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A supply chain management system organizes the tasks involved in the supply chain process. The factors in the supply chain process include the product manufacturer, the wholesaler, the distributor and the retailer. The objectives of a supply chain management system are to increase customer value and to develop a reliable advantage over the competition. Small businesses that take part in supply chain management activities must understand how they fit into the system and how they can accomplish their appointed tasks.

Point-of-Sale Synchronization

When all facets of the supply chain have the same data at the same time, the increased efficiency of information removes data lags and saves costs. The textile firm Milliken & Company was one of the first companies to use point-of-sale data from retail outlets to link up to their manufacturing facilities. Before the synchronization efforts, the company would take 18 weeks to fill an order from retailers. The increased data efficiency allowed Milliken to cut that time down to three weeks.

Web-Based Supply Chain Management System

The advent of Internet technology has enabled businesses to communicate with each other with unprecedented speed and clarity. The U.S. Department of Agriculture developed a Web-based solution for farmers and ranchers seeking to communicate with distributors and wholesalers. The Web-Based Supply Chain Management System consists of commercially available software packages that provide an integrated system to purchase, track and order agricultural products. The Internet-based system allows all the participants in the supply chain to obtain the information they need.

SAP Business Software

Business software developer SAP has created a suite of products devoted to supply chain management. The SAP SCM suite offers a range of functions for shipping, manufacturing and procurement. Unlike some supply chain management systems, which rely on the ability of various software programs and databases to communicate with each other, the elements of the SAP suite use the same standards to communicate between them. The costs for such a comprehensive system can be high, especially for small businesses with tight budgets.

Supply Chain Failures

Supply Chain Management At World Co Ltd Pdf Files Download

When the supply chain management system fails, every entity in that chain feels the effects. In 1999, retail giant Toys'R'Us promised to deliver all online orders placed before December 10 by Christmas. The company's Internet servers were not equipped to handle the traffic and thousands of orders went unfulfilled.

The company received thousands of angry emails and telephone calls, and some employees worked seven straight weeks without a day off to fill orders. As a result, Toys'R'Us outsourced its order fulfillment to Amazon.com.

About the Author

Living in Houston, Gerald Hanks has been a writer since 2008. He has contributed to several special-interest national publications. Before starting his writing career, Gerald was a web programmer and database developer for 12 years.

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