ERP Supply Chain: Definition, Core Functions, and Top 5 Vendors

ERP systems strengthen supply chain management by unifying operational data and processes across procurement, inventory, warehousing, logistics, and production. They provide end-to-end visibility, real-time data, and automation that help businesses improve efficiency, reduce costs, and make faster, more informed decisions.

Recent insights from PwC’s Reinventing Supply Chains (2024) show that 63% of organisations are actively adapting their supply chains to manage ongoing disruption. ERP systems mitigate these issues by consolidating fragmented data, enhancing forecast accuracy, and facilitating the earlier identification of risks that would otherwise remain unseen.

This article provides a clear and practical understanding of how ERP strengthens the supply chain, identifies the core functions that matter most for Australian operations, and highlights how leading vendors differ in terms of capability and fit.

What Is ERP in Supply Chain?

ERP in supply chain is a centralised system that integrates procurement, inventory, logistics, distribution, and production planning into a unified, real-time platform. Its primary role is to provide a consistent data foundation across all departments, ensuring that every team, from purchasing to warehousing to finance, works from the same accurate operational information.

Unlike fragmented tools or spreadsheets, ERP systems serve as the central hub for all supply chain data, eliminating silos across procurement, manufacturing, logistics, and finance. Core benefits of integrating ERP with supply chain processes include:

• Improved visibility across the supply chain: ERPs centralise real-time data across procurement, manufacturing, warehousing, and logistics, eliminating silos for complete supply chain visibility and proactive disruption anticipation.
• Increased efficiency and cost reduction: ERP systems automate tasks, such as order processing and inventory replenishment. Granular insights optimise inventory, improve manufacturing, and streamline logistics for precise cost tracking.
• Better decision-making with real-time data: By integrating information from sales forecasting, production, and inventory, businesses can achieve faster, more cohesive strategic decisions.
• Enhanced collaboration across departments and external partners: A single source of truth ensures all departments use the same accurate data, fostering cross-functional collaboration and alignment.

How ERP Differs from Standalone Supply Chain Management (SCM)

ERP software connects supply chain operations with the rest of the business, such as finance, sales, purchasing, warehouse, and manufacturing, while SCM systems typically optimise only one functional area. Supply chain tools may improve a single link; ERP synchronises the full chain.

A side-by-side comparison of ERP and standalone SCM solutions is presented in the following table:

A Real-World Case Study in Australia

STEDI, an Australian automotive lighting brand, operates high-volume e-commerce sales with a complex inbound supply chain. Their systems were fragmented, with inventory, fulfilment, and warehouse management running on separate platforms. This led to stock inaccuracy, delayed fulfilment, and an inability to scale seasonal demand.

To address these challenges, Stedi partnered with Havi to implement an Odoo ERP system integrated with logistics, unifying inventory, purchasing, warehousing, and transport management. Key improvements included:

• Automated inbound receiving, stock allocation, and pick–and–pack workflows
• Real-time inventory accuracy across the warehouse
• Integrated transport management, reducing dispatch delays
• Improved forecasting and replenishment planning across long international lead cycles

As a result, Stedi achieved more accurate forecasting, faster dispatching, and significantly improved operational control across its supply chain network.

ERP for supply chain provides a tightly integrated platform that replaces fragmented tools with unified visibility, process automation, and organisation-wide decision support. By understanding the definition, benefits, and practical impact of ERP, the next step is to examine how ERP delivers these outcomes through specific capabilities.

Top 6 Core ERP Functions for Supply Chain Management

ERP’s core supply chain functions create a unified, real-time platform that coordinates procurement, inventory, logistics, distribution, and production planning. With 47% of Australian organisations reporting vulnerability to supply chain disruptions in KPMG’s 2023 survey, these functions are crucial for managing long lead times, multi-warehouse operations, supplier variability, and manufacturing constraints.

Centralised Data and Real-Time Visibility

ERP centralises operational and financial data so teams across procurement, warehouse, logistics, and finance can access accurate, real-time visibility. This consolidates the workflows that previously lived in spreadsheets, cloud apps, or siloed systems.

• Unified dashboards for suppliers, orders, and warehouses
• Early-warning alerts for delays, stockouts, and disruptions
• Real-time updates that support proactive decision-making.

Demand Forecasting and Replenishment Planning

ERP-driven forecasting and replenishment planning help businesses anticipate demand, optimise stock levels, and maintain stable cash flow. As 69% of FMCG businesses anticipate better customer forecast accuracy (AFGC 2025) through better data integration, ERPs help companies reduce buffer stock and increase planning confidence.

• Using historical data and predictive analytics for planning
• Improving forecast accuracy to control inventory and working capital
• Aligning demand and supply in volatile or seasonal markets is common in Australia.

