The Benefits of Supply Chain Management

8/12/19 10:30 AM

Modern-day supply chain management (SCM) has quickly evolved from manual-input, logistics and mechanization focused optimized to digital/automated integrated and coordination of supply chain elements. Supply chain management (SCM) plays a vital rose within manufacturing operations that are seeking to reach optimized efficiency within overall production. 

The Benefits of Supply Chain Management

Without supply chain management, manufacturing facilities would struggle with being able to accurately determine the amount of supplies and parts needed in order to complete orders and meet consumer demand. 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 SCM allows for further competitive advantages that includes seamless integration of business elements, real-time data transparency, and more. Within this blog, we will discuss some of the benefits of supply chain management and why it is so beneficial to your business. 

The Benefits of Supply Chain Management 

Implementing adequate and effective supply chain management enables manufacturing facilities to enhance 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 - An aspect called “time-to-consider” is one of the most important indicators of product flow efficiency. The less time that it takes for goods to reach the customer, the much more efficient your product flow will be. Having said that, there are various other factors to consider such as the quality of materials or goods that reach your consumers. Effective supply chain management allows companies to improve product flow through effective and accurate demand and sales forecasting and also improves inventory management. 
  • Seamless Information - Information within supply chain is vital. It is important to have real-time data and historical sales data being utilized within your supply chain. This is because you are accurately determine demand within your operation and therefore fulfill customer orders in a much more efficient manner. Companies that utilized effective supply chain management are also able to remove bottlenecks through supply chain information flow. SCM aids in designing effective practices to facilitate different types of supply chain information that usually come in different formats and structures. 
  • Enhanced Financials - Having enhanced financial flow is also a key benefit of utilizing effective supply chain. Implementing supply chain management to aid companies with addressing all of these cash flow challenges, which allows them to carefully evaluated current processes, identify the weakest links, and determine potentially correct solutions to address these problems. 

A software that can aid with your overall supply chain is PlanetTogether’s Advanced Planning and Scheduling Software (APS). Advanced Planning and Scheduling Software (APS) is a visual scheduling software that enables you to have a visual representation of your overall production process and manipulate areas that are in need of productivity enhancement. Advanced Planning and Scheduling Software (APS) is a necessity for manufacturing operations that are seeking to take their production up a notch. Advanced Planning and Scheduling Software (APS) is being implemented into manufacturing operations around the globe and are easily being optimized through implementation of the software. 

Advanced Planning and Scheduling Software 

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

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

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.

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Topics: supply chain management software

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