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Supply Chain Management Software: Strategic Managing

Jun 2, 2008
A company has to have raw materials to create a product or service for potential customers, so supply chain management (SCM) is implemented by combining art and science. SCM is comprised of source, plan, make, deliver, and return. It provides a great opportunity for improvement.

"Plan" is that portion of SCM that organizes all the resources that go into meeting the demand for your particular products or services. "Source" picks the suppliers that you will use to obtain the products and services you need for your production. It is also responsible for negotiating prices and delivery with these suppliers.

The manufacturing step is called make. It schedules the necessary activities for production, testing, packaging, and preparation for delivery. Many insiders refer to deliver as logistics. It causes a network of warehouses to develop and coordinates the receipt of orders from customers, etc. Receiving excess and defective products back from the customers and supporting customers who are not satisfied with the delivered products is called return.

The world's most fractured group of software applications may be supply chain management software. There are dozens of specific tasks in each of the five major supply chain steps. Many require their own special software. Attempts have been made to assemble diverse chunks of software into a single package, but a complete package that is right for every company has remained elusive.

The saying that any system is only as good as the information that it carries is doubly true of SCM. Thus, is the information that is put in to a demand forecasting application is incorrect, then the subsequent forecast will be incorrect. Also, if employees decided not to utilize supply chain systems and rather do things manually, obviously the system will be unable to provide an accurate picture of the company's supply chain. Therefore, it is quite important to have proper management training and management coaching to have correct working of supply chain management software.

The complexity of supply chain automation makes it an extremely challenging task. Because both workers and suppliers must adjust their methods in order for a company to make use of supply chain management software, only the most significant and influential manufacturers can by deploy the software. And it can be a difficult job to convince outsiders of the software's value.

Supply chain management software or SCM is a combination of art and science that improves the raw materials it needs to make a service or product and deliver to its customers. Source chooses the suppliers who deliver goods and management coaching a set of pricing, delivery and payment processes with the suppliers. Attempts have been made to assemble diverse chunks of software into a single package, but a complete package that is management training right for every company has remained elusive. So if the information entered into a demand forecasting application is not correct then you will get an incorrect forecast.
About the Author
George Purdy is an acknowledged expert on supply chain management software. He wrote many articles on this subject and is a well-known public speaker. Look for more great articles and resources at management software.
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