Dec 9, 2020 | Industry
Supply chain management software is the foundation of effective manufacturing and logistics processes. They're even more critical in the time of COVID, as single-source supply streams have quickly given way to more agile and adaptive (and hence, more complex) supply chain activities and frameworks. From demand planning to inventory management and warehouse management, complexity has intensified across the entire supply chain, and the need for digitization and automation is greater than ever before.
Despite the need for improved proactivity and enhanced performance, however, Supply Chain Management Review notes that 46 percent of companies are struggling to maximize supply chain technology thanks to changing requirements and regulations, while 44 percent point to a lack of collaborative functionality, and 40 percent say technology actually gets in the way of overall efficacy.
In this post, we'll explore five simple ways for supply chain professionals to get more out of their scm system - without breaking the bank.
Supply chain management systems, also commonly referred to as scm software, supply chain management software, or scm solution, have evolved significantly over the past few years to include a host of new functionalities designed for global supply chain support.
From real-time inventory optimization to data-driven trends analytics and enhanced product traceability processes, next-generation supply chain tools can help bridge the gap between existing legacy supply chain software and evolving customer demand.
The right supply chain management software not only enables effective supply chain management, it can also provide a competitive advantage and the foundation for better customer satisfaction, more precise inventory control, and lower supply chain costs.
The challenge? Simply having a best-of-breed supply chain management system doesn't guarantee results. To ensure supply chain technology delivers both immediate and long-term ROI, it's critical for companies to take an active role in the deployment, integration, and adoption of these solutions at scale.
Here are five ways to help jumpstart this performance process:
Moving to the cloud offers one of the quickest paths to improved supply chain management. Here's why: By levering the on-demand resources of reputable, cloud-based supply chain solution providers , companies can quickly scale up as demand increases - and scale back down as demand shifts, enabling continuous improvement of inventory management.
When deployed in the cloud, modern supply chain solutions also come with the benefit of low upfront investments. Since you're purchasing computing power rather than physical hardware, you're not on the hook for significant capital spending and aren't responsible for the ongoing upgrades and maintenance to cloud servers. Instead, costs are predictable and consistent, making it much easier to budget and plan for. As a supply chain organization, you gain the freedom to focus on what really matters instead of tedious IT management.
Also worth noting is that Cloud security has advanced significantly in the last five years, as providers look to boost loyalty and prevent fraud with cutting-edge data protection practices.
As noted above, collaboration is a common stumbling block for supply chain solutions. While existing tools often deliver top-tier performance across a narrow band of functions, incorporating additional applications and services can be complex and time-consuming.
Here, it's worth looking for supply chain management system providers that offer the ability to connect with popular third-party systems - such as accounting , CRM, or ERP tools - without leaving your supply chain management ecosystem. Not only does this reduce frustration for staff trying to quickly complete key tasks but also improves security since data remains under the supply chain umbrella at scale.
Duplicate data entry costs your business time and money. In most cases, this data duplication is unintentional; several staff members may record incoming product details or outgoing delivery metrics and enter them into supply chain management systems to help improve overall accuracy. Once in your system, however, it's easy for these metrics to cause conflict and confusion when it comes to current stock levels or delivery time estimates.
Your best bet is to look for tools capable of automatically detecting and eliminating duplicate data entries, or better yet, stopping them before they begin! With the right setup and optimal integrations with third-party systems, agents, and agencies, the need for duplicate data entry can be eliminated. This helps ensure that supply chain systems - and staff - spend time improving on-the-ground processes instead of tracking down duplicates.
Is your supply chain management system operating optimally? Here, many supply chain management professionals take an "if it's not broken, don't fix it approach" to supply chain management - so long as no major errors are occurring and orders are fulfilled on time, there's often little interest in rocking the process boat.
In fact, most companies could benefit from auditing and optimizing the use of supply chain systems. From newly-added functions to application and service connections that exist in supply software frameworks but haven't been enabled, it's worth conducting regular system audits to determine where tools are delivering ideal performance and where they can be improved. You may very well be paying for some features that could be benefiting your business, and you just haven't dusted them off yet! Not sure where to start? The best supply chain solution providers will help you make the most of their systems and keep you in the loop about new releases.
When companies run up against legacy supply chain issues, one operational option is "rip and replace" - tear everything out and start from scratch. And while this may offer improved performance over time, it also puts businesses in a difficult position during the transition period; what if new services and solutions don't work as intended or experience issues during deployment?
In this case, it's worth considering modular systems that make it easy to simply add new modules on top of existing functions without disrupting day-to-day operations. In a world where real-time supply chain visibility and traceability is the expectation, modular systems can help ensure that your supply chain management system is capable of delivering on time, every time.
Supply chains have undergone significant disruption - and the process is ongoing. In this "new normal" of multiple-source, multifaceted supply chain systems, companies can get more from current solutions by considering cloud moves, connecting third-party systems, avoiding duplicate data entry, auditing ongoing usage, and adding new supply chain modules on-demand.
More than 1900 freight forwarders, NVOCCs, 3PLs, and other logistics services providers worldwide trust Magaya to help them grow and optimize their business operations.
By choosing the Magaya Ecosystem, consisting of Magaya Supply Chain and its collection of value-added apps and extensions, along with ACELYNK ABI, and Catapult Rate Management, you benefit from flexible, interoperable, modular solutions designed to streamline complex and redundant processes, optimize productivity, reduce costs, and grow revenue.
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