WHAT IS SUPPLY CHAIN MANAGEMENT?
Supply chain management is the management of moving goods and services, including the conversion of raw materials into finished products. A company will form a network of suppliers to move the product from the raw materials supplier to the organization that distributes the products to the customer. An efficient supply chain will fully manage the entire production process while boosting client value and gaining an advantage over competitors.
A traditional supply chain management system is made up of the following components:
- Planning
- Sourcing
- Manufacturing
- Delivery and Logistics
- Returning
Supply chain management software is a product solution that monitors the moving of goods and services from production planning to the end consumer. If implemented correctly, it can also improve the supply chain management process as a whole, automate redundant tasks, and improve customer service. These benefits can result in a stronger connection with business partners and increase customer satisfaction.
WHY IS IT IMPORTANT?
Supply chain management is essential to secure an efficient flow from production to sales. A supply chain starts when raw materials are delivered to a company and finishes when the final products are delivered to the customer. With good supply chain management, supply managers can reduce excess expenses and avoid costly shortages.
Despite supply chains being a long-standing concept, most companies have just recently started to focus on them as an improvement to operations. Utilizing supply chain management software can provide your company with increased control and visibility over your supply chain, making it more efficient and helping you resolve potential disruptions.
EIGHT ESSENTIAL SUPPLY CHAIN MANAGEMENT FEATURES YOU NEED
Deciding on a supply chain management software solution that is best suited for your company can be a difficult task, especially if you don’t know what to look for. Here are eight essential supply chain management software features that you should look for when evaluating your options.
INVENTORY MANAGEMENT
Effectively managing inventory for your business is key to a productive and smooth supply chain. Between raw materials, final products, and additional parts, all must be properly stored and kept in stock. Inventory management software can help monitor your inventory, ensuring your company doesn’t struggle with excess or limited supplies.
CUSTOMIZED SOLUTIONS
When deciding on a supply chain management software solution for your company, it’s important to examine the customization of prebuilt components. Many supply chain solutions allow customization to support businesses’ ability to quickly adapt to market changes. There are even solutions that take an open architecture approach, allowing businesses to truly customize the supply chain management solution to meet their unique needs.
ORDER MANAGEMENT
Processing an order from the initial sale to delivery is likely a top priority when it comes to your supply chain. Your supply chain management software should be able to create the order and bill the customer from the same solution, simplifying your order-related needs. Finding a solution that offers a flexible order management ability is ideal, allowing the solution to work with your company’s requirements and limitations while being configurable.
WAREHOUSE MANAGEMENT
Utilizing warehouse management functionalities can help your company enhance its warehouse operations and improve accuracy. These functionalities can meet your company’s needs in a cost-effective and timely manner by processing orders from various sources. It’s essential to choose a supply chain management solution that includes warehouse operations, as this is a crucial part of your supply chain.
TRANSPORTATION MANAGEMENT
Transportation management tools can help your company transport raw materials and final products in the most efficient and affordable way. This can include a combination of management and monitoring tools for various types of shipping, including truck, rail, air, and sea. Some features that should be included in your supply chain management solution are the ability to monitor the shipment timeline, manage fuel costs, and track state and federation laws and regulations.
CLOUD-BASED SOLUTION
By using a cloud-based supply chain management software, your company can access it anytime and anywhere. This allows your company to manage, monitor, and track transactions conveniently through authorized users. Cloud-based solutions also tend to be available at a lower cost and have a quicker turn-around time from being purchased to being ready to use.
SUPPLY CHAIN ANALYTICS
A quality supply chain management solution will also provide you with data-generated analytic and forecasting abilities to help you evaluate and improve your business. Analytic tools can help your company understand where problems start, what future events may happen, and support your risk management all from existing data. These tools can help your company move past counterproductive procedures and find out what works best for your business.
REAL-TIME VISIBILITY
Having complete visibility of your entire supply chain is a necessary capability for any supply chain management solution. To avoid interruptions, missing products, and unhappy customers, your company should take advantage of real-time access to your supply chain. By having these real-time capabilities, your company can see and react in a timely manner to any changes in your supply chain as they happen.
HOW GENECA CAN HELP YOU
Having a supply chain management software solution is vital to improving your company’s operations. By utilizing a supply chain management solution, you can reduce expenses while increasing control and visibility over your supply chain. If your company is ready to take the next step and improve its supply chain management and operations, get in touch with Geneca today.