Top 5 Supply Chain Management (SCM) Tools You Should Know

The aroma of your favourite coffee fills the air shortly after your alarm clock goes off and the coffee maker starts. The supply chain is in charge of transporting those coffee beans from all over the world to your kitchen. 

 

To transport those beans to local vendors while they are still fresh, it takes a great deal of planning, demand forecasting, procurement, and logistical ability. Your caffeine-fix alternatives would be extremely limited if you didn't have a reliable supply chain in place.

 

Supply chain management (SCM) is the management of the movement of commodities, data, and finances associated with a product or service from the procurement of raw materials to delivery of the product to its final destination.

 

Although many people confuse logistics with the supply chain, logistics is only one component of the supply chain. Suppliers, manufacturers, wholesalers, transportation and logistics providers, and retailers all benefit from today's digitally based SCM systems, which incorporate material handling and software for all parties engaged in product or service production, order fulfilment, and information tracking.

 

Procurement, product lifecycle management, supply chain planning (which includes inventory planning and the upkeep of enterprise assets and production lines), logistics (which includes transportation and fleet management), and order management are all part of the supply chain. SCM can also be applied to operations related to global trade, such as global supplier management and international manufacturing processes.
 

Also Read | Big Data in Supply Chain Management

 

Before moving ahead, first we need to know how SCM works.

 

So, let us try to know that.

 

 

How Does SCM Work?

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Working process of a SCM

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There are 5 components of a SCM system. They are:

 

1. Planning

 

Plan and manage the resources necessary to meet a company's product or service demand. Determine metrics to monitor if the supply chain is efficient, effective, delivers value to customers, and achieves organisational goals once it has been formed.

 

2. Sourcing

 

Choose suppliers to provide the goods and services needed to create the product. Then, establish processes to monitor and manage supplier relationships. Key processes include: ordering, receiving, managing inventory and authorising supplier payments.

 

3. Manufacturing

 

Organise the steps necessary to accept raw materials, create the product, test it for quality, package it for shipping, and schedule delivery.

 

4. Delivery and Logistics

 

Customer orders are coordinated, delivery is scheduled, loads are dispatched, customers are invoiced, and payments are received.

 

5. Returning

 

Create a system or network for returning damaged, excess, or unwanted merchandise.

 

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Importance of SCM

 

• The primary goal of supply chain management is to guarantee that product transportation is smooth, efficient, and adaptable throughout the supply chain. While supply chain management is useful to the entire supply chain, it also benefits a few areas of the core business. Let's take a closer look at them:

 

• Supply chain management lowers production costs by ensuring that raw materials are delivered on time to assembly plants. Businesses can prevent material shortages and manufacturing delays this way.

 

• Because it enables timely delivery of products from the producer to a retail store, a good supply chain management plan can help minimise the need for an expensive warehouse. Supply chain management lowers purchasing expenses by reducing warehouses.

 

• A supply chain management strategy will eventually allow organisations to foresee stock shortages before they happen. They may avoid losing prospective sales by employing data like their reorder frequency, amount of stocks ordered, and number of orders received.

 

• Supply chain management also ensures that clients receive the appropriate number of products at the appropriate locations at the appropriate time. All of these elements contribute to better customer service.

 

In this blog, we are going to look at the best SCM tools out there. So, let us dive in.

 

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Best SCM tools

 

1. Anvyl

 

Anvyl is a supply chain relationships management (SCRM) platform that is cloud-based (you may access it from anywhere). Its purpose is to provide real-time visibility while also giving teams the automation and communication tools they need to boost output, improve procedures, and expand their enterprises.

 

Anvyl is simple to use, quick to set up (less than 24 hours), and expandable as your company expands. This is beneficial to all types of business owners because you may not know how big you want your company to be when you first start out. Anvyl, on the other hand, is with you every step of the process.

 

As a result, it's a great option for small organisations who have outgrown their manual supply chain operations.

 

On the one hand, Anvyl has all of the capabilities you'll need to get started optimising your business and planning for long-term growth. On the other hand, you are not obligated to pay for things that you do not require.

