What is supply chain management software

To begin with, let’s consider that as an end-consumer you need a party table for an evening party of yours. Yet, the retailer takes you around their furniture shop and tries find to find out 4 legs for the table, a glass to keep on the “to be constructed table” and all the other materials required to construct a special party table and hands them over to you. Perplexing, isn’t it? What will you be doing with the raw materials if you don’t know how to make one?

Supply chain management is where there is a proper flow of goods and services which also includes the process of transforming the raw materials into the final product. In this way, you won’t have to get worried about how your party table will turn out!

Learn about supply chain management software?

Since all most every aspect of the world is digitalized, so does the supply chain management field.

A supply chain management software or SCMS is an application which is used to manage the supply chain management process. In simple terms, it helps in controlling end-to-end processes in the supply chain management system. Supply chain management mostly relies on a web basis following up with the ability to provide a link to different organizations, locations, and companies so that it will ease the process of sharing information between each of them to manage the supply chain process efficiently.

Types of supply chain management software.

When the main types of supply chain management software (SCMS) are considered there are two types of SCMS,

1. Planning software applications.

Planning is an integral part of the supply chain management process. Planning software applications are therefore entitled to help this process with ease with their very advanced algorithmic.

For example, having a planning software application would help in forecasting demands for products or it can help you identify what mode of transportation is best suited for the products.

2. Execution software applications.

These types of applications involved tracking the locations of and the statuses of goods, help in managing the flow of products from the manufacturer to the distributors, involve in the coordination of materials and even involves in displays the statuses of the goods so that the retailers or the vendors would know when they have to deliver it to their customer.

Common features of supply chain management software.

A supply chain management software should consist of an integral system with essential functions to handle the supply chain management process. Here are a few essential and common features of SCM software,

  •  Inventory management.

Enables alert on low stocks, monitor inventory levels, and control stock levels, and this feature also enables to place new orders on the same platform itself.

  •  Forecasting and analytics management.

Supply chain management software should consist of analytics, and forecasting graphs which will help in minimizing unwanted buying of materials and will foresee customer demands.

  •  Procurement management.

This feature will have automated documentation on the reasoning why a certain product is needed for the company and the need to approve it, the ability to track the orders, RFx management, tender invitations, and e-auctions.

  •  Logistics management.

Involves in monitoring and scheduling orders, warehousing, customer relationship management, transportation management and other marketing activities.

  • Sales order management.

Involves in a centralized process of automated routing and order tracking while managing sales and orders.

7 Benefits of supply chain management software.

  • Financial benefits

SCM software can aid financially in 2 aspects which can ultimately lead to profits,

1. Cost-effectiveness.

Cost-effectiveness is one of the most crucial parts of a business. If it is not handled properly the business will surely have to incur a great number of losses that it will even have to close down. Yet, with supply chain management software, you will have the chance of managing the costs much more effectively. The SCM software will help you spot the costs which you can cut off and reduce financial costs. In this way, you won’t be having to change the direction of your business or shut it down for life!

 2. Managing future expenses.

After identifying the costs you can cut off, you can check how to reduce future expenses as well.

As an example without SCM software, you might tend to buy all the inventory products which are cost high but do not provide much of a benefit to your business, but if you have SCM software it will aid you to figure out what inventory tools will help you to reduce expenses with the same quality and cut off the products that is not much beneficial for the inventory process.

As a result of cutting expenses and the ability to handle future expenses, you will be able to gain heaps of profits from your business.

  • Communication capabilities.

A supply chain management system software will involve increasing efficiency in several methods,

 3. Easy collaboration.

In order to have a better relationship between the clients and the vendors it is quite vital that collaboration becomes easier through thick and thin. As SCMS is based on real-time data it will be ideal for a business, since they can easily share the details within their business and even with the other parties they are dealing with and this leads to a good communication method as well.

Moreover, the customers in need of information on their shipments would be also able to check the related information making it easier for them as well.  Effortless collaboration with other parties related to your business will also bring you more sales as well. As a result of easy collaboration, the work to be done would be efficient as well.

