‘Insufficient Stock!’ When you view this notification as a client, your dissatisfaction is at an all-time high. Isn’t it? But as a business owner, you might regret making this error. Poor supply chain management is the biggest cause of products running out of stock despite great customer demand. Consumers don’t care what’s happening in the globe or the market, yet they still want you to meet all their demands. Organizations can easily avoid such pitfalls thanks to Supply Chain Management (SCM) software.
A staggering 79% of surveyed organizations claim that employing supply chain optimization approaches significantly boosts revenue.
What Is Supply Chain Optimization?
Supply chain optimization is a process to maximize the use of AI, machine learning, IoT, and blockchain to supply chains to achieve maximum efficiency and customer satisfaction. Such optimization is based on key performance measures, such as overall operational costs and company inventory returns.
Business Operations Optimized By Supply Chain Optimization Software
Advanced technologies like AI, machine learning, and data science, when used in the supply chain planning process, automatically provide supply chain management tools that are smooth and optimized. This aids in solving several problems for them, such as the following:
- Supply Chain Procurement Process: Streamlines procurement process to save money, time, and effort while achieving desired results and creating beneficial supplier relationships. The transactional AI-powered engine of LOCOMeX controls a company’s supplier diversity and supply chain procurement.
- Inventory Management System: Tracks the availability of stocked items, raw materials, or replacement parts and benefits asset management, barcode integration, and future inventory and pricing predictions.
- Order Management: Automates purchase orders and tracks orders from the time its placed until the time it’s delivered. It also records clients, deliveries, returned goods, and information on payments and refunds. LOCOMeX manages supplier bills per project and easily responds to requests with a cloud-based, AI-powered invoice-to-pay (I2P) automated tracking solution with various spend predictive intelligence and compliance analytics.
- Logistics: Provides real-time reports on all shipping activities, monitors shipped goods throughout transit, keeps track of all shipments, and examines shipping trends.
- Forecasting: Effective supply chain forecasting tools decrease costs by removing the need to purchase unnecessary raw materials. It also provides useful information to make important decisions regarding production planning, labor force, and supplier relationships. LOCOMeX allows tier 2 program planning, spending, and forecasting.
- Warehouse Management: This avoids storing surplus finished items on warehouse shelves, thereby cutting down on warehousing space and inventory costs.
- Return Management: Processes refunds or insurance claims and inspects and handles defective or damaged goods.
7 R's Of Supply Chain Management
- Right Product: The greatest approach to selecting a product is to choose one that is in high demand and can ensure profitability.
- Right Place: The second element is ensuring the right goods are delivered to the right place.
- Right Price: For businesses, pricing is crucial since it determines whether they made a profit or lost money.
- Right Customer: Customers are the central focus of supply chain operations. The business will attract life-long customers if the products are sold in the right market.
- Right Condition: Deliverables must be of the highest caliber and should be sent to customers in the proper state.
- Right Time: In logistics, time is a vital component. Only timely product delivery will result in happy consumers and a lasting relationship.
- Right Quantity: It’s crucial to deliver the proper quantity of goods to the clients. So, the manufacturing and delivery team must deliver the right quantity of products.
Factors To Be Considered While Selecting A Supply Chain Optimization Software
It is vital to develop business models that faithfully represent the supply chain tools and utilize algorithms to identify the best solutions to reach the desired level of supply chain optimization. So, consider these factors when selecting a supply chain management software:
- Consider what you need Before evaluating different software solutions, first, understand the requirements for your supply chain and make a list of how to improve the current supply chain.
- How compatible is it with your existing tech stack? Seek an SCM solution that can integrate with the current software you use daily, such as your Enterprise Resource Planning (ERP) systems, any installed CRM systems, any installed BI tools, and so on.
- Is the vendor reliable and knowledgeable? Choosing a service-oriented and reliable vendor is crucial. So, consider how long the company has been in the business and whether it provides support services for establishing, upgrading, and maintaining the software systems.
- Is it Cloud-based or On-premise? Depending on your current tools, workflows, and business requirements, consider choosing an on-premise or cloud-based solution. However, cloud-based solutions provide many benefits, including staying updated with the market, security, and support.
- What are its advanced analytics capabilities? Based on past trends, supply chain software must provide the necessary information to make crucial decisions. Not only must the analytics provide insight into past practices, but it must also create forecasts to predict future demand.
- Is it a user-friendly and intuitive interface? Choose SCM software with an intuitive and simple-to-learn user interface, which can aid in its adoption across the firm. So, consider real-time collaboration, mobile friendly, and a control tower to observe and manage the entire supply chain landscape.
- Must detect anomalies The supply chain software must detect inconsistent or inaccurate data input, alert the user, or, even better, automatically self-solve, following the necessary standards.
A uniqueAI-powered supply chain optimization solution from LOCOMeX called Divedln promotes supplier diversity, sustainability, local content, and ESG goals by employing data-driven predictive intelligence. LOCOMeX’s Supplier Diversity Program Management Software can be integrated for effective supply chain diversity inclusion. So, why wait? Please speak with our LOCOMeX experts to learn more about the wide range of solutions we can provide.