Jan, 2021 - By
Supply chain management (SCM)
software is a robust piece of technology. It is rich in different features, all
aimed at enhancing operations from the very beginning to the end, from the
point of origin of your product or service to its delivery to your
customers. It's a powerful
organizational tool without which modern business supply chain management
wouldn't be possible. Firstly, it enables companies to track their operations
in real-time. Moreover, it allows for far greater efficiency due to the
automation of processes. Finally, it leads to that significantly impacts the
company's overall functioning, resource usage, customer experience, and
ultimately, profit. This article will deal with six key features of supply
chain management software necessary for leading a company to its successful
future.
1.
Inventory management
This tool immensely improves how a company can track and manage available raw materials, components necessary for
production stocked finished goods and spare parts. Consequently, it allows a
company to eliminate or minimize waste and excess, freeing up valuable space,
thus, minimizing related storage costs.
The issue of unused inventory lying
around is easily solved with an SCM system, as it can be tagged using Barcode,
RFID, and QR code-based systems. So, the centralized SCM system allows tracking
the position, location, and status of inventory in real-time. Moreover, the
company can check the inventory quantity, track damaged or missing items, all
using a mobile phone or a tablet, thanks to the QR code-based system.
With all that information available
instantaneously, companies can optimize procurement by making the right
decisions to meet the demand for goods.
2.
Order management
Operation managers, accounting, and
other departments should have an integrated system for procurement. Also, they
should be able to track orders, expenses, and billings. This is where supply
chain management software steps in. It connects everyone, allowing for easier
billing and order management. Furthermore, it organizes and catalogs items,
products, or services.
Due to the fact that it helps
companies generate and track sales orders more efficiently, SCM software can
dramatically speed up the execution of the complete order-to-delivery cycle. It
automates purchase processes that entail generating and tracking orders,
scheduling deliveries, pricing, and creating product configurations.
3.
Planning and forecasting
Another one of the key features of
supply chain management software is planning and forecasting. It means that an
SCM system anticipates customer demand, and based on its forecast, plans
procurement and production processes. This feature helps eliminate the
purchasing of unnecessary raw materials and accumulating excess finished goods.
As a result, storage and production costs decrease.
What is more, supply chain planning
is critical for the company's success. The way your business builds products or
services for the customers plays a vital role in its success. Demand
forecasting provides valuable analytical data that your business can use to
improve the way you build and deliver products or services to clients. This is
possible because SCM systems can map customer orders from previous
periods.
4.
Product manufacturing
Similar to planning and forecasting, a supply chain management system can help a company manufacture its products
better. Mapping customer demand with the current manufacturing process closes
any existing gaps. The software can create orders, monitor the manufacturing
process, and charge customers from one centralized location. With the
customers' location and preferences in (digital) mind, the SCM system can
configure the process to meet all the specific needs. Ultimately, the entire
manufacturing and delivery processes become more customer-oriented.
A broader software solution
encompassing supply chain management tools that can be of tremendous help to
the company's success and boosting customer satisfaction is CRM. And there are . As its name suggests, it is a
Customer Relationship Management software aimed at improving your business's
customer experience. It connects everyone in the company allowing them
immediate access to all customer information, including previous orders,
leading to greater efficacy and efficiency.
5.
Logistics
As companies grow, their supply
chains become increasingly more complicated, and is imperative. Therefore, an SCM system is an absolute
necessity for coordinating transportation channels and numerous warehouses.
Also, it will allow companies to improve their delivery performance. As a
result, they will increase their customer satisfaction significantly. Moreover,
the company will allow for complete visibility of how their products are stored
and distributed. The number of facilities and partners included in the
organization becomes irrelevant for the unimpeded functioning.
6.
Return management
An SCM system helps accelerate and
simplify the inspection and handling of damaged or faulty goods, both on the business buys and sell sides. It also automates the processing of refund and
insurance claims with suppliers and distributors.
The
importance of supply chain management software
There are various types of supply chain
management software. Some are independent applications or programs, while
others are a part of a more extensive solution. Customer Relationship
Management (CRM) and (ERP) are two of the broader supply
chain management solutions.
The software ensures a continuous
flow of stock, so there are no unnecessary interruptions in deliveries. This
also makes sure that the production process is uninterrupted indefinitely.
Moreover, it allows maintaining good relationships with suppliers. As we have
seen, the software allows for reduced costs in the procurement process and
chooses the optimal supplier. In other words, it enables companies to procure
the best quality stock at the lowest possible price. With the monitored
production, procurement, and demand, excess, and waste are eliminated or
minimized, and storage costs decrease. All that combined gives companies the
possibility to reduce their prices.
All in all, the right solution will
maximize cost-efficiency, boost productivity, and increase your company's
bottom line. It will help your business achieve and maintain a competitive edge
due to enhanced operations from the beginning to the end. With a wide range of
robust features of supply chain management software that integrates different
modules and applications, companies can significantly improve their supply
chain management.