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Supply Chain Management (SCM) takes the supply chain a step further and looks at the process of optimization. SCM optimizes all four areas of the supply chain by minimizing inventory, reducing costs, increasing production and rapid order fulfillment. These areas can be measured and compared to self‐ assessments made by others in the field.
Planning & Forecasting lays the groundwork for SC Planning and requires all departments to come to a clearly defined goal, based upon historical data as well as current rates of sales, supply and demand, etc. And as with all data measurements, accuracy is key.
Measuring with Metrics, or the use of Key Performance Indicators (KPI) tells you how you are performing, and can be very useful, but very confusing at the same time. Many of these metrics, including inventory carrying costs, cash‐to‐cash cycle time, fill rates, etc.; can provide companies with valuable details into their efficiency.
Technology is important to automate warehouse activities and ultimately fulfill today’s consumer needs. For example, one of the main technologies used in warehouses today is a Warehouse Management System (WMS). A WMS provides many benefits beyond automation. Speeding up processes and making a warehouse less prone to errors does save time and money. Savings are initially realized, of course, in minimized touch labor and inventory reduction. However, premium freight expenses, reverse logistics costs, and restocking time are less recognizable savings but just as important. WMS technology also offers greater visibility into Facility Management
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