There are also some dedicated SCM solutions extended ERP to the external supply chain using advanced planning/schoduling (APS) engines.
Most of the ERP customers are potential SCM customers as SCM applications
promise to increase the return on investment from ERP. Finally software providers will focus their resources on developing sales organisations around their supply chain offerings.
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Many modern Industrial companies are facing a huge problems in the supply chain systems and employing consultants at exorbitant fees. The main reason for this the shorter product life cycles, increasing price pressures and globalisation of markets as well as companies. We used to often see complaints like missed delivery, deadlines wasted or over loaded capacities. With the introduction of SCMs these problems are easily catered by developing the systems to easily manage/Especially large FMCG companies like Hindustan Lever, Colgate Nestle etc have implemented supply chain systems which has helped them to maintain minimum, inventories in terms of finished goods as well as raw materials.
Optimisation of the supply chain offers the potential for Integrated supply chain management systems and real time decision support sistems are crucial to keep pace with the rapid changes in market forces like demand and supply.
Optimisation of SCO promises enormous potential for op a competitive advantage. It is therefore becoming increasingly necessary that companies give full consideration to the entire supply/value creation chain from raw material suppliers via procurement. Production and distribution right through to the end customer.
The main benefits of SCM is as follows:
* Quicker response to customer wishes
* Reduced inventory costs
* Improved service levels
* Improved rate of invento