,
and transfer merchandise around the factory. Putting
these robots in warehouses makes them operate better,
saves money on labor expenditures for moving goods by
hand, and makes everyone more productive. AMRs are
more flexible than standard AGVs, which frequently
need to follow predetermined tracks and have the right
infrastructure. This implies they can work in warehouses
that are set up in different ways and have varied
demands.
6. Strategic Implementation, Considerations and
Challenges
6.1. Challenges and Considerations in Implementing
Automated
Order
Processing
and
Inventory
Management
Considerations in Implementing Automated Order
Processing and Inventory ManagementThere are many
benefits to automating order processing and inventory
management in ERP systems, but there are also many
problems and challenges that businesses need to deal
with before they can use them. One big challenge is that
automated jobs need to operate with current ERP
modules, such as accounting, shipping, inventory
management, and other business operations that are
connected. You need to plan these elements out
carefully, set them up correctly, and in many cases,
make specific adjustments to make sure they all perform
properly together. Data difficulties, delayed procedures,
and trouble fully using automation can all happen if
integration isn't done correctly. For automation to
perform successfully, the data it utilizes must be
complete, consistent, and of acceptable quality.
Accurate and consistent data inputs are particularly
crucial for both automated order processing and
managing inventories. Automation might lose its
intended benefits if the data is inaccurate or not
enough. This can make it hard to transport things, fill
orders, maintain track of stock, and pay bills. To make
sure that the data in their ERP system is correct, up-to-
date, and formatted the same way every time,
companies need to have good data governance
practices in place. Managing automated inventory is
much harder because you have to combine data from
many different places, such as sales transactions,
supplier information, manufacturing plans, and
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warehouse activities. To keep track of your inventory
across numerous sales channels and locations, you need
all of the functionality of an ERP system. These tools will
help you see your inventory clearly and make sure that
everything you do is in line with your goals. Accurate
demand forecasting models are also needed for
successful inventory automation. It's hard to build these
models since the economy is uncertain, the market
shifts, and there are sales. Bad forecasts can lead to
difficulties with inventory, such as having too much or
too little of anything. People who are used to doing
things the old-fashioned way might not enjoy
automation either. This opposition might make it hard
for automated technology to operate and be employed.
It's also very crucial to choose automation technologies
that fit with the organization's present architecture and
goals. There are a lot of choices, so it's necessary to
perform a lot of research to make sure that the features
and functionalities are what the organization requires.
When solutions don't fit together, it can lead to wasted
time and money, not using resources to their full
potential, and, in the end, not getting the results you
want. Automated systems may have trouble handling
outliers and unexpected problems in supply chains, such
as delays from suppliers, problems with transportation,
or sudden increases in demand. Automation is great for
everyday tasks, but when things go wrong, humans still
need to keep an eye on things and get involved. In short,
adding automated inventory management and order
processing to ERP systems is hard because it needs to be
fully integrated, have good data governance, make
accurate predictions, manage changes strategically,
choose the right solutions, and be able to deal with
problems that come up. To get the most out of
automation, companies need to invest their money
effectively on people, processes, and technology
6.2. Implementation Strategies and Best Practices for
Success
To successfully use automated inventory management
and order processing in ERP systems, companies need to
have clear plans and follow best practices. First,
businesses should thoroughly sketch out their present
processes for managing inventories and processing
orders. A close look at these processes helps find specific
areas that are best for automation, such bottlenecks,
manual steps that are prone to mistakes, and
possibilities to make operations more efficient. Setting
SMART (Specific, Measurable, Achievable, Relevant, and
Time-bound) goals and metrics makes it easier to plan
and track success, such as cutting down on order
processing times, error rates, and the speed at which
inventory is restocked.
