Supply Chain Management (SCM) Software Combines with Wireless

SCM software is having a profound impact on the way that manufacturers, retailers and all the transportation companies in between do business. Today’s software has become a powerful tool that automates tasks; analyzes sales, inventory and shipping data; and integrates information throughout the supply chain into a cohesive view. Coupled with technology such as wireless bar code readers, radio frequency identification (RFID) tags and wireless laptops or tablets, these data systems can monitor every step that packages and cargo take from point A to point B.

The global market for SCM software has grown along with its capabilities. For example, Amazon.com, noted for warehouse efficiency, has made leaps and bounds in this field. Using internally developed software, it built a platform to completely automate merchandise buying, eliminate costly paperwork and analyze customer purchases in order to project future demand. The results of Amazon’s innovations are impressive. Its highly automated distribution centers tripled their ability to process orders, turning over inventory 19 times every year. The cost of operating these facilities has gone down as well, standing at a mere 7% or less of sales. On the customer satisfaction side, reduction of shipping mistakes has dramatically reduced the amount of customer complaints Amazon receives. Amazon made this software not only for its own use, but also for the thousands of merchants and suppliers that do business through Amazon.

Although more advanced options exist, many companies are still buying simple electronic purchase order software such as EDI (electronic data interchange) systems. EDI has been around for decades and has become the industry standard and an indispensable tool for business interaction. Recent innovations such as Internet-compatibility have negated the need for setting up costly private networks, dropping the cost of EDI implementation considerably. In the past several years, other data interchange software has become available, such as systems based on extensible markup language (XML), but EDI has held onto a significant chunk of market share. XML is also a powerful tool for use in wirelessly receiving or transferring data from the field to corporate databases.

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