Procurement and Supplier Management

ERP solution streamlines procurement by centralising vendor data, automating purchasing tasks, and tracking supplier reliability. This improves supplier performance, reduces risk, and simplifies complex purchasing workflows. To learn about the essential functionalities of an ERP procurement system, explore our in-depth guide.

• Vendor scorecards and quality assessments
• Automated purchase requests and purchase orders
• Lead-time tracking, pricing, contract, and risk management

Inventory Management and Multi-Warehouse Control

ERP ensures accurate stock visibility and consistent fulfilment across multiple locations. With real-time tracking and automated stock movements, businesses can reduce errors and manual workload. For a deeper dive into the core features and top solutions of ERP systems specifically designed for inventory management, explore our full article: ERP Inventory System.

• Visibility across multi-location warehouses
• Automated replenishment, safety stock rules, and cycle counts
• Batch/lot/serial tracking for compliance
• Highly relevant for AU wholesale and distribution businesses with dispersed warehouses

Logistics, Distribution, and Warehouse Operations

ERP systems manage logistics by coordinating the full order lifecycle and optimising warehouse movements, dispatch workflows, and route planning for last-mile delivery. Standardised workflows enable teams to dispatch goods quickly and accurately while managing returns efficiently. For logistics management, explore the leading ERP systems.

• Managing the order lifecycle from pick, pack, and ship
• Last-mile delivery integrations and tracking
• Reverse logistics and returns processing

Production Planning and Material Coordination

ERP software connects production schedules, materials, and capacity planning to ensure manufacturing teams operate efficiently and avoid delays. By linking BOMs, routing, and inventory availability, downtime is minimised and resources are used effectively. Explore the essential distinctions and integration possibilities between ERP and MRP systems in our detailed article.

• Bill of materials, recipes, and units of measure
• Capacity planning and production scheduling
• Material availability to reduce downtime

These six core functions form the operational foundation of an ERP-driven supply chain, enabling businesses to synchronise data, reduce manual work, and respond more quickly to disruptions. To extend their value, Australian businesses must connect ERP with their finance, e-commerce, and logistics ecosystem, which is covered in the next section.

ERP Integration for Australian Supply Chains

ERP integration ensures that accounting, e-commerce, and logistics systems work together seamlessly across Australian supply chains. This unified flow removes manual reconciliation, synchronises financial and operational records, and supports faster fulfilment across multi-channel environments common in Australia.

• Accounting: Integrating ERP supply chain with Xero, MYOB, and Australian payroll keeps financial data, inventory valuation, and operational records consistent across teams. It supports GST/BAS reporting, automates journals, improves reconciliation, and links transactions directly to procurement and inventory movements.
• E-commerce: By connecting the ERP system with Shopify, WooCommerce, and Amazon, businesses can synchronise products, stock levels, orders, and fulfilment activity in real time. This prevents overselling, accelerates order processing, and provides full visibility from listing to delivery.
• Shipping & logistics: Linking ERP with AusPost, StarTrack, Toll, and 3PLs automates labels, tracking, and delivery updates from within warehouse workflows. This cuts dispatch delays, standardises pick-pack-ship steps, and supports domestic and international shipping.

These integrations reinforce ERP as the data backbone of Australian supply chains, ensuring accounting, online sales, and logistics partners operate from one real-time source of truth. With the integration defined, the next step is evaluating which ERP platforms are best suited to support supply chain operations in Australia.

Top 5 ERP Vendors for Supply Chain Operations in Australia

Leading ERP platforms for supply chain in Australia provide end-to-end visibility, integrated planning, and reliable support for local tax, logistics, and multi-warehouse operations. Among the many systems available, five stand out for their ability to coordinate procurement, forecasting, inventory, warehousing, and fulfilment across diverse Australian industries.

This reflects the Australian supply chain technology market's rapid growth, projected to expand from USD 111 million (2024) to USD 261.4 million by 2030 (Grand View Research).

Odoo For Supply Chain

Odoo’s strength in supply chain lies in its fully integrated modules for procurement, inventory, manufacturing, and logistics, supported by Australian localisation. Its modular architecture allows businesses to unify sales, warehouse operations, e-commerce, and finance. Odoo is well-suited for growing Australian wholesalers, distributors, and manufacturers that require flexible automation, barcode workflows, replenishment rules, and multi-warehouse coordination. Explore our comprehensive article for a deeper dive into Odoo supply chain features and processes.

Odoo Inventory Dashboard: An example of ERP stock tracking. (source: Odoo)

Microsoft Dynamics 365 SCM

Dynamics 365 excels in complex supply chain management through advanced planning, forecasting, procurement control, and real-time logistics insights. With strong MRP, supplier collaboration tools, and global supply-chain visibility, it is a preferred choice for mid-market and enterprise Australian manufacturers and distributors. Its deep integration with Microsoft’s ecosystem strengthens reporting, analytics, and cross-department collaboration.

