The supply chain is an important term in business. Executing it is a more challenging thing. In this article, we discussed the software tools that help to automate tasks and execute the supply chain.
Also, you get to know about the benefits of supply chain execution and automated software for warehouse management.
Supply chain execution (SCE) is an execution-oriented software application for effective procurement and supply of goods and services across a supply chain.
It includes manufacturing, warehouse, and transportation execution systems, and systems providing visibility across the supply chain.
Definition of Supply Chain Execution
Supply Chain Execution is the process of effectively managing the supply chain. In other words, we can say supply chain execution is the process of providing the supply chain items at a place where they are required most.
In this digital and technological era, there are numerous Enterprise Resource Planning Software and Enterprise Application software available in the market that has an in-built Supply Chain Execution System.
Many large organizations and small businesses are already leveraging these in-built systems to manage their supply chain logistics effectively.
There are numerous tasks that an automated system for supply chain execution can do.
Some of the well-known software for supply chain execution are transportation management software, warehouse management software, order fulfillment software, and global trade management software.
All of this software, as mentioned above, is geared towards managing the supply chain execution process more conveniently.
For instance, global trade management software allows business owners to manage the transportation and carriage of their products.
Fleet management software enables corporate governors to control the shipment of their finishing goods locally.
Inventory control tools allow a company to save a behemoth amount of money by achieving a leaner inventory model.
All of these core technologies and many more may help the company to automate the tasks related to Supply Chain Execution.
Automated Software for Supply Chain Execution
To correctly manage the task related to supply chain execution, we strongly recommend you to use appropriate software.
There is numerous automated software for the supply chain execution that can govern the overall manufacturing operations, supervise distribution processes like receiving and fulfillment of orders, and the order shipment.
Application software for supply chain execution works in synergy with each other to create a harmony between manufacturing operations that are required to design a product usable by the customer.
Let’s have a more in-depth look at the software applications used to manage the product-related information within the involved operations.
Automated System for Warehouse Management
Smartly management of the inventories required by the business does have a long-term impact on business operations.
Well-Known corporate leaders emphasize the importance of effective inventory management in these words,
Keeping too much inventory reduces the liquidity of money. Too few products mean stocks, and that leads to the loss of too much capital investment.
An automated tool for Warehouse Management can act as useful for the proper management of finishing goods inventory. The automated warehouse management system ensures the availability of the right amount of stock in the right place.
The right place may vary from situation to situation. The right place may be the manufacturing facility, or distribution center, warehouse, or anywhere.
The most basic warehouse management system lays the foundation for the day to day business activities that are crucial to warehousing including
- receiving of order
- framing a strategy for the practical completion of order
- transporting finishing goods from manufacturing facility to an appropriate place
- picking, procurement, and shipping of the order.
The below image shows the supply chain execution application focus by industry
An advanced, fully automated warehouse management system may include,
Consistent Upgradation of Inventory
The automated system of warehouse management keeps on upgrading the inventory consistently and calls for the transportation of the finishing well from the manufacturing facility to the pickup area.
It keeps on transporting the inventory, so pickers won’t run out of stock.
Capable of Handling Large Quantity of Returns
For the last few years, there is a drastic increase in online shopping; and there is an increase in customers returning items because of various reasons.
The automated warehouse management systems have an in-built feature to deal with a large number of returns.
Cyclic Inventory Counting
Automated WMS generally comes with the support for the usual inventory accounting process. This pre-defined process involved the most accurate counting of inventory in a systematic manner.
Coordination with the Production Team
The warehouse management system consistently engages with the production team via a handheld RF device and voice technology.
Improvement in the Pre-Existing Warehouse Management System
Nowadays warehouse management system plays a vital role in the effective management of the business cycle.
As the need for more robust and dynamic WMS comes into play, more automated systems were developed in the past to address the flaws of the pre-existing WMS system.
Various applications were developed and deployed to reduce the shortcomings of the pre-existing WMS.
Some of these well-known applications are slotting, yard management systems, and labor management systems.
The algorithm of autonomous Slotting software is delicately designed in a way that it can precisely calculate the fast-moving items by mapping the warehouse, velocity of orders, and order mixes.