 

The basic plan gives you a lot of information on orders and inventory levels, which is useful if you want to keep track of how much inventory you actually utilise.

 

The upper tiers, on the other hand, are available when you're ready for more detailed logistical information and tools for managing suppliers successfully.

 

You may access more advanced services like logistical shipment tracking, bespoke automations, and supplier performance data when you upgrade to higher levels.

 

In addition, each plan includes expert onboarding and in-app chat support, as well as quarterly business reviews to ensure you're getting the most out of your new software. This is especially useful if you've never worked with supply chain management software before.

 

As you progress through the tiers, you'll get more hands-on help with RFQs, components and supplier uploads, supplier training, and supplier coordination.

 

The small company plan also grants you access to a library of certified, pre-vetted suppliers, which you can use to compare and develop new connections within the platform. Only 1% of vendors that apply are accepted into the library, so you're in good hands.

 

This is a fantastic time-saving feature for firms that want or need to swiftly create new supplier partnerships while still managing inventories.

 

You may also use Anvyl's advanced search bar to pre-fill purchase orders using previous data, automate check-ins and follow-ups with suppliers, and find what you need in seconds.

 

As a result, even on the lowest tier, you get everything you need to make your firm ready for long-term growth.

 

Also Read | What is Logistics Management? Types and Benefits

 

2. SAP SCM

 

The more complicated your products are, the more options there are to increase supply chain efficiency, reduce risk, and save money during the production process.

 

SAP's extensive 50+ year history in the automation and manufacturing industries makes it a sensible choice whether you're making automobiles, aeroplanes, revolutionary electronics, industrial machinery, or military-grade defence items.

 

You can enhance all of your processes and manage the numerous vendors and suppliers that your manufacturing operation relies on using SAP SCM.

 

With its capacity to harness automation and artificial intelligence, this platform is genuinely future-proof. You can use it as an all-in-one SCM solution to:

 

• Monitor and evaluate production performance at both the global and local levels.

 

• To increase visibility, collect data from diverse manufacturing systems.

 

• For ongoing improvement, use machine learning and advanced algorithms.

 

• Maintain margins and quality while dealing with high product fluctuation.

 

• Maximise the efficiency of manufacturing resources while reducing downtime.

 

• Assess and fix concerns with quality and productivity as soon as possible.

 

Set inventory targets, connect your sales and operations teams to balance inventory and profitability, and manage material flow based on demand forecasting with SAP's supply and demand planning tools.

 

From there, you can quickly integrate Ariba SAP, an optional module that centralises and facilitates communication with suppliers, partners, and other contractors and is available for purchase.

 

Furthermore, the platform can be used to streamline onboarding processes for new suppliers, decreasing the learning curve for all parties involved.

 

Supplier management, strategic sourcing, warehouse management, transportation logistics, order management, asset management, and supply chain planning are all options available.

 

SAP's sophisticated solutions can also assist you in making the shift from outmoded techniques to current processes that include real-time analytics, in-depth insights, and powerful production automations.

 

You'll never have to navigate your new software on your own with SAP's implementation and success services.

 

Plus, if you need assistance, you can always turn to the comprehensive product documentation, rich knowledge base articles, active community support forum, and SAP's different online training sessions.

 

Also Read | How does Blockchain Benefit Supply Chain Management?

 

3. Magaya

 

Magaya is a complete supply chain management solution for freight forwarders, third-party logistics organisations, carriers, and importing/exporting businesses.

 

You can centralise and optimise operations, real-time tracking, rate management, and compliance with Magaya, allowing you to simplify the entire process from order acquisition through product delivery.

 

It's a cloud-based solution that doesn't require any upkeep or current infrastructure from you, making it exceedingly simple to administer and use.

 

It's accessible from everywhere with an internet connection, and because to its familiar, user-friendly interface, it's simple to use.

 

Magaya includes pre-built transportation and logistics workflows that you may utilise to get started quickly. It also has built-in warehouse management tools, allowing you to manage and improve your whole supply chain with just one tool from anywhere.

