3 Decision Levels of SCM: How Supply Chain Software Enables Better Choices

supply chain softwareIn an increasingly competitive and complex business environment, every management decision matters. As a manufacturer you know that a well managed supply chain will lay the framework for success while a mismanaged supply chain will quickly send you down the opposite path.  Supply chain software enables manufacturers to make the right decisions quickly and easily, allowing them to manage their supply chain from the purchase of materials, all the way to the end-user. Not only does this technology allow for cost and time efficiency, it enhances the three decision levels of supply chain management process the strategic level, tactical level, and the operational level. Here’s how:

1.  Strategic management decisions. An effective supply chain begins here.  At this level of supply chain management large scale decisions will be made that affect the entire process. Some of the strategic choices made here include, a site and purpose for the organization, choosing suppliers, vendors, logistics handlers, and other members of the supply chain, inventory and product management, innovation and improvements, required IT systems, and others. Your decision to adopt supply chain software would be made at this level. After implementing the software, you will find strategic decision making easier as you will then have quick access to the information you need to make informed decisions and spot trends or patterns in the organization.

2. Tactical management decisions. Processes are defined at this level of supply chain management and play a huge roll in controlling the cost of your operations and minimizing risks. Supply chain software can give you the insight and control you need to make sure your ordering, purchasing, inventory levels and logistics are set up to provide you with the maximum profit possible while also satisfying customer demand.

3.  Operational management decisions. This is the level at which you manage the actual production processes and day to day activities that keep your supply chain active. This includes forecasting, scheduling, monitoring logistics, settling damages or losses with suppliers, vendors, or clients, and managing inventory and the comings and goings of materials and finished products. Supply chain software can help you schedule your production process, forecast sales, manage changes, handle vendor agreements, as well as process customer orders and choreograph the movement of products to and from warehousing, among other things.

Each of these supply chain management decision levels affects the others and the most effective operations are those that carefully manage all three of them. By looking at each level as an individual and as a part of the whole, your entire supply chain, both inside and outside of your walls, will benefit.

supply chain software

Related Posts