What is Supply Chain Management Software?

Introduction

Supply chain management software is built to control complete business workflows across the supply chain, execute demand forecasting and planning, and handle supplier relationships. Common features of this solution include purchase order fulfillment, supplier sourcing, inventory management, shipping, and execution-focused programs (e.g., transportation and warehouse management).

Leading supply chain management platforms include forecasting, which assists organizations to manage the variations in supply and demand by utilizing consumption analysis and advanced algorithms to analyze purchaser histories. Supply chain improvement solutions can thus help to boost production efficiency and plan for the future.

Features of Supply Chain Management Software

Supply Chain Planning

Planning tools are utilized to predict consumer demand and adjust the flow and speed of production accordingly. You can run simulated demand estimates utilizing planned promotion schedules and historical trend data to find out how alterations in market awareness will impact your company’s inventory needs in the future.

Demand Planning

This feature enhances the precision of demand forecasts by minimizing biases in the data and presenting that data to your enterprise in real time. You can leverage multi-dimensional forecasting to look at information through a range of filters – by customer, time, or market – and run a sequence of “what if” simulations to predict future demand.

Procurement

Procurement functionality helps to execute purchase orders and maintain the financial aspect of customer/supplier relationships. You can digitally distribute purchasing terms throughout your company for immediate approval and log expenses for future reference in the subsequent sourcing cycle. Procurement is the accounting part of supply chain solutions and also handles compliance and reporting functions.

Supplier Management

Purchasers utilize supplier relationship tools to track the performance of their suppliers. You can evaluate supplier risk via your defined risk categories. Carry out performance analyses utilizing KPIs (key performance indicators) and audit trails to track supplier performance as well as spend. This capability also assists you to monitor your suppliers’ regulatory compliance. Businesses wishing to scale should look for a software with vendor management features.

Vendor Managed Inventory

Vendor managed inventory (VMI) function enables suppliers to track and replenish the purchaser’s inventory themselves. Business partners can use communication tools like email, web portals, and XML to improve visibility. Purchasers can automate sold stock reports and suppliers can respond with invoices and new shipment notifications.

Benefits of Supply Chain Management Software

Improves Cooperation Level

Supply chain management software provides communication features that your organization can use to keep your distributors and vendors informed and updated. The various stakeholders need not share the same space but can effectively communicate remotely to get the job done. Efficient communication among the different units of your company can give you swifter access to forecasts, quotation, reporting, statuses, and other plans and details in real time.

Enhances Output

Supply chain software improves communication, collaboration, and coordination with transport and shipping firms, suppliers, and vendors. This enables your organization to boost production and output.

Reduces Costs

Supply chain software decreases costs in the following ways:

By improving your inventory management

Adjusting the storage space needed for completed goods which removes damage resources

Enhancing your relationship with vendors and distributors

Improving your platform's responsiveness to actual consumer requirements

Augments Efficiency

By incorporating production innovation plans, integrated logistics, and supply chains, your organization can predict demand accurately and act accordingly. With supply chain management software, your company will be able to more dynamically adjust to shorter product lifecycles, emergency markets, and fluctuating economies.

Boosts Your Profits

Supply chain management can aid to boost your enterprise’s efficiency and productivity, and thus increase your business’s profit level.