To be successful in a constantly-evolving global marketplace, manufacturers need to keep their supply chains running at top form. Being able to identify -- and swiftly respond to -- supply chain risk is critical. By implementing supply chain risk management (SCRM) software, manufacturers can stay ahead of changes and problems in their supply chains. In this supply chain risk management software guide, you'll find introduction to SCRM software, read some SCRM software FAQs, learn SCRM management best practices and discover how spend management software works in manufacturing.
Browse all of the sections of this supply chain risk management software guide, or jump directly to the section that interests you most:
- Introduction to supply chain risk management (SCRM) software
- Supply chain risk management FAQ: The role of the IT manager
- Best practices for managing supply chain risk management technology
- Introduction to spend management software
Getting started with supply chain risk management software -- which involves a systemic process to identify, evaluate, monitor and respond to risk conditions that will significantly harm an individual business or product -- means identifying the different types of risk involved in your supply chain. SCRM software can help you evaluate supply chain risk and successfully respond to it. One of the biggest challenges in implementing SCRM strategy lies in determining where the responsibility for supply chain risk rests within a company and within the overall value-chain network.
To maintain the integrity of their supply chains, manufacturers need to know how to plan for and respond to risk. Companies that are proactive in mitigating and managing supply chain risk will avert supply chain failures that become front-page news or adversely impact the bottom line. To begin, manufacturers need to identify who will be in charge of managing new SCRM technology projects and define IT's role in the management process.
SCRM technology helps manufacturers plan for and handle disruptions in the supply chain. Companies that invest in the emerging field of supply chain risk management technology are less likely to sustain costly supply disruptions or negative press as a result of the actions of their suppliers. Familiarizing yourself with some SCRM IT management best practices will keep the technology -- and your supply chain -- running smoothly.
Manufacturers can use spend management software to reduce expenditures, make cost-effective decisions and gain a better understanding of their suppliers and purchases. Effective spend management technology should provide a better understanding of what manufacturers are buying and the suppliers with whom they are doing business. It should also put in place a mission control system to reduce overall expenditures, spend more effectively and drive internal users to make better business decisions.
This was first published in April 2010