A supply chain is the ecosystem of connections between a company and its suppliers. This network includes different stakeholders, activities, people, entities, information, and resources.
Simply put, a supply chain network connects all elements and covers all the steps involved in getting products or services from their initial state to the customer, including functions such as development, manufacturing, marketing, operations, distribution, finance, and customer service.
Supply Chain Management is about managing and uncovering ways to improve supply chain operations. It refers to the oversight and control of all company activities required to turn components and materials into finished goods, and distribution, delivery, and service processes required to deliver products or services to partners, customers, and end-users.
SCM provides centralized control for the planning, design, manufacturing, inventory, and distribution phases necessary to produce, distribute and sell a company's products.
"Extended" refers to supply chain processes extending beyond company boundaries of customers, suppliers, and business partners to include more distant links to the individuals, organizations, and resources a company works with directly. For example, "Tier 2" and "Tier 3" suppliers and the customers' customers.
The processes should be as comprehensive as possible to drive efficiency throughout supply chain operations, such as product design processes, manufacturing, sourcing, order management and fulfillment, and transport and logistics.
Information sharing among all stakeholders in the extended supply network offers significant advantages. A business with visibility into its extended supply chain can often predict future disruptions.
Extended supply chain broadens the management scope beyond the business processes covering the supply chain, treating the entire network as part of it. Suppliers will have complete visibility into customer demand and ready their response plan, providing full inventory visibility and tending scheduling needs.
Supply chain digitization is a part of modernizing supply chain operations into digital processes by establishing an integrated, cross-functional pool of data gathered from internal and external sources across the supply chain, using automation and business intelligence. (e.g., sales data, POS data, competitor prices. etc.)
Simply put, the overall workflow of supply chain management is split into three different categories: product, information, and finances. Every organization part of a supply chain works under one of these domains.
Product flow - includes the timely formation, storage, and delivery of goods in the supply chain, including quality assurance tests at every step of the product lifecycle.
The Information flow handles the continuous process of sending and receiving purchase orders and updating delivery statuses. All other workflows depend on the accuracy of the information flow throughout the supply chain. The Financial flow deals with payments, inventory management, billing, credit terms, and other workflows related to finance.
Overseeing a vendor's performance.
ERP software provides a real-time view of all operations, targeting specific inefficiencies for better outcomes and Obtaining vital performance indicators ranging from orders and fill rates to freight bill accuracy and customer order cycle times.
ERP helps create automated demand planning processes upon orders received. From Warehouse resource management to transportation of materials, Team members can access real-time information about resources used in production and plan accordingly.
An ERP system automatically generates invoices sent directly to the customer as products are shipped and collects shipment and delivery data to ensure on-time delivery and customer satisfaction.
ERP supply chain management processes help streamline coordination between businesses and vendors to meet mutual goals and reduce bottlenecks.
The significant benefits of cloud ERP are dedicated data security and mobility. Using a cloud-hosted ERP solution means that the system can be accessed anywhere, anytime on mobile, supporting faster, better-informed supply chain decisions on the go.
Rapid globalization, increased product complexity, and growing customer demands bring companies to adopt new technologies to transform their supply chain.
Advanced tools and sensors allow companies to collect data throughout the product's lifecycle at every checkpoint.Machine learning, AI, and advanced analytics help drive automation and deliver insights that promote efficiency and drive innovation.
Advanced, automated demand forecasting allow companies to forecast demand more accurately, automatically optimize inventory levels efficiently, and replenish inventory accordingly.
Automated shipping solutions eliminate some of the manual tasks in order fulfillment, automatically putting orders IN queue. Shipping technology can be intricate like AI or as simple as installing infrastructure components.
Widely used in the supply chain to move materials or build products faster and with enhanced efficiency, advanced robots deployed in supply chain management systems often enhance and streamline operations, such as detecting product defects and processing errors.
Supply chain management technology aims to improve product quality faster and help organizations improve and better serve their customers' dynamic needs and requirements.
As industry 4.0 gains momentum, Industry leaders must adapt to, analyze, and predict consumer demand on the go.