Supply Chain Management Software

Supply chain management (SCM) software tracks products as they move through the manufacturing and fulfillment process. It allows businesses to: 

  • Monitor and manage needs in manufacturing plants and factories
  • Handle supplier relationships for both manufacturing and shipping
  • Centralize their product management 
  • Track missing or damaged items
  • Handle inventory
  • Log dates and times for more accurate records
  • Manage product transportation 

Supply chain management software manages inventory tracking, vendor management, fleet management, logistics, and analytics. Because it focuses on managing parts and products end-to-end, supply chain management software is particularly useful for the following businesses that handle physical assembly and shipping processes:

  • Industrial sector businesses
  • Manufacturing plants
  • Retail corporations and smaller retail enterprises 
  • Healthcare and pharmaceutical companies 

How is supply chain management software used?

SCM platforms play different roles depending on the size of the company, the scope of the individual software, and what other applications an organization uses to manage goods and shipping. In general, supply chain management processes follow this basic pattern: 

1. Demand forecasting based on sales and customer data
2. Data analytics and logistics
3.  Ordering raw materials
4. Assembly of raw materials at a manufacturing plant or factory
5.  Product inventory and barcode services done at plant or warehouse
6. Order fulfillment and shipping
7.  Continued customer relationship and returns
Basic supply chain management process.

Features of supply chain management software

Important SCM software capabilities include: 

  • Warehouse management
  • Inventory tracking
  • Order fulfillment and returns 
  • Data analytics and logistics
  • Supplier and/or third-party vendor management 
  • Demand forecasting based on sales and customer data
  • Barcode services

What are the benefits of using SCM software?

Supply chain management software centralizes processes that would otherwise be time-consuming and manual. Software performs tasks that take humans much longer, such as analyzing customer data, managing suppliers, and tracking inventory. SCM software manages product information, so that items are easier to find when they’ve been lost. It also allows enterprises to better control customer relationships by fulfilling orders and handling returns and complaints. Data analytics provided by SCM software also shows companies ways that they can improve processes.

SCM software vs. ERP software

SCM features are also contained within enterprise resource planning systems. ERP systems don’t only include SCM but also encompasses HR, accounting software, or CRM features. ERP software is the most comprehensive iteration of enterprise management software; it manages overall enterprise processes, not just supply chains. In contrast, supply chain management platforms largely focuses on product assembly, management, and fulfillment. 

Also Read: Facts about ERP Software & Systems

Popular supply chain management software

The top SCM software vendors include:

Read Next: Best Supply Chain Management Solutions & Vendors

Jenna Phipps
Jenna Phipps is a contributor for websites such as Webopedia.com and Enterprise Storage Forum. She writes about information technology security, networking, and data storage. Jenna lives in Nashville, TN.

Top Articles

The Complete List of 1500+ Common Text Abbreviations & Acronyms

From A3 to ZZZ we list 1,559 SMS, online chat, and text abbreviations to help you translate and understand today's texting lingo. Includes Top...

Windows Operating System History & Versions

The Windows operating system (Windows OS) refers to a family of operating systems developed by Microsoft Corporation. We look at the history of Windows...

How to Create a Website Shortcut on Your Desktop

Website Shortcut on Your Desktop reviewed by Web Webster   This Webopedia guide will show you how to create a website shortcut on your desktop using...

Generations of Computers (1st to 5th)

Reviewed by Web Webster Learn about each of the 5 generations of computers and major technology developments that have led to the computing devices that...

Microsoft Paint

Microsoft Paint is a raster-based graphic design application exclusively available on...

Human Capital Management (HCM)...

Human capital management (HCM) software is a digital repository of human...

ZipRecruiter

ZipRecruiter is a popular online job board and recruitment platform that was founded...