Supply chain management or SCM as it is commonly known, is the process of integrating the process of production of products into a single stream of activities, starting from the raw material to the complete finished goods. The key focus of a supply chain is to generate profits for the business through lowering of production costs and value addition to the products and services.
Any business today thrives on flexibility. The core competencies are handled by the company itself while certain specialized functions are outsourced to vendors who can perform them in a low-cost and efficient manner. This is where a supply chain comes into picture. SCM software is used to streamline all these processes and integrate them as one.
Visibility of a supply chain today demands that in the event of any emergencies or dynamic demands, one can easily analyze the stock of material that is present in the warehouses. It also includes ways to determine how the material is to be transported across various channels and within what time span.
Technology has a major role to play in ensuring effective visibility of a supply chain.
- Warehouse management systems help an organization to maintain a database of various items that have been stored in the warehouse. They also help in the optimization of storage facilities and maintenance of inventory of the materials available.
- Then there is software available for the transportation management systems which help in deciding on the transport routes and rates to be used for the shipping of goods. All the transportation movements of goods are handled through software.
- Management software and systems provide a wholesome snapshot of supply chain data for an organization from all sectors that make up that supply chain. This allows the organization to gather and analyze data and get visibility from all quarters that form a part of the supply chain.
- Software helps in collaborating and sharing of the data among various organizations that link up together in a supply chain. This aspect is important to ensure that information flows through the communication channels in a streamlined flow without compromising on the security part.
- Various point of sale and merchandising software are available that help in automating the transactions that take place as part of the supply chain.
On the whole, SCM software helps in automating and increasing the visibility of all processes related to the customer, supplier, manufacturer, retailer and wholesaler that form an integral part of the supply chain. Another key benefit associated with the usage of such software is that it helps in forecasting the demand for various products and services in the future. Such predictive analysis helps in modifying the production processes in the supply chain accordingly.