 

You may also simply automate the most boring operations, such as dealing with customs agencies, bookkeeping and accounting, and providing customers with status reports.

 

With features including freight quotes and booking, inventory management, ecommerce order fulfilment capabilities, automated replenishment, local pick-ups, and more, Magaya is likely one of the most feature-rich supply chain management applications on this list.

 

All of this is available in the form of modular solutions that allow you to expand your supply chain software's flexibility and capability as your company expands. As a result, you gain increased scalability while lowering IT expenses because you can easily add new capabilities without requiring in-house assistance.

 

Also Read | 5 Use Cases of AI in Logistics

 

4. Logility

 

Customers can purchase things through a variety of channels, including online marketplaces, social media, your website, and your physical store.

 

Consumer demand and customer life cycles might be difficult to predict when there are several venues where customers want to buy from you. To make matters worse, having insufficient inventory results in a poor client experience.

 

However, too much inventory on the shelves or in warehouses dilutes revenues.

 

However, Logility makes it simple to model multiple scenarios and respond swiftly to changing demand, market shifts, and global competition.

 

It's an AI-powered supply chain planning tool for consumer-based businesses like yours to manage changing product demand. You may improve client experiences regardless of where they occur by doing so.

 

You can use artificial intelligence and smart demand sensing to improve in-stock positions and re-plan those positions as new market intelligence becomes available, for example.

 

Demand can even be predicted down to the SKU level.

 

This implies you'll always have stock, regardless of market fluctuations or other factors outside your control.

 

You can perform simulations on a global or shop level with variations for climate, culture, and trends relevant to each place. This makes it a lot easier to better estimate demand and turn those insights into larger profit margins.

 

You can also create multiple supply plans with different vendors to ensure that your purchasing decisions are always improving.

 

With online and phone-based customer assistance, the Logility team is there for you every step of the way. There are also dozens of in-person training sessions, online courses, and a certification programme to assist you in getting the most out of your new software.

 

Logility's SaaS, hosted, and on-premise deployment options make it a great fit for enterprises of all sizes and levels of complexity.

 

5. ArrowStream

 

ArrowStream provides industry-specific solutions for fine dining establishments, fast food franchises, neighbourhood taco eateries, and everything in between. It even works for all types and sizes of food wholesalers and suppliers.

 

Expiring ingredients, dramatically fluctuating demand from day to day, quality concerns, and tight compliance laws are all challenges in the foodservice industry.

 

The good news is that ArrowStream's team "speaks about food service" and is familiar with the unique problems you face and the types of items you manage.

 

There are a variety of options, including:

 

• Inventory management for rapid deployment

 

• Restaurant pricing auditing on a contract basis

 

• Restaurant incident management that is of high quality

 

• Restaurant strategic sourcing

 

• Restaurants can see their supply chain.

 

• Optimising inbound logistics for distributors

 

• Tools for suppliers to collaborate

 

• Restaurants and suppliers can benefit from commodity intelligence.

 

In the culinary and hospitality industries, cookie-cutter solutions aren't going to cut it. Combine the tools you'll need to build a unique supply chain management solution that fits your company's needs, no matter how big or small.

 

In addition, ArrowStream offers a network of over 7,500 foodservice vendors ready to work with your establishment.

 

From there, you may weigh your options and go further into historical spend metrics and existing contract data to identify better sourcing opportunities for your company.

 

If you're a supplier, you can use ArrowStream's restaurant network to find new business partners in seconds. You can also keep track of market trends and commodities that affect the price of your products.

 

As a result, you'll have a clear understanding of how to price your products profitably now and in the future.

 

If you're a foodservice distributor, on the other hand, you may improve your inbound logistics operations, use data to discover the ideal balance between inventory and cost management, and reduce your operational costs.

 

Conclusion

 

Previously, supply chain management software was only available to huge firms and enterprises managing thousands of moving parts at the same time.

 

However, cloud-based deployments and cutting-edge technology have made it more accessible and inexpensive for companies of all sizes.

 

These were some of the Top SCM tools available out there. You need to choose the best one among them according to your business. Till you choose the same, I bid you adieu.