Supply chain managers face the challenge of managing complex processes with potentially millions of products, which can take years to build and distribute globally. These demands are increasing thanks to the development in technology, new regulations, and challenges regarding taxes and logistics in relation to goods exponentially. This means that any simplification of the process from the initial design stage is crucial. Lean more about this here.
This is something that Gartner has identified as one of the biggest challenges facing supply chains today. The research firm adds that the traditional systems used to track goods and services have become overcomplicated, making it nearly impossible for companies to deliver optimum performance.
This is where an electronic Inspectorio supply chain management system can help. SAP’s manufacturing ERP software gives supply chain managers the ability to efficiently manage inventories, production planning, and logistics in a streamlined way. This allows more time for strategic decision-making on behalf of companies.
Provide examples of companies that are using these techniques and explain how they might be able to incorporate some of the techniques that you’ve outlined into their supply chain management.
SAP is a software solution for supply chain planning, procurement, and logistics that has become the standard for companies in several industries. This is because it allows networked systems to communicate with one another and share data in real time. It also enables users to reduce time-consuming manual errors by optimizing and automating processes.
IBM has identified three key areas where improvements can be made across all industries, namely, “supply chain visibility, real-time information flow, and collaborative planning.”
- Supply chain visibility: As a supply chain becomes more complex, the ability to track goods and maintain visibility becomes increasingly difficult. SAP helps companies manage performance by improving collaboration across departments and increasing transparency of information at each stage of the production process, from sourcing raw materials to delivery. It’s also able to improve goods availability by enabling more accurate forecasts of purchasing demand, which results in less waste and better utilization of resources.
- Real-time information flow: By automating processes, SAP makes it easier to identify inefficiencies in production and transit time. This reduces the time and cost of goods delivery by enabling more accurate planning.
- Collaborative planning: By using an electronic system such as SAP, companies can optimize the data-sharing process between teams and departments, resulting in better allocation of resources across the business. This helps companies to identify new opportunities and challenges in a more efficient way.
The primary difference between strategic and tactical supply chain management is the level of detail involved. Strategic supply chain managers focus on providing value for their customers by continually improving processes, increasing efficiency, and reducing costs.