Best Supply Chain Management (SCM) Software Companies

57% of companies believe that supply chain management gives them a competitive edge and enables them to expand their businesses. 

Over the years, there have been many changes in industrial processes and companies have become more proactive in reinforcing supply chain processes using analytics.

Since supply chains form the backbone of business operations, investing in the right supply chain management software is important. 

Let us try and understand the different aspects of supply chain management (SCM)software. 

What is Supply Chain Management Software?

Supply chain management software provides end-to-end visibility for monitoring the flow of information in a supply chain.

The software keeps track of all activities related to the creation and movement of goods, from the raw material stage to the point it reaches the end-user. Moreover, SCM software helps by streamlining organizational processes, managing their risks, and helping them build better customer relationships.

Supply chain management (SCM) is a concept that helps organizations meet customer demand in a highly productive and cost-effective manner. In theory, the deliberate movement of materials and production parts from the manufacturing plant to the warehouse, storage areas, distributors, and finally to the customer is fairly easy. This complex sequence is only one possible variant amongst many possible supply chain solutions structures, each of which brings its own novel challenges.

So to understand, supply chain logistics management is the holistic management of the movement of goods and services, including the flow and storage of raw materials, work-in-process stock items, and of finished products from the point of origin to the point of consumption. Companies all over the world are now investing in supply chain management software to keep their organization on track with efficiency and proficiency. An SCM solution is truly the best way to transform your operational success and enhance your organization's bottom line in a positive manner.

Why Do You Need an SCM Software?

If you manage a mid/large sized enterprise which deals with a considerable volume of products, your supply chain is incomplete without a good SCM software.
And if you’re a smaller firm, you still need to ensure that you offer quality products at competitive prices. Therefore, efficient management of supply chain logistics is imperative. And what can be a better way to do so than by investing in a good Supply Chain Management Software?

Factors to Consider before Choosing the Right Supply Chain Solutions

1. How Much of Your Budget Can You Allocate

You can decide between perpetually licensed and subscription software, depending on your budget. 

2. The Extent of Integration You Want from the Software

Choose a Supply Chain Management software that will integrate smoothly with existing systems. It should be capable of adequately communicating with your clients’ and suppliers’ systems as well.

3. Specific Functionalities that You’re Looking for

Depending on the type of business your company is engaged in, you might require specific functionalities in your SCM software, such as EDI (Electronic Data Interchange) or RFID (Radio Frequency Identification).

4. Degree of Automation

The impact of the resulting automation from SCM software on the daily workflow of the employees must be adequately assessed before investing in it.

5. SaaS vs On-Premise Software 

Both have their own pros and cons. Cloud-based or SaaS software will be cheaper, provide better connectivity, and robust data redundancy. On-Premise SCM software although are more expensive allows a greater sense of control and deeper customization options.
Depending on your specific business needs you can choose an appropriate SCM software.

Benefits of Supply Chain Management Software

Let us try and understand the benefits of supply chain management software. 

1. Predict Market Demand

Supply chain management software provides access to real-time and accurate information. The information and integrated data help in predicting market demand and responding to changing market conditions with SCM’s predictive analytics feature. This helps organizations gain a competitive advantage by being proactive. 

2. Shipping Optimization

Due to rising costs, shipping optimization is critical for supply chain leaders. Companies must recognize the most efficient shipping methods for small parcels and large bulk orders. 

This helps companies deliver faster orders while minimizing costs. These savings can be used to boost the company’s bottom line and also improve customer satisfaction.

3. Cost Reduction 

With supply chain, management software companies can cut down inventory-related costs and can optimize their warehouse. Supply chain software gives organizations comprehensive information about the lifecycle of products and what can be done to achieve efficiency. Organizations can eliminate redundant processes and energy spending to cut down costs. 

Moreover, with the right automation solutions, organizations can track the supply chain in real-time and don’t need to rely on spreadsheets to track the progress of goods. This helps increase productivity and implements a better inventory management system.

4. Proactive Risk Management

87% of companies believe that they could reduce inventory by 22% if they had a better understanding of risks in their supply chains.

Supply chain management provides access to minute details that can reveal potential risks. This enables companies to develop backup plans and respond to unexpected circumstances. 