 4. No data breaching.

A  part of communication is well related to the ability to breach the data of customers fruitlessly to the other parties of a business. Yet, through supply chain management software, there will be no data breach of the customers, this will in turn safeguard the customer’s security as well as their trust.

In case, your business has not used supply chain management software it might harm the reputation of the business incurring a great amount of loss of customers due to a breach of information outside.

  •  The analytics.

The analytics in a supply chain management software will help vastly in the following criteria,

5. Better forecasting.

The possibility of analyzing data on a supply chain management system software will help in better forecasting which will also be useful in better decision-making as well. You will easily get to check on the insights which will include salary figures, the timelines in which you have to deliver the products, and even the raw of cost materials.

The data-driven method in SCMS will lead to better customer experiences with your company due to better forecasting and lead to a better impression of your company as well.

6. On-time.

As analytics show great visibility in, on-time delivery, on time production manufacturing, transporting would be an absolutely easier task rather than manually documenting the related information. The strict deadlines could be accomplished and also you will even be able to spot errors if there are any during the transportation process.

7. Revamped production flow.

Since you have already gathered data in the system, you can work on techniques to improve the production flow of your business. This will help you in reaching a higher efficiency rate as well as you will make sure that your stocks won’t be out of stock.

Challenges during the implementation of supply chain management software.

When SCM software has been implemented the tasks become easier, yet the implementation of supply chain management software could be somewhat a challenging task due to several reasons,

  • The skills.

Handling a supply chain management system software requires skills and expertise in the field, yet the number of people who have experience in this field is less.

Moreover, the staff might also struggle to adjust to the automated process instantly.

  • The required costs.

The enterprise resource planning software (ERP) which is integrated with SCM software can be quite expensive to be customized. Moreover, application maintenance is not a cheap procedure as well. Hence, integrating supply chain management software could be quite costly in terms of expense.

  •  Inability to compromise.

As the transactions and communication are done through the specific software it would be a pretty hard task for the specific parties to come to a specific agreement.


How to choose the best supply chain management software.

A supply chain management software can be chosen for your business by considering several criteria,

  • Determining the functions you need.

Firstly, evaluate the functions you might need to run your business. Then, you need to figure out the most vital functions that will be needed in your business. Then select the SCM software accordingly.

If you have “second needs” that you think, will also be wanted, yet not at the first time itself, remember that software can always be expansive. Therefore, prioritize the most wanted functions instead of having them all at once.

  • Clearer vision of the software company.

It is vital to have a great understanding of the company that you are going to integrate the software company with, the reputation of the company, whether it is certified or not, is a critical aspect to consider when you are handing over the responsibility of your company’s software.

Make sure that the software company will meet your needs and wants in the most prominent way possible.

  • Existing technology and other facilities.

Considering the existing technology and other infrastructure facilities of technology which is required to integrate the supply chain management software is vital. Moreover, it will be critical to launching the software in a way that the employees related to the sector could handle it without a huge effort as well.

  • Financial capability.

To make sure that you benefit from the supply chain management software you also need to check into your financial capability on investing in the software. In this way, you will surely be able to make a profit from it.


What are the factors which can make SCM software successful?

There are several factors that can be specially emphasized to implement SCM software successfully,

  • Consultation with customer and supplier.

A good relationship between the two parties is a magnificent benefit for a good result in SCM implementation. During these sessions, all the parties would be able to get together and imply what features the company will require and come to a consensus much more easily.

  • Pointing out dilemmas.

Pointing out the existing dilemmas or the problems which need to be improved or which need to be minimized should be highlighted as well. This can be done while the specific parties are in the process of consultation.

  • Addressing cultural challenges.

Addressing socioeconomic and cultural challenges will help to identify and solve many problems in the supply chain management industry. Through this, negotiations could also be addressed between the parties and will be able to recognize the changes in quantities and even delivery patterns.


The benefits of supply chain management software for a business are vast. Applying it in the appropriate context of your business will enhance the company’s supply chain management firm bringing much more efficiency, reliability, and profit to your business..


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