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Beyond Benefit into Value

Sharp managers apply the benefit of supply-chain visibility as leverage in continually fine-tuning processes and planning. This translates unplanned events and exceptions into opportunities to accelerate production schedules, prevent missed shipments and contain costs. In the long run, SCEM software not only improves efficiency, but increases customer satisfaction.

The key is the human element. As mentioned earlier, SCEM software can automatically respond to events; e.g., trigger electronic purchase orders in response to low-stock alerts. This is done by integrating SCEM software with other business systems, such as purchasing applications. But without managers monitoring exceptions, analyzing impact and developing solutions to problems, SCEM software offers little benefit beyond convenience.

Furthermore, SCEM is more powerful when its underlying system collects business intelligence from multiple sources across the supply chain, inside as well as outside the organization. As noted before, visibility is SCEM's greatest benefit. Adding data sources and including supply chain partners broadens visibility and therefore multiplies the benefit. Today's best business intelligence software uses the Internet to gather information and share it along the supply chain.

The most effective SCEM occurs when exception alerts quickly reach the managers most capable of resolving issues, regardless of their position in the supply chain or their location inside or outside company. What makes SCEM even more powerful is combining it with resolution capabilities that would suggest a solution to the person (or people) who have been alerted to issues. A very simple example would be the ability to automatically create a purchase order or requisition request when inventory falls short of a certain threshold. This would be done from the SCEM system and integrated back to the business system so the user can resolve the issue quickly and effectively in a single process.

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