Supply Chain Execution:
The differentiating factor between organizations in today's competitive business environment is their level of efficiency, leading to cost-effective customer service. It is no longer sufficient for companies to handle inventory efficiently, they need to adopt a customer-centric strategy. Though planning is beneficial to companies in streamlining processes and reducing costs, it does not necessarily deliver benefits to customers if a customer-centric approach is not adopted. Execution in the supply chain needs to be based on all available information details at every stage. There should be no mismatch in this regard for a well-coordinated supply chain. Software applications for supply chain execution are commonly used by companies for managing outsourcing agreements.
These applications manage assets, inventory and orders. They are growing in popularity because:
- Businesses are trying to optimize coordination with external channel partners, after having maximized internal efficiencies
- Since there is a need for external focus, companies feel that enterprise applications will be able to cater to varying data requirements in the real world scenario.
While using enterprise applications, companies can either focus on warehousing and transportation, or integrate planning systems with other enterprise software. The components of supply chain execution are order planning, production, replenishment, distribution management, reverse distribution and logistics.
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