When should you upgrade your SCM system?
The success of any newspaper business is determined by an essential element: the supply chain. The supply chain industry affects everything from the prices you see on the newsstands to transportation costs, but not only. This specific area of business is responsible for customer satisfaction and delivery times, in other words for maintaining a solid collaboration. Business managers have realized that simple services, such as newspaper distribution, require better supervision in order to reduce overhead expenses and to create a competitive infrastructure. Thus, they have resorted to using supply chain management software, an application that has valuable potential. While the financial benefits of purchasing a supply chain management system are obvious, less blatant is the need to upgrade the system. Before making a capital expense, it is advisable to consider the following arguments in favor of improving the SCM application.
To begin with, the benefits are visible firstly in the profits that the newspaper registers. Complying with the demands of the customer is a mandatory practice in any business, regardless of its size. Ideally, the manager should be able to divide readers according to their values, which is necessary for developing and implementing a SCM policy that will increase customer retention. The task is difficult to achieve in the absence of planning and analytical tools, such as the SCM software. Nevertheless, newspapers end up spending important resources with the purpose of retaining market share. What you should be doing instead of wasting valuable resources is to use these resources to go up against new businesses. Since the customer value segments change in time supporting and keeping up with these values is not an easy job, unless the software architect has the system up-to-date. Regarding the values of the business, the SCM application should comply with the specific goals. A business is most typically interested in being more efficient, which means that it should be able to provide goods and services to its customers without losing any money. If the production expenses are high, then the newspaper is not able to bring its readers affordable products. The supply chain should not be making efforts to follow the sales movement because it risks consuming human capital. Owing to the lack of visibility, business managers are prevented from making sound decisions and finding cost-effective solutions. Fortunately, an upgraded SC application from Distribution Deputy bridges the gap between the business and the supply chain partners, meaning that everyone has access to the information. This is turn promotes collaboration and business values.
The volume of deliveries actually determines whether the results of the software are remarkable or not. The financial performance of the company is measured in Key Performance Indicators. Examples of indicators include inventory turns, service and stock levels, etc. By improving sales forecasts and inventory positioning, productivity of the rises and the business thus develops a competitive infrastructure. The final issue to consider when thinking about replacing the system is related to logistics and supply chain management. The SCM software is a combination of all the business applications that are used to track the flow of products and services until the point of consumption and this is why it is important to keep it permanently updated.