| Answering the question of what Supply Chain | | | | a company from start to finish. As a result, when |
| Management is, is as simple as breaking down the | | | | industry insiders talk about Supply Chain Software, |
| phrase into its component parts. Supplies are those | | | | they are really talking about a combination of many |
| inputs that a company relies upon to produce the | | | | different programs that, when applied together, help |
| product that will ultimately reach its customers. The | | | | manage the supply chain. While literally thousands of |
| chain is the group of suppliers that bring those inputs | | | | different products are on the market today, they all |
| to a company and the process whereby those inputs | | | | fall into one of two broad categories, Supply Chain |
| are integrated into the company. And finally, | | | | Planning (SCP) or Supply Chain Execution (SCE) |
| management is the coordination and organization of | | | | software. Supply Chain Planning software covers |
| all these inputs and their implementation. So put it all | | | | those programs which use advanced mathematical |
| together, and Supply Chain Management is the | | | | algorithms to map out the flow of products through |
| science and art of improving the processes that bring | | | | a company and to identify any inefficiencies. The |
| suppliers of raw materials together and move those | | | | ultimate goal of this type of software is to help |
| materials through the company until they reach the | | | | reduce faulty products, to speed up the time to |
| endpoint, the customer. | | | | market, and to reduce inventory. Supply Chain |
| What SCM Involves | | | | Execution software is designed to automate |
| If defining the term takes a full paragraph to cover | | | | different components of the supply chain. For |
| even in its most basic sense, you can imagine how | | | | example, Supply Chain Execution Software might |
| complex the industry surrounding Supply Chain | | | | update inventory listings in a central directory as soon |
| Management truly is. It involves managers who map | | | | as inputs are brought in from a supplier or are sold |
| out the entire process and look for inefficiencies and | | | | off to the customer. In this way, SCE software |
| others who develop and maintain relationships with | | | | eliminates the costly and time consuming task of |
| suppliers to ensure a steady supply of inputs. It | | | | tabulating the total current supply so as to know |
| involves the actual process of manufacturing or value | | | | when to place the next order. |
| add in which those inputs become the products that | | | | The Goals of Supply Chain Management |
| will be sold as well as "logistics" or the process of | | | | Ultimately the goal of Supply Chain Management is to |
| getting those value added products to customers. | | | | bring greater efficiency to a company by reducing |
| And finally it involves dealing with and compensating | | | | errors, maintaining steady inputs, and reducing excess |
| for supply chain returns, such as defective products. | | | | inventories. With the growth of the internet, |
| Supply Chain Management covers every aspect of | | | | however, it is transitioning into a means of |
| the business from input to output and as such | | | | collaboration between companies. By concentrating |
| requires an extensive array of tools and strategies to | | | | their efforts on better communication with suppliers |
| help managers to coordinate and organize acompany. | | | | and customers, inefficiencies are ironed out not only |
| The Dilemma of SCM Software | | | | within the company but in those surrounding it as |
| One of the most innovative and revolutionary tools in | | | | well. The internet has made the communication |
| use by managers involved in the supply chain is | | | | between firms necessary for this to take place |
| Supply Chain Management Software. While I have | | | | possible. Consequently, the hope for Supply Chain |
| outlined five general sections that make up Supply | | | | Management in the future is not only to create a |
| Chain Management, each of these sections is unique | | | | more efficient and profitable business, but to |
| to a particular business. As such, no single product | | | | contribute to a more efficient and profitable global |
| has been developed to handle the software needs of | | | | marketplace as well. |