Supply chain management is, in short, the art (yes it is an art) of controlling everything from raw materials and their point of origin to the final point of consumption of your product. This includes all interlinking networks, channels, and management of every member of the supply chain process. Needless to say, it is a tough job and not one to be taken lightly. Nor is it a job to take on without the proper tools.
Supply chain managmenet professionals are faced with a number of problems that need not only a solution, but the solution that will make your process as efficient and cost effective as possible. But what goes into a solid SCM solution and how can it help your company?
Some of the biggest decisions you have to make, or obstacles you need to overcome have to do with:
- Distribution network configuration
- Distribution strategy
- logistical activities
- Data Information
- Inventory management
- Cash flow
Luckily there are supply chain management solutions readily available to help you manage all of those bits and pieces successfully. The right SCM software will allow you to track and coordinate all of the movement of your materials, information, and funds across your supply chain.
Powerful supply chain management software has built in components that allow it to streamline all of your complex supply chain processes. The demands of every supply chain are different, but there are a number of components that every system needs to give you everything you need. Such as:
- MRP & DRP: empower your planners with the information they need to manage your supply chain.
- Bill of Material: BOM information is used to drive Material Requirements Planning (MRP) with exception messages alerting your planners what to make, how much to make, and when to make it based on raw material lead times and manufacturing cycle times.
- Forecasting: Manage sales forecasts by grouping products into different forecast product groups. Forecast daily, weekly, quarterly, or yearly and smooth demand to different period sizes for planning.
- Production Entry: Record finished good manufacturing results alleviating inventory of purchased raw materials with finished goods quantities created in your accounting system to fulfill orders or for required production demands. Cost accounting transactions are provided for a clear picture of your operations in your general ledger.
- integration to your ERP: Items, stock status, sales orders, and purchase order information from the accounting system are combined with Supply Chain sales forecasts to drive DRP.
- and more!
This infographic goes into more detail about each of the above components and why they are imporant features to have in any supply chain management solution.