It is highly recommended to deploy in stages, especially
for complex automation projects. Companies should
start with small, focused pilot projects, such automating
the creation of sales orders, invoices, or some inventory
management tasks. This will let them learn, improve,
and see real benefits before rolling out the changes to a
larger group. To keep the system working well and
useful over time, it is important to always look for ways
to enhance it by regularly checking its performance,
getting feedback from users, and discovering areas
where it can be improved. Good communication
between IT and business departments is also important.
IT teams have the technical skills to set up and connect
automation systems, while business teams know how
the organization works and what it needs to do its job.
These departments need to talk to each other all the
time so that they are all on the same page with the
company's goals, which cuts down on interruptions and
gets the most out of automation. Using advanced
technologies like RFID (Radio Frequency Identification)
and IoT (Internet of Things) makes it easier to keep track
of inventory and respond quickly. RFID tags let you
automatically keep track of inventory items all the way
through the supply chain, while IoT sensors provide you
up-to-the-minute information on the state and levels of
your inventory. When these technologies are added to
ERP systems, they make continuous, real-time data
streams that are very important for managing inventory.
Organizations should use the analytical features of their
ERP systems to predict demand, which lets them make
more accurate predictions based on past data analysis.
Accurate forecasting helps you set the right quantities of
inventory, reorder points, and safety stock levels. This
protects you from having too much or too little
inventory. Regular audits and reconciliations of
inventory records are important steps to make sure that
the data is correct. It is important to have clear goals and
realistic implementation timeframes. Periodic physical
inventory counts that are compared with ERP records
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help find and fix mistakes, making sure that inventory
data is always accurate and reliable. This methodical
approach leads to better use of resources, lower risks,
and a steady progress on the project, which leads to
successful ERP automation implementations for
managing
inventories
and
processing
orders.
Table 2(Own Table): Challenges and Mitigation Strategies for ERP Automation Implementation
The table above lists some of the problems that people
often run into while implementing ERP automation and
suggests ways to solve each one. The high cost of the
first investment is a big problem. To deal with this, firms
should think about cloud-based ERP systems, roll out the
system in stages, and do detailed cost-benefit studies to
show
that
the money
spent
is
worth
it.
Another typical problem is that implementation and
integration can be very complicated. To fix this, you may
make thorough plans, hire expert IT teams or
consultants from outside the company, and employ
strong integration tools to make sure that all of your
systems work together smoothly. People often resist
change and need training, which can make it harder for
companies to adopt ERP. Mitigation means making sure
everyone knows the benefits of ERP, giving staff
thorough training, and using organized management
practices to help them through the change.
Concerns concerning data security and privacy are also
quite important, especially when ERP systems deal with
private information about customers and businesses. To
fix this, businesses need to use robust cybersecurity
measures, such as encrypting data and limiting who may
access it. There is also the chance that the system will
make mistakes or break down. To keep downtime and
problems to a minimum, you need to undertake regular
maintenance, make sure your backups are up to date,
and keep an eye on your system at all times.
Lastly, ERP solutions might not always work well with the
complicated way things work in the actual world. This
may be lessened by keeping an eye on things all the
time, making sure processes are set up in a way that
allows for flexibility, and keeping people in charge to
deal with exceptions or strange circumstances. In
general, ERP automation has many benefits, but careful
planning, technical readiness, and managing change are
all important for a successful rollout.
7. The Horizon of Innovation: Future Trends in ERP
Automation in Supply Chain
7.1. Increased Adoption of AI and ML
More people will start using AI, MLAI, and ML, which will
make them better at dealing with ERP systems and
provide them more authority. This includes AI-powered
demand forecasting that is more precise, which helps
firms figure out what their consumers want and
maintain their stock levels just right. AI will also aid with
warehouse and inventory management by reducing
waste and boosting efficiency. More individuals are
likely to utilize chatbots and virtual assistants that run
on AI. This can assist people learn more about how to
use ERP systems and how to deal with customers. One
big trend for the future is the emergence of autonomous
supply chain operations, where AI systems can learn and
alter depending on data in real time.
