Supply Chain Management Software & Solutions
When you hear the term “supply chain management” the initial image that springs to mind is often big companies with massive factories and logistics operations. But in fact, small businesses have supply chains too. Granted they may be on a much smaller scale, but supply chain management is just as important for small businesses.
As a small business owner, you’re always looking for ways to improve your efficiency and make your business more profitable - and supply chain management software can help you do just that.
What is supply chain management (SCM) software?
Supply chain management has many moving parts: manufacturing, suppliers, inventory management, warehousing, logistics, shipping and more. SCM software is designed to help you control the processes and operations across your supply chain to improve efficiency, transparency, value and profitability.
Some of the popular SCM software providers for small businesses out there today include:
- Odoo
- Activate
- Kabbage
- ShipMonk
- Precoro
- Sage 200
- StockIQ
- Oracle SCM
What are the features of supply chain management software?
There are many SCM software options on the market today, but common tools and features include:
- Supply chain planning: Historical data trends and scheduled promotions allow you to forecast customer demand and plan your resources and production flow accordingly.
- Inventory management: Order supplies and track inventory levels including raw materials, finished goods and other supplies.
- Supplier/vendor management: Keep tabs on the performance of your suppliers using key performance indicators (KPIs) and monitor risk and compliance.
- Order processing tools: Reduce the manual labour and time required to process purchase orders and invoices.
- Warehouse management: Manage warehouse operations and the movement of materials and supplies and record all shipping and delivery data.
- Logistics: Track the movement of materials and deliveries to and from your warehouse and get live updates.
What are the benefits of supply chain management software?
Whether you run a restaurant or cafe and need to run a tight ship with your fresh produce supply chain, or an ecommerce business shipping goods internationally - all small businesses can benefit from SCM software. Below are some of the key benefits of SCM software:
- Efficiency: The underpinning goal of all SCM software is to increase the efficiency of your supply chain operations. By automating tasks you can free up time, reduce manual labour requirements and invest more time and money in other key operations.
- Business intelligence: Some SCM software uses artificial intelligence (AI) to predict trends and disruptions so you can plan ahead and capitalise on opportunities or avoid problems before they happen.
- Cost-savings: More efficiency, lower labour requirements and business intelligence mean you can reduce waste and invest more in areas of growth.
- Clearer data and communication channels: SCM software synchronises and centralises key data across multiple operations and locations which increases visibility and control.
What are the top considerations when purchasing supply chain management software?
Before you purchase SCM software it’s important to determine your business needs. Below are some of the most important considerations:
- What type of business are you? Some SCM software is better suited to certain types of businesses, so the first step is deciding what you need the software to do.
- Is it compatible? Make sure the SCM software integrates with your other software for sales, accounting, etc if required.
- Do you plan to scale? If you plan to scale up, make sure the software has the capabilities to support this.
- Can it be customised for your industry? If your business has unique supply chain requirements (e.g. perishable goods) do your research and only choose SCM software that can be customised to your requirements.
- Is the SCM software vendor reliable? It’s all well and good having the right tools, but if there are any issues or problems later down the line you need a trusted vendor that provides great customer service.
What are the top market trends to be aware of?
It’s also important to understand key market trends that could affect or influence your SCM purchases:
- Cloud-based SCM software
- Sustainability
Cloud-based software has taken off in most other industries and is starting to gain traction in supply chain management. Instead of using hardware that is installed on your computer, cloud-based software is hosted by the vendor and lets you access it from anywhere as long as you have a device with an internet connection.
Consumers are becoming more eco-conscious and are actively seeking out businesses that have sustainable practices. Small businesses are starting to redesign their supply chain and logistics to reduce their carbon footprint, particularly in the food industry.
How much does supply chain management software cost?
The cost of SCM software varies considerably, ranging from free (for basic software) to $500+ per month. Paid SCM software is usually paid on a monthly subscription basis. Factors that may affect the cost include the number of users and custom features requirements. The important thing to remember when purchasing your software is that it’s likely to lead to a high return on investment (ROI).
What is the best free supply chain management software for small businesses?
The good news is there are also some free supply chain management tools, or at least a trial/freemium version so you test whether or not it works well for you. Some of the most popular tools include:
- Odoo
- GOFRUGAL
- Openboxes
- ERPNext
- OpenPro ERP
If you have any questions about SCM software or the type of solutions and tools you need for your business, you can reach out to our community or an expert supply chain consultant for tailored advice.
