Supply Chain Management Systems (SCM) in Chicago trucking logistics technology (8 of 8)
Sep 20, 2022
John Ostler - CoFounder of Eight Bit Studios
A SCM system is a software system that helps manage all aspects of the supply chain, from procurement to manufacturing to distribution.
A SCM system is a software system that helps manage all aspects of the supply chain, from procurement to manufacturing to distribution. SCM systems can help improve efficiencies and optimize performance by reducing costs, improving asset utilization, and reducing transit times.
Despite its popularity, there is no single definition of SCM. This is not surprising given the diverse and often conflicting perspectives of the many practitioners and academics who use the term. However, there is general agreement that SCM encompasses the planning and management of all activities involved in procurement, production, and logistics, as well as the coordination and collaboration with suppliers, manufacturers, distributors, and retailers to deliver the finished product to the customer.
There are many different types of SCM systems, but all share the common goal of providing the right product, at the right time, and at the right price. The most popular SCM systems are enterprise resource planning (ERP) systems, which are designed to integrate and streamline all of the business processes within an organization. Other popular SCM systems include warehouse management systems (WMS), transportation management systems (TMS), and supply chain planning (SCP) systems.
The benefits of implementing a SCM system are well-documented and include improved customer satisfaction, increased operational efficiency, reduced inventory levels, and improved cash flow. In addition, SCM systems can provide real-time visibility into the entire supply chain, which is essential for effective decision-making.
Despite the many benefits of SCM systems, there are also some challenges that need to be considered before implementing such a system. These challenges include the high cost of SCM software and hardware, the need for extensive training and support, and the potential for disruptions to the business if the system is not properly implemented.
This is the final post in my 8-part series covering the primer on the many areas of opportunity in the Chicago Trucking logistics space. In the next set of posts, I'll be exploring the emerging technologies that can be adapted to logistics to bring firms fully into the 21st century.