SCM is the term used for web-based systems that consolidate the demands across multiple customer purchases and the aggregation of their respective line item purchases, sent to the various suppliers who then receive a single “aggregated” purchase order.
Another application for this type of system is the implementation of a “staged process” of activity, where the activity of one supplier is necessarily dependant on the activity of the previous supplier. An example of this would be where a building contractor SCM system needs to send an activation message and instruction to a Quantity Surveyor to provide details of the materials needed for a project. Only once the Quantity Surveyor has performed his task and submitted his report into the system, would the system acknowledge and record that this stage of the project is completed and would then send an automated instruction to the next supplier component of the project.
The system would allow for a dispute resolution mechanism and can then automate payment, both from the customers and to the suppliers, taking into account the different payment periods applicable to each party.
This kind of infrastructure is incredibly useful to companies in managing their sales and production channels, as they are able to track the levels of performance and response of each of their suppliers and they can then easily determine where bottlenecks occur.
The system is also automated to the point that entire projects and orders may be activated, expedited, balanced and payments processed, with little or no involvement from the system owner.
For further information on managing your supply-chain, please contact one of our salespeople, who will be more than happy to give you further information. (firstname.lastname@example.org)
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