The role of supply chain management software

Technology is critical in managing today's supply chains, and ERP vendors offer modules that focus on key functions within SCM. There are also business software vendors that focus specifically on SCM. A few important areas to note include the following:

·         supply chain planning software for activities such as demand management;

·         supply chain execution software for activities such as day-to-day manufacturing operations;

·         supply chain visibility software for tasks such as spotting and anticipating risks and proactively managing them;

·         inventory management software for tasks such as tracking and optimizing inventory levels;

·         logistics management software and transportation management systems for activities such as managing the transport of goods, especially across global supply chains; and

·         warehouse management systems for activities related to warehouse operations.

The increasingly global nature of today's supply chains and the rise of e-commerce, with its focus on nearly instant small deliveries straight to consumers, are posing challenges, particularly in the area of logistics and demand planning. A number of strategies -- such as lean manufacturing -- and newer approaches -- such as demand-driven material requirements planning -- may prove helpful.

Technology -- especially big data, predictive analytics, IoT technology, supply chain analytics, robotics and autonomous vehicles -- is also being used to help solve modern challenges, including in the areas of supply chain risk and disruption and supply chain sustainability.

As just two examples, IoT can help with transparency and traceability to help boost food quality and safety by using sensors to monitor the temperature of perishable food while it's in transit. And analytics can help determine where to put smart lockers in densely populated areas to cut the number of single-item deliveries and lower greenhouse gas emissions.