How CMMS Software Can Improve Your Supply Chain Management
Supply chain management (SCM) is a critical area in any industry, as the recent pandemic has shown us. Any disruption in the supply chain produces major issues in company operations. And each issue snowballs from one chain link to the next and from one industry to another.
As we try to recover and resume normal operations in a post-pandemic era, we focus on improving and making SCM more resilient against future disruptions and challenges. In this post, we investigate the current challenges of SCM and the supportive role of a computerized maintenance management system or CMMS software in overcoming these challenges.
Supply Chain Management Explained
The supply chain is a network of companies or individuals working together to make a product or deliver a service. A product or service requires several supplies, including but not limited to:
- Material supplies or the materials used to make a product, such as the ingredients, packaging materials, and indirect materials used in making products like water, oil, etc.
- Production supplies or the machines, equipment, tools, and other assets used to make a product or deliver a service.
- Accessory supplies include the materials used to build and maintain the facilities where products or services are created, stored, or delivered.
- Operating supplies or the materials that are needed in the process of making products or services, including office supplies, computers, delivery vehicles, etc.
- Labor supplies or the workforce that creates the products or delivers services, including all the employees involved in the procurement of supplies up to the delivery of the product or service to the end-user.
Supply chain management involves all the necessary tasks that ensure that the supplies above are available whenever needed. SCM aims to optimize the flow of supplies along the chain such that products or services are created at the lowest cost, highest quality, and maximum productivity possible.
Supply Chain Management Challenges
The challenges experienced in supply chain management can come from external or internal sources. External sources include natural disasters, pandemics, economic instability, and other events that can disrupt the flow of supplies across the chain. SCM challenges can also come from internal sources like limited company resources, ineffective maintenance, organizational issues, lack of management support, etc. To learn more, join our webinar about Hacks to Overcome Supply Chain Disruptions in 2023.
Failure to overcome the challenges of SCM leads to supply chain disruptions. Disruptions prevent SCM from reaching its goals. Thus, it is essential to prepare against these disruptions by understanding the following SCM challenges:
Managing Supplies and Inventory
The majority of SCM tasks are focused on managing inventory-based challenges like supply or supplier shortages, unreliable supply schedules, defective supplies, and storage or delivery issues. If not managed, these issues result in high operating costs, low productivity, and poor product or service quality, ultimately resulting in customer dissatisfaction.
Achieving and Maintaining Asset Reliability
The process flow of a supply chain depends a lot on machines, equipment, tools, and vehicles. Thus, SCM must achieve the optimum reliability of these assets by implementing maintenance strategies. These strategies should prevent major or extended breakdowns and reduce the downtime caused by repairs or maintenance. Otherwise, the company incurs losses due to low productivity, high overtime wages, and increased overhead expenses.
Maintaining Information Accuracy and Communication
Another major challenge in SCM is maintaining accurate information and communicating it to pertinent individuals. Disruptions in the supply chains mostly happen when there is misinformation or lack of clear communication on inventory levels, supply schedules, and operating details.
CMMS Software Helps SCM Overcome Challenges
CMMS software digitizes and organizes supply chain information. It replaces physical forms, Excel spreadsheets, and similar manual methods that are time-consuming and prone to errors. A CMMS like Redlist provides valuable support in overcoming current supply chain challenges and helps achieve SCM that is reliable, flexible, and resilient against disruptions. Here’s how:
CMMS Software as an Information Database
CMMS lets you store and access any supply-related information such as:
- Supply inventory or delivery status
- Asset availability and maintenance
- Suppliers, vendors, and service providers
- Personnel assignments & schedules
CMMS digitizes the above information for all users, providing real-time information for faster and more accurate decision-making or planning.
CMMS Software as a Communication Platform
CMMS software can be downloaded on most work computers and mobile devices. Thus, it makes it possible for users to communicate information from any location. CMMS makes it easy to share information with anyone who can access the platform, improving reaction time and increasing productivity. CMMS allows a maintenance manager to issue work orders for technicians in the field, an inventory clerk to update stock levels to prompt reorders, or technicians to tag unavailable assets for operations.
CMMS Software as a Recordkeeping Tool
CMMS replaces paper-based forms that are prone to error and information loss. Digital records of information are easier to organize, store, and share. Digitizing recordkeeping also frees up a good portion of employees’ time and improves overall productivity. Digital devices are also easier to use and understand than complex paper-based forms or checklists.
CMMS Software as an Analytical Device
Powered by a computer, CMMS software allows ease in processing and analyzing data. By analyzing supply-related information, managers and decision-makers can identify bottlenecks and areas of improvement. From there, they can devise the necessary steps to address these bottlenecks and achieve the goal of optimized and resilient supply chain management.
Get Redlist’s CMMS and experience major improvements in your supply chain management. Book your free demo today!
