supply chain

Supply Chain

Today, we will be analysing the benefits of implementing a supply chain management system. The supply chain has always been a central to the efficient running of a business. Knowing who your supplies are coming from and if your getting a fair price for those goods. As the economy becomes more complex, with the introduction of technology, it becomes increasingly difficult to manage one’s supply chain. This is why many companies are purchasing specialist supply chain management software. In today’s blog post, I will summarise the benefits of installing supply chain management systems.

supply chain
Supply Chain

Increase Output

Installing specialised software to improve your supply chain will hopefully increase output. The software is designed to improve collaboration, communication and coordination. The installation of a supply chain management system will streamline your supply chain and centralise the strategy for your business.

Increases efficiency

Your business will be much more efficient when you install supply chain systems. It will boost cooperation levels as all companies in the supply chain will know where each thing is going. With this software they can share information and contact anyone along the supply chain. Furthermore, as the relationships between the companies will improve along the supply chain, members of the supply chain can lower time delays. They will be informed and are ready to take deliveries etc.

Reduce costs

By increasing efficiency and output, you will see a reduce in cost because of a variety of resons such as:

  • Inventory can be managed more easily
  • It allows for the successful implementation of inventory system
  • Damaged resources are reduced by adjusting the storage of finished goods.
  • Customer’s requirements are easily examined and implemented making a more responsive system.
  • Strengthened relationships with both vendors and distributors.

As you can see, you can install a management system to maximise efficiency, lower costs and increase output of your supply chain. Look into investing supply chain management systems today.

Shared Service Centres

Functions within a shared service centre

Companies use a Shared Services model to enable them to utilise their people, processes and technologies. Shared Service Centres (SSC) concentrate their administrative duties into a centralised function, to reduce costs, avoid multiple people doing the same thing and ultimately allow for greater focus on business strategy.

Main functions within Shared Service Centres

The main functions we see across Shared Service Centres, listed in order of popularity are:

 Finance

 Human resources

 Information technology

 Procurement

 Customer service/Contact Centres

 Estates/Facilities

 Sales and marketing

 Legal

shared service centre

The key objectives for most SSC’s are:

Reducing business costs, Improving business services and the efficiency of specific areas, gaining improved control over those areas and measuring performance. All these lead to the biggest objective – increasing customer satisfaction.

The 3 biggest areas frequently seen in SSC are finance and accounting, HR and IT.

Finance and accounting

Usually the most popular function in shared services. It’s estimated that more than 50% of global companies have consolidated their accounting and finance functions into a shared service centre or are planning to do so. Functions within a Finance SSC will include accounts payable, fixed assets and payroll.

Human Resources

Organisations use shared services as a way of streamlining their HR activities, typically concentrating transactional activities into a centralised and commonly shared function. The shared service model can help businesses reduce costs and increase the efficiency of processes and allow a greater focus on HR strategy.

Some of the typical functions within an HR SSC will include employee relations and comms, training and development and recruitment, benefits and pensions admin.

Information Technology

Due to SSC success, IT quickly took up shared services, with the same objective as the existing functions – centralising IT activity for the good of the business.

Some of the typical functions within an IT SSC will include infrastructure services, support services and application specialists.