The relationship and difference between CRM/PLM/SCM/MES and ERP

Enterprise information construction is to improve the production and operation efficiency, reduce operational risks and reduce operating costs through the deployment of IT technology, thereby increasing the ability of enterprises to profit and continue to operate. Through specialized information institutions and information supervisors, the company is equipped with automated, intelligent, high-tech hardware, software, equipment and facilities that meet the requirements of modern enterprise management and operation, and establishes a working platform including networks, databases and various information management systems. A development model that improves the efficiency of business management. Then, what are the connections and differences between the concepts of technology CRM, PLM, SCM, MES and ERP used in enterprise information construction?

CRM (Customer Relationship Management)

In order to improve their core competitiveness, enterprises use the corresponding information technology and Internet technology to coordinate the interaction between enterprises and customers in sales, marketing and service, thereby improving their management methods and providing customers with innovative and personalized customer interactions and services. the process of. The ultimate goal is to attract new customers, retain old customers, and turn existing customers into loyal customers, increasing market share. The goal of CRM is to reduce business costs by comprehensively improving the management of business processes, and to attract and retain more customers by providing faster and more thoughtful services. As a new management mechanism, CRM has greatly improved the relationship between enterprises and customers, and implemented in the fields related to customers such as marketing, sales, service and technical support. CRM systems can capture customer needs in a timely manner and provide services to customers to reduce “soft” costs.

PLM (Product Life Cycle Management)

PLM is a product that is used to create, manage, distribute, and support information throughout the lifecycle of a product in a single-site enterprise, across multiple locations, and between companies with collaborative relationships in product development. A range of application solutions for applications that integrate product-related human resources.

PLM contains the entire contents of PDM (Product Data Management), which is a subset of PLM. However, PLM also emphasizes the concept of managing and utilizing all information across the supply chain during the product life cycle, which is the essential difference from PDM.

SCM (Supply chain management, supply chain management)

Supply chain management is an integrated management idea and method that performs the planning and control of logistics from the supplier to the end user in the supply chain. From a single enterprise perspective, SCM focuses on core enterprises, and improves the upstream, downstream supply chain relationships, and integrates and optimizes information flow, logistics, and capital flows in the supply chain to gain competitive advantage. The supply chain system can optimize product cost and value, and it is mainly for the manufacturing service of the enterprise. SCM mainly plans, dispatches, allocates, controls and utilizes various materials, funds, information and other resources in all aspects of supply through information means, forming all users, retailers, distributors, manufacturers and procurement suppliers. The function of the supply process as a whole.

ERP (Enterprise Resource Planning)

ERP is an enterprise information management system mainly for the integrated management of material resources, capital resources and information resources for the manufacturing industry. ERP is an enterprise management software that provides management information as a core to provide real-time information across regions, departments, and even companies. Enterprise management software that integrates material resource management (logistics), human resource management (people flow), financial resource management (financial flow), and information resource management (information flow). ERP has significant features such as integration, system, flexibility, and real-time control. The supply chain management idea of ​​ERP system puts forward higher requirements for enterprises, and is the core management mode for enterprises to prosper in the information society and in the era of knowledge economy.

MES (Manufacturing Execution System)

The MES system is a production information management system for the execution layer of the manufacturing enterprise. MES can provide enterprises with manufacturing data management, planning and scheduling management, production scheduling management, inventory management, quality management, human resource management, work center/equipment management, tool tooling management, procurement management, cost management, project kanban management, production. Management modules such as process control, underlying data integration analysis, and upper-level data integration decomposition provide a solid, reliable, comprehensive and feasible manufacturing collaborative management platform for enterprises.

MES can optimize the entire production process from order to product completion through information transfer. When real-time events occur at the factory, the MES can respond to, report on, and direct and process them with current accurate data. This rapid response to changes in state allows MES to reduce the absence of value-added activities within the company and effectively guide the plant's production operations so that it can improve the factory's ability to deliver goods on time, improve material flow performance, and improve Production return rate.

The difference and connection between CRM and ERP

From the management concept, the management concept of ERP is to improve the planning and control ability of the internal resources of the enterprise. It pays attention to satisfying customers and timely delivery while minimizing various costs, and improving the internal operation efficiency to improve the customer's The quality of service can be said to be centered on efficiency. The concept of CRM is based on the establishment, development and maintenance of customer relationships.

