Supply Chain Management (SCM) is an integral process in a variety of industrial sectors. The growth of Information technology (IT) has led to the development of various software programs that can support the SCM process. One such product is supply chain management software.
Supply Chain Management Software or SCMS refers to an assortment of software tools that are used to complete different types of business processes and supply chain operations. These include electronic trading between supply chain partners, and balancing the inconsistency between supply and demand.
Key Features of Supply Chain Management
Supply chain management software is designed to perform the following functions:
- Processing Customer Requirements: SCMS can help enhance the speed of customer requirement processing. This includes checking for raw material availability, product manufacturing, and passing the product to the logistics team. The software can track the entire process, and ensure that the product is delivered on time.
- Inventory Management: In warehouses, managers can use SCMS to effectively manage the quantity of stocked goods. The software can also help support inventory concerns such as asset management, replenishment lead time, and future inventory and price forecasting.
- Purchase Order Processing: With SCMS, the purchase order processes are usually automated. It reduces time and effort needed to generate and manage purchase orders. Pre-defined parameters can be set up to replenish inventories, generate serial numbers for product shipments, and track inventory costs.
- Supplier Relationship Management: The strategic planning and managing of all supplier interactions can be accomplished with SCMS. The software can be used to assess the supplier’s assets and capabilities and compare them with the organization’s business strategy.
- Warehouse Management: SCMS can effectively support a warehouse management system in the movement and storage of products. SCMS can quickly process transactions such a picking, placing, receiving, and shipping.
As one can see, the SCM software can be an immensely supportive tool in supply chain management processes.