The connection and difference between CRM, PLM, SCM, ERP, MES

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Enterprises have at least four types of assets in information construction: customer assets, knowledge assets, operating assets and tangible assets. The corresponding technologies are CRM, PLM, SCM, ERP, BPM, MES, etc. The most important source of corporate competitiveness is based on innovative knowledge and its carrier, precipitation and solidification through professional application systems in different fields, and to ensure the efficient operation of various business areas of the enterprise.

Customer Relationship Management (CRM)

In the actual application of ERP, people found that due to the limitations of the ERP system itself and the limitations of the development stage of IT technology, the ERP system did not well implement the management of the downstream (client) of the supply chain. Factors of customer diversity, ERP has not given a good solution. “Customer-centric” will be the core of CRM. CRM achieves the purpose of shortening the sales cycle, reducing sales costs, increasing revenue, expanding the market, and comprehensively improving the profitability and competitiveness of enterprises by meeting the individual needs of customers and improving customer loyalty. The original intention of any company to implement customer relationship management is to create more value for customers, that is, to achieve a “win-win” between customers and the company. The CRM system can obtain customer needs and provide services to customers in a timely manner so that enterprises can reduce “soft” costs.

Product Life Cycle Management (PLM)

Among the four systems of ERP, SCM, CRM, and PLM, the growth and maturity of PLM takes the longest time and is the least understandable. It is also quite different from other systems, because so far, it is the only system oriented to product innovation and the most interoperable system. If an enterprise uses PLM software to truly manage the full life cycle of a product for manufacturing purposes, it needs to be integrated with SCM, CRM, especially ERP. As a concept, PLM has been around for a long time. From a technical point of view, PLM is a technology that manages all product-related data throughout its life cycle.

PLM includes all the contents of PDM, and PDM functions are a subset of PLM. However, PLM emphasizes the concept of managing and using all information across the supply chain in the product life cycle, which is essentially different from PDM.

Supply chain management (SCM)

Supply chain management is an integrated management thought and method, which performs the planning and control of logistics from the supplier to the end user in the supply chain. From the perspective of a single enterprise, it means that the enterprise obtains a competitive advantage by improving the relationship between the upstream and downstream supply chains, integrating and optimizing the information flow, logistics, and capital flow in the supply chain. The supply chain is a sequence composed of suppliers, warehouses, operations, and retail channels. The supply chain system can optimize the cost and value of products. It mainly serves the manufacturing of enterprises. It is to plan, dispatch, allocate, control and utilize various materials, funds, information and other resources in each link of supply mainly through information means around the core enterprise, forming users, retailers, distributors, manufacturers, and purchasers. The overall function of the supplier’s supply process.

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Enterprise Resource Planning (ERP)

ERP manages the purchase, sale, and storage of enterprises, and is mainly manifested in the management of tangible assets. What is more important in the actual application of an ERP system is that it should reflect the essence of its “management tool”. The main purpose of the ERP system is to comprehensively balance and optimize the management of comprehensive resources such as human, financial, material, information, time and space owned by the enterprise. ERP software coordinates various management departments of the enterprise. The ERP system develops business activities around market orientation and improves the enterprise Core competitiveness to achieve the best economic benefits. Therefore, the ERP system is a software and a management tool at the same time. ERP is a fusion of IT technology and management thinking. ERP system is also advanced management thinking with the help of IT technology to achieve the goal of improving the management level of the enterprise.

Manufacturing Execution System (MES)

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

MES can optimize and manage the entire production process from order placement to product completion through information transmission. When real-time events occur in the factory, MES can respond to them in a timely manner, report them, and use current accurate data to guide and process them. This rapid response to changes in status enables MES to reduce non-value-added activities within the enterprise, and effectively guide the production and operation process of the factory, so that it can not only improve the timely delivery ability of the factory, improve the circulation performance of materials, but also improve Production rate of return.

The difference and connection between CRM and ERP

In terms of management concepts, the main purpose of CRM is to establish, develop and maintain customer relationships. ERP is to improve the planning and control of internal resources of the enterprise, focusing on meeting customers and delivering timely delivery while minimizing costs in all aspects. The quality of service to customers is improved by improving internal operation efficiency. It is about efficiency.

