Top 3 Benefits of Supply Chain Management

Top 3 Benefits of Supply Chain Management

When looking for an ERP solution it’s important to find one that will take care of your entire supply chain management needs. The ultimate goal of efficient supply chain management is reducing the inventory costs of your organization. And, if your organization has difficulty tracking goods consumption and product availability, you need to understand the top 3 benefits of supply chain management that will help to double your business.

The main aim of supply chain management (SCM) is to enhance trust and collaboration with your supply chain partners involving planning, execution, and monitoring supply activities. SCM keeps track of supplies from beginning to end.

Worried about sluggish product, material, information flow?

The less time it takes for goods to reach the customer, the more efficient the product flow. There are various critical aspects like the quality of the materials that reach customers, the balance between supply and demand, shipment costs, and inventories. An effective supply chain management system makes sure there is an improved product flow through accurate demand and sales forecasting. That way you can enable working strategies to accelerate and optimize business speed while ensuring a high level of product quality.

According to leading research done by Oracle, 1.2 billion £ is spent over the fragmented supply chain. All you need is effective supply chain management to remove the bottlenecks of supply chain information flow like you will find in manufacturing ERP which can make sure you don’t miss opportunities or avoid possible risks.

How do I achieve a real-time supply chain?

A modern ERP solution ensures a real-time supply chain with complete visibility. You can instantly act on the information you receive much faster. Take, for instance, if you observe the sales numbers for a particular product are declining, you could act immediately to make a change.

Supply chain management in ERP software allows you to manage risks much better. If for instance, your immediate supplier fails to meet your demand order, your ERP system is capable of suggesting alternate suppliers. Helping you save time and avoid a disruption in production.

Organizations with digital supply chains gain many advantages. Digitization improves forecasting accuracy through faster statistical analysis. When reliable data is available, the time required to prepare a production plan is considerably reduced. In a digital world, orders can be received from multiple channels and processed automatically, based on complete inventory visibility.

Achieve greater efficiency and make the best business decision with real-time supply chain management built into an ERP system. ERP software provides a macro perspective of a company by integrating cross-serviceable functionalities such as procurement, inventory, finance, and distribution.

Competitive benefits of ERP in supply chain management

Disruptions occur for multiple reasons and the nature of their impacts varies. Whereas a labor union problem can be anticipated, a terrorist attack is un-imagined. While a fire in a factory can put a stop to operations, the outbreak of an epidemic may have consequences that take more time to set in. Companies with resilient supply chains and those that take proactive risk-mitigating steps can anticipate issues more effectively than their peers, and minimize the negative impact.

An ERP software boosts effective demand forecasting and lean inventory and makes sure that the cost of inventory is minimized during large-batch production processes. This eases bottlenecks considerably between internal business processes and external suppliers by handling proper procurement and supply of the goods and services needed across the supply chain.

Business executives can make more informed decisions with ERP by augmenting efficiency across different departments and with suppliers and partners.

Given the advantages offered by manufacturing ERP with supply chain management will provide substantial leverage over competitors. If you wish to know more on this topic, please feel free to contact us.