Ask These Questions to a Supply Chain Management Software Provider to Choose the Right One for Your Business

In the ever-evolving business landscape, making informed decisions about supply chain management software (SCMS) can be as crucial as the strategic decisions regarding market penetration or new product development. When it comes to choosing an apt SCMS for your business, the decision matrix is complex and multi-dimensional.

Understanding the integral components of the supply chain, such as procurement, manufacturing, and logistics, is essential. It's equally important to be aware of the contemporary technologies, like machine learning (ML), Artificial Intelligence (AI), blockchain, or Internet of Things (IoT), that are progressively becoming integral parts of SCMS.

In this discussion, we will delve deep into the crucial questions you should ask to a Supply Chain Management Software provider. The intention is to empower you with pertinent knowledge and assist you in making an optimal choice.

• How Does Your Software Enhance Visibility Across the Supply Chain?

  Supply chain visibility is pivotal for efficient operations, enabling businesses to track products in real time from production to delivery. An optimal SCMS should provide a transparent, end-to-end view of the supply chain. In this context, you might want to understand how their SCMS leverages technologies such as IoT and blockchain. IoT devices can provide real-time tracking of products, while blockchain technology can create immutable records providing indisputable tracking data.

• Can Your Software Predict and Mitigate Risk?

  Risk management is integral to supply chain management. Ask the provider how their software identifies potential risks such as supplier insolvency, logistics failure, or geopolitical issues. Advanced SCMS can utilize AI and machine learning algorithms to predict risks based on historical data and current market trends.

• How Does Your Software Handle Supply Chain Planning?

  Effective supply chain planning encompasses demand planning, production scheduling, inventory management, and sales & operations planning. It helps in maintaining the delicate balance between supply and demand. Ask the provider about the capabilities of their SCMS in these areas. For example, advanced SCMS can leverage AI for demand forecasting, which can significantly reduce forecasting errors.

• How Agile and Scalable is Your Software?

  The agility and scalability of SCMS are crucial in today's volatile business environment. The chosen software should be capable enough to quickly adapt to changes such as market fluctuations, sudden increase in demand, or disruptions in supply. The underlying architecture of the SCMS will largely determine its scalability and agility. For instance, cloud-based SCMS are typically more scalable and agile than their on-premise counterparts.

• How Does Your Software Support Decision Making?

  In today's data-driven world, the ability to derive actionable insights from data can offer a significant competitive advantage. The chosen SCMS should be capable of not only collecting and storing data but also analyzing it and providing useful insights. Technologies like AI and ML can play a crucial role here. They can analyze large volumes of data quickly and accurately, enabling businesses to make informed decisions.

• What are the Integration Capabilities of Your Software?

  The chosen SCMS should easily integrate with other systems like ERP, CRM, or Business Intelligence tools. Seamless integration is crucial as it enables the free flow of data across systems, leading to improved efficiency and decision-making.

• What Level of Customization Does Your Software Offer?

  Every business is unique and so are its needs. Therefore, the chosen SCMS should offer a high degree of customization to accommodate your unique business processes and requirements.

• What is the Total Cost of Ownership (TCO) of Your Software?

  In addition to the upfront cost, consider other costs like implementation, integration, training, maintenance, and upgrades. The provider should be able to give a clear breakdown of all these costs.

In conclusion, choosing the right SCMS for your business involves careful consideration of several factors. By asking these questions to your SCMS provider, you can gain a deep understanding of the software and its capabilities, enabling you to make an informed decision.