Do you know what it means to manage a company’s supply chain?
In managing a product’s supply chain, everything from the procurement of raw materials and packaging through shipping and receiving is considered. To be successful, companies must have a network of suppliers (links in the supply chain) that transport raw materials to those firms that deal directly with the end customer.
Supply management solutions are a complex process.
According to CIO, classic supply chain management systems are made up of five components:
Planning
Ascertain whether or not the organisation has the resources necessary to keep up with the demand for its product or service from customers. As soon as a supply chain is established, metrics should be developed to determine if the supply chain is efficient and effective, whether it provides value to customers, and meets its objectives.
Sourcing
Make a list of potential vendors that can offer the materials and services required to build the product. The next step is to develop procedures for keeping track of and managing relationships with suppliers. Ordering, receiving, maintaining inventory, and authorising supplier payments are essential operations.
Manufacturing
Gather the raw ingredients, make the product, test for quality, the package for shipping, and plan for delivery.
Logistics and delivery
Coordinate client orders, schedule deliveries, dispatch loads, invoice customers, and accept payments from customers.
Returning
Set up a system or procedure to return faulty, surplus, or unwanted goods.
Why supply chain management software is beneficial for supply management solutions?
Supply chain management software may do the following:
- Help you keep expenditures under control and cut them
- Reduce the likelihood of shipping delays and logistical mishaps
- Service and contact with customers must be improved
- Assistance in planning and making decisions
Software for the supply chain can also help:
- Streamline and Reduce Administrative Costs by Automating Major Processes Like Order Processing, Invoicing and Shipment Tracking
- Supply chain, warehousing, and production costs can be reduced by eliminating unnecessary materials or processes
- Contribute to better demand planning and inventory management
- Enhance your supply chain’s reactivity to unanticipated occurrences, such as equipment breakdowns, personnel absences, missing items, urgent client requests and human mistakes to increase on-time delivery
- Report and analyse data at your fingertips
- Supply chain insight across the supply chain (from suppliers to manufacturing plants, storage and distribution centres) can help you to understand your operations better
- Encourage cooperation and communication between business associates, vendors, and retailers.
Supply chain software drawbacks
If you’re updating or deploying an enterprise system like Oracle or SAP, supply chain management software might be pricey. You should consider the expenses of the programme, the installation on-premises, and the continuing maintenance and operation expenditures.
Using open-source supply chain management software or Software as a Service (SaaS) solutions, for example, can help reduce the costs of implementation and maintenance. Explore the world of cloud computing by checking out the resources listed below.
Another significant factor to consider is the integration of software. There are times when it is difficult to incorporate new technology into an old system. Getting the system up and operating may necessitate a significant investment in both time and money.
Supply chain management software’s function
Today’s supply chains rely heavily on technology, and ERP suppliers offer modules that specialise in certain SCM operations. Additionally, SCM-specific business software providers exist. Here are some ideas to consider: tracking and optimising inventory levels; spotting and anticipating risks; supply chain visibility software; logistics management software; and transportation management systems.
