Warehousing and Distribution
Article | July 11, 2023
Innovations such as AI and automation have been tipped to kickstart the Fourth Revolution. While the technology is being widely adopted, it is constantly evolving. Therefore, there is uncertainty surrounding its overall impact, particularly on professional roles within the supply chain. Some fear that the technology will replace its human counterparts, while other experts suggest it will work in unison with humans, supporting them to focus on higher value opportunities. Amidst all of this uncertainty one thing is for certain: AI and automation will change how we operate.
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Supply Chain
Article | May 22, 2023
Purchasing software and supply chain management software are often mistaken for one another, but both have distinct functionalities. While purchasing software automates the procurement process, supply chain management software executes logistical transactions and manages supplier relationships. This report identifies the similarities and differences between the two software categories to help you understand which one is better suited to your needs.
What is purchasing software?
Purchasing software is an online tool that allows businesses to automate the process of procuring goods and services. It includes security compliance and reporting features.
Purchasing solutions offer integrated tools for invoice approval, inventory control, asset management, customer service, and work order management. They help manage contracts, analyze spending, track sales deliveries, and monitor inventory levels. They also assist in identifying bottlenecks in the purchase process, such as functions that have high expenditure.
Purchasing software offers invoice processing capabilities as well. Procurement professionals and accounting teams can use the tool to generate invoices, track invoice status, and monitor expenses via detailed reports.
What is supply chain management software?
Supply chain management software is a software platform that allows supply chain managers to automate the entire supply chain process—from acquiring raw materials to delivering the finished goods to consumers. The software provides tools for monitoring stock levels, including raw materials, and predicting future requirements based on the current inflow and outflow of inventory.
Supply chain management tools manage material handling, order fulfillment, and information tracking for stakeholders such as manufacturers, suppliers, and transport and logistics providers. They also track the returns of damaged goods, process refunds and insurance claims, and provide planning and forecasting tools for supply chain professionals.
What do they have in common?
Purchasing is a crucial component of supply chain management. Together, these processes significantly contribute to an organization’s procurement cycle. Despite the functionality differences, both the software categories have a few features in common, including supplier management, order management, and forecasting.
Which tool is right for you?
The answer to this question depends on your use case. If you’re looking for a tool that majorly focuses on acquiring supplies, opt for a purchasing software solution, as it will help you streamline the procurement cycle, maintain purchase order accuracy, and monitor supplier activities. However, if you wish to manage your entire supply chain operations, including supplier, transportation, warehouse, and inventory management, then investing in a supply chain software solution would be the right choice.
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Warehousing and Distribution
Article | July 11, 2023
The rapid growth of e-commerce continues to create new challenges for retailers as they plan distribution strategies. One of those challenges is managing the high volume of returns. One in three shoppers returns items, and more than half read a company’s returns policy before making a purchase. Retailers lose $50 billion annually due to inefficiencies in processing returns, and distribution centers handling returns need 15% to 20% more space than a traditional facility.
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Software and Technology, Supply Chain
Article | August 3, 2022
In the past couple of years, supply chain management has witnessed massive disruption. The implications of the pandemic have put pressure on manufacturers to revisit and reimagine how they manage their supply chains. This is why ERP software is so mission critical in supply chain management. It not only helps supply chain chiefs reduce overhead costs but also enhance efficiencies and timely deliveries.Here are a few ways ERP plays a role in supply chain management to keep it moving.
Complete Visibility
Having a 360-degree view of the supply chain is integral to making the right decisions regarding procurement and purchase of materials and inventory. It also allows suppliers to have complete control and course correct when necessary. The insight into the complete supply cycle allows suppliers to respond to customer queries better.
Inventory Tracking
ERPs are truly a one stop shop for manufacturers. They feature extensive inventory tracking on one system so manufacturers are in the loop about inventory control and can better optimize their inventory and resources. For manufacturers it is crucial to know where their inventory is, what has been shipped, what is on hand at all times. With ERPs, it becomes cheaper to keep a stock of the inventory and place orders when it’s running low.
Vendor Performance
Vendor performance is an essential aspect of supply chain management. Being able to compare vendors, measure certain quality and quantity metrics and identify bottle necks help suppliers choose the right vendor as well as gives purchasing departments the power to negotiate for better pricing by consolidating purchase. ERPs allow suppliers to do all the above and more.
Procurement
Procurement of goods can be a complex process if done without the right tools. It also impacts the whole supply chain so it is doubly imperative to ensure the procuring and supply of goods is on time. This is especially true in an environment of custom manufacturing. Add to that the requirement of procuring products with lengthy lead times, manufacturers need to take into considerations product that need to be ordered long before they are even designed. ERPs allow manufacturers to keep all departments including engineering and warehousing to work in sync and plan to procure goods on time.
Real-time Reports
Reporting is labor intensive and can be inefficient when it comes to gathering and processing data. With ERPs, manufacturers can generate reports in real-time and all manual data collection processes are replaced with automation, saving time and money in viewing the insights into the movement of products in the supply chain. It enables manufacturers to get a better understanding and make timely decisions that improve the overall efficiency of the supply chain.
To Conclude
ERP systems offer endless opportunities for manufacturers to improve their processes, save time and resources and optimize and enhance inventory planning. With the right tools, it is possible to establish supply chain management that outperforms and is resilient even in disruptive times.
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