Supply Chain & Logistics Industry

Supply Chain & Logistics is seeing the biggest ever challenges :

Supply Chain Management includes process of planning, procuring, production execution, controlling for the manufacture of a product or service flow. The talks to the network of business and people from acquiring raw material to production through distribution to end-users. Supply Chain Management is applicable to all kinds of production processes from smaller food production to larger machinery production. SAP makes these SCM processes easy to manage and implement in any type of industry.

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Any organization’s success relies on the information shared on SCM system. When its data is passed on to the suppliers, distributors from different locations with accuracy business can grow rapidly and exponentially with better customer focus. This is where the SAP plays an important role. Through SAP SCM Module you can provide Crystal Reports and dashboards, more intuitive reports across the business based on accurate and timely data. Warehousing & goods handling during inward & outward shipment becomes efficient.

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Advantages of Sap in supply chain management :

• Optimize the process to provide high quality service or product to end users with adequate information
• Automate the process like order processing, invoicing and shipment tracking, and make data handling easy
• Reduces the risk handled in managing the warehouse data. Provide access to real time information directly from distributors about stock on hand, incoming orders, and stock awaiting delivery
• Handles manufacturing and distribution process based on the stock available and market intent. Customer promise date is derived by SAP fairly accurate based on data provided in system
• Reduce time consumed to handle the data management and data transfer process from one process to another process
• Provide management Reporting and data analysis details at fingertip
• Access to real- time customer consumption data which helps to respond customer queries more quickly and effectively
• Increases collaboration and communication between partners, suppliers, distributors
• Payables and Invoice Management

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Logistic Industry :

SAP helps in determination of most efficient carrier with regards to delivery time & the cost. Also, as explained before SCM is a series of interconnected activities related to the transformation and movement from raw material to the finished goods till it reaches to the end user including logistic process.

Top 3 Differences between SCM and Logistics :

• Goal of SCM is to ensure that the company have achieved competitive and comparative benefit with efficiency. Goal of logistics is ensure the satisfaction of end users with quality and quantity of product or service delivered
• Process or departments involved in supply chain management is greater than logistics. Logistics management includes section like inventory, warehousing, and transportation. While SCM includes product development, testing, customer satisfaction, information sharing, finance, invoice management with logistics activities
• SCM will be having significant relationship with internal and other external departments. But logistics will be having minimum relationship with other departments