Supply Chain Management Software Can Improve Competitiveness

Business software for supply chain management helps organizations not only to speed up products to the market, but also designs to products. In the sections below, we look how these goals are achieved

• Customer Orders: Retailers receive orders from major customers. If ordered items are in stock, shipping instructions are issued.
• Product Replenishment Requests: Where ordered items are not in stock, retailers send out replenishment requests to distributors.
• Shipping Advice: When a transporter acts on shipping instructions, and completes the shipment, shipping advices are generated. The shipping advice lists the items and quantities shipped, and is used by the shipper, consignee and the truck driver.
• Distributor's Replenishment Request: The distributor periodically sends out requests for supplies to the manufacturer, depending on market demand.
• Manufacturing Order: Manufacturer responds to the distributor's replenishment request by initiating an internal manufacturing order to the production department.
• Warehouse Order: Where replenishment requests can be handled with the stocks available in warehouses, the manufacturer issues shipping instructions to the warehouse (own or third party)
• Request for Transport: The shipper needs to identify a transporter who can execute the shipment expeditiously and on terms acceptable to them. This is sought to be done by issuing requests for transport indicating items and destination points.

The key feature of the above processes is the great deal of internal and external communications that are typically involved. By improving the communication process, supply chain management can also be improved. And well-designed business software for supply chain management will involve communication tools to achieve more effective and efficient communications.

The communications are optimized when there is integration between relevant manufacturer and distributor systems. In such a scenario, for example, replenishment requests can be automatically be converted into manufacturing or warehouse orders. Shipping speed and efficiency can also be improved by appropriate integration with transporters' systems.

A new dimension is added when manufacturers seek competitive advantages through optimized supply chain management in an environment of short product life cycles. It then becomes important to move designs to products as speedily as possible. And to do this by obtaining supplies from sources that are both competent and low-cost.

• Communicate requirements in rich detail to suppliers - 3D models, 2D drawings, relevant data, documents in different formats, etc.
• Secure sensitive design information from unauthorized access
• Allow competent suppliers with only modest IT infrastructure to access and respond to the RFPs
• Set an expiry date to each RFP, after which it cannot be opened or responded to
• Prevent indiscriminate copying, printing and editing of documents
• Allow respondents to submit their bids online, with digitally authorized signatures

Both the products to markets and designs to products movements can be speeded up and qualitatively improved through the use of business software for supply chain management. Producers who use such software in a tailor made manner would definitely have an edge over competitors who continue to use old supply chain management methods.

In an environment where many competent and low-cost suppliers are emerging in developing countries all over the world, improved RFP processes can help manufacturers to locate supplies at best bargains. Failing to use appropriate business software for supply chain management would be foolhardy in such a situation.