While ERP software and CRM systems are intended to re-engineer internal business processes to achieve better resource planning and coordination across departments, Both SCM is utilized to facilitate the coordination with outside business entities, or in the scope of extended enterprise. SCM usually refers to the redesign of supply chain processes in order to achieve streamlining. It is generally performed only by large corporations with large suppliers. B2B exchange can extend Supply Chain Management to all trading partners regardless of size by providing a central location to integrate information from all supply chain participants.
Supply chain management software system facilitates supply chain planning, collaboration, automation and optimization.
Supply Chain Planning
Supply chain management starts at supply chain planning. This is the process of resource planning based demand forecast of companies' products. supply chain planning software utilizes supply chain analytic, supply chain diagram, supply chain model to calculate and estimate amount of row materials needed, and stock level to meet the needs of manufacturing.
Supply Chain Collaboration
Supply chain execution software improves collaboration between all participants of the supply chain - suppliers, manufacturers and distributors. Any participants of the chain can view the change in other parties and access the impact of the change on their side.
Supply Chain Automation
The flow of information in supply chain can be automated with supply chain management software. Order placement, fulfillment, bill and financial consolidation are paperless. Suppliers, manufacturers and distributors can view order detail and financial reports and demand forecast online.
Supply Chain Optimization
Enterprise can maximize utilization of resources, minimize its costs by streamlining and optimizing the supply chain from demand forecasting, materials requisition, order processing, order fulfillment, transportation services, receiving, invoicing, and payment processing.