Supply Chain Management and Logistics Software—Why?

Did you know that Wal-Mart’s key to success derives from its outstanding understanding of supply chain management software? Over the past decade, Wal-Mart has become an extremely powerful global leader in the retail sector by providing consumers with goods at everyday low prices. To achieve this, they developed a strategy that centers on replenishing their inventory efficiently while striving to lower costs through cross docking. The cross docking technique allowed Wal-Mart to reduce handling, operating, and storage costs to allow for everyday low prices. Wal-Mart’s commitment to a sustainable supply chain management strategy by providing consumers what they want and when they want it contributed to their low cost leadership strategy—the global retail giant’s competitive advantage over rivals.

Logistics software refers to the management of material flow in an organization from the point of origin to the point of destination. Logistics is the combination of information, transportation, warehousing, inventory, material handling, packaging, and often, security in a business organization. Supply chain is dynamic and it refers to the constant flow of information, goods, and capital from the point of origin to the point of consumption. Supply chain management (SCM) is the management of the network of information, materials, and finances as it flows from supplier to manufacturer to wholesaler to retailer, and then finally to the consumer. SCM aims to reduce inventory while assuring the goods are immediately available when needed.

Logistics and supply chain management software have evolved over the years, giving businesses plenty of reasons to take advantage of them. Logistics software has allowed organizations to automate the management of transportation related data for analysis. Businesses can then make more informed decisions, like how to get products out faster to the public, based on that analysis. Supply chain management software (SCMS) includes a wide array of software tools used in management and execution of supply chain functions and business processes. The goal of installing supply chain

management software is to ultimately, apply just-in-time manufacturing. By gathering accurate supply chain information, businesses can apply just-in-time manufacturing—an inventory strategy in which materials purchased and produced only needed to meet actual consumer demand. This will allow companies to reduce the amount of in-process inventory they keep, allowing the business to lower storage costs.

Today, in order for corporations and businesses to efficiently and effectively manage inventory and material handling, strategic logistics and supply chain management solutions must be utilized. Because logistics can be extremely complex and constantly changing, software has been developed as tool for modeling and analyzing. Companies can look to logistics software to better optimize production logistics. Furthermore, there is a plethora of effective supply chain management software for businesses to take advantage of. Not sure which one to purchase? Product reviews and other resources for logistics or supply chain management software can be found online. By setting up efficient logistics and supply chain procedures, you can better predict and meet customer expectations and demands.