The 4-Step Approach to Better Supply Chain Management

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Supply chain management is one of the core functions of a business. It begins with the sourcing of raw materials, manufacturing of finished products, and then delivering it to the right destination. It also includes building good relations with multiple vendors, creating automatic invoices, removing bottlenecks, and forecasting future trends to work at optimal speed. The following article discusses a 4-step approach to better supply chain management and how ERP software can help do that:

1. Managing good vendor relations

Consider a scenario when you come to know that your most trusted vendor has been charging you more for raw materials than other vendors in the market? Or they are unable to send you raw materials due to a natural calamity or other unavoidable causes? In both scenarios, you will bear a great loss. An ERP software, on the other hand, maintains a list of secondary vendors that you can depend upon in case your primary vendor is unreachable.

2. Automatic purchasing of raw materials 

Picture a scene where you are manually placing an order with your vendor after your raw materials have depleted. This means that you will have to wait for the materials to reach your factory, only after which you will continue with your manufacturing operations. This is a bad supply chain management practice. An ERP software will automatically place an order for essential raw materials once the level goes below a certain threshold. This will ensure that you receive the raw materials on time and your supply chain continues smoothly.

Also Read: How to Build a Resilient Supply Chain during COVID-19?

3. Creating automatic invoices

Creating invoices is a challenging process if done manually. It takes into consideration a lot of factors including but not limited to cash receivable, cash payable, applicable taxes, goods shipped, discounts, etc. ERP software provides the facility of generating automatic invoices in a fast and speedy manner and without human errors.

4. Removing bottlenecks

The best supply chain management practices include removing bottlenecks that harm industrial competitiveness. Bottlenecks can occur at any point in the supply chain due to overstocked inventory, increased customer demand, the introduction of a new product, etc. This leads to the slow down of manufacturing speed, delays delivery, and creates hurdles in the gathering of raw materials. ERP software can help eliminate bottlenecks by improving product flow through accurate demand and forecasting.

The above 4 points indicate how ERP software can help form a better supply chain management system and provide you a competitive edge in the industry. At Sage Software, we make this a reality. We provide world-class ERP software that will put down all your supply chain worries and help you build a company that will stand tall even in times of crisis. To know more about it, SMS SAGE to 56767. You can also write to us at

Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.

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