For a detailed look at the top features, read our comprehensive guide on Dynamics 365 features for supply chain management.

Dynamics 365 demand planning dashboard with forecasts, sales history, and inventory.  (source: Microsoft)

SAP S/4HANA Cloud

SAP S/4HANA is strongest in highly complex, global supply chains that require real-time analytics, robust planning engines, and advanced manufacturing control. Its in-memory data model enables detailed forecasting, quality control, and compliance processes across large organisations.

The ERP inventory processing, which shows the flow from receiving to shipping finished products (source: SAP).

Oracle NetSuite

NetSuite’s strength is its cloud-native architecture and unified suite covering inventory, procurement, order management, and multi-location fulfilment. It is widely used by Australian wholesalers and e-commerce businesses needing real-time stock visibility, built-in financials, and multi-subsidiary consolidation. NetSuite is well-positioned for multi-warehouse, multi-channel businesses with fast operational scaling.

MYOB Acumatica

MYOB Acumatica supports supply chain operations through integrated procurement, warehouse management, and financial control for small-to-mid Australian businesses. Built on Acumatica’s cloud ERP framework, it provides automated purchasing, batch/serial tracking, landed cost functions, and local payroll/ATO compliance. It suits organisations seeking a mid-range cloud system with a strong financial supply chain linkage.

These five platforms give Australian businesses a solid foundation for inventory control, procurement, logistics, production, and financial alignment. With the core ERP options understood, the next step is determining how to select the right ERP system for your supply chain needs.

4 Stages To Select An ERP For Supply Chain

Selecting an ERP for supply chain involves a structured process that aligns operational pain points, business objectives, platform capabilities, and implementation expertise. We break down the main steps in the selection process as follows:

Step 1: Map Current Pain Points Across the Supply Chain

The first step is to identify where delays, errors, or inefficiencies are occurring across procurement, inventory, production, logistics, and fulfilment. This includes reviewing manual processes, siloed systems, stock discrepancies, long lead times, and any constraints affecting delivery performance or cost.

Step 2: Prioritise Functions Based on Operational Goals

The next step is to decide which functions matter most, such as forecasting, warehouse automation, multi-warehouse visibility, procurement control, or manufacturing planning, based on business goals. This ensures the ERP system addresses high-impact problems rather than adding unnecessary features.

Step 3: Evaluate Vendor Strengths

Evaluating vendors involves assessing whether each platform supports the required workflows, integrations, Australian compliance, scalability, and industry-specific capabilities. This stage helps narrow the shortlist to systems that match both current needs and future growth.

Step 4: Assess Implementation Partner Expertise

Selecting the right implementation partner is crucial because their experience determines how well the ERP is configured, integrated, and rolled out. A strong partner understands local regulations, supply chain processes, change management, and how to avoid common ERP project risks.

These four stages set a great foundation for selecting an ERP system that meets your supply chain management requirements. Note that the perfect ERP system should not only meet your current needs but also evolve and expand with your company in the long term. Now, let’s address common questions and clarify misconceptions that decision-makers often encounter.

ERP Supply Chain - Frequently Asked Questions

What is ERP in supply chain?

ERP in supply chain is a unified system that manages procurement, inventory, logistics, distribution, and production in one real-time platform. It replaces disconnected tools with centralised data, integrated workflows, and full traceability from supplier to customer.

What ERP supply chain modules are included?

ERP supply chain modules typically include procurement, inventory, warehouse management, logistics, production planning, demand forecasting, and quality control. Many systems also integrate accounting, e-commerce, and shipping carriers to support end-to-end operations. For a deeper insight into how ERP modules work together, refer to our comprehensive guide.

Do I need ERP or SCM?

You need an ERP if your supply chain must connect tightly with finance, sales, production, and reporting; you need an SCM system if you only want advanced logistics or transportation capabilities. Most businesses choose ERP because it provides a unified platform that covers both operational and financial needs.

Which ERP systems are best for supply chain management?

The ERP platforms with the strongest supply chain capabilities are SAP S/4HANA, Oracle NetSuite, Microsoft Dynamics 365, and Odoo. These systems support end-to-end supply chain processes, including procurement, inventory, warehousing, logistics, and production planning.

ERP for supply chain gives organisations a single, real-time system to improve visibility, automate manual work, and reduce costs across procurement, inventory, production, and logistics. If you’re looking to modernise your supply chain, investing in the right ERP platform and the right implementation partner is one of the most impactful steps you can take. To explore options, discuss a project, or request a tailored demonstration, our team is ready to help.