| Supply Chain Software | | | | Off-the-shelf SCM solutions will often create a |
| Off the peg or tailor- made | | | | number of unanticipated compatibility problems and |
| Rajneesh Vyas, of Sunarc Technologies, looks at the | | | | companies need to consider such costs when |
| compatibility pitfalls of supply chain software and | | | | comparing to the customized solutions option. |
| compares off-the-shelf with customized solutions | | | | Focused SCM software vendors are expanding their |
| Selecting supply chain management software is the | | | | operations to provide logistics solutions such as web |
| most difficult decision a CIO has to take, as there is | | | | portals and event and warehouse management |
| no complete solution which can serve all industries. | | | | systems. Their software is by definition driven by the |
| Supply chain management (SCM) is a combination of | | | | need to be more |
| art and science that goes into improving the way a | | | | Advantages of off-the-shelf |
| company finds the raw components it needs to | | | | - Speedy time to deployment, particularly where level |
| make a product or service and deliver it to | | | | of customization is lower |
| customers. | | | | - Well-tested and well-organized systems |
| The basic steps in every supply chain are: planning, | | | | - Continual upgrades and longer term refinements |
| sourcing, production, distribution and return. | | | | Disadvantages |
| - Planning: where the strategies of complete SCM are | | | | - Generally higher costs, particularly when there is a |
| built. Sourcing: sourcing the materials used to make | | | | lot of customization involved |
| the products. | | | | - Despite advanced features, SCM solutions from ERP |
| - Production: production of goods, testing the | | | | vendors may not fit exactly other ERP |
| products, packaging the products and so on. | | | | - systems. |
| - Distribution: the process of delivering the products | | | | Advantages of customized solutions |
| to the end customer, involving tracking of orders, | | | | - Exact solution according to your requirements will |
| selection of freight carriers and invoicing. | | | | be delivered |
| - Return: often not considered an exact part of SCM, | | | | - Usually less expensive. |
| but in reality is very important to overall SCM. | | | | Disadvantages |
| Involving the logging of customer complaints, | | | | - If you are starting from scratch it will take more |
| returning of damaged goods and so on. Each of | | | | time to develop it |
| these five main supply chain steps has many specific | | | | - Risk of vendor shutting down operations |
| tasks and requirements for compatibility with IT | | | | - Customized solutions are dependent on ERP for |
| systems of partner companies. Many companies use | | | | data exchange. |
| different software for different tasks, because while | | | | Conclusion |
| somevendors have assembled many of these | | | | As supply chain management is increasingly tailored to |
| different pieces of software under a single umbrella, | | | | specific industry segments, we expect there to be |
| no one has a complete package that is right for | | | | quick advances in off-the shelf SCM products, as well |
| every company. | | | | as better customized solutions on offer to match the |
| The corporate IT foundation is the ERP (enterprise | | | | increasing specialization de-manded by the market. |
| resource planning) software, and this is the source of | | | | SCM technology |
| data information for supply chain software. Leading | | | | The most notable recent innovation in SCM |
| SCM software currently available in the market | | | | technology is clearly radio frequency identification |
| includes i2, SAP, APO, Manugistics, Ariba and Oracle. | | | | (RFID).RFID tags are essentially barcodes which can |
| Partners for these large products and these | | | | hold a lot more information. They can tell what the |
| companies provide customized solutions. As there is | | | | product is, where it has been, when it expires and |
| no perfect,universally applied software for supply | | | | virtually any additional information someone might |
| chain management, companies often tend to go for | | | | want to programme into it. |
| customized solutions which will match their | | | | RFID can produce almost limitless information on |
| requirements rather than off-the shelf solutions. | | | | when and where merchandise is manufactured, |
| Many ERP vendors have developed their own SCM | | | | picked, packed and shipped. It can provide retailers |
| solutions that are more “friendly” with their | | | | with key information, such as expiry dates of |
| own ERP systems products. The hurdle here is that | | | | perishable items, information that will have to be |
| ERP systems providing the data for third-party SCM | | | | stored, transmitted in real-time and shared with |
| products are not uniform, which means companies | | | | warehouse management, inventory management, |
| have to either customize the readymade SCM | | | | financial and other enterprise systems. Another |
| products available or hire a programming team to | | | | benefit of RFIDs is that, unlike barcodes, RFID tags |
| write code for separate and completely brand new | | | | can be read automatically by electronic readers. |
| systems. In particular, small and medium-sized | | | | Overall, the technology has the potential to add a |
| enterprises will have difficulty managing the | | | | great amount of visibility into the extended supply |
| compatibility between various ERP and SCM | | | | chain, notwithstanding hurdles such as the cost of |
| software. | | | | the infrastructure and lack of global standards. |