Supply Chain Management Software - Overview | Rowtons Training by Laurence Gartside

Introduction

Supply chain management (SCM) software is essential for businesses looking to optimize their operations and improve efficiency. While it shares some similarities with other software packages like MRP (Manufacturing Resource Planning) and ERP (Enterprise Resource Planning), SCM software has its distinct functions.

Key Functions

The primary role of supply chain management software is to execute transactions, manage supplier and customer relationships, and control various associated business processes. Typical functions of SCM software include:

Customer Requirements and Preferences: Understanding and anticipating customer needs.
Purchase Orders: Managing order placements with suppliers.
Sales and Consumption Data: Tracking sales patterns to better forecast demand.
Logistics and Distribution: Managing the movement of goods from suppliers to customers.
Inventory Management: Overseeing stock levels and maintaining optimal inventory.
Warehouse Management: Facilitating goods in and goods out processes.
Supply Management and Sourcing: Handling supplier selection and relationship management.

Integration Features

Modern SCM software often comes with robust integration capabilities. It can integrate with customers’ and suppliers’ software systems, as well as with a company's internal accounting and finance software, ensuring seamless data flow across different functions.

Delivery Model

In today's digital landscape, many companies are opting for software as a service (SaaS) models. This means businesses pay a subscription fee for access to the software rather than purchasing it outright, resulting in more flexible financial and usage options.

Keywords

Supply Chain Management (SCM)
Software
Transactions
Supplier Relationships
Customer Relationships
Inventory Management
Warehouse Management
Logistics
Software as a Service (SaaS)
Integration

FAQ

1. What is supply chain management software?
Supply chain management software is designed to execute transactions and manage relationships with suppliers and customers, controlling various associated business processes.

2. How does SCM software differ from MRP and ERP?
While MRP and ERP systems cover broader business functions, SCM software specifically focuses on supply chain processes, including logistics, inventory management, and supplier relations.

3. What are the key functions of SCM software?
Key functions include managing customer needs, processing purchase orders, tracking sales data, overseeing logistics, and maintaining inventory levels.

4. What is the benefit of integration features in SCM software?
Integration features allow seamless data flow between SCM software and other systems used by customers and suppliers, as well as internal accounting and finance tools.

5. How is modern SCM software typically delivered?
Most modern SCM software is offered as software as a service (SaaS), which requires a subscription payment model instead of a one-time purchase.