Supply chain execution systems address the complex requirements of order fulfillment execution by automating the processes and associated transactions within the order fulfillment cycle. These processes include:
- order/distribution management (OM/DM)
- warehouse management (WM)
- production execution (PE)
- transportation management (TM)
SCE System Benefits by
General Distribution Industry Benefits:
Each SCE component is considered a SCE system even as a standalone application. Most businesses do not require all SCE components and can benefit from taking a best-of-breed approach to selecting the software they need. For those businesses requiring two or more SCE components, selecting a SCE vendor offering those components as integrated applications can provide enormous benefit by eliminating the need to integrate the systems. This, of course, assumes that each application meets the specified requirements as a standalone application. Click here for more information on SCE system industry.
Distribution companies engaged in e-business and e-commerce have massive order fulfillment requirements. The benefits of an integrated OMS and WMS can be very appealing. Especially when both applications are up to best-of-breed standards. Some leading SCE vendors have integrated best-of-breed OMS and WMS applications. This eliminates integration concerns as well as the compromise associated with purchasing a strong WMS that is supported by a weak OMS or vise versa.
Third Party Logistics:
Fueled by e-commerce and outsourcing, there is a trend towards third party logistics (3PL). The 3PL providers can benefit from new industry-specific functionality added by many of the best-of-breed WMS vendors. Additionally, many of these vendors offer web-based tools that allow inventory Owner's and their Customers customized visibility to inventory and order status.
Manufacturing companies that handle raw material, WIP, and finished goods, can benefit from the PE, WM, and TM applications. In particular, PE integrated with WM can automate most manufacturing transactions as well as automate the distribution/shipping transactions. The addition of PE to a WMS installation can multiply system benefits with little additional cost. (see article for more information on integrated PE and WM). Click here for more information on PE and WM.