How Is Supply Chain Management Software Transforming Supply Chain?by Ngulminthang Lhanghal Financial expert in international trade finance an
An effective supply chain management is essential for a smooth & uninterrupted flow of supply chain operations ranging from the production of goods to shipment and distribution to the end-user. Many businesses that rely on supply chain operations are struggling in managing their processes. The movement of every item produced from the factory to warehouse, warehouse to store, and then store to the consumer is a common part of a supply chain management process. This process requires outstanding & suitable information management to avoid any glitches in the process and miscommunication between divisions. Companies need to track this process chain from start to finish.
According to our financial expert, Mr. Ngulminthang Lhanghal, a carefully chosen supply chain management software plays a vital role in effectively managing supply chains with better efficiency especially in the digital era where the global economy is on its way to recovering by digitizing trade flows across the world. And thereby many businesses start using supply chain management software to ease the process. But apart from its significance in supply chain flow, supply chain management software needs to be user-friendly.
Why Is Supply Chain Management Software Required To Be User-friendly?
When it comes to supply chain management software, companies are getting aware of the importance of user experience or “UX”. But why? The answer is quite simple.
No matter how much a company is investing in a technology system, unless employees don't have an idea about using it to make the process simpler, they are likely to go back to their old ways of doing things and the addition of technology will be nothing much than a “virtual dust” in the corner.
This fits best in the case of younger generations who are growing up in the age of technology with easy-to-use/operate devices & applications and entering into the market with the hope of getting the same level of convenience in business technologies. Making things simple & easy for the end-user is the prominent way to get successful supply chain management. When an SCM software has good UX, it will be easier for the user to understand programming rather than reading a manual or taking lessons.
Advantages Of Using Supply Chain Management Software
A good supply chain management software can help in:
1. Control & Cost Reduction - A big concern for all the companies running their business worldwide revolves around how to reduce operating costs to the maximum to get the profit. Here, supply chain management software helps the companies reduce costs by enabling them to analyze & track each step of the supply chain in-depth, detect errors & processes and eliminate waste & costs that are inefficient. This excellent process of monitoring & detecting errors surely helps the company reduce extra costs.
2. No More Late Shipments And Logistical Errors - An ineffective communication and lack of synchronized information between divisions often results in late shipment of goods, production & logistical errors that further affect trust between the parties. An SCM software ensures the smooth functioning of shipment by scheduling each task and activity.
3. Better Inventory Management - SCM software empowers suppliers to monitor the available quantity of stock in the warehouse and also sends them an alarm when there is a lack so that they can ensure a smooth incoming & outgoing of your products i.e. inventory. Neither the produced items have to be in the warehouse for too long nor the purchaser has to wait for the delivery of the ordered goods.
4. Transparent Supply Chain - Live tracking & monitoring of a shipped item is very important for business suppliers and efficient SCM software helps by informing them about the location of their item along with the estimated time of arrival at its destination. This empowers them to guarantee their customers that they will receive the ordered products on time.
5. Order Management - An SCM software is also automating the supply chain operations by generating & tracking purchase orders, scheduling supplier deliveries, and making prices & product configurations. Not only this but this software is also being used for inspection & handling of damaged goods as well as refunds or insurance claims.
Supply chain software can also help in:
1. Automating huge supply operations, for example, order processing, invoicing & shipment tracking.
2. Detecting extra materials or processes and saving costs in logistics, warehousing, and manufacturing.
3. Ensuring on-time delivery by synchronizing all activities across the supply chain.
4. Facilitates management reporting and visibility across the network.
5. Ensure collaboration & communication between partners, suppliers, and distributors.
Now you know how supply chain management software has countless benefits for managing supply chain operations efficiently. It can be expensive but ultimately helps you maximize the business’s cost-efficiency and productivity. Find the best solutions depending on your business’s needs, company size, goals, and objectives.
Created on Aug 9th 2021 06:17. Viewed 412 times.
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