How to survive Supply Chain crunch with ERP

The Global Pandemic over the past two years has put the global market in an extreme resource crunch that leads to geo-political tensions across the world. The lack of raw materials and other suppliers in practically all industrial enterprises has hampered the smooth production process. It has impacted not just producers, but also customers, who have had to confront longer wait times for what was formerly available immediately. lets understand ERP system.

The primary reasons for supply delays were, delays in sourcing raw materials and availability at a higher cost. These rising challenges have been creating difficulties in all sectors . One efficient strategy to address such difficulties is to optimize the utilization of existing resources.

What is Supply Chain

A supply chain in business is a network of establishments that acquire raw materials. It is the network of organizations, people, activities, information, and resources. This network is primarily involved in the delivery of a product or service to a customer. Supply chain operations encompasses the transformation of natural resources, raw materials, and components into a finished product. Above all distributing the same to the ultimate client.

Why is the Supply Chain crunch happening

E-commerce sites, transportation service providers, financial institutions, suppliers, and distributors are all part of supply chains. The factors that might generate a scarcity are typically global in nature. For example, supply chain difficulties started with Covid-19, with manufacturing shutdowns and a labour shortfall.

Supply chain shortages have also been linked to consumer behavior and demand. Customers are increasingly turning to online purchasing sites such as Amazon. Producers confront the logistical problem of getting their products from the plant to the hands of buyers in a timely manner.

Peak in Demand

Consumers are projected to continue purchasing things at higher levels, although demand has peaked, according to the insurance.  Despite the fact that surplus funds created throughout the pandemic have not been used, demand will ultimately stabilize, according to a report.

Inventory check

According to the study, after reducing inventories in early 2020, manufacturers rushed to replenish them in order to meet the unprecedented rise in demand. “The good news is that the need to replenish has peaked in recent months… “And inventories in most industries are now greater than pre-crisis long-term norms,” it said.


As capacity rises, shipping congestion could lessen in the second half of 2022. Shipping prices are projected to remain high in the coming year, but capacity is expected to increase as global orders for new container ships hit all-time highs, according to Euler Hermes. “The rapidly increasing new transportation capacity orders… should become operational by the end of 2022, considerably reducing shipping bottlenecks,” the report said.

Global Ecommerce expansion

Trade imbalances, on the other hand, may worsen. According to Euler Hermes’ calculations, the United States would run historic trade deficits, while China would run record trade surpluses

With the rapid acceptance and popularity of online businesses such as Amazon and Alibaba, it is no longer possible to hide behind actual distribution locations outside of China. This makes it considerably more difficult for producers to move items from factories all around the world into retail locations. With such a change in demand dynamics, businesses need to develop innovative strategies to manage the supply chain issue.

How to Survive Supply crunch with ERP

When it comes down to it, meeting greater demand with fewer employees and a disrupted supply chain means one thing: increasing operational efficiency is necessary.
Everyone aspires to accomplish more with less resources. But how exactly? Here are a few techniques for revealing the hidden potential for enhanced efficiency.

Efficient Inventory Management

An inventory management solution based on Enterprise resource planning gives insight into all aspects of your company’s supply chain. An ERP helps organisations to track inventory status and schedule shipments by offering access to your complete network of suppliers, customers, and distributors. With SCM tools, the top systems conveniently manage orders and shipment statuses and increase the accuracy of projections for customer order fulfilment and warehouse delivery dates. Important data indicating how much inventory is required for real demand vs predicted demands ensures accuracy and enhances inventory management cost-efficacy.

Customer support Boost

An underdeveloped distribution network generates extra shipment delays, lowering consumer satisfaction. These challenges get worse when clients do not obtain an accurate estimate of delivery timings. When this happens, people complain about bad service and may avoid doing business with you again. You may create online reporting tools that give real-time visibility into shipment status using a sophisticated ERP solution. The integrated warehouse management system also aids in the optimization of storage space based on predicted demand.

Internal Business Integration

ERP software in dubai connects with other corporate systems smoothly. An ERP solution will enable you to produce invoices instantly from sales orders and deliver them straight to clients or vendors. It is even feasible to automate the receipt of payments and the distribution of refunds.

Navigating in turbulent times need the most potent business solutions. However, these methods can also ensure long-term strategic growth when market dynamics are more predictable. While there is nothing you can do to address some of the issues creating the supply chain crisis, ERP software give results-proven methods for rising above the storm and sailing through the current obstacles.

ERP Software in Dubai, UAE

Elate Soft strives to empower small to large businesses by providing them with the most adaptable and affordable ERP Software Dubai, UAE. The term “electronic commerce” refers to the sale of electronic goods. From trade to development, we include all main sectors in Dubai and the UAE to provide tailored solutions that contribute to the industries’ quick growth.

We have experience in bringing a successful ERP deployment having worked with enterprises of all sizes and across the majority of industries. Sage 200 ERP, Sage 300 ERP, Sage X3, Odoo ERP, ERPNext, and Tally Prime are our premier partners. We have extensive installation, upgrade, conversion, customization, client support, and training expertise.

Please enable JavaScript in your browser to complete this form.

Name *

Select Product for Free Demo or Trial *Elate CRMElate HR PayrollReal Estate Property ManagementElate QB AddinsElate POSElate Cheque PrintingCustom ERP

Email *

Contact Number

Get Personal Free DemoLoading

Elatesoft is a well-reputed Middle East visionary in business solution with its sole focus providing a comprehensive and integrated software solution.

Call us

+971 50 803 6350


United Arab Emirates

Useful Links


Official Distributor In UAE

Peniel Technology LLC, Dubai, UAE

[email protected]

Dealer in UAE

Emerald Global LLC Sharjah, UAE

[email protected]

Signup Newsletter

©ElateSoft LLC 2024. All Rights Reserved