Supply chain management is an advanced way of reducing costs, minimising wastage, and increasing organisational agility. Successful supply chain management leads to leaner inventories and satisfied end-users. Today, software is solving many of the problems that have traditionally plagued supply chains.
What Is Supply Chain Management?
Supply chain management (SCM) is the journey that goods, services, and information make from raw materials to point of sale. In a globalised world, this is an increasingly complex endeavour, and – as research has shown – supply chains can be highly tangled and difficult to predict. However, the same research shows that companies have a much swifter turnaround and make greater profits when their supply chains are tidy. Therefore, getting the supply chain on point is a valuable investment.
Supply & Demand: A Tentative Balance
The art of successful supply chain management is balancing supply and demand. To do so requires an in-depth understanding of markets, logistical practicalities, and consumer behaviour. Much of the latter can seem intangible, which is why software is often used to add clarity. This is particularly important because supply chains average between 1.5 and 3.9 months, meaning that responding to market fluctuations can be cumbersome and inefficient. Shorter chains are more responsive, and chains informed by good data flows are more likely to be accurate.
Automation Improves Accuracy
One of the reasons that supply chains can be unwieldy is that they are filled with inaccuracies. Most of this is due to human error. Nearly 90% of spreadsheets contain faulty numbers, and Forbes concludes that “even small spreadsheet mistakes can cost companies billions.” This makes Excel a fairly dangerous wildcard in supply chain and inventory management. Automated tracking follows every item through the chain, ensuring that numbers are precise and reliable.
Looking At The Whole Picture
Keeping an eye on every aspect of a supply chain can be time-consuming and costly. However, it is a business success ‘must’. The only way to increase output and profits while reducing cost and delays is by ensuring that waste is minimised and distribution is streamlined. This requires visual clarity. Supply chain management software brings together a broad range of required organisational activities into an easily accessible portal. This gives the managerial team complete control.
One of the main reasons that errors creep into management is a lack of time. Diaries become filled with mundane tasks, and the rush to complete them all means that everything is squeezed. Software solutions can control everything from automatically sending invoices to generating orders. Taking on the role of a team of helpers, software gets the job done quickly and efficiently.
Find Out More
Supply chain planning can make a big impact on organisational performance. To discuss ways software can help root out inefficiencies and improve productivity, call one of our specialists today on 01889 508 075.