Improving Manufacturing Productivity Through Supply Chain Management

In the commercial industry, supply chains are a collection of resources involved in making a product available to the customer. They can, however, be difficult to manage at times depending on the size of the organization, and the type of products being produced. An efficient supply chain management for manufacturing is vital for the success of a business. Having a network of suppliers working together to create a smooth workflow and cost-effective production process is the goal of supply chain management.

Benefits of ERP to Supply Chain Management

For a company to have a smooth workflow, everything must work together to produce an outstanding product or service. Therefore, it is important to have an ERP software system to manage the supply chain effectively to avoid unhappy customers and loss of revenue. A disgruntled customer can create a log jam in the system when the product doesn’t meet with their expectations.

Enterprise Resource Planning simplifies supply chain management through effective task scheduling. With this type of system, managers and supervisors know exactly which resources are being used and how much is in reserve. This helps to effectively plan product delivery dates. When everything is in place, and resources are available, then production can begin on schedule.

INDUSTRY PAGE: SAP BUSINESS ONE & MANUFACTURING 

Benefits of a Supply Chain Software

Supply chain management software improves the workflow and productivity of businesses all around the world. Many of the supply chain processes can be automated with SCM tools. Supply chain management systems help managers and team leaders improve business operations and make them as efficient as possible for a competitive advantage.

• Increased knowledge, products, and materials
• Automates many labor-intensive processes
• Improved efficiency
• Cost-effective
• Accurate demand forecasting
• Updates are available in real-time

Supply Chain Management System: Creating a Planning Strategy

Planning means developing a production process that meets the needs of the business and the customer. It is important to monitor the process to determine if all the goals are being met.

Supply Chain Management System: Supply Chain Development

Developing a supply chain means making effective partnerships with local suppliers and creating an invoicing system for timely payments and delivery dates. It is important to have many groups of resources on hand to fulfill an order when one supplier may not have what you need.

Creating successful relationships with other local businesses is good for the community, the business, and the business’ customers. When processing orders, the product needs to be produced, quality-tested, and scheduled for delivery to the customer. Effective supply chain ensures that the products being manufactured are high-quality and production is on schedule as it should be.

BLOG: QUALITY ASSURANCE VS QUALITY CONTROL IN MANUFACTURING

Supply Chain Improves Productivity

The goal of effective supply chain is to keep operations flowing smoothly by making sure that there are enough raw materials in stock at the time of production, and that materials consistently arrive on a routine basis to avoid disrupting the flow of business. Late deliveries can slow production and result in delays and missed delivery deadlines. When this happens, the order cannot be fulfilled, and another source may have to be located quickly to solve the issue.

ERP software systems can provide cost-effective order processing and improved handling procedures that lower the supply chain costs and boost profits. An automated system for ordering raw materials and ensuring timely delivery will result in more customers, more orders, and more revenue.

CASE STUDY: HOW SAP BUSINESS ONE IMPROVED SUPPLY CHAIN MANAGEMENT

Supply Chain Systems Helps Anticipate Consumer Demand

Another benefit of automation is that data analysis can predict consumer demand more efficiently than human workers can. By anticipating the demand for a product, you can accurately plan orders for the right amount and avoid overstocking and the extra expense of storing excess products. An accurate accounting of goods and materials is a key component of inventory management that works for other departments involved in the production. Reports can then be created to analyze the efficiency of the processes and performance of suppliers.

BLOG: INVENTORY MANAGEMENT FOR MANUFACTURERS

Supply Chain Management: Wrap Up

The benefits offered by supply chain for manufacturing help companies to make smarter decisions, choose the right suppliers, and accurately predict and respond to market and demand changes: They also improve the company’s revenues because working with reliable suppliers means fewer disruptions and more satisfied customers, which improves cash flow by allowing you to get paid for sooner.

The SAP Business One solution can empower companies to streamline their manufacturing operations from beginning to end, thereby minimizing delays and reducing production costs.