7.2. Expansion of Cloud -Based ERP Solutions
The trend toward cloud-based ERP systems will keep
growing because people want solutions that are more
flexible, scalable, and cost-effective. More and more
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businesses will select hybrid and multi-cloud ERP
solutions to meet their needs for security, performance,
and integration. ERP-as-a-Service (ERPaaS) models will
make it easier for businesses to use powerful ERP
features without having to spend a lot of money up
front.
7.3. Integration with the Internet of Things (IoT) and
Edge Computing
Integration with the Internet of Things (IoT) and Edge
Computing ERP systems will operate better with the
Internet of Things as more and more devices connect to
it. This will make it easier to get a lot of real-time data
from all parts of the supply chain. More people are using
edge computing, which will speed up this trend by
allowing data to be processed closer to where it came
from. This will make reaction times faster and make real-
time decision-making in the supply chain more efficient.
7.4. Enhanced User Experience and Mobile-First ERP:
Future ERP systems will put greater emphasis on making
the user experience better. This will feature dashboards
that are easy to use and processes that can be adjusted
to match the needs of each user. As more individuals
work from home and want to be able to accomplish their
tasks from anywhere, ERP systems will focus more on
mobile-first design. This will make it easier to get critical
features from a lot of different mobile devices. AI-
powered voice assistants and chatbots will help make
ERP systems easier to use.
7.5. Focus on Sustainability and ESG
Focus on Sustainability and ESGAs firms become
increasingly concerned about sustainability and ESG,
future ERP systems will contain features to aid with
these efforts. This includes being able to keep track of
essential things that affect sustainability, such how
much waste is created, how much energy is utilized, and
how much carbon is released. ERP systems will also help
with sustainable procurement, making sure that
everyone in the supply chain is honest, and make it
easier to fulfill more and more social and environmental
standards.
7.6. Blockchain Technology for Enhanced Security and
Transparency:
Blockchain technology will definitely play a bigger role in
ERP systems to make supply chain operations safer and
more open. Blockchain might help participants in the
supply chain trust each other more by preserving
records that are safe and can't be changed. This makes
it easier to find transactions and data and less likely that
they will be stolen. Smart contracts can also help the
supply chain work more smoothly and get rid of
problems by automatically carrying out agreements and
making sure that all the provisions of a contract are met.
7.7. Increased Specialization and Industry-Specific ERP
Solutions:
As businesses realize that each sector has its own
demands for operations and compliance, there will be
an increasing trend toward creating and using ERP
solutions that are more tailored to certain industries.
These customized systems will include features and
functions that are made to meet the needs of various
industries, which will make supply chain management
more efficient and effective.
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Table 3 (Own Table): Key Technologies for Automating Order Processing and Inventory Management
The table above lists some new and old technologies
that are very important for automating different parts of
ERP (Enterprise Resource Planning) systems, especially
in manufacturing and supply chain operations. Artificial
Intelligence (AI) and Machine Learning (ML) help by
making predictive analytics and intelligent process
automation possible. These technologies help firms run
their operations better by looking at patterns and
predicting future trends. Robotic Process Automation
(RPA) is all about automating repetitive, rules-based
processes like entering data and processing orders. This
lessens the amount of labor that needs to be done by
hand, cuts down on mistakes, and speeds up and
improves processing. The Internet of Things (IoT) lets
devices link and track in real time, making smart
warehouse
settings.
It
supports
automated
replenishment and improves inventory accuracy and
operational visibility. Electronic Data Interchange (EDI)
automates the exchange of business documents (like
invoices and purchase orders) between trading partners,
eliminating paper-based processes and reducing delays
in communication. Warehouse Management Systems
(WMS) and Order Management Systems (OMS) are
designed to streamline warehouse operations and
manage the end-to-end order lifecycle
—
from receipt to
delivery
—
ensuring efficiency and control. Finally,
Autonomous Mobile Robots (AMRs) and Automated
Guided Vehicles (AGVs) handle physical warehouse
tasks such as picking, sorting, and transporting
inventory. In logistics and distribution facilities, they
make operations faster, safer, and more productive.
