Data in Supply Chain

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The role of Data in Supply Chain Management

Introduction:

In today’s, world supply chain plays an important role. Industries especially like retail, FMCG, and CPG incur most of the work linked up to their logistics and supply chain and it is sometimes difficult to manage and operate logistics and supply chain. In recent times even e-commerce has emerged be a great sector & again supply chain management plays a vital role. The main susceptors of the supply chain are retailers, distributors, suppliers, vendors, and customers. Everything right from product idea development to manufacturing includes lots of data at each step. This data is collected from various sources from time to time. This data or big data needs to be used wisely to understand your process, analytics, and much more. This data needs to be used precisely to improve the supply chain; this data is nothing but a kind of internal data stored in ERP

The supply chain can be complicated many times. That is why Automated supply chain management systems are designed in such a way that they can improve the whole process. The main motive of automated supply chain management is to optimize the whole process along with business objectives that help to achieve goals with sustainability, cost efficiency, agility, and speed.

Enterprises with global work closely work with local distributors and suppliers. However, the complexity of the supply chain brings up multiple issues. Therefore bringing all the parties under one roof seems to be a road blocker and hence technology and automation with the help of a seamless process are required.

Two most Important Challenges in Supply chain Management and how Data can solve –

1. Dynamic market environment – In FMCG, retail, or CPG industries the market responds to changes instantly since markets are driven by customers. No matter how loyal the customer is to you but if they didn’t find your product in a nearby local store, they will most probably shift to another brand that a widely and easily available. All these issues are directly linked up to the supply chain. According to some surveys the procurement leaders have only visibility to their tier1 suppliers and nothing beyond that. But now imagine with the help of fuller utilization of data that is separated in various parts of ERP can be synced up and can be utilized to forecast the future orders and most appropriately market conditions also which are also dependent on culture, geography, climatic conditions, etc.

2. Ensuring cost optimization- As compared to an insufficient supply chain, an efficient supply chain saves you around 15% cost. The rising cost of the supply chain set an alarm for enterprises to work upon digitalization and automation of supply chain management. Since many times goods in the retail or FMCG sector are perishable and if proper inventory is not maintained it cause loss. Hence these industries have to choose a traceable supply chain. With the help of data analysis within the system without even contracting with the ultimate vendor, you can set up a system to ensure smooth delivery within the given time. The system is fully automated right from production to execution.

Challenges you are facing due to poor supply chain Management –

1. Lack of data sharing Companies who are working still on paperwork and the manual process often end up delaying the processes lastly blame data security issues but due to lack of technology and knowledge, the problem arises as the supply chain is one of them.

2. Lack of management at warehouses – Since there is less use of technology and no automation in the process so all the paperwork entries end up taking much time and the manager for say cannot get visibility of inventory hence there is no control and eventually enterprises on an average incur much a cost due to lack of warehouse management.

3. Cost of the supply chain is rising – The expenses to run a smoothen supply chain process is incontrollable since there are many factors involved like fuel, logistics, workforce, and technology.

If we start concluding things, then technology, automation, and Big data are linked up internally to set up a smooth process in the supply chain for any industry or enterprise. When all the three things come up together, they easily form a seamless process to work upon which can show you an analysis of the past, present, and future.

But after all of this understanding, the major question arises about which company or vendor to choose for these services since every organization’s process varies. Orane Consulting has almost a decade of knowledge working within SAP for some of the major players in the market. To transform the process, enable digitalization and create a seamless flow of work is something that we promise to do for every organization. Even we have our in-house solutions like dealerpro that are specifically designed to cater to the needs of the organization that is willing to automate their processes.

To know more visit: www.oraneconsulting.com