5 Essential Functions of Supply Chain Management Software

Running a supply chain in a costly and effective manner is not easy. There are multiple departments that have their hand in the process, from sales to accounting and distribution. Making sure that this process is running smoothly without miscommunications is practically impossible when the majority of the work is done manually. Not to mention, that the way you run your supply chain can greatly affect how much money you make or save each month. One way to automate this process, making it more efficient and less costly, is by leveraging a supply chain management software with your ERP.

The next step is to find a supply chain management software that is powerful and can meet all the needs of your company. It is not useful to have a system that is only automating half of the process. When looking for supply chain management software, look for these 5 functions.

  1. Production Entry
    This is a basic function that your supply chain management software should have. By removing raw materials from inventory and automatically updating finished goods produced in your accounting system, there is clear communication between the department and no delays in reporting.
  2. Sales Forecasting
    Being able to anticipate the demand of a product can greatly help to reduce cost and lower wasted goods. Forecasts should be able to be created off of any item, warehouse, customer or territory.
  3. Costing
    Manually costing each item takes hours out of each day. The manufacturing costs for each raw material and labor should be available within the system so you can easily access the numbers whenever they are needed. This will allow you to make better, more informed decisions based off of cost analysis and reporting.
  4. Bill of Material
    Another must-have in supply chain management software, you should be able to document what the necessary raw materials required to produce a product and have them available for easy access. Further, the software should be able to keep track of the amount of labor required, as well.
  5. DRP/MRP Demand Planning
    The best way to keep costs low is by automating demand planning. You never have to worry about falling below your safety stock and having to turn away customers because you don’t have enough product. The system can let you know what products need to be orders and what products need to be made based on forecasted demand.

Keeping track of every detail in the supply chain is a frustrating task, and is bound to be fraught with error if done manually. Using supply chain management software ensures that you always have the right amount of product and material to satisfy your customers. Automating the process will help to keep your manufacturing or distribution business in budget and efficient.

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