What is supply chain management (SCM)?
According to Wikipedia – “Supply-chain management has been defined as the “design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.”
How do supply chains work?
Following are the core elements of supply chain management.
- Product movement refers to the process of managing the product movement. It includes the following key components ensuring complete satisfaction to customer’s needs.
- Timely movement of a product from one unit to another
- Appropriate quality check at each point
- Quick delivery to the customer
- Proper and correct information sharing, which if not handled appropriately can lead to disasters in a business. SCM model should ensure that the flow of information takes place appropriately.
- Meeting deadlines is the main aim of supply management. SCM should be able to keep a track of the entire process (from the time of picking raw-materials from suppliers till the final delivery is handed over to the customer). The organization’s success exclusively depends on the process of whether the product is delivered successfully to the client.
- Regular performance review is vital for the long-term success of the organization. For the continuous business growth, there should be regular performance reviews and quality checks with the customers even after delivery.
- Managing finance includes accounts payable, inventory management, billing accuracies, etc.
- Strategic integration of various functions and stakeholders is an essential part of the SCM model to achieve the long-term goals of the organization.
What are the benefits of running a live supply chain on a real-time data?
If a live supply chain runs on live data, then the organization can easily connect the various stakeholders, such as workers, business partners, clients, and other entities like assets. It will help in making predictions and taking decisions for the growth of the business.
For this until recently there were no proper tools. Therefore, all the sales forecasts were made based on previous facts. Fortunately, today we have tools, like SAP Business One to help grow business with real-time data coming from commerce network, social media, IoT sensors, etc.
These tools help tracking the entire process starting from fetching raw materials from suppliers till the final product is delivered to the customer and being used by them.
So, if you want to drive your business successfully, you should feed the real-time data in your business system using tools like SAP Business One. It will help you design, plan, arrange logistics, etc. required for the growth of the business.
To make your supply chain live, it is important that it captures, analyzes, and acts on real-time data!