March 23, 2019
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As a logistics manager or company owner, you need to make an informed decision when it comes to choosing a supply chain software. An SCM (Supply Chain Management) refers to a set of solutions that seek to manage and oversee the flow of goods, data, and finances of a business as it moves from the point of origin to the final destination.
When you look at it closely, SCM is actually a big umbrella that encompasses everything from the development of the product to logistics. It also includes production, sourcing, manufacturing, inventory, transportation, shipping, and even warehouse management.
As you meet the growing demands of globalization, you need the right supply chain solutions or tools. When it is time to choose, you should consider the following tools that will make an SCM software package valuable:
• Shipping status: the SCM software should entail shipping status tools that will
provide alerts and updates. These will deliver timely information on all the shipping activities of your company. If your company has high-volume supply chains with many types of cargo shipped to customers around the world, this tool can greatly help in your operations.
- Order processing: another important tool is order processing. As part of the software, it seeks to make ordering easier and more efficient. This tool will reduce the time it would take to process an order by getting rid of the need to manually generate and send invoices and purchase orders.
- Warehouse management: SCM software can also help you manage everyday operations within your warehouses. With the right warehouse management tool, it will allow you to handle complicated logistics related to receiving, tracking, counting and route planning.
- Bid and spend: you know the part of sourcing and procurement in the supply chain operations. The right SCM tool should support these activities. You have to look for tools that can help you dig deeper at what you are spending on every item that you take in and send out during the production stage.
- Supplier management: this tool is actually tied with bid and spend tools. Remember that supplier management is crucial in the process of procurement. The right supplier management tool should have assistive features for cost issues. With this tool, you have the ability to constantly assess the contributions of your partners so you can act confidently.
- Demand forecasting: today’s SCM features the ability to process massive amounts of supply chain data in a fraction of time. This is more efficient than hiring a team of analysts to process the data. Aside from analytics, this tool will also provide insight into past practices to create a forecast to predict future demand.
- Analytics and reports: SCM software should have a tool for analytics and reports. It will give you an idea of the overall health and performance of the company. Simply put, it can give insight into the company as a whole. This can help decision-makers understand and make a better judgment.
Due to the vastness of SCM, your company will need the right tools to succeed. Keep in mind that the right tools will empower your operations especially in this digital era. With this, it is high time that you invest in SCM software.