What Are The 10 Types of Supply Chain Management (SCM) Software?
Luck does not govern supply chains; the right software does!
As a logistics business, embracing technology and using supply chain management software is the best thing you can do. The software helps in multiple ways, whether you want to save costs or improve efficiency, productivity, or both. If you look forward to a competitive edge in the market, these 10 types of Supply Chain Management Software are highly recommended.
What Will We Cover?
Before discussing the types of Supply Chain Management software, let us learn what supply chain management software is!
What is Supply Chain Management (SCM) Software?
Supply chain management software manages different logistics operations. By leveraging the latest technologies like AI, automation, etc., SCM software helps in procurement, inventory control, and all the other operations right from when goods enter the supply chain. It is easily integrated with ERP and CRM to ensure data consistency.
Some core benefits of SCM include cost reduction, high customer satisfaction rate, and improved efficiency. An advanced software chain management tool can streamline several supply chain operations and help businesses grow to the next level. They can have better visibility, improved efficiency, cost savings, and more.
Did you know? The SCM software market is growing continually, as reported by Research and Market[1], Growing at a CAGR (Compound Annual Growth Rate) of 11.39%, the global SCM software market was valued at USD 22.58 billion in 2023, and is expected to reach USD 43.52 billion by 2029.
Why Does Supply Chain Need Different Types of SCM Software?
Supply chains need different types of SCM software because different software caters to businesses’ specific requirements. While some focus on real-time inventory tracking, others aim to ease transportation. Hundreds of tasks in the complex supply chain need to be handled with different types of software.
Modern-day supply chains are complex, data-driven, and dynamic. Businesses that want to stay ahead must rely on various types of Supply Chain Management (SCM) software to streamline operations, reduce wastage, and improve cost savings and efficiency.
Also, the diverse types of Supply Chain Management software cater to the diverse logistics needs. Whatever your industry may be: e-commerce, hospitality, manufacturing, or retail, etc., there is a SCM software solution for your needs.
Let’s explore the different types of SCM software in the market that are more like a necessity.
10 Essential Types of Supply Chain Management Software
Each type of SCM software serves a different purpose. Here are the top 10 essential SCM software that carry out diversified purposes so that you can choose the one that best suits your needs.
1. Inventory Management Software
Inventory management has a pivotal role among the different types of SCM software. It maintains the right stocks and prevents wastage. It also acts as real-time tracking software and prevents stock wastage.
This type of SCM software helps logistics businesses track and manage stock levels in real time. Inventory control software consistently tracks orders and ensures there are no under- or overstocks.
Did you know? Companies that rely on data analytics to make inventory decisions experience a 20% reduction in overall costs. Better insights lead to efficient stock management.[2]
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2. Supplier Chain Relationship Management (SRM) Software
It is also known as supply chain management software. It handles all the collaborations and interactions among the supply chain partners. It facilitates contracts between suppliers, monitors KPIs, and encourages real-time partnering.
A centralized dashboard automates several routine tasks and ensures you get only value-driven supplier engagements for improved collaboration and productivity.
Did you know? As per Data Horizon Research[3],The supply chain market is forecasted to yield 38.2 billion USD by 2033.
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3. Demand Planning & Forecasting Software
Demand forecasting tools or demand planning and forecasting software use historical data and real-time analytics to predict customers’ demand and help them make smarter decisions about inventory.
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4. Enterprise Resource Planning (ERP) Software
The ERP supply chain module integrates the SCM with diversified human resources, finance, and customer/supplier management functions. This helps users view everything from a centralized dashboard, ensuring end-to-end supply chain visibility.
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5. Supply Chain Visibility & Collaboration Platforms
Supply Chain Visibility is a real-time tracking software that tracks supplies for better visibility across the supply chain. It leads to better collaboration and transparency. Also, with real-time tracking of goods, issues can be resolved faster.
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6. Supply Chain Planning (SCP) Software
As its name suggests, Supply Chain planning software plans various supply chain activities, from production to inventory control, transportation, and more. The software helps businesses optimize their inventory in real time and improve operational efficiency. With SCM software solutions, you can better manage logistics operations.
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7. Product Lifecycle Management (PLM) Software
PLM software helps manage a product’s lifecycle, from creation to usage and everything in between. It results in better product creation and reduces the time it takes to reach the market.
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Product Lifecycle management software results in superior product creation and complete control over them.
