| The 21st century consumer is spoilt for choice when | | | | cooperate fully with each other, the ultimate goal of |
| it comes to shopping for goods and services; and | | | | individual companies is to fulfil their immediate |
| there is certainly a wide range of products to choose | | | | obligations in moving the product on to the next |
| from, whatever the occasion. | | | | stage in its journey. As such, any tool of the trade |
| But it's probably fair to say that very few people | | | | will do if it helps them manage the often complex |
| ever stop to consider how the goods actually end up | | | | procedures involved in SCM, thereby increasing their |
| in their current form in the first place; from an idea in | | | | profitability, competitiveness and subsequently, their |
| someone's head to the factory floor, then | | | | growth. |
| transported on the back of a truck and taken to | | | | And this is why many companies are turning to |
| their local department store. Indeed, from a | | | | supply chain management software. Indeed, such |
| customer's point of view, there is probably very little | | | | software has specialised functionality to help |
| reason to ever consider the journey a product has | | | | companies effectively manage and coordinate the |
| taken to get to their front room. | | | | processes involved in collaborating between |
| However, from a business point of view, managing | | | | manufacturers, retailers and transportation/logistics |
| and monitoring a product's journey is integral to the | | | | service providers. SCM software also often includes |
| company's long-term success. What's more, | | | | useful features that help to facilitate purchase order |
| streamlining the process to minimise costs and delays | | | | processing, inventory management and supplier |
| will help to ensure the supply chain is optimised to | | | | management/sourcing. |
| their own benefit. | | | | However, at the more sophisticated end of the SCM |
| Indeed, the main underlying objective of supply chain | | | | software spectrum, some have forecasting |
| management (SCM) is to meet the demands of the | | | | functionality built in, which can be a very valuable |
| consumer through efficient use of all resources | | | | feature. Given that it can often be difficult to predict |
| involved in moving the product or service, from the | | | | future consumer trends, there can often be a |
| supplier to the customer. There are, however, many | | | | significant gap between supply and demand; through |
| mechanisms in place to ensure that the SCM process | | | | using algorithms and performing consumption analysis, |
| runs smoothly from start to finish. This includes clear | | | | forecasting tools can help businesses plan more |
| communication between suppliers to eliminate | | | | efficiently for their future requirements. |
| bottlenecks, and also strategic sourcing to ensure the | | | | So, whilst the customer may not be |
| right balance is struck between material costs and | | | | overly-concerned with the processes involved in |
| the quality of goods on offer. | | | | moving a product concept to the shop floor, |
| But whilst supply chain management requires | | | | businesses stand to gain a lot from understanding and |
| businesses at every level of the process to | | | | managing the supply chain effectively. |