Together, these technologies make up the backbone of
a contemporary ERP automation framework, which
makes the whole value chain more efficient, accurate,
and scalable.
8 CONCLUSIONS
Analyzing at real-world case studies helps us understand
how ERP automation is really used in supply chain
management by showing both the successes and the
problems that different companies have experienced.
ERP automation has helped a number of big companies
change the way they do business with their suppliers.
Amazon, a pioneer in e-commerce, has changed how
inventory is managed by using complex algorithms and
robotics. This has led to speedier delivery times and
happier customers. Walmart has also shown that it
knows how to manage its supply chain by using ERP
systems and automation to make sure that its big
customer base has access to the best prices and the best
inventory management. By adding current supply chain
modeling and optimization approaches to its ERP
system, Coca-Cola has greatly enhanced its ability to
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manage its inventories throughout the world. Cadbury's
strategic switch to SAP ERP made its intricate supply
chain operations easier, which led to more efficient
manufacturing. Even though there are many success
stories, the road to ERP automation is not without
problems, and a few high-profile failures serve as
warnings. Hershey's 1999 ERP rollout is a well-known
failure because it was rushed, the personnel
weren’t
trained well enough, and the system wasn't tested
enough, which caused big delays in the company's
operations. Dell Computers spent a lot of money on an
ERP system, but they finally gave up on it since it couldn't
keep up with the company's growing global operations.
In general, some of the most typical problems that come
up while implementing ERP systems are employees who
don't want to change, problems moving data from old
systems, not enough training for end users, and the
difficulty of customizing the ERP system to match the
needs of a given firm. People sometimes blame ERP
project failures on having excessive expectations about
how fast and how wide the implementation would go,
as well as poor general management of the
implementation
process.
The experiences of companies that have started
automating their ERP systems offer some important
lessons. To be successful, you need to plan carefully, set
reasonable deadlines, and test the system thoroughly.
Another crucial part of getting users to accept the
change and getting the advantages you want is giving
staff the right training and managing the change well.
Choosing the right ERP system and a reliable vendor that
knows the organization's specific business and industry
needs is very important. Lastly, the characteristics of the
chosen ERP system must be carefully matched to the
organization's specific business needs and goals.
Table 4(Own Table): Case Study Summary Table
This table shows real-life examples of businesses that
have employed ERP (Enterprise Resource Planning)
systems. It shows the type of ERP used and the results or
problems that came up.
Amazon changed the way it managed its inventory and
made it possible to offer rapid delivery services by using
its own ERP system. This set a new standard for supply
chain efficiency. Walmart's own system also helped it
become the best at managing its supply chain,
optimizing its inventory, and offering competitive prices.
Coca-Cola used its own ERP system to improve global
inventory control, and Cadbury used SAP ERP to make
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its production more efficient and its supply chain
operations more efficient.
Nestlé employed a customized technology to improve
communication across divisions and make accounting
consolidation easier. ABC Compounding used Sage ERP
X3 to automate work orders and improve inventory
management. This shows how ERP systems may help
with specific manufacturing demands.
Green Rabbit used NetSuite ERP to make logistics better
and speed up order fulfillment. N&N Moving Supplies,
on the other hand, employed a standard ERP system to
speed up payroll processing and make sure that data
was correct.
Munters Group had better inventory visibility and more
accurate demand forecasting when they put in place an
ERP system. But not all of the implementations worked.
Hershey's,
for
example,
had
problems
with
implementation and major operational disruptions
when they rolled out SAP.
Dell Computers eventually got rid of its own ERP system
because it was too rigid. CosmeticCo had problems with
ERP deployment since MOVEX didn't work with all
languages and standards.
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