A SCM system is a software system that helps manage all aspects of the supply chain, from procurement to manufacturing to distribution. SCM systems can help improve efficiencies and optimize performance by reducing costs, improving asset utilization, and reducing transit times.
PROS:
- Improved coordination between different parties involved in the supply chain
- Reduced transportation costs through more efficient route planning
- Improved visibility of goods movement throughout the supply chain
- Better tracking and tracing of goods
CONS:
- Initial investment costs can be high
- Complexity of the system can lead to implementation issues
- Requires a high level of cooperation and communication between different parties
- May require changes to existing business processes
