Supply chain planning software involves the collection process activities that target the demand fulfilment and request made by clients and customers. The activities include the supply chain software are associated with the flow of goods and transformation through several stages.
These processes could be a flow of partially finished products, raw material, or finished goods supplied to end users. Besides, these raw materials and goods, supply chain organization also comprise a flow associated information and products funds. A supply chain is also categorized into four major stages, including;
- Internal supply chain/Manufacturing plant
- Distribution systems
- End users
- Supply network
The basis flow type stage can as well be categorized as:
- Material flow
- Service flow
- Information flow
- Funds flow
There are various links that connect these processes with every other like manufacturing plant and supply network are connected e-procurement. Similarly, distribution network and manufacturing plant are linked by e-distribution and to link with end users with a distribution network and employer e-commerce.
Supply Chain combination of activities
The supply chain is also considered as the collection of several decisions and activities. These activities should be synchronized for an efficient integration of manufactures, suppliers, warehouses, retailers, customers, and transporters.
The synchronization is so important for an appropriate distribution of services and product in perfect quantity at a particular time. Supply chain software targets the satisfaction of its client with the reduction of the cost induced on several stages of the supply chain.
SCM also offers an edge of competition over other provider or suppliers. In current e-business surrounding, the supply chain can become somehow complicated for the big organization since there are various customers and suppliers at a particular time.
The main focus of supply chain software
The prime focus of supply chain software it to initiate a supply chain in a manner such that it can complete on a basic cost, flexibility, quality and availability. The major cause of failure in the supply chain in a wrong understanding of a demand in the market that results in the wrong design of a supply chain.
In order to design the suitable supply chain, you have to combine both effective supply chain and receptive supply chain. The responsive supply chain targets a quick identification of the demands of the market. Such type of chain model is required in a sounding where new goods are supplied in the market most frequently.
Demands prediction is low and also has higher forecast errors. It assists to introduce new goods by recognizing the changes, demands in the market and the response of the end user. Due to the receptive supply chain, future of particular products is decided with an inventory of the certain products that can be supplied.