The Benefits of Supply Chain Management

5/28/21 12:00 AM

supply chain management benefits

In the business world, supply chain management (SCM) can be taken for granted. However, it is important to recognize the importance of SCM and understand that it forms the foundation of every organization. It involves the long-term strategic decisions that lay the groundwork for the operational process as well as the day-to-day decisions that ensure that the production process is running smoothly.

Modern-day supply chain management has quickly evolved from manual-input, logistics, and mechanization focused optimization to the digital and automated coordination of supply chain elements. Today, supply chain management plays a vital role within manufacturing operations and is essential for companies seeking to reach optimized efficiency within their production processes.

Without SCM, manufacturing facilities would struggle to accurately determine the quantity of materials and parts that are needed to complete customer orders and meet demand. In addition, supply chain managers are focused on streamlining the processes involved in transforming raw materials to finished goods to maximize profits.

In order to fully realize the potential benefits of supply chain management, companies need to embrace a data-driven approach because data is by far the most fundamental element within every supply chain.

Utilizing a data-driven supply chain management allows for further competitive advantages such as the seamless integration of business elements, real-time data transparency, increased profits, and more. In this blog, we will discuss some of the benefits of supply chain management and why it is so beneficial to your business.

data driven and digital supply chain management tools will be beneficial

The Benefits of Supply Chain Management

Implementing adequate and effective supply chain management enables manufacturing facilities to enhance their production in three ways - product flow, information flow, and financial flow. The benefits of supply chain management include the following:

  • Improved Product and Material Flow - Effective supply chain management allows companies to shorten their production lead times by improving the material and product flow throughout their operations. The less time it takes for finished goods to reach your customers, the more efficient your product flow is. Having said that, it is important to also consider the quality of materials or goods that reach your customers. Speed at the expense of quality is not the goal. However, SCM strategies such as accurate demand and sales forecasting and process improvement will allow companies to improve inventory management and the flow of products through their facilities.
  • Seamless Information Flow - Information flow through manufacturing facilities is vital to ensure that operations are running smoothly and that everyone is on the same page in terms of priorities. Having real-time data and historical sales data being utilized within supply chain management is essential as it will allow you to accurately determine demand for products. In turn, this will ensure that you have everything you need to fulfill customer orders as they come in. In addition to anticipating demand, companies that utilize effective supply chain management are able to make data-driven decisions and eliminate production bottlenecks before they occur. Having everyone on the latest production plan and schedule allows all departments to work together to identify and resolve problems before they cause major issues in production.
  • Enhanced Financials - One of the greatest advantages of having effective supply chain management is that you will be able to cut costs and increase profits within your organization. This is because supply chain management allows manufacturers to carefully evaluate their current production processes, identify weaknesses and inefficiencies, and determine the right course of action to address these problems. As processes are improved, your production will run smoothly, allowing you to produce more goods for less costs.

A software that can aid with your overall supply chain is PlanetTogether’s Advanced Planning and Scheduling Software (APS). PlanetTogether is a visual scheduling software that allows you to have a clear representation of your production process. This allows you to quickly identify areas that are in need of productivity enhancement or constraint management.

PlanetTogether APS is a necessity for manufacturing operations that are looking to take their production up a notch, increase productivity, decrease costs, and deliver goods on time. Advanced Planning and Scheduling software is being implemented into manufacturing operations around the globe and is helping make the planet more productive, one factory at a time.

With PlanetTogether, the accuracy of our shipment dates improved by 8% and our production output levels increased by 16%.

GARY BISHOP, DIRECTOR OF MANUFACTURING OPERATIONS, SUMITOMO ELECTRIC LIGHTWAVE

 

Advanced Planning and Scheduling (APS) Software

Advanced Planning and Scheduling Softwares have become a must for modern-day manufacturing operations as customer demand for increased product assortment, fast delivery, and downward cost pressures become prevalent. These systems help planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans. APS Systems can be quickly integrated with an ERP/MRP software to fill the gaps where these systems lack planning and scheduling flexibility, accuracy, and efficiency.

With PlanetTogether APS you can:

  • Create optimized schedules that balance production efficiency and delivery performance
  • Maximize throughput on bottleneck resources to increase revenue
  • Synchronize supply with demand to reduce inventories
  • Provide company-wide visibility to resource capacity
  • Enable scenario data-driven decision making

The implementation of an Advanced Planning and Scheduling (APS) Software will take your manufacturing operations to the next level of production efficiency by taking advantage of the operational data you already possess in your ERP system. APS is a step in the right direction of efficiency and lean manufacturing production enhancement. Try out a free trial or demo!

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Topics: supply chain management software

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