How success in Business and supply management?
How success in Business and supply management?
Top 10 ERP Vendors Revealed
- Free report features leading ERP software vendors.
- Quickly compare vendor capabilities.
- Includes vendor background and contact information.
- Jump-start your short list with this report.
Tips for Success with Supply Chain Management
Summary: Companies invest a significant amount of money in their supply chain softwares. Therefore, the success of these softwares is critical. This article highlights some tips that can help businesses derive maximum value from their supply chain applications.
How to Ensure the Success of Your Supply Chain Management Software
Manufacturers, vendors, distributors, and other active participants in the supply chain dedicate a significant amount of their technology budgets to the acquisition and administration of supply chain software. In fact, leading industry analyst firm AMR Research claims that revenues from purchases of new supply chain softwares, as well as software upgrades, enhancements, and replacements, has grown an average of 4 percent annually over the past several years. Additionally, AMR expects that spending on supply chain softwares will continue to rise well into the foreseeable future.
Therefore, it is critical that businesses understand how to maximize value, and get the most out of their supply chain investments. Here are some tips that can help guarantee supply chain success:
Get Everyone Involved
There are many critical stakeholders, both within and outside an organization, who contribute to the effectiveness of supply chain operations. Not just internal employees on production teams, in purchasing departments, or in stockrooms and warehouses, but external business partners such as vendors and distributors.
There are many critical stakeholders, both within and outside an organization, who contribute to the effectiveness of supply chain operations. Not just internal employees on production teams, in purchasing departments, or in stockrooms and warehouses, but external business partners such as vendors and distributors.
Since a supply chain software will impact each and every one of these constituents, they must be fully involved in the initiative, and their feedback and input must be gathered as early on in the process as possible. This will help facilitate widespread user adoption and ensure that the supply chain software will satisfy everyone’s needs.
Look for Robust Demand Planning and Forecasting Capabilities
Many experts believe that the ability to accurately predict sales demand, and adjust output and supply levels accordingly, is the key to supply chain success. Without supply chain software – and the powerful forecasting functionality it provides – companies run the risk of:
Many experts believe that the ability to accurately predict sales demand, and adjust output and supply levels accordingly, is the key to supply chain success. Without supply chain software – and the powerful forecasting functionality it provides – companies run the risk of:
- Product shortages, which can lead to low levels of customer satisfaction and high levels of churn.
- Component shortages, which can cause delays in production activities.
- Too many components, which can lead to overstocked warehouses and increased inventory management costs.
- Excess finished product, which can take up valuable warehouse space, and force companies to cut prices to deplete remaining stock.
Integration is Key
In most companies, supply chain operations span multiple departments and business units. In order to coordinate the seamless execution of activities across these groups, a supply chain software must tightly integrate with the applications they utilize.
In most companies, supply chain operations span multiple departments and business units. In order to coordinate the seamless execution of activities across these groups, a supply chain software must tightly integrate with the applications they utilize.
Test your Processes
The purchase of a new supply chain software, or a significant upgrade to an existing one, presents a great opportunity to evaluate current processes, and re-vamp them as needed to make them more productive and cost-efficient. Analyst firm Gartner suggests starting with a pilot project that involves just one or two suppliers and distributors, and using limited information sharing to test different procedure scenarios, until the one that proves to be most effective is discovered.
The purchase of a new supply chain software, or a significant upgrade to an existing one, presents a great opportunity to evaluate current processes, and re-vamp them as needed to make them more productive and cost-efficient. Analyst firm Gartner suggests starting with a pilot project that involves just one or two suppliers and distributors, and using limited information sharing to test different procedure scenarios, until the one that proves to be most effective is discovered.
Encourage Collaboration
One of the primary benefits of a supply chain software is its ability to enable rapid, unhindered information sharing. Companies who don’t fully leverage these capabilities – using them to communicate with and make data available to external supply chain partners in real-time – will realize only limited benefits from their supply chain softwares.
One of the primary benefits of a supply chain software is its ability to enable rapid, unhindered information sharing. Companies who don’t fully leverage these capabilities – using them to communicate with and make data available to external supply chain partners in real-time – will realize only limited benefits from their supply chain softwares.
Comments
Post a Comment