How Custom SCM Software Solves 4 Major Problems of Supply Chain Management
Facing problems in supply chain management of your business? What you need is SCM software development that caters to the needs of your business precisely. If you still have any doubts, take a look at this blog. You will find how customized SCM solutions relieve 4 of the major headaches of the Supply Chain Process.
It is a fact the supply chain management is one of the most difficult tasks in a business.
Whether it is manufacturing, supplying or managing inventories, if there is a slip-up in any of these processes, the whole business can get affected.
The issue with utilizing only manpower during SCM is that the probability of error increases. Using custom SCM solutions will reduce these chances and help in managing supply chain activities in the most efficient way.
There are some statistics that would prove this point for us.
Why is Supply Chain Management Important?
- According to Logistics Bureau, businesses with optimal supply chains have 15% lower supply chain costs, less than 50% of the inventory holdings, and cash-to-cash cycles at least three times faster than those not focused on supply chain optimization.
- Accenture reported that more than 70% of chief supply chain officers believe by 2020, the supply chain will be a key driver of better customer service for their organizations.
- As reported by The Hackett Group, 81% of supply chain professionals say analytics will be important in reducing landed costs.
- As per IDC, by 2019, 75% of large manufacturers will update their operations using IoT implementations and analytics to accelerate the time to market and mitigate risk.
- You can also see the areas of SCM in which most people are finding problems in this graph.
Taking a small technical dive, let’s see how the SCM solution will solve the issues faced by every industry, whether it automobile, food, agriculture, eCommerce, or transportation.
How Custom SCM Software Development Solves 4 Major Problems of Supply Chain Management
#1 Procurement issues
Procurement is the first element of your supply chain. Any issue in procurement management will lead to a dominoes effect and cause setbacks further in the chain.
Problems related to slow workflow, lack of transparency, time wastage, and high costs are some of the problems faced during procurement. An appropriate and custom SCM system can solve these issues while obtaining materials and goods for the business.
Solution: Before buying material, the supply chain management software can help you compare prices and details from different vendors. The SCM software development can help to generate quotes for purchase, use analytical tools to sort through documents sent by suppliers, draw and process essential information.
SCM app pr software can also verify compliance of a vendor with business requirements, compare prices and other metrics, and highlight unsuitable proposals.
This will make the process fast and cost-effective.
#2 Mismanaged inventories
While maintaining an inventory, there is a chance of either running out of stock or adding too much stock in an already existing storage. Other problems include storing damaged goods or mismanagement of unrepaired goods.
Solution: SCM software development helps in organizing and tracking inventory items by suppliers, serial numbers, tags, barcodes, SKUs or other IDs at different location levels in the warehouse. In fact, only one supply chain planning software is enough to manage across multiple warehouses.
You can also receive low inventory alerts when the number of certain items reaches the preset low limit. You can also replenish the stock automatically by setting reorders according to specific dates.
The software also helps in determining slow-moving and fast-moving stocks, and identify best the best performing products. SCM technologies and solutions like performance analysis can also tell you about the profitability and demand for products.
#3 Problems in logistics
Logistics is a huge part of the supply chain system and any issue in this part can actually crumble the entire process. From ordering to transport to logistics analysis, each step must be taken carefully when it comes to taking.
Damaging or losing goods during transport, delivering the load behind schedule, delivering at the wrong location, are some of the issues in the logistics part of the supply chain process management.
Solution: With the help of SCM software development, you can strategize your shipping method and route which suits best for your goods and services. Stay connected with the carrier and shippers which is helpful to all concerned parties.
Supply chain solutions can thus solve the problems related to logistics.
#4 Difficulty in resource planning
Demand supply is quite a tricky aspect for any enterprise. The only way this problem can be tackled is by planning the resources efficiently.
It is extremely difficult to understand excel spreadsheets and the resources cannot be directly determined.
Solution: Supply chain software makes it easy to forecast customer requirements and demands.
The same software also provides solutions for managing resources in the inventory and improving capacity utilization. It can also forecast new product demands based on the history of demands.
Further, this leads to the elimination of production delays and enhances customer satisfaction. SCM software development can do this and much more.
Choosing the Perfect Developers for Supply Chain Management System
You will find a lot of SCM vendors that provide readymade SCM applications and software. The problem with these ready-made solutions is that they are difficult to use. They are not suited to particular requirements of an industry or provide the entire range of SCM benefits.
It is advised to go for a custom solution that is specific for your business and caters to all your needs.
We are a Supply Chain Management Solutions provider of tailor-made software that understands your demands. We develop SCM modules that are meant solely for your business, from scratch.
We are a mobile app and software development company based out of Canada, so feel free to coss-verify your app ideas with us. You can also ask for a 30-min confidential consultation from our technical expert free of charge.
All you need to do is fill the contact form given in the footer and one of our sales representatives will reach out to you within 48 hours.
This page was last edited on August 22nd, 2020, at 7:18 AM.