How to Develop a Supply Chain Management Software : Aalpha

How to Develop a Supply Chain Management Software

Digital solutions have made it easy for businesses to operate, manage, and control all activities successfully. With sophisticated tech tools, it is now easy to automate some tasks, monitor progress, and devise strategies to improve business performance as a way of growing and scaling the business higher.

In this guide, we describe what supply chain management software is, the advantages it offers to the business, and how to implement such a subsystem into your business for effectiveness and reliability.

What is supply chain management software?

Supply chain management software is a system with the integration of tech tools and technologies to create a transparent & efficient supply chain management ecosystem.

Therefore, with SCM software in place, it is easy to run data, products, and finances of specific goods and services right from when receiving raw materials to the product/service delivery phase. This ensures customers get timely products and services in the most effective way.

In a nutshell, supply chain management software simplifies the following business processes:

  • Planning — Once the chain is formed, the logistics experts think of a reliable and effective supply chain system. This also includes the materials required to execute all the processes successfully.
  • Sourcing — Involves getting the best vendors to deliver useful resources and organizing several activities that are necessary for guiding and tracking the vendor’s progress.
  • Production — This includes all the processes revolving around manufacturing, such as approval of materials, testing, and packaging.
  • Transportation & shipping — this phase is all about processing invoice payments for orders and dispatching the loads.
  • Returning — should the product be unwanted or damaged, it needs to be returned.

The Must-have features of a reliable supply chain management software

A high-quality and reliable supply chain management software should have the following features for effectiveness:

Real-time information is a key feature in SCM software. This feature helps you track products, prevent any possible damages and avoid the goods from getting lost.

Again, this feature enhances customer satisfaction as it allows you to respond and solve any arising issues promptly.

What’s more, different teams can work together seamlessly when using this feature. The best part is that the teams don’t necessarily depend on other teams to access real-time updates and useful documents for the business. Everything is just instant, thanks to the customized dashboard, real-time updates, and self-service portal, which also enhances privacy.

The cloud-based accessibility feature in SCM software helps users access and use the software from any location at any time, thus enhancing convenience. All a user needs is a connected device. What’s more, cloud-based accessibility helps minimize costs, risks, and saves you time, allowing you to focus on other business activities.

Other benefits of cloud-based accessibility features are:

  • Allowing teamwork to meet the set goals and objectives
  • Timely response to arising issues or problems
  • Giving customers real-time notifications on their devices
  • Updating shipping status instantly.
  • Supply Chain Integration

The chain management system is huge, hence the need for a feature to enable seamless integration processes. For instance, suppliers, vendors, distributors, packers & movers, customers, shipments, and warehouses, among many others, make the supply chain complete. This feature, therefore, enhances the smooth integration of all these teams.

What’s more, different business management solutions require the integration of several supply management software services, such as third-party applications, legal systems, and emails. This feature, therefore, creates a reliable network system for sharing crucial business information.

Other benefits of supply chain integration are:

  • Reduced costs for maintaining different information systems
  • Seamless logistic processes
  • Enhanced planning
  • Better stock management processes
  • Forecasting

A reliable SCM software requires better analytics and forecasting systems. As a business, it is key to keep updated on the market trends and customer preferences. The changing markets reflect what the customer needs; hence the need to ensure you satisfy customer wants by adapting to such changes. After all, you don’t want to lose any customers to your competitors.

Other benefits of forecasting feature in SCM software are:

  • Identifying inferior products in a timely manner
  • Planning the future of your customer preferences in advance
  • Identifying possible issues in the system and finding solutions to maximize production
  • Taking preventive measures in advance

With forecasting, you can predict future business trends. For instance, you can keep enough stock in a warehouse if you predict possible shortage or price hiking of specific products. Above all, you will learn how to deal with tough situations that are likely to arise in the future.

Process optimization is one significant feature of SCM software. With this feature, you can easily automate repetitive manual tasks, which can be time-consuming and tiresome. Again, automating such tasks minimizes the chances of human error happening, thus maintaining a high level of accuracy.

Examples of business tasks you can automate include the following;

  • Logistics & delivery
  • Manufacturing processes
  • Paperwork documentations
  • Inventory & warehousing
  • Order to cash processes

With machine learning and AI algorithms, it is easy for SCM software solutions to automate most of these processes.

Different customers have different preferences, hence the need to tailor and customize the software solution to align with what the customer wants.

With the software customization feature, you can review business guidelines and add new features that will enhance productivity and seamless business processes.

What’s more, developers can easily use popular programming languages such as Java & Python, among others, to integrate the changes into the system. You can, therefore, create an indigenous app or modify the existing app to suit the business changes.

Data security is a major concern in all digital solutions. A very slight mistake can have a big impact on the business. For instance, heavy fines, loss of customers due to loss of trust, loss of vendor trust, among other big impacts that can damage the business reputation and growth.

When building SCM software, you must think of the following security measures to enhance reliable security:

  • Integrate solid security tools
  • Restrict confidential data from unauthorized access
  • Use HTTP security header configuration options
  • Inventory Management

The company can review stock levels in one platform, enabling it to control the processes of order placement and shipping to customers.

Advantages of having a supply chain management software

So, why would you need SCM software for your business? Below are the top benefits:

A digital business is prone to risks of all kinds, including data breaches and other security threats. With a reliable supply chain management software solution, it is easy to identify any possible risks and prevent them timely. With a specific pattern trend, it is easy for a company to close all loopholes that can, in one way or the other, close them, thus maintaining the safety of the business and customers.

The supply chain management system displays a broad overview of all the activities taking place through data sharing. This gives business owners and shareholders a reliable platform to view and understand all the happenings within different sections and take care of the required actions in a timely manner.

