Question 3: How Reliable is the Software Provider?

The final question to ask when choosing an SCM software solution is, “how reliable is the software provider?” By this, I mean that you need be sure that the company you choose is going to be around in a few years, and that they’ll give you the support you need if the software needs to be repaired or upgraded, or if you need additional software installed.

Because supply chain software is so crucial to the effective functioning of your business, it’s important that you research your software providers extensively. Find out what kind of financial shape your software provider is in. Is the company taking financial losses? Are they downsizing? How long have they been around? If possible, try to get reviews from reputable sources who have experience working with the provider.

As a general rule, the longer a software provider has been in existence, and the more established they are in terms of their clientele, the more stable they are. Some additional things to take into take into consideration are the company’s reach (whether they have a local, national, or global reach), and their experience at dealing with large and complex supply chains. A supply chain software provider with a global reach and has a history of dealing with complicated supply chains is probably going to be around for a while.

Also, remember that whichever provider you choose, you should always have a backup provider who serves as a “Plan B”, so that in the unfortunate event that your primary software vendor goes under, the impact on your supply chain won’t be as severe.

Question 4: Who can Help you Decide?

In some cases, due to the complexities involved, the wisest thing you can do when choosing supply chain management software is to hire an outside consultant to help you decide which approach is best for your business needs.

The reason for this, as stated earlier, is that different industries have different supply chain needs, and a consultant can help you determine yours, based on professional analysis.

An example would be the recent Menu Foods pet food scare, where contaminated pet food had to be recalled. In this situation, the ability to track and follow contaminated goods was absolutely essential. It was literally a matter of life and death. Because they were able to trace the path that the pet food took from the manufacturing source to the supermarket aisle, officials were able to determine more precisely where in the supply chain the contamination took place. A supply chain management consultant can perform analysis that lets you know whether or not this level of tracking products is as important in your industry.

So in conclusion, there are four questions that you should ask yourself when choosing a supply chain management software solution:

What will I be using the software for? This requires getting an accurate assessment of your current and expected business needs and your goals and objectives. Decide whether you need a software solution that focuses on planning, execution, or both. Also, map out any existing weak points, such as bottlenecks, in your supply chain process that would benefit most from supply chain management software.

How compatible is this software? This means finding out beforehand whether the software you choose will easily integrate with your existing SCM and related software, as well as the software of your vendors and providers. Also, you must be prepared to persuade your in-house staff to adopt the software by showing them how this change will benefit them. Lastly, you must be prepared to make compromises with your supply chain vendors and providers so that the decision proves to be mutually beneficial choice.

How reliable is the software provider? This requires doing some research on the background of your supply chain software provider. Find out about the provider’s size, reach and financial situation (losses, downsizing, etc.). Also, try to get reviews from other sources who’ve dealt with the provider in the past. Plus, don’t forget to establish a backup software provider to shield your business in the event that your primary provider goes out of business.

Who can help me decide? This means finding out whether or not an outside supply chain management consultant might be better suited to assess your business needs than your in-house staff. Remember that sometimes an outsider will have an awareness of needs that your in-house staff takes for granted, such as product tracking needs that may be specific to your company.

Choosing the supply chain management solution that’s right for your business can seem like a daunting task, but it doesn’t have to be. While no software can completely automate your supply chain management, and no integration will be completely seamless, answering the questions I’ve outlined above will get you started off on the right track, and help ensure that the transition will be as smooth as possible.

First Page: Which Supply Chain Management Software is Right for your Business?