Today’s logistical industry is complex and highly competitive. Leading supply chain companies must deliver goods on time and cost-effectively. At the same time, these organizations must adhere to changing legal frameworks while trying to remain profitable in a competitive space.
Unfortunately, 50% of the importers in the United States still use messy spreadsheets to manage their complex operations. Without the right tools, the ultimate dream of scalability, competitiveness, and optimum customer satisfaction remains a mirage. However, there’s hope that supply chain management software will improve this sector’s bottom line.
What is a Supply Chain Management Software?
Supply chain management (SCM) software is an advanced business tool that efficiently manages the end-to-end supply chain operations, while eliminating time-consuming and costly manual procedures. Supply chain management software typically offers a variety of useful functions:
- Planning and forecasting
- Return management
- Order management
- Inventory management
- Billing management
- Real-time notifications and alerts
What are the Advantages of a Supply Chain Management Software?
Let’s walk through a few of the biggest advantages supply chain management software can bring to your logistics operations and your entire company.
1. Enhanced Visibility
Today, the majority of supply chain companies are operating blindly. They don’t know what is happening in various stages of their activities, making it challenging to provide a real-time solution that keeps their businesses competitive.
The introduction of SCM software provides end-to-end visibility of the activities in the supply chain. The centralized view of systems, processes, and people at every stage brings much-needed transparency. In addition, the newfound clarity improves collaboration between retailers, distributors, and suppliers, allowing companies to monitor performance and provide solutions at every stage in the process.
2. Increased Efficiency
In the supply chain, any inefficiency costs organizations significantly. Unfortunately, in recent months, delays have become an even more common occurrence worldwide. As a result, pinpointing and eliminating bottlenecks causing delays remains a considerable challenge.
Integrating advanced systems in this industry allows you to increase execution speed. For example, a supply chain management software with current features will automate manual operations, boost productivity, and decrease time-to-market.
3. Reduced Costs
Managing supply chain costs determines whether you’ll remain competitive while delivering cost-effective services. Unfortunately, too many logistical companies are inefficient, making it challenging to achieve a competitive edge. Too often, these companies pass increased operational expenses to their customers.
A supply chain management tool is critical in reducing overheads associated with stockpiling, delays in delivery, and waste. Also, an advanced system keeps track of payments, thereby paying suppliers on time and eliminating late fees.
4. Real-Time Data
The supply chain process produces vast data that is essential to the company’s growth. However, using manual operations to retrieve this data is time-consuming and laborious. Without an easy way to view and analyze the data, organizations don’t benefit from this crucial information.
Supply chain management software comes in handy when retrieving valuable data in sales figures, delivery timeframes, material costs, and more. Real-time access to this data allows supply chain companies to make data-driven decisions that improve business operations, while delivering optimal customer experience.
5. Greater Agility
The business industry is quickly changing. Disruptions such as pandemics and uncertain political climates interfere with supply chain operations. Also, changes in consumer demands are hard to track, which has led to low sales.
Advanced supply chain technology provides real-time data that helps organizations anticipate market changes and react quickly. It’s an essential tool that has introduced agility into logistical organizations, enabling them to remain operational and profitable despite the substantial market disruptions.
6. Increased Compliance
Supply chain companies have to navigate a strict legal framework. Compliance procedures are challenging, and they grow even more complex when logistical companies are operating on an international stage.
A cloud-based, supply chain management system allows you to build compliance measures into the operational processes. This reduces human errors and helps your business to meet regulations. In addition, eliminating non-compliance challenges in your company is critical to sustainability and brand reputation.
7. Shipping Optimization
The cost of freight transportation is quickly increasing. The current pandemic has been a significant player in doubling this cost. Also, drastic changes in fuel costs, uncertain economic future, and expected recession in the United States have pushed shipment costs beyond expected levels.
Such challenges warrant shipping optimization. Supply chain leaders use technology to determine the faster and most efficient methods for bulk orders and small parcels. Technology is also essential in deciding on other shipping scenarios that can minimize costs. Without software to provide efficient shipping models, shipping optimization isn’t possible.
8. Enhanced Communication
All successful companies have one thing in common: efficient communication. When there’s a lack of open and regular communication, your distributors and vendors don’t know what is happening.
Embracing a supply chain management software opens communication in the entire system and makes it easier to share information while delivering orders quickly. Also, real-time communication in your business will allow you to have faster access to order statuses, quotations, and forecasts, among other reports.
9. Improved Cash Flow
Improved cash flow is critical to the success of any supply chain organization. Unfortunately, the use of old supply chain methods is a huge factor in the liquidity challenges facing the majority of warehouses today.
Incorporating technology can help you invoice your customers immediately, bringing instant cash to your business. Additionally, supply chain software brings cost-effective solutions that reduce overhead costs and eliminate wasteful spending, contributing to a positive cash flow.
Level Up with Our Supply Chain Management Software
As you can see, the benefits of supply chain management software are wide-ranging. They cover the entire spectrum of your logistical operations and give you a centralized view of what is happening at every stage. Most importantly, advanced logistical software can eliminate unnecessary costs and bring efficiency to your operations, enabling future growth.
Ready to leave the Dark Ages of logistics behind? Try our supply chain management software today.