The majority of companies are already familiar with supply chains and supply chain management software. However, many of these companies may be missing out on another valuable piece of software that will help them increase their efficiency and boost their profit margins. This piece of software is known as supply chain execution software.
Supply chain execution software is focused on expediting the movement of goods between companies that are part of the supply chain. Due to this focus, supply chain execution (SCE) software deals primarily with the management of logistics and warehouses: two of the most costly areas for many companies.
SCE software offers a number of benefits to businesses. For example, it can help businesses achieve effective cross docking techniques. Cross docking is a technique that lessens the amount of time goods must stay in a warehouse by coordinating the completion of the goods and their delivery. In some cases, cross docking means that goods will only stay in a warehouse for an hour or less before being shipped out to a customer or distribution facility.
Another SCE software benefit is improved communications. Warehouse managers will be able to communicate electronically instead of via the phone or fax with other members of the supply chain so that problems and scheduling can be handled in real-time instead of being prone to delays. For example, if a problem arises in the warehouse, the software can be set up to automatically notify managers so that it can be taken care of immediately. Improved communication also helps improve cross docking possibilities.
While not in wide use now, radio frequency identification (RFID) tags, which may soon replace bar codes as a staple of warehouse management, are also being implemented into some versions of SCE software. With the software and the tags, these RFID tags can be easily tracked and compared with orders to help better manage warehouses, logistics, and the delivery of products to customers.
SCE software has continued to grow, even as other types of software has seen a downturn in sales. The simple reason is that almost every company can benefit from SCE software and can see a return on their investment immediately. In most cases, the savings will pay off the price of software implementation in only a couple of years. Businesses that normally use large amounts of warehouse space, have difficulty arranging shipping schedules efficiently, or need to make the movement of goods more convenient can all profit from SCE software's benefits.
Overall SCE software makes warehousing easier on companies and their budgets. Fewer warehouses are needed because the goods do not take up the existing room for long. At the most, goods would remain in the warehouse for 24 hours which is significantly less than the average amount of time shipments normally remain in storage awaiting shipment. Fewer warehouses mean companies can spend less on security, employees, and land. Warehouse problems can also increase costs if they are not dealt with promptly, but with the SCE software managers can be immediately notified and can rectify problems quickly before related costs get out of hand.
The bottom line is that supply chain execution software provides significant benefits for companies and manufacturers, as well as their vendors and distributors. More streamlined shipping means that distributors can get the products out to end-users faster than before and that means a quicker turnaround on revenue. Better shipping between the members of the supply chain also means that vendors can get supplies to manufacturers in a more timely manner so they never have to worry about running low on raw materials. Increased communication between warehouse managers and the rest of the supply chain mean that problems will be dealt with promptly and logistics can be managed efficiently.
In the end, SCE software definitely is worth the investment for most companies, particularly those that are tired of using up large amounts of warehouse space.