How integrating a POS with SCM can give you a panoramic view of your business

Globalization means that many products are manufactured far away from where they are eventually sold. This geographic disparity results in the need for a global network responsible for manufacturing and efficiently distributing these goods throughout the world. 

Regardless of your business’s size or type, the importance of global supply chains and the software that manages them cannot be overstated.

Supply chain management defined.

Supply chain management (SCM) is a field that is made up of every process, system, and strategy that goes into the making and distribution of products. Elements include demand planning, inventory management, logistics, procurement, and supplier management.

A century ago, all of the steps involved in creating a piece of merchandise and getting it into the hands of the seller, and ultimately the customer, were conducted with hard-copy paper processes. Today, sophisticated software packages facilitate each of the many steps of what has come to be known as supply chain management.

The first priority is to determine what customers want. Systems use historical data about prior buying behaviors and apply analytics and statistical models to come up with a forecast or demand plan. This helps to determine the types and quantities of products to be manufactured.

Next comes the challenge of refining the specific details about how the products identified in the demand plan will be manufactured. Specialized software can even predict the best use and optimization of resources to increase efficiency.

Once this is accomplished, it’s time to conduct material requirements planning. In this process, manufacturers take steps to ensure that they will have everything they need to create the product. 

This occurs by assessing available supplies using an inventory management system and obtaining anything that is lacking. A document known as a bill of materials (BOM) comprehensively lists everything that is needed and reports the source from which it is eventually derived. The BOM is at the foundation of inventory management, a set of processes that help to ensure that there are always adequate supplies of vital materials that go into the creation of products.

Procurement, often called sourcing, then takes place to find suppliers for the necessary goods that have been identified. Procurement also involves managing ongoing relationships with those suppliers and communicating with all players in the supply chain.

Once goods have been planned for and made, they must be transported and stored. This involves numerous elements: delivering raw materials and components, getting products to sellers and consumers, and product servicing and recycling.

The importance of supply chain management for your business.

Effective SCM has many advantages. It enhances customer services, improves the buyer experience, lowers companies’ operating costs, and reduces the use of fixed assets.

The great news is that SCM strategies do not need to be conducted on paper anymore. The same point of sale system that you use to accept payments can also be integrated with SCM software to streamline your communications, manufacturing, and product delivery. In short, it can expand the reach and capabilities of your entire operation.

When the components and merchandise that people demand are where they should be and arrive at the appointed time, client satisfaction rates rise. Concurrently, brand loyalty and retention increase once trust levels are magnified.

From the business’s perspective, quality SCM helps to ensure that purchasing and production expenses remain as low as possible. This savings leads to an increase in profits and cashflow that can provide your business with a boost in your resources.

When you follow SCM best practices, you can also minimize your reliance on vehicles, warehouses, and other fixed assets. As a result, you will be better able to efficiently employ assets to their best effect when you incorporate SCM software into your all in one POS system.

Effective SCM should be the backbone of your successful business. Employing it will provide cost savings, enhanced efficiency, added revenue, enhanced customer experience, better products, augmented business stability, and a more environmentally sustainable footprint. 

If you have not integrated SCM into your POS solution, talk to your payment service provider today to initiate the process. It should be the next step you take in forging an efficient, customer-focused future for your company.