Supply Chain Management Definition
Supply Chain Management, or SCM, is another side of businesses that supply goods and services to end-of-line customers. It handles the logistics of shipping products end-to-end, but can also encompass purchase order management and quotations for supply.
While your business is small, you can probably easily manage a lot of logistics manually, but as you grow, this becomes harder and harder to manage.
A supply chain management and logistics program can alleviate most, if not all, of the hassles that begin to creep in over time.
Supplies and Manufacturing
If you’re in the business of manufacturing goods, you’ll most likely use an MRP system to control the processes involved with the manufacture of raw materials into a saleable product.
The Supply Chain Management software will handle all the logistics of purchasing and having the raw products delivered, and the subsequent supply and shipping to wholesale and retail outlets for the purchasing customer.
Supply Chain Integration
A great SCM system will be a part of an Enterprise Resource Planning solution, or ERP system.
The ERP system will include modules such as MRP for manufacturing, CRM for customer relationship management, SCM for supply chain management, along with HR, Payroll, Accounting and Inventory.
An important aspect of your supply chain management system, is for the ability to connect to and utilise resources from outside sources.
It’s also equally important to be able to provide resources for use outside of the system, either within the same company, or for external partners you do business with.
Supply Chain Solutions
Utilising supply chain management features gives you the following advantages:
- Suppliers can be ranked on a part-by-part basis – This allows for the item to be purchased at the best price based on your own quality and price ratings
- Single purchase orders for multiple jobs – Create a single purchase order from a supplier, regardless of how ,many components and jobs those items you are ordering are for. This saves the need for a large amount of purchases orders from the same supplier, making administration of this process complicated and time consuming.
- Support for inter-branch purchases – Buy products from within the company group without them affecting your balance sheet.
- Smart supplier invoice entry eliminates the need for a calculator to work out confusing values that are including or excluding tax values or individual line items.
Supplier Information Tracking
If your business is in a growing phase, it’s essential to have processes in place for each contingency with regards to sending and receiving your products.
One feature that helps to track what is happening where and by whom, is date stamped memos on every aspect of the logistics process. This includes invoices, purchase orders, suppliers and receive dockets, all stored for later reference as required.
Supply Chain Networks
Your business might only be a small business at the moment, but once growth has really set in, it’s natural to develop different departments to control or manage the various aspect of the business.
Multiple departments may or may not be located in the same physical location, fostering the need for a network of information sharing within your own enterprise.
Accentis Enterprise combines multiple features for supply chain management and logistics to help your business growth in leaps and bounds.
Not only can you take advantage of the fully-integrated ERP system with SCM, you can utilise time-saving functionality due to each module having access to the same data.
No longer should you have the frustration of trying to find the staff member you need, or worse yet, the invoice or purchase order itself.
The accessibility of data throughout your business with access by multiple users, all permission dependent, allows complete control of your business and how it grows.
A supply chain management system is just one part of a fully-operational business that is ready to take the next step to financial growth.
Your business can and should grow with software capable of handling all the tasks you need to do, with time-saving and resourcefulness included.
Are you ready to make more money for your business?
Click here to start your journey today!