Who Needs Supply Chain Management?
Shippers & Manufacturers
Production & distribution
What is Supply Chain Management Software?
Supply Chain Management (SCM) software encompasses a broad category of systems that plan, execute, and optimize the flow of goods, information, and money across the supply chain. Modern SCM platforms integrate demand planning, inventory optimization, procurement, manufacturing, logistics, and fulfillment into cohesive systems that enable end-to-end visibility and decision-making.
SCM systems range from specialized point solutions addressing specific functions to comprehensive suites that orchestrate the entire supply chain. The trend toward digital supply chain networks connects trading partners, carriers, and service providers on unified platforms.
Types of Supply Chain Management
Supply chain management systems are organized into three major functional categories:
Supply Chain Planning Systems
Strategic planning platforms that optimize supply chain decisions before execution begins. Key capabilities include demand planning using statistical models and AI to forecast future demand, supply planning to determine optimal sourcing and production plans, inventory optimization balancing service levels against inventory costs, S&OP (Sales and Operations Planning) for cross-functional alignment, and network design optimizing facility locations and distribution strategies. Best for manufacturers, retailers, and distributors seeking to improve forecast accuracy, reduce inventory costs, and align operations with demand signals.
Supply Chain Execution Systems
Operational platforms that manage the physical movement and storage of goods. Key capabilities include order management capturing, orchestrating, and fulfilling orders across channels, warehouse management optimizing warehouse operations and labor, transportation management planning, executing, and settling freight movements, manufacturing execution managing production operations and quality, and global trade management for customs and import/export compliance. Best for companies with complex distribution networks needing to coordinate orders, inventory, transportation, and warehouse operations in real-time.
Supply Chain Visibility / Control Tower
Monitoring platforms providing end-to-end visibility and exception management across the supply chain. Key capabilities include real-time tracking monitoring shipments and inventory across the network, exception management detecting and resolving supply chain disruptions, analytics and reporting with performance dashboards and KPI monitoring, collaboration connecting internal teams and external partners, and AI-powered insights predicting issues and recommending actions. Best for enterprises seeking unified visibility across complex, multi-tier supply chains with proactive disruption management and data-driven decision support.
Key SCM Capabilities
1. Demand Sensing & Shaping
Advanced demand planning goes beyond statistical forecasting to incorporate demand sensing (real-time signal processing) and demand shaping (influencing demand through pricing and promotions).
2. Multi-Echelon Inventory Optimization
MEIO considers inventory positions across all network locations simultaneously rather than optimizing each location independently. This reduces total inventory while maintaining service levels.
3. Concurrent Planning
Modern planning systems move beyond sequential S&OP to concurrent planning that simultaneously optimizes demand, supply, inventory, and financial plans with real-time updates.
4. Digital Supply Chain Networks
Cloud-based networks connect trading partners on shared platforms, enabling real-time visibility and collaboration across organizational boundaries.
SCM Platform Categories
Best-of-Breed Solutions
Specialized vendors focusing on specific SCM functions like demand planning, TMS, or WMS. Often provide deeper functionality in their area of focus.
Integrated Suites
Comprehensive platforms from vendors like Blue Yonder, SAP, Oracle, and Kinaxis that provide planning and execution capabilities on unified architectures.
ERP Extensions
SCM modules that extend ERP platforms. Benefit from data integration but may lack specialized depth.
Network Platforms
Multi-enterprise platforms like E2open and Coupa that connect supply chain partners on shared networks.
Selection Criteria
1. Functional Fit
Evaluate which SCM capabilities are most critical for your business. Do not pay for unused functionality.
2. Integration Architecture
Consider how SCM systems will integrate with ERP, WMS, TMS, and trading partners. API capabilities and pre-built connectors matter.
3. Scalability
Plan for growth in transaction volumes, users, and network complexity. Cloud-native architectures offer better scalability.
4. Industry Fit
Some platforms specialize in specific industries (retail, CPG, manufacturing, healthcare). Industry-specific features can accelerate deployment.
SCM Implementation Considerations
- Data Quality: SCM systems require clean master data—SKUs, locations, lead times, capacities
- Change Management: SCM implementations often require process changes across functions
- Phased Approach: Large SCM deployments benefit from phased rollouts by function or region
- Center of Excellence: Establish ongoing governance for planning processes and system optimization
Getting Started
Explore supply chain management solutions in our Supply Chain Management comparison tool to find platforms that match your planning and execution requirements.