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A Buyer's Guide to Operations Solutions
Supply Chain Management Software Buyer’s Guide
Innovations in the global supply chain in the last five years have been bringing enormous benefits to the SMEs, large enterprises, and even governments. Technology such as GPS, RFID, and cloud-computing are all contributing factors to the positive trends happening in the global supply chain such as improving inventory management, decreasing transportation time and costs, and increasing overall customer satisfaction. As a whole, the SCM industry today is outperforming other industries in terms of market revenue and advancements in technology.
Many businesses are reinventing their wheel by moving from tactical to a more strategic SCM approach. Investing in Supply Chain Management software solution is now becoming a top priority of many organizations. It is because SCM software solution has been known for executing supply chain transactions, managing supplier relationships and controlling associated business processes. Warehouse management and transportation management are the key areas of business where SCM software solution does its biggest role.
We from ITQlick.com believe that despite of these positive trends, there is more to learn about SCM software solutions. So here is a Buyer’s Guide which we from ITQlick.com would like to share with you as a preliminary approach in getting the right SCM software solution for your business.
Types
Supply Chain Management software solution can be broken down into two major categories: Supply Chain Planning and Supply Chain Execution. Under each category are sub-components or application modules that are focusing on more specific areas of the supply chain network.
Supply Chain Planning (SCP) Module
This module focuses on the areas of demand, supply and the consolidation of demand and supply.
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Strategic Network Planning
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Sales and Operational Planning
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Demand Management
· Demand Planning
· Demand Forecasting
· Sales Forecasting
· Demand Shaping
· Demand Fulfilment
· Supply Network Planning (SNP)
· Distribution Planning
· Replenishment
· Procurement
· Vendor Managed Inventory (VMI)
Supply Chain Execution (SCE) Module
This includes planning, scheduling, optimizing, tracking and performance monitoring.
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Warehouse Management Systems
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Transportation Management Systems
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Logistics
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Relationship Management
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Product Lifecycle Management
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Collaborative Response Management
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Supply Chain Analytics
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Track & Trace
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Service Parts Management
Base from the above categories, SCM solutions are then categorized into these two types of solution.
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Business Suite Applications (Best-In-Class)
This solution includes both the SCP and SCE and it’s a fully integrated system.
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Single Integrated Applications (Best-of-Breed)
This solution only includes either the SCP or the SCE, or combination of their sub-components.
Features
From the different categories of SCM solutions come these tons of features and benefits. Among of the benefits that an SCM software solution can provide are:
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Anticipate and manage sudden changes in supply and demand
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Provide vital business information to key stakeholders across your network
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Improve collaboration across multiple lines of business
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Centrally manage and optimize inventory, shipping, and order fulfilment
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Make decisions in real time and execute them across your supply chain
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Ensure your supply chain’s integrity and manage supply chain disruptions
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Simplify the user experience on any device
On the other hand, these are the features available in almost all types of SCM software solution today.
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Advanced Analytics
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Value Chain Collaboration
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Demand Optimization
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Inventory Optimization
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Supply Optimization
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Transportation and Logistics Optimization
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Cloud Services
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Retail Optimization
Solutions per Business Size, per Vendor
The choice between Best-in-Class and Best-of-Breed is definitely in most buyers’ mind. The buyer’s experience and expertise in the supply chain is an important aspect when selecting an SCM solution. In this regard, every buyer has the responsibility of answering this question accurately: What type of buyer are you? So if you were given this task, here are the important points for you to consider when choosing your SCM solution provider.
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Determine your business requirements. This includes the identification of your business size (small, mid-size, enterprise), the current challenges your supply chain team is facing, and the requirements of your stakeholders (ex. speed of delivery, cost-effective transport, on-time forecast of materials, etc.).
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Consider the budget and resources available. This is more on weighing your investment risk factor against the Total Cost of Ownership (TCO) of an SCM solution. Keep in mind that acquiring a software solution is not only about installation and utilization. It’s about implementation and it involves the processes of deployment, customization, training, maintenance and upgrade.
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Evaluate your potential solution vendors. Do you prefer on-premise solution or cloud-based package? Each has its own price tag, degree of implementation, and considerable number of providers to choose from. An excellent way of narrowing down your search for the right solution is by really knowing the deployment model you want for your business.
Here are some of the solution providers which we from ITQlick.com would like you to consider evaluating. One them could be the right solution provider for your organization.
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Ariba Inc.
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JDA Software Group Inc.
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Oracle Corp.
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SAP AG
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Manhattan Associates Inc.
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RedPrairie Corp.
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IBS, Lawson Software Inc.
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Descartes Systems Group Inc.
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Kewill Systems
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Retalix Ltd.
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Servigistics Inc.
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Epicor
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Infor Global Solutions
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TECSYS
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Totvs
Pricing Considerations
The price of SCM software solutions can range from thousands up to million of dollars. Because of the significant investment required, it is uncommon that most solution providers will disclose their pricing model on their websites. Best-in-Class and Best-of-Breed solutions are both applicable to any kind of industries and their price varies depending on many aspects.
More or less, you will be directed into the “Request for Quotation” page whenever you attempt searching for the price. We from ITQlick.com would want to help you on your pricing concerns by providing you these important points to consider when evaluating your potential solution provider.
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Conduct more background research of the provider’s competency in providing a robust solution. Among of the items to look for in a vendor’s website are:
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product availability and delivery options
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detailed description of the products and their features
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organize segmentation of the solutions base on different categories
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Read and analyze industry surveys, product reviews, and comparative reports. They are excellent sources of information that will give you a clear idea about cost versus benefits.
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Directly contact the solution provider by sending RFQ or starting a phone conversation with their sales manager. Many solution providers give honest advice on pricing when contacted.
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And since your objective is to find a solution that can offer your business better gains such as higher gross margins, less inventory, and shorter cost-to-cycle times, seek the advice of SCM consultants. They’ve been into this industry for years and if it’s about pricing, there is a higher chance that they have the figures to share with you.
You can also ask our consultants at ITQlick.com for more advice related to pricing, features, trends, and more about SCM solutions. Visit our website and you will definitely find the answers to your SCM solution concerns.
Market Trends
The global Supply Chain Management software market is now estimated to be around $9B and is projected to grow until 2015. Many ERP vendors are expanding their capabilities into SCM. The demand for intelligent software gives many niche players the opportunity to address the growing demand of specialized industries.
The challenges of globalization keep on pushing SCM solution vendors to enhance the capability of their systems by integrating new breeds of technology. This includes GPS, RFID and other types of integrated tracking and identification systems.
Collaborative SCM relationships are being enhanced by tightly integrating SCM systems with Customer Relationship Management software and Supplier Relationship Management applications.
Many companies are already shifting into the cloud-based technology. The SCM industry has never been late in this trend.
With these on-going trends and with the help of this Buyer’s Guide, you could have already been convinced that an SCM solution is one of the keys to your business success. SCM software solution is truly powerful and if you haven’t upgrade your system yet or totally acquire one, then today is the right time to do it.
Finding the right Operations software for your business
Proper Operations software selections are the precursor to successful deployment and business growth. Finding the right Operations solutions doesnít have to be complicated, and it doesnít have to take days or weeks of your time.
After researching over 5,000 systems, we can identify the best solution for companies of all shapes and sizes. ITQlick.com is 100% free for software buyers.
Shlomi Lavi / Sep 02, 2023