What is Supply Chain Management?
Supply chain management refers to the management of supplying goods and products required by an end customer. In other words, it refers to an organization that manages products that reach an end user. SCM deals with the management of a network of business processes and activities such as raw material procurement, logistics, and manufacturing and distribution of finished goods. Ensuring that the right product is supplied to a customer at the right time and place, as well as with the right cost is the mission of a good SCM provider. Seems simple, right?
Why Does Supply Chain Matter?
Today, more than ever before, supply chain management has become an integral part of business and is essential to any company’s success and customer satisfaction. Supply chain management has the power to boost customer service, reduce operating costs and improve the financial standing of a company. Companies that use strategic SCM can perform at their best to provide and distribute their products efficiently.
In the Internet of Things (IoT) arena, supply chain management is no longer limited to electronic data interchange (EDI) and business-to-business integration solutions. Today’s real-time, data-dependent economy requires supply chains to obtain greater accountability, governance, and visibility by leveraging a data-centric approach to SCM.
Let’s quickly review some of the major highlights of an effective Supply Chain Management solution:
Boosts Customer Satisfaction – One of the most important aspects of a business is its customer service. The correct product assortment and quantity needs to be delivered to the customer on time and efficiently to ensure they are satisfied. Customers also expect products to be serviced quickly if repairs or replacement products are requested/needed. SCM can help ensure that customers are always satisfied, which can improve your business’s bottom line.
Reduces Operating Costs – Supply chain management decreases overall supply chain costs since retailers and manufacturers often rely on supply chain managers to create networks that meet customer service goals at the most affordable rate. Retailers also require supply chains to quickly deliver expensive products in a timely manner to limit inventory holds longer than necessary. SCM further reduces production costs because manufactures always require supply chains to deliver materials to assembly plants to ensure proper material supply.
Improves Financial Position – SCM increases profit leverage since supply chain managers help control and reduce the cost of the supply chain, which provides drastic increases in firm profits. Supply chain managers also decrease the use of plants, warehouses, and transportation vehicles within the chain so that fixed assets can be reduced. Lastly, SCM can increase your business’s cash flow given that customers can receive their products faster thanks to supply chain managers.
All these factors working together contribute to a successful business.
How do you find the right Supply Chain Management solution for your business?
Selecting a software that fits your business needs doesn’t have to be a complicated process. Essentially, what all businesses need is a solution that can be flexible enough to fit your company needs.
When determining the best solution for your business ask yourself these questions:
- Is your company a small to midsize business?
- Does your business require cloud-based implementation?
- Does your business require real-time data analysis and reporting?
- Does your business require an end-to-end solution?
- e. inventory management, purchasing and shipping, track & trace, real-time monitoring, etc.
- Is interoperability important for your business?
- Do you want to optimize your operations and increase revenue?
Vu360 Solutions can aide your decision-making process and provide you with the most flexible, reliable and long-standing supply chain solution on the market.
To learn more about our SCM solutions visit our website at www.vu360solutions.com or contact us directly at (630) 233-4471.