Supply Chain Management System: A New Way to Conduct Business

In today’s world, technology has already been a part of every industry’s success. From manual processing, to automated processing, technology exists through all walks of life. Automated machines have evolved, from main frames to microcomputers, even applications that would help processing of data appeared, but how does these system application’s really help data processing? Here’s how.

Product-based company’s involves managing of inventories, as well purchase and sales order from customers. As you can see, most of the product-based companies today handle not just only few products but more like hundreds to thousands of variations. Don’t you ever wonder how would they be able to manage such kind of huge stocks and inventory? Most of them use a tool that’s called Supply Chain Management System. To give more idea on what a Supply Chain Management is, attached below is a diagram of its concept.

As we can see, the concept of the Supply Chain Management can be easily understood. It shows the movement of goods, from Raw Materials down to the Consumer. From the diagram, we can notice that it goes back to the starting point as the Consumer receives the product. It is because as the consumer receives the product, another consumer or the same consumer orders for another product thus producing a chain of supply or what we say as the movement of goods. With manual processing, the transfer of information would be very crucial, especially that it involves transactions of the company which serves as its life line or source of revenue. To address the issue, Supply Chain Management Systems came out. Below is a diagram on how does these Supply Chain Management Systems or SCMS address the issue.

With the release of the supply chain management systems, computers have been deployed to different departments to serve as a data center and/or a tool for processing data. The Supply Chain has been segregated into parts, giving efficiency and accuracy of input and/or output on its own business unit. Although the system has been segregated into parts, all of them are interconnected through a local network or the internet. Most of the supply chain management system’s today automates customer purchasing through purchasing online, provides delivery tracking, as well as inventory count. It helps maintain inventory through automated purchase orders, which keeps the supply chain on track.

With the help of these new technologies, transacting business would never been this efficient, effective as well as easy compared to the processes we used to grow up with.