Supply chain management for perfectly coordinated goods
Supply chain management (SCM) is the solution to all the stumbling blocks and hurdles that companies have to overcome on their way today. The global economy is changing – always and everywhere. Even trade is not immune to globalisation. Transport costs are falling, while at the same time economic cycles are becoming increasingly decentralised. In addition, the product life cycle is being reduced.
For these reasons, it is important to bring your product to market at the right time. SCM defines integrated logistics chains across the entire value creation process in terms of organisation and management. Starting with the extraction of raw materials through the processing stages to the end consumer.
In times of digitalisation and globalisation, smooth SCM is only possible with digital networking of the parties involved.
What goals can SCM achieve?
The fundamental SCM objective is to optimise the company’s own business processes in terms of costs and quality. This involves reducing all transaction costs that arise at the interfaces in the logistics network (e.g. transport and storage).
It would therefore make sense to supplement the definition of supply chain management! After all, material and information flows must also be harmonised across companies. From a holistic perspective, the process should and must be optimised in terms of time and cost efficiency.
But what exactly can be achieved with SCM?
- Reduced material, process and storage costs
- Reduced production times
- More production flexibility in terms of time
- Shorter delivery times
- Increased reliability
- Growing quality level
SCM as a new It-Piece dank Software
Just think about the daily processes in supply chains; a lot of data comes together (big data). The task now is not only to collect all these large volumes of data, but also to transmit, process, store and display them.
- Machine reading of barcodes and RFID chips accelerates transport and processing procedures: this reduces the error rate and provides a more realistic picture of the supply chain as a whole.
- EDI-Systeme (Electronic Data Interfaces)
They not only enable automated and standardised communication between all parties involved, but also increase the speed of all processes. In addition, transmission errors during media changes are avoided and the level of service is increased by integrating suppliers and customers. - Computing power
Complex processes can be better simulated and optimised thanks to increasing IT performance. At the same time, more precise forecasts are possible and large volumes of data can be analysed using data mining and business intelligence. Online services in Microsoft Azure are particularly suitable for this ( - Storage: Data paths are documented with more efficient storage options and are therefore more traceable. Systematically collected data volumes enable precise error analyses. Payment transactions can also be automated.
Supply chain management: always know where the goods are and what they are worth.
Good supply chain management also impresses with the clarity of its data management. In this way, the respective requirements can be better planned: Each product is constantly monitored by assembly production, variant configurators or recipe mixing computers. Consistent pricing and surcharge calculation make all the difference. Both are criteria for not losing the economic overview in the division of labour in the supply chain.
Supply Chain Management SLC Supply Chain Management SCM