Supply chain management is a buzzword used in business operations today. So what exactly is it? It is basically, a process to achieve operational efficiency in supply chain. It is an active management of the supply chain to achieve maximum customer value and achieve a competitive advantage over other businesses. It is also a conscious effort on part of the supply chain department (or supply chain company) to develop/run its supply chain in the most efficient and effective way. Supply chain covers everything from sourcing, logistics, production, to the information systems that coordinate these activities.
In today’s landscape, one new aspect of SCM is the using of automation software to speed up business processes. Such software allows for speeding up of processes that would take several accountants to complete, or several staff to manage.
One such SAP provider is Hitachi ICT. They provide SAP services and have over 2,000 consultants to highlight and narrow down what kind of software your company needs. They also liaise with your team regularly, so you can be assured that adopting new software is safe and secure. If you are looking for an SAP Partner Singapore, do check out Hitachi ICT SAP partner today!
Next, we will discuss two streams of thought in supply chain management:
According to SAP partners in Singapore, supply chain management is based on two ideas. First of all, every product that reaches a consumer is a cumulative effort of many organizations. Together, they are called the supply chain.
The second idea is, even though supply chains have been in existence for a long time, most companies tended to ignore it and they focus on what happens inside their four walls. Only some companies understand and even less companies are managing their supply chain. The result is an ineffective and disjointed supply chain.
On the other hand, supply chain management has many advantages. It can have an exponential and significant effect on your business. Here are three advantages of supply chain management.
Advantages of supply chain management
Provides a boost to customer service
Supply chain management can help you improve your customer service by ensuring that the right product or product assortment in the right quantity reaches the customer in time. It can also ensure that the product is available where the customer expects it. It will also help you provide better after-sale support.
Assists bottom line
Companies who have adopted supply chain management have reported a tremendous improvement in their bottom line. Supply chain managers are a valued lot because they help companies decrease the usage of fixed assets such as warehouses, transportation vehicles and plants. Supply chain management also increases cash flow because by expediting product deliveries, you also receive profits quickly.
Streamlines supply chain
Supply chain management can streamline everything- whether it is day to day product delivery or an unexpected natural disaster. By utilizing SCM tools and techniques, you can gain the ability to diagnose problems, reduce disruptions and even determine how to move products efficiently in crisis situations.
In conclusion, SAP products can help you optimize and accelerate your day-to-day SCM process. This is done by not only streamlining processes but also giving you a one-stop platform to view your processes. Customer service is done more easily via a system without accidentally neglecting enquiries or issues to be addressed.