What is Supply Chain Management?
Supply chain management is often one of themost important, and sometimes the most overlooked part of any company.Especially for companies that sell physical products (but helpful also forcompanies that offer services, or a mix of the two) supply chain management optimizationcan both save and end up producing a significant amount of both revenue andprofit.
The supply chain involves the process ofproduct creation (production) and product distribution. Therefore, the commonlyused term “supply chain management” is the process of optimizing, maintaining,and managing the supply chain of a company through various methods. A lack insupply chain optimization can lead to several hinderances. A slow productionline will cause a lot of sold out items. A production line that is too quickwill cause a plethora of over-stocked items.
Those are just some of the ways that a lackof a proper supply chain management team can produce a wide variety ofexpenses. That is why software companies, like Avercast, have take on thechallenge of solving this supply chain optimization crisis. Supply chainmanagement software is the intermediary between every department that allows abusiness to put the correct product in the correct place at the correct time.
What is supply chain management software?Software tools for supply chain management don’t just cut costs, but they canactually increase revenue as well. Because of the costs they cut and revenuethey generate, supply chain management erp software systems can be pricey. Theprice is justified however, supply chain software systems tend to recoup theircost within the first year of implementation, and usually much quicker.
Supply chain management software also canimprove the production and quality of other departments aside from just thetraditional operational uses. The reporting software tools for supply chainmanagement coupled with easy-to-use intuitive interfaces allow finance,accounting, sales, and even marketing to take a close look on the future of thecompany. Supply chain software suites tend to contain multiple softwaresolutions that can be best for multiple different approaches to the business.
For example, sales forecasting, a commonsupply chain management software tool, allows companies to see how much theywill sell of each product, or a specific group of products in the future.Obviously, it won’t be 100% accurate, but it uses complex algorithms to makethese predictions as accurate as possible. This type of forecast gained from supply chain software can help each department prioritize whatever willaccomplish their goals.
They can then, using the reports generatedfrom the software tools for supply chain management and come together with themanagement of the company to decide a plan of action for the entire company.This type of goal-oriented progress is one of the many ways that supply chainsoftware pushes the state of a company forward.
With Avercast, you can see exactly how yourdata can be optimized for free during a demo with our supply chain experts. Signup for a quick call if you know what you’re looking for to make sure our supplychain software meets your requirements, or sign up for an extensive demo forthe opportunity to see your own data in our system.