The Challenges with the Leading SCM Systems and how to Solve Them

Supply chains across industries are complex and beset with challenges. Few systems in the landscape of supply chain software solve effectively for challenges faced by fast-growth businesses. This blog will cover some of the problems with the choice set of available supply chain systems.

The Challenges

Below are the top five challenges businesses face when implementing or using the leading SCM systems on the market:

1. Software Shock

Companies invest in PLMs, ERPs, WMSs, and PO systems to manage supply chain complexity. These systems are vertically deep and operate in siloes resulting in software shock, dissonance, and high costs.

2. Complex Systems

The choice set is a narrow pool of established players that are complex to use and saddled with technical, functional, and UI debt.

3. Brands’ Changing Needs

The new generation of DTC brands needs one lightweight business management system (not five systems) to scale as their businesses grow.

4. No Horizontal Platform

No player in the market has established a dominant position as the horizontal platform providing a lightweight, single source of truth across the value chain.

5. Flawed Pricing

Most systems apply user-based pricing, which works against democratizing access and adoption.

The Solution

Technology investments in supply chains as we think to the future, I believe, will be focused on horizontal platforms. A horizontal platform provides light but comprehensive functionality across the length of the value chain. They offer a single, reliable, intuitive source of truth, connecting previously siloed teams and democratize access for all participants improving communication, collaboration, and data integrity.

Horizontal platforms have connected product suites and thrive on integrations with other software programs or can also be a standalone solution. The platform merges all previously disconnected data sets, allowing the system to provide an unmatched analytics and reporting layer. 

Conclusion

The successful future supply chains will have all internal team members, factories, and partners with a seat at the digital table. That future begins with existing systems’ rationalization while investing in the right horizontal platform.

For more posts at the intersection of supply chain and technology, visit www.suuchi.com and www.supplychainsunday.com.