Factors to Consider to Choose Right Supply Chain Management Software

CIO Review Europe | Monday, August 16, 2021

The digital transformation of supply chain activities via next-generation intelligent SCM software enables enterprises to leverage artificial intelligence, cloud-based storage, and automation to increase their agility in handling new challenges.

FREMONT, CA: The world's speed of change is accelerating, and supply chain firms that rely on antiquated systems and manual procedures are struggling to stay up. More and more organisations are using advanced supply chain management (SCM) software to automate and efficiently run their supply networks in the face of potential disruptions, such as a pandemic or a recession.

Businesses must consider the following characteristics while selecting the appropriate supply chain management software:

AI-powered data insights:  This is a necessary but not sufficient condition for good SCM software. The capacity to aggregate data from numerous points throughout the supply chain—from buyers and suppliers to inventories and warehousing—is critical to realising the benefits of next-generation supply chain software.

SCM software solutions evaluate the enormous volumes of data passing through the supply chain using artificial intelligence (AI) and machine learning (ML). The most effective way to store and consolidate supplier data is through digital supply chain platforms that incorporate a data lake into their framework. This establishes a single source of truth and lays the groundwork for sophisticated analytics to uncover previously unknown trends and opportunities.

Amalgamation with ERP systems: As businesses grow and evolve, they employ numerous solutions to manage their operations, and with time, these tools, such as ERP software, get ingrained in their processes. Perhaps a tool has been customised somehow, or it has been enhanced with additional capabilities over time. And now, since the tool is responsible for so many vital operations, the cost of replacing it outweighs the perceived benefits. That is why, particularly for firms with more developed supply chains, it is critical to select supply chain software that integrates quickly and smoothly with existing enterprise resource planning (ERP) systems.

Scalability with cloud computing: A multinational corporation's supplier base can number in the thousands. Businesses must evaluate present and future requirements when picking the appropriate SCM software. Scalability is a must-have feature of a technical solution as the business grows, the number of suppliers increases, and supply chains get more complex. Supply chain management solutions of the future will increasingly be cloud-based. These are less resource-intensive and can be implemented concurrently in various locations.

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