Most Critical Supply Chain Management Capabilities
Supply chain management (SCM) refers to the way enterprises plan, monitor, and control the flow of materials related to their products and services. Supply chain management solutions have the power to increase flexibility, productivity, and profitability for an organization and set them up for future success. All manufacturers and distributers need a supply chain management solution that can bring multiple high-impact capabilities to their operations. There are countless SCM capabilities, but there are several that are the most critical and relevant.
- Purchase Management: This capability is important to the vendor-supplier relationship. It can automate manual tasks, helping you streamline purchase order writing, improving order accuracy, and reducing inventory.
- Demand Management: This is crucial for management demand contracts. It uses statistical forecasting and planning tools to provide a business with insights to improve fill rates and to provide and overall better customer experience.
- Inventory Management: This manages the flow of materials, starting with the purchase order through manufacturing and shipping. Real-time data and analytic tools can be used to shortage monitoring, reorder analysis, and check in-stock status on items.
- Warehouse Management: This capability links your warehouse with order processing and manufacturing operations. A business can automate their pick, pack, ship, and receiving processes, you can compete on speed by offering rapid fulfillment.
- Advanced Material Management: A foundational capability of supply chain management, advanced material management gives you the power to use a mobile device and barcoding technology to easily monitor raw materials in real time, throughout the entire enterprise.
- Supplier Relationship Management: Eliminates redundant data entry. This capability centralizes records for buyers, parts, and suppliers. It provides automated tools to quicky convert supplier responses into actionable purchase orders.
- Supplier Portals/EDI: This is crucial for sharing electronic documents with trading partners and leveraging supplier portals. A business can gain greater visibility of supply chain activities by sharing and collaborating with trading partners.
Supply chain management solutions are just another example of how technology can improve the way a business operates. Whether using on-premises or a cloud SCM, this solution is crucial for any manufacturer or distributer. Want help modernizing your technology landscape or exploring ways to maximize the efficiency in your supply chain? Let 2W Tech help! We are a technology solutions provider specializing in solutions for manufacturing. Let our team of IT Consultants help steer your business towards success.