Their philosophy differs in their focus of attention, and CRM is more focused on the market and customers than the enterprise-level internal resource planning ERP. Because today's customers can access a variety of products and services through the forms of sales provided by traditional markets, and can easily find products and services of interest through call centers or the Internet. Their consumption patterns have changed from passive acceptance to active choice. Therefore, the role of CRM is mainly in the department directly in contact with customers. It is mainly aimed at the marketing, sales and service departments of the enterprise, including the management of the entire customer life cycle and other stages, providing the company with statistics on customers and purchased products. Informatization means and functions such as tracking and service. In other words, if ERP is an enterprise-wide comprehensive management application, CRM is the front end of ERP, and its role extends beyond the scope of ERP's previous efforts.

Compared with ERP systems, CRM products are more focused on sales, marketing, customer service and support management. In fact, the value of CRM is to highlight the importance of sales management, marketing management, customer service and support, CRM system itself. Can be seen as part of a generalized ERP, which should form a seamless closed-loop system.

The difference and connection between PLM and ERP

PLM is a technology used to manage all product-related information (such as parts information, configuration information, graphic file information, structural information, permission information, etc.) and all product-related processes; ERP is all resources related to manufacturing and manufacturing. The technology of unified management with the process, focusing on the management of logistics in the manufacturing field, its representative functions are: main production plan, material demand plan, procurement demand plan, financial system management, inventory management and so on.

PLM's goal is to achieve effective management of product data or processes, control product quality from design sources, achieve "open source", "money", reduce direct costs, provide enterprise R & D capabilities, shorten product life cycle, and then improve enterprises The core competitiveness of ERP is to “throttle” and “saving money”. It is hoped that through effective management of enterprise resources, reduce indirect costs and improve manufacturing capacity.

The PLM system advocates innovation, which is centered on product research and development. The goal is to speed up the profit, promote innovation in both products and processes, and quickly occupy the market with "outstanding" products. The ERP system emphasizes control. Manage the need for visibility to drive and control corporate activities that have an impact on finance.

The difference and connection between SCM and ERP

SCM is complementary to ERP and belongs to two fundamentally different categories. Their different purposes, different fields and objects, different business nature, and different processes require different solution structures and system implementation methods. Although many very difficult problems must be solved in the process of implementing ERP, it is basically an internal problem. In the process of implementing SCM, in addition to the internal problems of related enterprises, people will also face the supply chain. Managers, who are the supply chain executors, how to reflect the system implementation effect, who is the actual beneficiary of the system, who is responsible for the system-related costs and how to share it.

ERP is an asset-based system that is typically represented as an asset in the balance sheet and amortized in the sales management fee. The SCM is a cost system. The geographical scope, business complexity and supply chain length of the enterprise activities will increase the implementation and maintenance cost of the SCM system. Therefore, the cost of the SCM should be used as the direct cost of the business. It is reflected in the company's income statement.

As a "ruler maker", both the ERP system and the SCM system are required. Through the implementation of ERP, the internal business and management processes of the enterprise are optimized, and information can be managed in a unified manner, forming a trading advantage compared with the “rule obeyers”. Through these advantages, “rule-makers” make rules and change rules and force “rule obeyers” to follow these rules in various forms. SCM is a tool for “rule makers” to “rule” the supply chain.

The difference and connection between MES and ERP

The focus of ERP is on finance, that is, from the financial point of view to plan the resources of the enterprise, the relevant modules are also based on the financial core, and the final management data is also concentrated on the financial statements. MES focuses on manufacturing, which is the management goal of product quality, on-time delivery, equipment utilization, and process control.

The scope of ERP management is larger than MES, and MES management is smaller than ERP. As part of the enterprise resources, enterprise production resources are also within the scope of ERP management, and there are corresponding functional modules such as production planning, data collection, quality management, and material management, so they are often confused with MES. However, the scope of ERP management is mainly based on the work center. The MES can be more detailed to each manufacturing process, and the task release, execution control, data acquisition, and on-site scheduling are performed for each process. If the ERP is to be managed at the process level, custom development is required.

ERP mainly manages by filling out forms and forms. The manufacturing tasks received on site are communicated through forms, and the on-site manufacturing data is also collected through filling out forms. MES is the use of events to achieve management, production order changes and on-site manufacturing conditions, through the MES built-in WIP engine to immediately trigger related events, requiring relevant personnel or equipment to take appropriate action.

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