8. Sales & Operations Planning (S&OP) Software
Sales and Operations Planning software ensures that operations, finances, and sales are completely aligned to streamline planning, better collaboration, and optimization of all supply chain operations.
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9. Procurement Software
Procurement Management Software streamlines the entire procurement process, from the point of purchase until the supplies reach the customers.
These Supplier management tools result in better efficiency and collaboration. They help businesses achieve better efficiency and collaboration and reduce the chances of manual errors. This improves overall cost control, ensures regulatory compliance, and enhances supplier relationships with the help of data-driven decision-making and real-time tracking.
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10. Risk Management & Integration Platforms
Risk management and integration platforms play a vital role among the different types of Supply Chain Management software. These tools identify risks, such as failure to comply with regulatory requirements or disruptions in the supply chain, to ensure a smooth data flow and complete transparency.
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Let’s understand what things should be considered when choosing the best supply chain management software.
How To Choose The Right Supply Chain Management Software?
To get the best value for your investment, consider certain factors that will help you choose the right supply chain management software.
Key Factors to Consider:
Did you know? As per a recent report, the global SCM software market surged to nearly $13 billion. It is growing by 9.7%.[4]
Step-by-Step Selection Process:
- 1. Evaluate Your Needs: The first step is to identify what you require and choose the software accordingly.
- 2. Make a List of Requirements: Once you know what you require, prepare a list.
- 3. Compare the Vendors: Do not get confused about the choices you are getting. Plenty of vendors claim to be the best. You need to choose the highly rated one with great reviews. Also, check out what features the vendor is offering.
- 4. Request a Demo: Most service providers offer a free demo, enabling users to choose the best option for them.
- 5. Analyze Support: Ensure the service provider gives you the best ongoing technical support around the clock.
Top SCM Software Comparison Table
Let us have a quick look at the comparison of leading SCM software.
| Vendor | Key Features | Best For | Pricing |
|---|---|---|---|
| SAP |
Complete ERP, CRM, and other features, apart from vendor management. |
For managing large-scale business enterprises. |
Pricing for SAP Supply Chain solutions starts at $30,000 annually, but can be higher. |
| Oracle NetSuite |
Cloud Enterprise Resource Management, Inventory Control, and demand forecasting. |
For medium-sized to large-scale businesses. |
$20k annually, and the additional implementation costs. |
| GoComet |
Freight tracking, better transparency, and rate management |
Companies handling transportation and logistics |
Does not publicly publish its pricing. Get a tailored quote |
| CommuteLogix |
Real-time data tracking, route optimization, and last-mile deliveries. |
Best for e-commerce, small and mid-sized businesses. |
$24.00 per user, per month. Get a tailored quote |
Error-laden and repetitive manual tasks are a curse to your supply chain. Better inventory control, better logistics control, and better control over your supply chain are possible with CommuteLogix.
Get CommuteLogix – Supply Chain Management Software!Conclusion
Different SCM software has different purposes. An SCM software is a must-have for smooth-running supply chain operations. If you want to improve operational efficiency, save costs, and have a high customer retention rate, choose an SCM software with careful consideration.
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Frequently Asked Questions (FAQs)
Here are a few commonly asked questions about managing the supply chain. Let us know if you have any:
1. What is supply chain management?
Supply chain management is the sum of all activities involved in managing, tracking, and handling the supply chain. It entails everything from the point at which goods enter the supply chain.
2. What are the best supply chain management software solutions?
The best SCM software for your business will be decided upon the needs and features. Some of the best SCM solutions are CommuteLogix, Oracle, ZAP, Blue Yonder, and IBP etc.
3. What are the key benefits of SCM software?
Increasing productivity, efficiency, and saving costs are some of the top benefits of SCM software.
4. What are the major features of supply chain software?
Supply chain software offers several key features, such as real-time inventory tracking, predictive analytics, and route optimization.
5. What are the use cases of supply chain management tools?
SCM tools have multiple use cases, including industries such as manufacturing, retail, and e-commerce.
Satisfy Your SCM Needs and Win With iCommuneTech!
iCommuneTech is a trusted software solutions provider. We have helped several businesses implement and integrate world-class SCM solutions to satisfy our clients’ needs.
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Irshad Pathan
Web Development Expert
Irshad is a senior technical expert at iCommuneTech. He manages the iCommuneTech’s Web Development Team, and has hands-on expertise in web development, Laravel development, Logistics, fleet management, and Supply Chain Management. He mentors the in-house team and enjoys describing his experience in words.