Effective supply chain management is crucial in today's increasingly globalised marketplace. With the complexity of sourcing raw materials supply chain optimisation isn't just necessary to remain ahead of your competitors - it is a critically important component in the running of your day-to-day business.
Developing a successful strategy for your supply chain management and having the right ERP system in place to support it becomes one of the best ways you can drive profit margins across your whole organisation. Here are three quick ways that the right software and strategy can help transform your supply chain operations:
1. Create an adaptive supply chain:
Businesses face continued risks which threatens their supply chain management. These risks can be political instability, natural disasters, loss of supply centres, increasing energy costs, changes in industrial regulation etc. Knowing what exactly is happening within your supply chain will allow you to plan contingency measures against these events or changes in the environment. So not only can your organisation face these issues, but can also leverage these circumstances and use them as growth and profit opportunities.
Companies using an ERP system to manage suppliers will have access to real-time data and if issues arise alternative products from different suppliers can be arranged quickly and efficiently – while ensuring any difference in transport costs, exchange rates and other complexities of the transaction are recorded on the system for accurate cost calculations.
2. Foster a demand-driven management system:
Using a system that has demand-driven methodology help buyers manage the supply chain and help align demand with production. By fine-tuning your supply chain to the specific conditions of the market it will improve forecasting and help prevent overproduction or excess inventory.
Utilising ERP software allows your business to make dynamic adjustments to your supply chain planning - and using its intuitive system processes, informed decisions can be made as buyers will have access to more accurate and optimised data-flows.
3. Develop integrated and aligned corporate business policies:
Supply chain management is increasingly being viewed as more than a single conjugated "chain" that links raw materials with a finished, end product.
In his book, Supply Chain Transformation, Paul Dittman argues that the supply chain is becoming a "services organisation" for the entire business. This means that the supply chain impacts more and more the following corporate domains:
- Strategic finance and budgeting policies
- Growth forecasting
- Sales management
- Production management
- Compliance and corporate governance
Because of the diverse nature of the modern supply chain, it is beneficial for organisations to get this aspect of their business right.
By integrating all these vital processes and concerns into one system such as ERP software, the entire business operation aligns itself in a way which optimises all its desired outcomes. Sales goals can be rationalised and tailored to current knowledge of the market demand, and operations planning can evolve as financial targets adjust to supply changes or industry risk forecasts.
Using an ERP platform such as WinMan ERP System will enable your business to streamline all of your supply chain management needs. Not only that, it will also take care of every facet of your organisation's process requirements, with just one software application.