Supply-chain-management software (SCMS) is the software tools or modules used in executing supply chain transactions, managing supplier relationships and controlling associated business processes. Supply chain management maximizes the efficiency of business activities that include planning and management of the entire supply chain. It helps businesses in product development, sourcing, production, and logistics by automating operations. In this way, it increases the physical flow of business as well as informative flow. The entire business benefits with higher performance, greater cost-efficiency, and thus increased supply chain efficiency.
While functionality in such systems is broad, it commonly includes:
A requirement of many SCMS often includes forecasting. Such tools often attempt to balance the disparity between supply and demand by improving business processes and using algorithms and consumption analysis to better plan future needs.[1] SCMS also often includes integration technology that allows organizations to trade electronically with supply chain partners.[2]