Any business owner knows the importance of supply chain management (SCM). The right control allows a company to keep its flow steady and everything working at the right time, with the right intensity. However, what is supply chain software? Does it substitute supply chain management? Let’s understand both concepts better.
What is supply chain management?
Also known as SCM, supply chain management is the centralized management of a company’s services, goods, finances, and even data, basically everything related to a product or service, including all the processes that turn raw materials into final products.
Don’t mistake the supply chain for logistics. Logistics is a part of the supply chain and not the contrary. There are a lot of activities in an SCM, such as span procurement, supply chain planning, order management, product lifecycle management, etc. As you can imagine, it is a long and hard process that needs to be careful in order to make the company’s service or product work properly. Each product has its own supply chain management.
Since they facilitate the production of any product or service, supply chains have existed since early civilizations. The process of industrialization turned SCM into something more sophisticated and efficient, working great for both the companies and the consumers. If you remember what Fordism is, you can see how it helped Ford and other companies overcome many problems, even though it wasn’t perfect.
Now, with the digital revolution, SCM is even more sophisticated. Some don’t even need people anymore. Those are known as supply chain software.
What is supply chain software?
Supply chain software is a program, application, or script that manages a company’s supply chain. They can work differently depending on the company’s wants, but most use technologies like machine learning, AI, automation, sensors, and the Internet of Things (IoT).
Some companies use their supply chain software to help with their standard supply chain management, while some entirely replace SCM with digital ones. Either way, companies nowadays use digital technology to make their SCM smarter and more efficient.
Also, digital SCM overcomes traditional SCM since it allows aligned planning and execution. Some people fear that digital SCM will get employees fired since it will enable companies to have fewer workers working on the SCM. However, it actually frees up supply chain employees so they can contribute to the business differently.
Where can I find trustworthy supply chain software?
John Galt Solutions is one of the best supply chain software available. With it, you can accelerate your digital supply chain planning and make everything more efficient. The supply chain processes can be rapidly solved with the use of this technology, including strategy, production, distribution, and more.
Since 1996 John Galt Solutions has been working to help companies to use digital technology to fix their supply chain challenges. They offer several services to help you turn your SCM into a digital one. Check their website to see which companies already use their products and how they can help yours.