Managing raw material acquisition until the transformation of the finished goods to the end-user is a daunting task. Having a centralised planning and monitoring system to handle the supply chain activities helps in effective business management.
Deploying a cloud-based system like the NetSuite ERP platform for supply chain management can ensure real-time tracking of the movement of goods inside and outside the organisation. It helps in a seamless flow of products and services, right from procurement to delivery.
Importance of Supply Chain Management in An Organisation
The success of a company depends on the efficient management of the supply chain process. A web-based solution can handle the entire supply chain system that involves various goods and services related processes like:
Cloud-Based Supply Chain Management Solution Versus Localised System
According to a report by Gartner, the hybrid cloud market is expected to grow at a CAGR rate of 17 per cent from $44.6 billion in 2018 to $ 79.6 billion by 2023.
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Here are a few benefits of deploying cloud computing solutions compared to a traditional, on-site supply chain management system.
An online supply chain management process comes with added features like automated pricing and billing tools for customers and vendors. Companies can save time and money with optimum technology usage to manage online, centralised storage of information.
Companies can cut down additional expenditures like local area or rental costs for local servers and data networks.
Improved Scalability and Efficiency
Cloud computing involves the on-demand generation of computing resources from a massive network and connection. It offers easy scalability when adding a new store or supplies from your existing business location.
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Automated data analytical tools help business managers make the best decisions with real-time data reporting and management options. It reduces delay in the execution of tasks with error-free information.
Unexpected electrical outages in traditional databases may cause permanent loss of valuable information. A web-based architecture of a supply chain management system offers a secured backup of data in a network failure or accidental data loss.
The cloud computing system moves information across multiple servers and provides uninterrupted service.
How Does a Cloud-based ERP solution work in Supply Chain Management?
A cloud computing system like the NetSuite ERP platform helps in a seamless, integrated data flow across multiple geographical locations from a single, remote database system.
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A web-based ERP supply chain management system follows the Software as a Service (SaaS) model. It provides the infrastructure, platform, and software for an efficient flow of information in the supply chain network.
Read more to know how cloud ERP works best when combined with a supply chain management system.
Supply Chain Planning
Balanced management of demand and supply of goods and services is essential for an efficient business workflow. It involves a proper planning and forecasting method by getting accurate information on underlying products in the inventory.
A demand planning module analyses historical data on past demands and calculates monthly or weekly sales forecasts.
After the demand for goods is generated, a supply management module helps plan the supply through multiple channels and vendor analysis.
Purchase and Execution
The next step in manufacturing is the purchase of raw materials. It involves managing vendors and transaction-related details. A centralised order management system helps in the approval of workflows and real-time tracking of vendors.
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Monitoring and measuring vendor performance helps to address backlogs in order processing and prioritising urgent supplies. It helps optimise delivery plans and reduce lead times.
A centralised work order management system allows users to update statuses easily. It helps maintain consistent and accurate data across multiple locations.
Collaboration With Supply Chain Partners
With centralised order portal access and an email support system, a cloud ERP system helps easily integrate supply chain partners.
A customised user interface for vendors and customers offers real-time collaboration and exchange of product information. An online ERP solution can use web services and RESTlet APIs to transfer information between supply chain partner systems.
Post Delivery Customer Support
Post-service customer support plays a vital role in maintaining long-term healthy relationships. A cloud computing solution like the NetSuite ERP platform comes with a case management system that helps in addressing end-user issues.
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They help in giving required feedback and responses with dedicated escalation methods and issue management techniques. It helps in automated replacement and repair policies for products.
Cloud ERP has warranty management functions that record online service requests and repair work orders.
Handling a proficient supply chain management system can be expensive. Cloud ERP system allows quick identification of bottlenecks with real-time visibility of product manufacturing process.
It helps reduce overall supply chain costs and speeds up production in the organization.