A business attains success by performing every function with finesse. It involves managing every department with expertise, including sales, marketing, finance, supply chain, and more.
When we talk about supply chain management, it demands performing every role efficiently, and that is where automation comes into play. The technology ensures adding a touch of perfection with its invaluable methods, and its importance can never be understated.
What Is Supply Chain Management?
Supply Chain Management encompasses various activities, including procurement and sourcing, production planning and control, inventory management, logistics, and transportation, warehousing and storage, customer service and support, quality control and management, and sustainability and compliance.
By managing these activities effectively, organizations can ensure that products and services are delivered to customers on time, at the right price, and with the desired level of quality. Precisely, supply chain management efficiency is dependent upon these factors.
SCM also involves managing risks and uncertainties that may impact the supply chain, such as changes in customer demand, disruptions in the flow of goods and materials, and fluctuations in the cost of raw materials.
Effective SCM requires close collaboration and communication between multiple stakeholders, as well as the use of advanced technologies, such as supply chain management software and data analytics tools, to optimize the flow of information and materials throughout the supply chain.
The Functions of Supply Chain Management
Supply chain management (SCM) refers to the coordination and management of activities involved in the production and delivery of a product or service from the source of raw materials to the end customer.
The purpose of SCM is to optimize the flow of goods, information, and financial transactions throughout the supply chain, reduce costs, improve efficiency, and ensure customer satisfaction.
Here are the main functions of supply chain management:
- The identification, selection, and procurement of raw materials, components, and supplies required to produce a product or service. It also involves the negotiation of contracts with suppliers and the management of supplier relationships.
- Creating a production plan considering capacity constraints, inventory levels, and delivery schedules. It also involves the management of production processes, including the scheduling of resources and the monitoring of performance.
- The management of inventory levels ensures that the right amount of raw materials, components, and finished goods are available when and where they are needed. It also involves the management of inventory costs, such as the cost of holding inventory and the cost of stockouts.
- The physical movement of goods from one location to another. It also involves the coordination of transportation and distribution activities, such as the planning of delivery routes, the selection of carriers, and the management of delivery schedules.
- Managing storage facilities and storing raw materials, components, and finished goods. It also involves the management of inventory levels and coordinating the physical movement of goods within a warehouse.
- The management of customer orders and the delivery of products and services to customers. It also involves the management of customer relationships, the resolution of customer complaints, and the provision of after-sales support.
- Implementing quality control processes and procedures to ensure that products and services meet customer requirements. It also involves the management of quality-related data, such as test results and customer feedback, and the continuous improvement of quality processes.
- Handling environmental, social, and ethical issues throughout the supply chain. It also involves the management of compliance with regulations and standards, such as environmental regulations, labor standards, and product safety standards.
How Does NetSuite ERP Help With Supply Chain Management?
NetSuite ERP is a cloud-based enterprise resource planning (ERP) system that helps organizations manage their supply chain activities more efficiently. The software integrates various functions within the supply chain, such as procurement, inventory management, order fulfillment, and shipping, into a single system.
This helps organizations gain visibility into their supply chain operations and make informed decisions that improve efficiency, reduce costs, and increase customer satisfaction. Here are some of the ways that NetSuite ERP can help with improving efficiency in supply chain management.
Inventory Management
NetSuite ERP provides real-time visibility into inventory levels, allowing organizations to make informed decisions about when to order new stock and how much to order. The software also automates many inventory management processes, such as reordering, stock transfer, and cycle counting, reducing the risk of stockouts and overstocking.
Procurement
NetSuite ERP streamlines the procurement process by automating the creation of purchase orders, tracking supplier delivery dates, and managing supplier contracts. The software also integrates with e-commerce platforms, allowing organizations to manage their online sales and purchases in one system.
Order Fulfillment
NetSuite ERP automates the order fulfillment process, from receiving the order to shipping the product to the customer. The software integrates with shipping carriers, allowing organizations to automate the shipping process and reduce shipping errors.
Supply Chain Visibility
NetSuite ERP provides real-time visibility into the supply chain, allowing organizations to monitor their supply chain performance and make informed decisions about future operations. It also integrates with other systems, such as warehouse and transportation management systems, allowing organizations to gain a comprehensive view of their supply chain.
The Final Word
NetSuite ERP helps organizations to streamline their supply chain operations and make informed decisions that improve efficiency, reduce costs, and increase customer satisfaction.
The software integrates various functions within the supply chain into a single system, allowing organizations to gain real-time visibility into their supply chain operations and respond quickly to changing customer demands and market conditions
