The Future of Supply Chain Management: Cloud SCM

It is clear to see that the pandemic economy has negatively impacted supply chain management. At the same time, companies have become more focused on customer needs. Today, distributors have the technology to anticipate customer needs and even influence their purchasing decisions based on a plethora of available data. The trick, it seems, is to enable supply chains to meet customer demands. When suppliers and distributors share data, the result is streamlined communication and improved collaboration for optimal customer satisfaction.

Challenges of Supply Chain Management

Supply chain management software combines your entire supply chain into one centralized location for easy access. This centralized nature allows you to view real-time data on inventory and materials so you can strategically plan, prepare, and provide better customer service.

By utilizing such a powerful system, you can stay ahead of trends such as connectivity, automation, cloud computing, artificial intelligence (AI), Internet-of-Things (IoT), and other key components of company growth.

In today’s global economy, supply chains span worldwide, and this means a confusing array of rules and regulations that don’t always mesh well together. Without modern tools and technology, managing the massive amount of data available from clients and staying compliant with every jurisdiction today is highly complicated and prone to errors. These types of mistakes can make you vulnerable to competitors.

Cloud Supply Chain Management

On-premises SCM may seem like a logical choice, but a cloud-based system makes more sense for a simple reason: agility. When you get hit with unexpected disruptions, a cloud environment makes it easy to respond quickly and efficiently. In contrast, making major changes to applications and code is cumbersome and time-consuming.

The cloud allows you to see critical issues in real time, regardless of where the necessary data is located. That’s the beauty of centralizing data. It makes it easy to collaborate within the company and with suppliers. Yet it’s flexible enough for you to implement at your own pace and configure it to meet your company’s specific needs.

Key Benefits

There are several key benefits of using a cloud-based supply chain management system. First and foremost is quick response time. SCM allows you to see delays, cancellations, and other disruptions ahead of time so you can make fast adjustments as needed.

SCM also facilitates the automation of routine tasks so your current employees can accomplish more daily. In a time when the labor force is in short supply, automation is essential to keep up with work processes and keep customers satisfied.

Workers can also be more productive with a more flexible workspace. Cloud-based applications can be accessed from anywhere, so even remote workers can work efficiently with higher job satisfaction.

If you’re looking to expand, the promise of cutting-edge technology is a great way to attract new talent excited to join a future-forward company.

Creating Resilience

Suppliers also want to enhance interactions within the supply chain by developing stronger relationships. According to a 2020 Forrester study, 80 percent of supply chain, procurement, sales, and finance leaders say they need to accelerate digital procurement operations. A survey of dozens of supply-chain executives found 90 percent anticipate overhauling planning IT within five years, and four out of five companies intend to or already use AI and machine learning in planning.

Companies focused on improving their supply chains’ resilience increased dramatically between 2020 and 2021. It can be argued that supply chain management systems will be the digital backbone of the connected organization in the future. It is impossible for distributors to operate without the right supplies. By mitigating that risk with SCM, you can make your supply chain more resilient.

Modernization is critical for distributors to become more efficient and resilient. But to be most effective, cloud-based SCM must be fully integrated with your CRM and other systems. Many leading accounting and operational software solutions integrate seamlessly with cloud-based distribution software solutions, giving you increased control over your operations. This is the only way to gain a full picture of your company. Manual systems and outdated software will only be an anchor against your need to propel forward.

Making It Happen

Implementing new SCM solutions can be challenging because of their complexity and cost. A modular approach can be more appropriate than implementing the solution all at once. Decision makers will then be able to select which part of the solution they want to use first, typically based on a short time-to-value assessment. Additional modules can be added after proof of value is established.

This approach means that full implementation will take time, so creating a road map to track the project’s progress is a good idea. This should also include redefining how low-level processes can be redefined and automated so employees can focus on more revenue-generating tasks. Likewise, more complex processes should be examined to see how automation can make the job easier for employees.

Considerations should be made for remote work and mobile access as well. Ensuring that users have full support to answer questions and ease concerns is also crucial.

A Partner in Your Success

To be successful, choosing the right software partner is paramount. This is why Mindover Software provides the latest technology and highly responsive support to protect your company’s growth and advancement.

Meetings to review logistics and supply chain management strategies every quarter are a thing of the past. Managing a global supply chain is a minute-by-minute requirement in the accelerating digital universe.

As technology advances, supply chain management will capture and analyze more information in greater detail as it becomes faster and more effective. Companies that take advantage of this technology now will have more opportunities to grow in the future.

If you want to learn more about solving your top distribution challenges, download our Distributor’s Guide to improving Profits. Then contact us to discuss the best software solution for your business needs.