What does supply chain management software do?

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Supply chain management software plays a crucial role in optimizing and streamlining the complex processes involved in managing the flow of goods and services from the point of origin to the point of consumption. This article will delve into the various functions and benefits of supply chain management software, shedding light on its importance in today’s business landscape.

Inventory Management

Inventory tracking: Supply chain management software enables businesses to track and manage their inventory in real-time. It provides visibility into stock levels, locations, and movements, allowing companies to optimize their inventory levels, reduce stockouts, and avoid overstocking.

Order fulfillment: By integrating with order management systems, supply chain management software facilitates efficient order fulfillment processes. It helps businesses prioritize and manage orders, allocate inventory, and track shipments, ensuring timely and accurate deliveries to customers.

Supplier Relationship Management

Supplier selection and evaluation: Supply chain management software assists in the process of selecting and evaluating suppliers. It enables businesses to assess supplier performance based on various criteria such as quality, delivery times, and pricing, helping them make informed decisions and build strong supplier relationships.

Supplier collaboration: Effective collaboration with suppliers is crucial for a smooth supply chain. Supply chain management software provides a platform for seamless communication and collaboration between businesses and their suppliers. It allows for sharing of information, forecasts, and production plans, enabling suppliers to align their operations with customer demand.

Logistics and Transportation

Route optimization: Supply chain management software helps optimize transportation routes to minimize costs and improve efficiency. By considering factors such as distance, traffic, and delivery time windows, the software can suggest the most optimal routes for transporting goods, reducing fuel consumption and improving customer satisfaction.

Freight management: The software also aids in managing freight and transportation activities. It enables businesses to track shipments, manage carriers, and handle documentation such as bills of lading and customs forms. This streamlines the logistics process and ensures compliance with regulations.

Forecasting and Demand Planning

Demand forecasting: Supply chain management software leverages historical data, market trends, and predictive analytics to forecast future demand accurately. This helps businesses optimize their production schedules, inventory levels, and procurement activities, minimizing the risk of stockouts or excess inventory.

Supply chain analytics: The software provides businesses with valuable insights through data analytics. It allows for analyzing key performance indicators (KPIs) such as inventory turnover, order cycle time, and on-time delivery, enabling businesses to identify areas for improvement and make data-driven decisions.


Supply chain management software plays a vital role in optimizing supply chain operations. From inventory management and supplier relationship management to logistics and demand planning, it offers a range of functionalities that streamline processes, reduce costs, and enhance customer satisfaction. By leveraging supply chain management software, businesses can gain a competitive edge in today’s dynamic business environment.


– Gartner: gartner.com
– Supply Chain Digital: supplychaindigital.com
– Forbes: forbes.com
– Capterra: capterra.com