The information gleaned through this automated system is then leveraged to determine where each product should be placed to frame the most effective and prominent picking operation.
For instance, fast movers should be placed at a very optimum distance from the shipping area, and slow movers can be placed at a long distance from the storage place.
Similar items should be placed at an appropriate site to minimize pickup errors.
Yard Management System
Richard Kirker, SAP’s solution owner for warehouse management, expressed the importance of yard management system in these words,
“Yard management system solely relies on the concept of WMS, and Visibility is the greatest issue.”
The yard management system acts as a useful and prominent tool to bridge the gap between the warehouse management system and transportation.
Information revealed by the yard management system can be easily leveraged by business owners to analyze the carrier’s delivery performance.
Labor Management Tool
The warehouse management system governs all the manufacturing activities and is an automated tool for labor management to efficiently manage the requirement of workers.
Labor management automated tools precisely monitor the performance of warehouse personnel. Aside from all these peculiar features, the labor-management tool provides real-time feedback to the management tool.
How do you build a good supply chain network?
Before executing any work it is very important to build the network. Following are the few stages to evaluate a supply chain network.
- The first stage is supply management. It contains tier-one vendors. Interaction with vendors is through documentation like purchase orders and releases.
- The second one is supply chain management. It contains tier-two vendors. Interaction with vendors is through documentation with some data sharing.
- The third one is supply chain integration. It boosts the members in supply to collaborative involvement. At this level, communication will be transactional with the exchange of data and also information.
- The last one is demand-supply network collaboration. In this stage, critical information flows through the entire supply chain simultaneously.
Designing of supply chain network
Here are a few tips to build and design a supply chain network.
- Have a clear idea about your goals: Clearly define the following things.
- Demand of customer service level in the market
- Mode of transportation that should balance cost and performance
- Number of warehouses that you must have
- Amount of inventories that you must-have for each product
- Assign particular warehouse to supply products for specific customer
- Collect the supporting data: Collect important data like product demand in the market, transportation cost, inventory and warehouse cost, lead times during transportation, etc for a better decision.
- Choose a good tool: It is very important to have a good supply chain network optimization tool. Choose the tool carefully so that it should address all the decisions that you are required to make and also it reflects your business.
- Inspect the supply chain network: Keep on analyzing your supply chain network.
- Keep on implementing: It is a never-ending process. so keep on revising and implementing the supply chain network
Benefits of Supply Chain Execution
In this today’s revolutionary era, supply chain execution has become crucial for companies to remain competitive in an excessively saturated market.
Savvy consumers further intensify the situation as he expects an elegant product from the manufacturers, fast delivery, and a maximum level of accuracy.
Here are the ways through which an organization can benefit from an advanced supply chain execution system.
Automated tool for the supply chain execution generally comes with Radio Frequency picking and voice-activated commands.
Through these automated tools, the time consumed on manual processes is reduced by one-half.
Productivity is further enhanced by the in-built features of automated supply chain execution that were explicitly designed to address the specific needs of an organization such as retail, manufacturing, CPG, and distribution.
Optimize Cost and Consolidates Assets
An advanced supply chain execution system appreciates the net worth of an organization’s assets and reduces the production cost across every aspect of the supply chain logistics lifecycle.
With the most potent and elegant tool designed explicitly for streamline operations, you can efficiently enhance labor productivity, leverage the equipment, and improve the production capacity.
Sophisticated transportation equipment reduces transportation time and operating expenses. On the other hand, an inventory management system reduces reliance on excess inventory.
Improve the Quality of Manufactured Goods
Small and large scale organizations and manufacturing firms can enhance the
- overall order accuracy
- reduce the cost incurred on an error correction
by the proper implementation of an advanced automated supply chain execution system that includes a computerized system for
For manufacturers to corporate governors who are looking for a way to achieve operational excellence, it is strongly recommended to leverage the game-changing capabilities of advanced supply chain execution.
The advanced supply chain execution system generally comes with the in-built feature to reduce complexity, reduce operating expense, and boost the overall revenue and profitability of a business.