ERP or BoB

The debate over whether to opt for enterprise resource planning (ERP) or best-of-breed (BoB) specialists for supply chain management (SCM) software has been raging for a while, but the issue is at the forefront of supply chain conversations now more than ever. In the past two years, ERP providers have made increasingly aggressive efforts to boost their presence in the SCM software applications market, traditionally dominated by the best of breed providers. This has left many users with a headache from trying to discern which approach is the better option. One reason for this confusion is the sheer volume of management issues that companies face: the continued misalignment of IT and business functions around the ERP vs. BoB issue; the difficulties of estimating the true costs of integration for both ERP and BoB alternatives; the lack of connection that often exists between corporate executives and supply chain leaders on the importance of logistics and SCM; a frequently poor and frustrating software evaluation and selection processes. Business functions such as transportation, distribution and inventory management, are becoming more important as market forces such as shorter cycle times and customer requirements for real-time information come together. This has led many companies to upgrade their technology support in areas like warehouse or transportation management systems, supply chain visibility and other related SCM software applications. BoB providers have traditionally led the SCM market. In recent years, vendors have developed broader suites that provide integrated support across supply chain processes, such as linking inventory replenishment and transportation management. However, the software buying landscape is changing and there is greater competition between ERP and BoB vendors.

ERP info from Line56

ERP Systems homepage

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