Supply-chain management, is a management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption. Supply-chain-management software (SCMS) is the software tools or modules used in executing supply chain transactions, managing supplier relationships and controlling associated business processes. While functionality in such systems can often be broad it commonly includes Customer-requirement processing. Supply chain management (SCM) is the broad range of activities required to plan, control and execute a product's flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and cost-effective way possible. SCM encompasses the integrated planning and execution of processes required to optimize the flow of materials, information and financial capital in the areas that broadly include demand planning, sourcing, production, inventory management and storage, transportation -- or logistics -- and return for excess or defective products. Both business strategy and specialized software are used in these endeavors to create a competitive advantage.
Benefits of SCM software:
Call centers: √ Help control and reduce costs. √ Allay risks, such as late shipments and logistical errors. √ Improve customer service and communication. √ Help with forecasting and decision-making. √ Automate major processes, such as order processing, invoicing and shipment tracking, and as a result save time and reduce administrative costs. √ Identify excess materials or processes and possible cost-savings in logistics, warehousing and manufacturing. √ Improve inventory management and lead to more effective demand planning. √ Improve on-time delivery by coordinating all activities across your supply chain. √ Improve responsiveness to unforeseen events, example: machine failures, staff absences, missing goods, urgent customer orders and human error. √ Provide management reporting and analysis to your fingertips. √ Provide visibility across the network (between suppliers, production plants, storage and distribution center to give you a better understanding of your processes. √ Support collaboration and communication between partners, suppliers, distributors.
Supply chain management is an expansive, complex undertaking that relies on each partner from suppliers to manufacturers and beyond to run well. Because of this, effective supply chain management also requires change management, collaboration and risk management to create alignment and communication between all the entities.