A key drawback of using single-source ERP solutions for supply chain management is that they lack the robust capabilities of their best-of-breed counterparts and next-generation technologies such as machine learning and artificial intelligence (AI) that make many of these features possible. ERP vendors are primarily focused on building software that helps companies manage their day-to-day business activities, such as accounting, procurement, human resources, and compliance. It’s challenging for any vendor to be all things to all people, so the capabilities they provide outside of their core focus areas, such as supply chain management, often don’t measure up to the best purpose-built solutions available. The modular architecture of ERP systems is another drawback for supply chain management. Individual, disconnected software modules used to manage the various supply chain functions – whether it’s supply chain management, inventory, or some other area – create silos across data, processes and people. This results in a linear, sequential method of planning across functions, which makes it extremely challenging for companies to react with agility when the unexpected happens. By the time a demand or supply plan is formulated, for example, the supply chain may be facing a completely new set of circumstances that make the plans obsolete. The data silos that result from the modular architecture of single-source systems also create a dependence on spreadsheet tools like Excel in many organizations. Because ERP systems simply do not provide advanced tools for automation, collaboration and data analytics, Excel is often the only alternative. However, unlike specialized supply chain software tools, Excel provides a generic set of capabilities, and its significant limitations make it a poor choice for dealing with the most challenging aspects of supply chain management. Dealing with supply chain volatility, in particular, requires the help of supply chain software that combines sophisticated real-time data analytics with automated intelligence and the ability to quickly create and analyze what-if scenarios rapidly.