In terms of objects of concern, CRM and ERP are fundamentally different. Compared with enterprise-level internal resource planning ERP, CRM is more concerned about the market and customers. The role of CRM is mainly in the departments that have direct contact with customers. The marketing, sales and service departments of enterprises, including the management of all stages of the entire customer life cycle, are mainly targeted by CRM and provide enterprises with information on customers and purchased products. Statistics, tracking, service and other information methods and functions. In other words, if ERP is an enterprise-level comprehensive management application, then the forefront of ERP is CRM, and its scope of action has been extended to places where ERP was beyond its reach.

From the perspective of application system design, the main business processes of ERP are relatively fixed, while most CRM business processes are more flexible. The CRM system is designed with the goal of customer relationship development and maintenance. The system is mainly centered on a unified customer database, providing system users with a unified view of customers, customer analysis, and forecasting. The ERP system is a “transaction processing” system, emphasizing the accurate recording of the trajectory of the company’s various resources, including personnel, finances and things, etc., seamlessly integrating the company’s production, inventory, financial and other management modules to make the company “automated” The ability is realized, the manpower requirements and errors are greatly reduced, and the efficiency is continuously improved.

The difference and connection between PLM and ERP

PDM is a technology used to manage all product-related information (such as parts information, configuration information, graphic file information, structure information, authority information, etc.) and all product-related processes. ERP is a technology for unified management of all resources and processes related to enterprises and manufacturing, focusing on the management of logistics in the manufacturing field. Its representative functions include: main production planning, material demand planning, procurement demand planning, financial system management, inventory management, etc. .

The goal of PLM is to control product quality from the design source through effective management of product data or processes, realize “open source” and “make money”, reduce direct costs, provide enterprises with R&D capabilities, shorten product life cycles, and improve enterprises The core competitiveness of ERP; the purpose of ERP is to “thrift” and “save money”, hoping to reduce indirect costs and improve manufacturing capabilities through effective management of corporate resources.

The PLM system advocates innovation, centering on product research and development. The goal is to accelerate the speed of profitability, promote innovation in both products and processes, and quickly occupy the market with “outstanding” products; the ERP system emphasizes control and is It is driven by the need for management visibility and controlled by corporate activities that have an impact on finances.

The difference and connection between SCM and ERP

SCM and ERP are complementary and belong to two fundamentally different categories. They have different purposes, different fields and objects, different business natures, and different processes, and they require different solution structures and system implementation methods. Although there are many very difficult problems to be solved in the process of implementing ERP, it is basically the internal problem of the enterprise; and in the process of implementing SCM, in addition to the internal problems of the enterprise that need to be solved, people will also face who is the supply chain A series of questions such as managers, who is the executor of the supply chain, how to reflect the effect of system implementation, who is the actual beneficiary of the system, who should bear the related costs of the system and how to share it.

ERP is an asset-based system, which is usually reflected as an asset in the balance sheet and amortized in the sales management fee. SCM is a cost-based system. The geographical scope of business activities, the increase in business complexity and the increase in supply chain length will lead to a substantial increase in the implementation and maintenance costs of the SCM system. Therefore, the cost of SCM should be regarded as the direct cost of the business. Reflected in the corporate income statement.

As a “rule maker” you need both an ERP system and an SCM system. Through the implementation of ERP, the internal business and management processes of the enterprise can be optimized, and the information can be managed in a unified manner, forming a transaction advantage compared with the “rule obeyers”. “Rule makers” use these advantages to formulate and change rules, and use various forms to force “rule obedience” to follow these rules. SCM is a tool for “rule makers” to “rule” the supply chain.

The focus of ERP is on finance, that is, to plan the resources of the enterprise from a financial perspective. Related modules are also developed with finance as the core, and the final management data is also concentrated on the financial statements. MES focuses on manufacturing, that is, product quality, on-time delivery, equipment utilization, and process control are the management goals.

The scope of ERP management is larger than that of MES, and MES management is more detailed than ERP. As a part of enterprise resources, enterprise production resources are also within the scope of ERP management. 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. MES can be more detailed to each manufacturing process, and perform task release, execution control, data collection, and on-site scheduling for each process. To achieve process-level management in ERP, custom development is required.

ERP mainly implements management by filling in forms and flipping forms. Manufacturing tasks received on site are communicated through forms, and on-site manufacturing data is also collected by filling in forms. MES implements management by means of events, changes in production orders and on-site manufacturing conditions, and related events are triggered immediately through the built-in WIP engine of MES, and relevant personnel or equipment are required to take corresponding actions.

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