Today, enterprise technology is at the heart of every business operation, and supply chain management is no exception. From vendor management, order tracking, procurement, and distribution, nearly every supply chain related activity today is handled over supply chain software. The use of SCM software enables managers to achieve greater transparency and control over increasingly complex supply chain operations. And such control would make it easy to achieve greater efficiency and therefore, greater productivity and profitability. The following are ways by which businesses stand to benefit from adopting the use of supply chain software:
Because every ongoing activity in your business’s supply chain can be tracked on a central software, you get a one-click view of the same in a very convenient-to-read manner. Such end-to-end visibility of the supply chain is important for effective and holistic supply chain management. It can also better facilitate data sharing and consequently, collaboration between vendors, distributors, and retail sellers. One can also track the performance of supply chains at every stage due to such centralized view.
There is a cost to every hour of supply chain operations. And such the rate at which such costs are incurred is independent of the speed of such operations. The use of supply chain software can help a business in identifying and eliminating any bottlenecks in the process. Thus, one can have faster-performing supply chains. Moreover, SCM software can be integrated within a company’s existing enterprise software. This can facilitate automation of manual tasks which can further boost organizational productivity as a whole.
Supply Chain Analytics – the secret to better overall decisions
Supply chains are the circulatory system of your organization, and it is essential that there are minimal problems in them. And problems can be minimized only through data, which can aid in taking informed decisions. SCM software can facilitate such informed decision-making pertaining to a wide range of supply chain activities, be it raw material procurement and cost management, delivery management, and production scheduling.
While it is essential to increase top-line, as a business, you also need to worry about bringing costs down because at the end of the day, it is the bottom-line that decides your business viability. And an SCM software is a tool to help you achieve lowering of costs by helping you optimize your inventory levels, adopt best practices such as Just-In-Time manufacturing, and reduce material wastage. Also, by helping you keep track of payments, you can reduce debtors’ turnover, which can help improve your current ratio.
Risk Monitoring and Mitigation
A business is subject to several types of risks, such as economic risk, political risk, market risk, and so on. Having all operations mapped on to an SCM software can help a business track these risks. For example, if a certain geography is expected to experience a political upheaval or change in regulatory framework, the SCM software can help determine how much exposure the business has for that particular geography for procurement or sales. This can help in framing appropriate risk management strategies to minimize operational disruption as the business can now proactively plan for such circumstances and function in an agile manner.
Supply chain activities are often subject to strict compliance protocol and procedures. For example, raw materials and finished goods might need to meet certain quality specifications and standards in different geographies, there could be different environmental sustainability standards, and cross-border shipments might need to be backed with appropriate documentation. An SCM software can help track every such compliance requirement and help managers in planning for the same. Different legal and regulatory documentation can be automated to ensure leaner and hassle-free supply chain functioning. Better compliance in this way can help in minimizing litigation and penal costs as well as enabling the management to focus on the most important part of business activities.
The above points explain why adopting the use of a Supply Chain Management software can be a game-changer for your business. At Bizinso, we specialize in developing custom-built SCM software to satisfy your specific business requirements. Our cloud-based SCM software solutions can help your business reap the above benefits and unlock greater growth potential.