Essential Guide To Choosing Supply Chain Management Software

As your business grows, so does your supply chain and associated business processes. A well run and efficient supply chain are crucial to almost every industry sector.

There will come a point where running your supply chain on normal office software just won’t be possible anymore. This is where specialist supply chain management software comes in. Having the ability to streamline and automate your supply chain management has huge benefits for reliability, efficiency, and cost savings. But which one should you choose?

There is a lot of choice in the SCMS market and it can be difficult to know where to begin. The wrong decision could cost you time and money.

Follow these top tips on choosing the right SCM software for your business.

What is Supply Chain Management Software (SCMS)

SCMS is used by businesses in all industries to manage and automate their suppliers, transactions, and associated business processes. It is extremely useful for keeping track of multiple supplier relationships from logistics, pallet pickup, through to warehousing and customer orders.

Today, almost all SCMS is run on cloud-based systems and generally includes the following modules:

Customer order processing
Procurement
Purchase orders
Distribution and logistics
Inventory
Goods tracking
Warehouse management
Supplier automation

More complex SCMS may also include:

Forecasting
Financial modeling
In-depth reporting
Machine learning

Integration With Existing Software Systems

Implementing SCMS is meant to drive business efficiencies, so it will need to run seamlessly with as many of your existing systems as possible, or you will be creating further work for your teams.

Integration with your financial platforms is one of the most important requirements. Data will automatically be synced with your General Ledger and Accounts Payable and Receivables.

Though it is not necessarily a dealbreaker, look for SCMS that will integrate with your supplier’s systems too.

Choose A Platform That Is Right For Your Sector

There are many SCMS on the market designed for use in particular sectors and have been designed with their needs in mind. If you can, find a product that is customized to your industry, or at the very least one that is extremely customizable.

Many software providers will work with you at the outset to set up your system to run efficiently and harmoniously with your particular range of products and services.

Reviews & Testimonials

Look for product reviews and testimonials from others. There is only so much you can tell from the vendor’s marketing materials, and of course, they are going to be painting themselves in the very best light.

Don’t just look at the case studies on their website (though these are invaluable), look at third party reviews online or ask around in relevant LinkedIn groups.

Vendor Support

Embedding an SCMS in your business is a big undertaking. You need to choose a vendor who will support you with the planning and launch within the business.

You will also need to be confident in the support you get should there be a problem. Ask your vendor about the security of your data, what type of service level agreement (SLA) are you entitled to if anything goes wrong? Any downtime in the system could be crippling to your business, so you need to be confident that your chosen vendor has the resources and guarantees to fix these problems quickly, rather than just a ‘best endeavors’ basis.

Beware Of Hidden Costs

The pricing you see online is rarely the price you will actually pay once you’ve worked out your exact specifications.

Many vendors have an indicative per person cost. Don’t automatically opt for the cheapest, you may be charged extra features such as enhanced storage levels, SLAs, integration with other software systems.

Will future upgrades are included in your price or will you need to pay for these in addition to your base costs?

Access To Training

It’s likely that your employees are going to need training to use your SCMS correctly. Look for a vendor that incorporates training with their subscription fees or has an extensive library of training material available for you to use.

Choose The Right System For Now, And The Future

If you’re investing a good deal of time and money into an SCMS system, you need something that is going to scale with you as you grow. You don’t want to be switching to an entirely new system in a few years. Look for a platform that you can easily expand or take advantage of new features as and when you need them.