What’s Supply Chain Management Software And How It Helps?
Behind the success of every supply chain, there is an unsung hero called supply chain management software.
Supply Chain Management Software is a set of tools and technologies that help organizations efficiently manage the flow of goods, data, information, and finances from an initial supplier to the final customers.
What Will We Cover?
Let us check out what supply chain management software is first:
What is Supply Chain Management (SCM) Software?
Supply Chain Management Software is a digital tool designed to optimize and streamline supply chain operations. These tools help in several ways, from procurement and production to managing inventory, logistics, and other key supply chain functions.
Gone are the days of general supply chain management, when operations were handled manually and siloed systems existed. Supply Chain Management Software used today offers the latest and most advanced technology, which boosts efficiency, increases real-time visibility and tracking, provides valuable data analytics, and more.
Let us check out why supply chain management software should be used.
Why Use Supply Chain Management Software?
SCM software is primarily meant to help businesses overcome typical supply chain challenges, such as inefficiencies, lack of visibility, and high operational costs. During the peak season, suppliers run out of stock, and there are other instances when suppliers have overstocks, leading to wastage.
SCM is beneficial for optimizing inventory levels, reducing lead times, or increasing collaboration across the supply chain. This tool meets any type of demand fluctuations or supply chain disruptions. The primary goal of SCM is to ensure faster delivery, boost the customer satisfaction rate, reduce errors, manage risk, etc.
Businesses dealing with logistics cannot imagine having an edge with Supply Chain Management. Whether managing seasonal shifts in inventory, JIT (Just In Time) production, or delivery of temperature-sensitive supplies, SCM software is of great help.
Here’s how an SCM software function works. Let us delve in detail.
How Does An SCM Software Function?
Whether it is a production or procurement phase, or storage and delivery, SCM software helps in various ways. This increases efficiency and leads to cost savings, quick decision-making, accuracy, etc.
Supply Chain Management Software collects data from various essential touchpoints, such as inventory systems, suppliers, and transportation networks, and consolidates it into a unified dashboard for easy access. The software automates several repetitive tasks, like shipment scheduling, order processing, packaging, and more. Also, with the help of its predictive analytics, businesses can make smarter and better decisions.
The SCM system includes these five key phases:
Now, let’s understand the functions of SCM Software in detail!
Aligning with Key Supply Chain Stages:
Each SCM stage benefits from the specific software capabilities. For instance, forecasting models can predict market demands in the planning phase. In the delivery phase, GPS tracking, real-time tracking, valuable insights, etc., ensure that shipments are on schedule.
The software ensures that the chain remains interconnected. In case of delayed shipments, lost packages, mechanical failure, etc., the relevant department is informed.
Real-time Data and Predictive Analytics:
AI in logistics and real-time data tracking helps businesses gain valuable insights to make wiser decisions. The software helps in various ways, from predicting customer demands to identifying bottlenecks. Interactive dashboards help stakeholders get clear-cut visibility into Key Performance Indicators like inventory turnover, on-time delivery, accuracy, etc.
For instance, a logistics company can use real-time analytics to re-route any delayed shipments due to traffic congestion, mechanical failure, adverse weather conditions, etc.
Live Monitoring and Transparency:
IoT in logistics and RFID technologies help the SCM software track goods as they move across supply chains. Real-time visibility into the movement of goods results in better transparency and faster response to supply chain disruptions.
With real-time tracking, companies get a better idea of the movement of goods through the supply chain.
Risk Mitigation With AI:
AI is the latest trend that forecasts supply chain trends by identifying risk trends and recommending actions accordingly. This helps mitigate risks and recommends the right action.
For example, on Black Friday, Supply Chain Management Software analyzes previous years’ data, current market trends, social media signals, etc., to prevent stockouts and overstocks.
With the growing complexity of the supply chain, software has become a necessity rather than a choice. It drives strategic growth, leads to cost savings, and is highly efficient.
Let us check out some of the top SCM software examples:
Supply Chain Management (SCM) Software Examples:
Here are some leading examples of the companies reaping the maximum benefits of SCM.
Walmart – Real-time Inventory Optimization:
Walmart is one of the world’s leading retailers. It relies on Supply Chain Management Software to manage its growing supply chain. It has integrated SAP SCM into its logistics and inventory operations to achieve real-time visibility into thousands of stores in its distribution centers worldwide.
This renowned global giant has saved costs through reduced inventory holdings. It also ensures that customers get what they need on time, leading to a high customer satisfaction rate.
Nike – Data-Driven Decision Making:
Nike is another leading example of a business that benefits from SCM. It uses Oracle SCM to optimize and streamline global supply chain operations. The software also helps it manage suppliers, unpredictable market conditions, and contingencies, and adjust accordingly.
The software helps the users cut down on lead times, assuring efficiency, productivity, and sustainability.
These real-world examples demonstrate that using SCM helps companies stay competitive and customer-centric.
Let us explore the features of Supply Chain Management Software in detail:
What Are The Key Features of Supply Chain Management Software?
If you need the best solution for your logistics business, you must know the essential features of SCM software. If you are looking for the best purchase for your business, you must ensure that your software has all these features that directly impact how it drives efficiency, cost savings, etc./p>
If you need the best solution for your logistics business, you must know the essential features of SCM software. If you are looking for the best purchase for your business, you must ensure that your software has all these features that directly impact how it drives efficiency, cost savings, etc.
1. Inventory Management
The software tracks products in real time, ensuring the right stocks are always maintained. It also supports automated reordering and inventory tracking in multiple locations.
2. Order Management
Manages customers’ orders from their entry until they reach the customers. This ensures accuracy and real-time status updates. High visibility in order tracking leads to a better customer satisfaction rate.
