Supply chain managers are the master puppeteers at an organization. From forecasting sales to managing inventory headaches while addressing the logistics of product development and deliveries, SCMs pull the strings for success. Ensuring the quality, safety, and efficiency of the entire supply chain drives revenue and growth. However, while SCMs have always needed to address issues like disruptions in the supply chain from natural disasters or government regulation, a host of new challenges are resulting in significant difficulties for SCMs, from globalization and the implementation of robotics to the increasingly rapid evolution in customer demand. Unfortunately, many businesses are cutting the strings by clinging to traditional methods for handling supply chain management. How is your company meeting the challenges faced by your SCM? If you are not taking advantage of supply chain management software, you may be tying your SCM in knots.
Technology=Efficiency
Technology-driven disruption has caused shockwaves throughout entire industries, and although many businesses are harnessing the power of analytics, management software, and robotics to see improved workflows, supply chain management has not always kept up with this rapid pace of innovation. For example, when Foxconn replaced 60,000 workers with robots, it managed to rapidly increase its efficiency. “Fast fashion” companies like Zara take advantage of the rapid turnaround time of their manufacturers to eliminate high inventories and deliver just-in-time solutions. So with all of these technology-driven enhancements taking place in diverse industries, why are so many supply chain managers still using a simple spreadsheet program to evaluate and garner insights from data?
But Does It Make Sense For My Company?
Regardless of your vertical, failing to optimize your approach to your supply chain via technology can cost market share and reputation. It’s true that a number of companies still use spreadsheets to manage their supply chain data, but there are significant problems with this approach. For some smaller businesses, the use of spreadsheets seems to make sense—when you are only dealing with a few issues related to suppliers or inventory levels, easy-to-use spreadsheet software has a place. Problems arise as a company begins to expand. If your company has experienced significant growth over the last two years, it is likely that your business network has grown, too—making that spreadsheet more of a liability. Spreadsheet software was not designed to manage the complexities of a supply chain, where there are ample variables that constantly change. It is also highly likely that the data in the spreadsheet program contains numerous errors—errors that may be caught too late to address, or worse, never discovered at all. Of course, the most obvious issue with erroneous data is that the insights derived from it can wreak havoc with your leadership’s decision-making. And again, there’s that scalability issue…
Get with the Program
In order to harness the power of the information that comes from the supply chain, businesses need to implement the right kind of software. SCM packages are specifically targeted at helping supply chain managers garner the most benefits from the information and take advantage of technology. These systems take into consideration real-time data derived from sources like RFID tags and implement analytics to help businesses drive better decision-making.
Business success is tied to the technology, but any tech solution is in itself not a panacea. Experienced developers and logistics experts are needed to fine-tune the solution to fit your company’s goals and needs. If you are considering upgrading, fine-tuning, or implementing a system to enhance your supply chain management, drop us a line. Resolute Technologies has a number of veteran business solutions developers ready to help you speed towards your goals.
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