In this era, the day of the Excel spreadsheet is over for startups and changed to the era of digitalization supply chain management. Most of supply and manufacturing industry leaders believe that supply chain digitalization will be the norm in five years; 16 percent think that day is already here.
This is not a new trend for many industries, especially startups. Most startups are already using some form of software to monitor stock.
However, to remain competitive, startups will need more; the future of distribution requires software that is able to provide real-time visibility over the entire supply chain as part of a more comprehensive network.
While digitalization is the new watchword, it is a broad term. Robotics, Cloud computing, and vehicles are all subject to the move toward digital technology. Distributors need to know the difference between digitization and digitalization to remain competitive.
Digitization refers to a process of moving physical documents, such as purchase orders and records, onto computer files, and digitalization means integrating physical processes with digital data to create a fully optimized result.
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Table of Content
Potential Problem when Startups Don’t Digitalize Supply Chain Management?
Digital Transformation in supply chain management planning usually involves the development of new tools, skills, and processes that aim to improve the speed and agility of SCM itself.
Over the last few years, the focus of the supply chain management function has shifted to advanced planning processes and independent SCM functions such as analytical demand planning and integrated sales and operations planning (SOP).
That being said, the main purpose of digitalization in SCM is to integrate physical processes with digital data to create a fully optimized supply chain. So, several potential problems may occur when a startup doesn’t digitalize SCM.
Less flexibility and responsiveness to change
By embracing technologies such as predictive analytics or automating stock management processes, businesses are more likely to identify upcoming challenges earlier and have the capability to react dynamically to them.
When a startup doesn’t embrace the technology they use and works manually, it will cause bad flexibility and responsiveness to charge at work. Consequently, startups can not be positioned to deal with the rapid change that comes with supply and demand fluctuations.
Bad ability to handle big data at a granular level
Technology provides the data insights that businesses need to make informed decisions and identify areas of improvement and opportunity. It also allows teams to dig into data at a granular level – whether this is tracking individuals along a supply chain or forecasting stock levels item by item.
When a startup doesn’t digitalize its SCM and inventory management for startups, it won’t be able to handle big data properly under a manual or old system.
Bad accuracy
Moving from human-led to software-led processes can remove the element of human error. Advances such as real-time tracking bring the benefit of total transparency of business operations in the supply chain. That is the important reason why startups have to digitalize SCM.
Less efficiency
If businesses can integrate and speed up processes, this leads to greater operational productivity. The potential problem when a startup doesn’t digitalize SCM is that it won’t be able to make warehouse processes more efficient.
It will be a waste of time, energy, and cost. You can optimize operational productivity by digitalizing your SCM with the best SCM software in South Asia.
The Benefit of Using SCM Software to Manage Startups Supply Chain Management
The over-reliance on Excel spreadsheets is a continuing issue for startup companies. There are three major benefits of using SCM software to manage supply chain management for startups:
Improved product and material flow
Time-to-consumer is a crucial indicator of product flow efficiency. The less time it takes for goods to reach the end customer, the more efficient the product flow. Effective supply chain management enables startups to improve product flow through accurate demand and sales forecasting.
Not only that, it also improves inventory management to avoid underproduction. SCM also minimizes delays and allows full traceability into the movements of goods from the supplier to the customer.
SCM enables working strategies that can accelerate time-to-market and optimize business speed while ensuring a high level of product quality.
Seamless information flow
Startups with effective supply chain management can remove bottlenecks to supply chain information flow. It can help them evaluate the quality of information sharing and then implement solutions to best fill the gaps.
SCM helps design effective best practices to facilitate different types of supply chain information, which usually come in different formats and structures. SCM also enables accurate, timely, complete, and relevant information flow to avoid missed opportunities and possible risks.
Enhanced financial flow
Implementing supply chain management can help companies address all these cash flow challenges. Not only that, it also allows them to carefully evaluate their current processes, identify the weakest links that slow down and hamper financial flow, and determine the right solutions to address the problems.
The Features of Digitalized Supply Chain Management Software
With the right SCM software, startups can proactively create and seize new market opportunities and mitigate risks that can negatively impact their entire business. With a digitalization supply chain management system in place, the startup can comprehensively and continually assess their processes, identify and fill all the gaps, lower costs, competently evolve with ever-evolving supply chains, and enable quicker decision-making. There are several features of digitalized supply chain management software by HashMicro:
Inventory management
HashMicro’s SCM software has the most complete features, one of which is inventory management. This feature helps you track your goods’ availability and adjust inventory to avoid risks and errors.
Shipment tracking
One of the most important processes of SCM is shipping management. HashMicro’s supply chain software has a shipment tracking system that helps you locate your courier’s whereabouts. This will ensure that all customers’ orders are delivered well and on time.
Procurement management
With SCM software from HashMicro, you will be notified when stocks reach the minimum level and purchase orders will be sent automatically. It will be very helpful to grow your sales.
Order management
The order management feature in HashMicro’s digitalized SCM software helps you track order status and receive order updates. It also fulfils orders more effectively.
Return management
HashMicro’s supply chain management software is equipped with return management features. These features simplify the return process and establish solid return solutions to improve customer satisfaction.
Planning and forecasting
Advanced analytics from digitalization supply chain management help a startup forecast future demand, which will help the production team produce the right amount of goods the market needs.
HashMicro serves you with planning and forecasting features to forecast future demand and inventory needs and also ensures the right amount of stock on hand with the most advanced analytics.
Conclusion
Nowadays, technologies such as Radio-frequency identification, sensors, and mobile connectivity have enabled organizations to transform their existing supply chain execution. These help make capabilities more flexible, open, agile, and fully integrated.
Subsequently, digitalization supply chain management can take advantage of emerging areas. Those areas include big data, advanced analytics, and cloud computing, which are essential for competing in the evolving market. Using supply chain management software is no longer a trend for startups, but it is already a main basic need.
Let’s move to the best supply chain management software from HashMicro to automate your supply chain processes. Most importantly, you will be able to increase the productivity and profitability of your startup with the most comprehensive and digitalized SCM in East Asia.
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