3. Demand Forecasting
Businesses can streamline and optimize inventory, reduce waste, and avoid understocks with the help of AI-driven insights.
4. Supplier Management
Centralizing all suppliers’ data and tracking performance metrics helps companies build strong vendor relationships and reduce risks in the procurement process.
5. Warehouse Management
Improving the design and layout of the warehouse so that it can be used maximally. Using automation in warehouse management leads to greater efficiency.
6. Reporting and Analytics
A fully customized dashboard helps customers monitor key performance indicators, inefficiencies, and other loopholes in the supply chain.
7. Returns Management
Streamlining the refund process and restocking process leads to greater customer satisfaction. Efficient handling of reverse management promotes green logistics, too.
Let us move on to the various benefits offered by SCM:
What Are The Benefits of Supply Chain Management Software?
Integrating Supply Chain Management software has several benefits that are often overlooked. SCM does everything from saving costs to improving efficiency and automating thousands of error-prone manual tasks to increasing performance! Here are the benefits of Supply Chain Management Software:
1. Increased Supply Chain Visibility:
Real-time data dashboards provide high visibility into stock levels, allowing businesses to monitor supply chain disruptions and detect any supply chain anomalies to make informed decisions.
2. Cost Savings:
With the help of advanced warehouse technologies like inventory control, route optimization, tracking of fuel consumption, and automation of routine tasks, etc., leads to huge cost savings.
3. High Customer Satisfaction Rate:
Faster delivery rates, high level of accuracy, real-time tracking, quicker and easier refunds all lead to a high customer satisfaction rate.
4. High Responsiveness:
With the help of SCM’s predictive analytics feature, businesses can adapt to demand fluctuations, disruptions in the supply chain, or market changes faster than their competitors.
5. Risk Mitigation:
When vulnerabilities in the supply chain can be located, proactive measures to mitigate risks can be taken on time, leading to cost savings and preventing resource waste.
Also, integrating supply chain management leads to better supplier collaboration, transparency, and cost efficiency.
Let us move on to the top 3 Supply Chain Management Software that are high in demand.
What Are The Top 3 SCM Software?
With the supply chains growing complex and challenging, having the best SCM software helps you gain a competitive edge. Check out these top 3 choices.
1. CommuteLogix
Best known for last-mile deliveries, route optimization, and real-time tracking, CommuteLogix is the top-notch choice for logistics businesses worldwide. Logistics businesses are also using CommuteLogix report accuracy in forecasting, quicker responses to supply chain disruptions, and better coordination between logistics partners.
iCommuneTech is the service provider of CommuteLogix, which has been trusted for more than a decade to provide complete logistics solutions.
Explore CommuteLogix Now!2. Oracle SCM Software:
Another top-notch SCM software provider is Oracle. This cloud-based software is trusted by enterprises all across the world. Right from strategic planning to logistics management and more, Oracle SCM does it all. Whether you need real-time decision-making, predictive maintenance, or order management software, Oracle is the right choice.
3. SAP IBP:
SAP IBP is the top-rated software that offers powerful supply chain capabilities. It provides advanced demand forecasting, inventory optimization, sales, and planning. SAP IBP offers a cutting-edge demand forecasting tool that uses the latest machine learning and predictive analytics to accurately meet the customer’s requirements. It’s S& OP Sales offers financial integration and collaborative planning features.
How To Choose The Right SCM Software?
First, you need to know your organization’s needs. It is also a good idea to evaluate your business’s needs. If you are a small business, affordability and ease of use will be your priorities. On the other hand, a large manufacturer will need an advanced level of demand forecasting, global scalability, and more.
Additionally, consider all industry-specific needs, such as ease of usage, integration with existing systems, customization, and vendor support.
Whatever your needs, whether you want to scale your logistics operations, boost efficiency, or continue to grow, you should choose the right SCM software.
Final Thoughts
Choosing the right type of SCM software can be a game-changer. Businesses that want to stay ahead, improve visibility, and make better decisions should have the right Supply Chain Management Software. To make the right choice, you must consider your business’s size, exact needs, budget, etc.
Key Takeaways:
Frequently Asked Questions (FAQs)
Whatever your questions may be, just let us know. We are here to satisfy your quest anytime you need us.
1. What are the use cases of supply chain management software?
Supply chain management software has many use cases. It is used for inventory management, demand forecasting, order fulfillment, logistics tracking, and more.
Supply chain management software has many use cases. It is used for inventory management, demand forecasting, order fulfillment, logistics tracking, and more.
2. What are the key types of supply chain management software?
There are different types of SCM software, such as procurement systems, Transportation Management Systems, Warehouse Management Systems, and Enterprise Resource Planning.
There are different types of SCM software, such as procurement systems, Transportation Management Systems, Warehouse Management Systems, and Enterprise Resource Planning.
3. What’s the best supply chain management software?
The best SCM software you choose depends on your specific requirements. CommuteLogix, Oracle, SAB IBP, etc offer highly flexible, scalable, and robust solutions ideal for different industries.
The best SCM software you choose depends on your specific requirements. CommuteLogix, Oracle, SAB IBP, etc offer highly flexible, scalable, and robust solutions ideal for different industries.
4. What is the difference between WMS and TMS?
The primary difference between WMS and TMS is that WMS focuses on warehouse operations, such as controlling inventory, while TMS, or Transportation Management System, manages transportation and delivery of goods.
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The top-notch tailored SCM solutions offered by CommuteLogix help your business have a competitive edge. You can achieve exclusive operational excellence and make your profits soar with CommuteLogix.
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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.