Is your small business struggling to choose between logistics software and supply chain software? Were you even aware that there is a difference between the two? Here’s an introduction to what you need to know about these two related yet surprisingly different types of very useful software.
Software is becoming increasingly important, and companies can remain competitive thanks to its ability to increase supply chain visibility and production. By the end of this year, it’s been estimated that 83 percent of businesses will automate their supply chains using software. Before you can decide on a specific software offering, you need to know whether supply chain software or logistics software is better suited for your particular needs.
Clearing up the Terminology
Supply chain management encompasses all of the activities that pertain to creating and moving goods. It’s a vast classification spanning from the raw material stage to the moment when the product makes its way to the end user. Demand planning, inventory management, procurement and logistics management are all parts of the supply chain.
Naturally, the processes involved in the supply chain are usually carried out across several different organizations, including suppliers, wholesalers, third-party logistics providers, companies and customers. That’s why you’ll see supply chain management software with features like supply chain planning, demand planning, procurement, transportation and warehouse management, and vendor managed inventory.
Logistics management, therefore, is just one part of the overall supply chain process, involving aspects such as fleet management, inventory control, and transportation management and warehousing. In other words, it’s mostly related to the storing and transportation of goods.
If this is your main area of concern, you can probably get by with a more focused logistics management software. Many options boast features such as inventory control, warehouse management, track and trace, transportation management, risk management, and import-export support.
Generally speaking, supply-chain management software is a good investment if you need help managing the processes and agencies that make up the supply chain and need help with demand planning. Logistics software, on the other hand, is the perfect solution for optimizing the transportation and storage of goods.
This blog post was off of an article by GetApp Lab. Read the full article here.