Moving to Modern SCM
While traditional supply chain
solutions met the early challenges of a globally minded and
burgeoning world economy, they eventually reached their limits.
Goods and information could not cross easily from one part of a
supply chain to the next without a lot of manual effort—and a high
potential for errors. Inventory visibility and transportation
management across the supply chain were limited by systems that were
not integrated. Organizations needed more insight with real-time
views across the entire supply chain.
The arrival of the internet changed
the way traditional supply chain systems worked. A more dynamic,
customer-focused marketplace demanded smarter and more agile ways of
working. Waiting for goods to be transported from a manufacturer to
a showroom had become a consumer option. And linear supply chain
solutions took too long. Consumers wanted to interact with products
at any link of the value chain.
In this new, demand-driven economy,
the supply chain operating model was turned outside-in. At this
point, the supply chain is not a chain anymore; the supply chain
management system has evolved into a collection of webs—disparate
webs that can be accessed 24 hours a day. At the center of these
webs are consumers waiting for their orders to be fulfilled.
Today’s best supply chain strategies
call for a demand-driven operating model that can bring together all
the people, processes, and technology around integrated
The Business Value of Modern
As more and more
companies transform their supply chain systems by moving to
complete, secure, and connected cloud-based suites, the benefits are
becoming more evident. They include:
Visibility—Modern supply chain software shows you where
your inventory is—every pallet, parcel, and unit—anywhere along
the global supply chain, from the manufacturer to storage to
transportation to the store shelf.
Agility—Market changes demand fast action. With cloud
SCM, you can quickly and securely deploy new services and
capabilities and easily scale to meet new challenges.
Lower Operational Costs—Integrated SCM systems enable
you to get out of the IT business so you can focus on core
Ease of Use—Modern SCM software offers simple and
intuitive user experiences that provide quick access to accurate
and timely analytics, accessible anywhere and from virtually any
Security—Cloud data centers provide embassy-grade
security. Cloud-based software offers best-in-class security
features, including encryption, virus scanning, and white list
The Advantages of
End-to-End SCM Functionality
A complete, fully converged,
integrated suite of cloud-based supply chain management solutions
consists of the following components:
manages all warehousing needs and transportation modes within
and across borders to reduce costs, increase efficiency, and
Management—A product lifecycle management system
enables you to innovate, develop, and commercialize profitable
products to grow your business.
Supply Chain Planning—A
supply chain planning solution helps you stay ahead of
marketplace changes by proactively devising revenue growth and
cost reduction strategies—and consistently execute them with
procurement management system streamlines your source-to-pay
process through automation and social collaboration, while
controlling costs and achieving higher margins.
order management system manages orders from all your channels to
get a single view of your customer.
manufacturing management system streamlines your manufacturing
process through visualization, back-flushed transactions, and
social collaboration, while controlling costs.
maintenance management system connects your organization’s
maintenance, supply chain, and financial applications, enabling
you to streamline maintenance activities.
Internet of Things (IoT)
Applications—IoT applications enable you to harness the
power of the connected world with real-time IoT data and
In a changing business landscape, the
old supply chain management paradigm isn’t up to the challenge.
Supply chain professionals need to stop thinking of their supply
chains as cost centers to be managed and made more efficient.
Instead, think of your supply chain as a business advantage—with the
potential to differentiate your company from the competition.
Given the value of ecommerce and its
forecast for growth, businesses should refocus their efforts on
aligning digitally connected purchasing with their own digitally
connected solution. In other words, businesses should match their
technology to their business model. A modern business requires a
modern supply chain.
Today’s leading-edge supply chain
management systems are end-to-end product suites that help
businesses manage and optimize their supply chains as one complete
ecosystem. Because they are fully integrated cloud technologies,
these systems enable 100 percent visibility across the supply chain
and scale up or down to react to market reality. With a modern,
demand-driven supply chain, you can meet the challenges of increased
buyer expectations, shorter product life cycles, and fluctuating
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