If you work in a manufacturing company, then you’ve probably come across the term “supply chain management” at least once. This is because supply chain management is an essential part of running a successful business.
In fact, it’s estimated that as much as 80% of a company’s working capital can be tied up in its supply chain. That means that if your company has poor supply chain management, it will have major repercussions on everything from cash flow to profit margins and even customer relations.
However, not everyone knows how to implement or use this type of software in their company. Fortunately, this article will go over the basics of implementing supply chain management software so that you don’t feel so lost when it comes to taking the first steps in using this software in your company.
What is Supply Chain Management Software?
Simply put, supply chain management software is software that helps your company manage its supply chain. This means that the software will help you track which materials are needed for which products, when those materials are needed, and where these materials are coming from.
It is important to note that this software is not the same as inventory management software. In fact, the two terms are often used interchangeably, depending on whom you ask.
Benefits of Implementing Supply Chain Management Software
- Better Collaboration – By using this software, you’ll be able to better collaborate with your supply chain partners. This will help reduce the risk of a mistake happening and will also improve control over costs with each stage of production.
- More Secure – When you have a better understanding of where items are coming from, you’ll be able to see where security issues lie. This can help to secure your supply chain and reduce the risk of creative ideas exploiting flaws in your production process.
- Better Procurement – By being able to track the materials that you need and when you need them to make your products, you’ll be able to make better decisions about how to procure these materials.
- Better Inventory Management – By being able to track your supplies, you’ll be able to better manage your inventory levels. This will help you avoid inventory issues and keep your business moving forward at a faster pace.
Should You Use a Commercial Software or Develop Your Own?
The answer to this question depends on a few different factors, including the size and complexity of your company, the type of products that you produce, and your budget. However, in general, developing your own software is a good idea if you can afford to do it.
This will help you gain more control over how your company runs, as well as how much it costs. There are many benefits to developing your own software, including the fact that it will be more flexible and customized to your company’s specific needs. In addition, it will be much more secure than commercial software, since you’ll be building it yourself.
Key Differences Between Commercial and Custom Supply Chain Management Software
- Pricing: Commercial supply chain management system is typically priced on a per-user, or per-month basis.
- Managed Services: Commercial supply chain management system is typically managed by the software provider’s team of experts.
Custom supply chain management software is typically managed by partners in the business.
- Scalability: Commercial supply chain management system is typically scalable to multiple users and multiple locations. – Custom software is typically scalable to individual users and locations.
- Versatility: Commercial supply chain system is typically optimized for linear businesses, such as manufacturing.
Custom supply chain software is typically designed for more complex businesses, such as those in the service industry.
Proven supply chain management software programs
While there are many different software providers out there, not all of them are created equal. In fact, not all software is created equally, which is why it’s important to find the right supplier for your business.
These are the software providers that have proven to be the best at helping businesses implement effective supply chain management, such as efficient inventory management, secure procurement, and effective tracking of supply chain data.
- Vendor source
- B2B Marketer
In addition to implementing software, you’ll also need to have a supply chain strategy in place. In order to do this, you’ll need to understand the different parts of the supply chain, how each part affects the others, and how you can improve your business from each part.
To do this, you’ll need to understand both the technical and the business parts of your supply chain. This will help you to see how your company can improve from both aspects, as well as how both parts of your business can be boosted by implementing a better supply chain solution.