Moreover, it helps companies act proactively rather than reacting to supply chain disruptions and quality control issues. Analyzing risks can also help companies achieve leaner operations. 

5. Improved Cash Flow 

With supply chain management software, organizations choose the right partners, predict market demand accurately, and reduce supply chain disruptions. All these efforts are in line with a satisfactory improvement in an organization’s bottom line. 

When a company works with reliable suppliers, there are fewer disruptions and organizations can clear invoices sooner. Subsequently, it helps improve the cash flow, which leads to more time invested in building great relations with suppliers.

Key Features of Supply Chain Management Software

Some of the key features of supply chain management software are- 

1. Inventory management
2. Goods receipt and Warehouse management
3. Supplier Management/Sourcing
4. Customer-requirement processing
5. Purchase-order processing
6. Sales and Distribution

Tips to Choose the Best Supply Chain Management Software

Here are some tips for choosing the best supply chain management software companies in India. 

1. Customizing Ability 

Software that has been built around a specific product or industry has the ability to offer the best solutions. Some industries have unique supply chain needs that cannot be fulfilled by just any software in the market rather it needs a specific software that works on the problem areas or the targeted functionalities. 

For example, for an organization that is into making perishable goods, its software has to consider the critical time frames involved in the supply chain. 

The right SCM software can address all these issues and enable seamless supply chain management. 

2. Compatibility

When comparing SCM software options, organizations need to narrow down the options that will work well with their system.  

Moreover, organizations also need to ensure that the SCM software works well with the suppliers’, vendors’, and shippers’ systems. While it can be tough to find software that meets all the needs, software that meets 85-90% of requirements will work well.

3. Reliability of the Vendor

Even the best products require a reliable vendor. An SCM solution that a reliable vendor does not support is not useful. 

Organizations must look for a company that is efficient in handling complex issues that supply chains face and has the experience to deal with companies of all sizes. 

Logistics vs Supply Chain Management

Let us have a look at the differences between logistics and supply chain and supply chain management. 

Logistics

1. Logistics management is a component of the entire supply chain process. It involves fleet management, warehousing, inventory control, and transportation management.
2. Logistics optimize demand planning and manage agency relationships.

Supply Chain Management

1. Supply chain management refers to all the activities that are related to the creation and movement of goods.
2. Supply chain management looks after inbound and outbound logistics and carrier selection of goods.

Market Trends of SCM Software

Supply chain management software is a dynamic field, and every few years, the market is flooded with new trends in the field. It's important to have a clear idea about these supply chain logistics trends as they can give the top leadership a more comprehensive picture of supply chain management software.

Here are some important SCM trends that managers need to be aware of before investing in an SCM solution for their organization:

• Corporate Social Responsibility: Corporate social responsibility is a buzzing trend that is surely being followed by all responsible organizations these days! High competition and an extremely conscientious consumer base have caused many businesses to adopt higher social and environmental principles to govern their supply chain management software. Corporate social responsibility requires great visibility into supplier practices across the entire supply chain. Many SCM software solutions now include regulatory compliance procedures in their supplier management module, ensuring companies have their CSR policy in place.

• E-Commerce Supply Chains: E-Commerce supply chains are the future of supply chain management! They have become a vital piece of the retail economy in recent times. Some stores have discontinued the brick-and-mortar model completely and instead started selling through online storefronts. Here vendors basically function as distributors, meaning they need effective solutions for demand planning, inventory management, and order fulfillment, rather than the usual point-of-sale software (POS). Many SCM solutions have integrated modules for E-commerce models, ensuring that your business model runs smoothly!
• On-Demand SCM Software: Supply chain management software has seen lesser levels of software-as-a-service acceptance than other functional verticals such as customer relationship management or human resource management. This is due to the complexity and dispersal of the SCM industry itself, along with the numerous middle-market suppliers and distributors who are using web-based applications. Not many organizations invest in SCM solutions with a formal IT infrastructure. International vendors SAP and Oracle have played a large role in groundbreaking cloud-based SCM software, and have provided on-demand SCM solutions, thereby positively changing the SCM system market.

Related Articles:

• Impact of Robotic Process Automation on the Supply Chain Industry

• Use Supply Chain Management Software to Fast-Track Business Operations

• Supply Chain Sustainability: Why Is it Important for Your Business?