With SCM software, businesses save more on operating costs by producing what customers want only. For instance, the integration of digital tools & practices helps business owners forecast what the customers want and prefer, thus producing to meet specific needs, which helps companies avoid overproduction and save on money and resources.

Agility is all about responding to business changes instantly to maximize profits and cut down on costs. The software allows easy access to useful information, allowing business owners to respond promptly to changes in the business sector. This, in turn, enhances customer satisfaction and experience, thus scaling the business higher.

Throughout the supply chain process, the activities and processes have to pass through strict guidelines and procedures to meet the set industry standards. This reduces the chances of human error and helps the business to meet all the compliance requirements, thus avoiding associated risks that could attract huge fines and ruin the brand of the business in one way or the other.

As a business person, you always have a better view of the supply chain. You can access the teams, processes, and systems attached to the supply chain software solution. This enhances data sharing and collaboration between the teams, hence making it easy to track business performance at every stage to improve productivity.

How to develop supply chain management software

Are you ready to develop your SCM software? Follow these steps for a successful procedure:

Before you start building the next digital solution for your business, start by understanding the needs of your business by highlighting the following key elements:

With these details in mind, you can set realistic goals, define the vision of your supply chain management software, and select the right strategy to execute the processes.

Next, think of how the SCM software will help you achieve the vision and objectives of your business. Think of the following elements:

These elements will help you plan the best approaches and choose the best tools and resources that will enable you to run your business while responding to changes as the business expands in the future.

Of course, the company has some other digital solutions before you implement the SCM software solution. Therefore, before you implement the supply chain solution, make sure you do the following:

  • Analyze the existing workflow between the teams and the procedures
  • Highlight the existing tools and systems you are using
  • The arising issues or problems with the existing tools
  • The adaptability of the teams to the new digital solution

This step is crucial as it gives you a seamless transition to a new digital solution. You will have a clear overview of the challenges you are likely to encounter, giving you an easy time overcoming such challenges.

You can decide to create an end-to-end digital solution or focus on one segment at a time as you expand with time.

The decision is determined by the dynamics of your company. In this phase, involve teams from different departments to have exclusives of the challenges and requirements of each section.

This step is important as it will guide you in creating a digital solution without any more problems or challenges.

Data is paramount in supply chains. You can source data for your model from the following:

  • Web data — from consumer websites
  • Open data — Google trends information
  • Purchased data — purchasing data from syndicated sources
  • Internet of Things — uses sensors to track data

Here, you need to use accurate and reliable sources to get data to feed your supply chain model.

There are many systems and technologies in the market. Therefore, you will need to do some research and analysis to ensure you settle for the right option for your business. Some of the factors you should take into consideration when choosing a reliable hosting solution are:

  • Security concerns for your digital data
  • Easy integration with other data sources and related tools
  • Flexibility of the cloud services
  • Good user interface with the necessary features

When choosing a hosting solution, it should align with the objectives of the company.

With all the resources at hand, you can now build the system effortlessly. With a clear roadmap of a product or a well-defined plan, this step is the easiest. However, you will need to put in some effort to create a system that will meet all the goals of your business.

When building the model, don’t forget to do the following:

  • Integrate all of the components in the plan
  • Highlight the key resource management areas
  • Show the system and tools used in the software solution
  • Draft links between different systems and tools

Pro tip: consult experts at Aalpha Information Systems, to decide the best supply chain management software solution for your company.

Next, your model should meet the vision and goals of your business, hence the need to align it with your business goals. Therefore,

Once the model is ready, you can now start the process of setting it up, ready for implementation.

Data is the base of supply chain management software solutions. With your model ready, you can now connect your data to the hosting solution and perform the following activities:

Note: ensure you link analytics, APIs, and IoTs to your digital solution to get accurate insights.

You will need to optimize the system and data to get accurate insights that align with your goals.

Machine learning technology and other sophisticated tech tools will help in optimizing the data. While optimizing the data, don’t forget to do the following:

Note: don’t forget to create a transparent and collaborative work environment for easy access to data.

Analyzing and testing are key steps that you shouldn’t overlook. Use AL and ML to generate useful insights that will help you elevate the functionality of your supply chain digital solution.

Here, you should do the following:

  • Create plans and strategies for your software solution
  • Analyze the effectiveness of every tool
  • Test to see if several people can access the system easily
  • Review the user interface across the teams and vendors
  • Review real-time data is in place for accurate results

Testing will help you identify areas that need more to ensure the final model is well-prepared for the tasks ahead.

Note: This isn’t a one-time task; as a way of improving and enhancing the system’s performance, analyzing and testing the system frequently is a key concept.

With KIPs, you can easily evaluate the reliability and effectiveness of your supply chain management software. Use the RTM metric to evaluate the success of the mode. You can then use the insights gathered to:

  • Determine areas that require improvement
  • Implement other strategies that will enhance RTM
  • Highlight reasons for the current value.
  • Expand the software solution

At this point, you have your supply chain management software ready. But then, as your company grows, you also need to expand your SCM digital solution, allowing the model to adapt to business needs.

Here, you can do the following:

Note: Expanding your business by connecting with other organizations will help scale your business to extreme levels.

Your supply chain needs to be as transparent as possible to get the most out of it. Visibility means that all the teams involved have access to all the processes. You can enhance SCM visibility by doing the following:

  • Allowing vendors to access the system
  • Using high-quality tech products
  • Using KIPs to measure the real-time state of the model
  • Using real-time data, updates, and chats
  • Using smart sensors to track products’ lively
  • Automate the procedures

Finally, you can now automate tasks t reduce costs and human error. Automating tasks makes it possible to execute many tasks on the go easily, as long as you are using the appropriate strategy.

Among the tasks you can automate include the following:

  • Monitoring demand and supply of products
  • Storing, sending, and reading files
  • Dock scheduling
  • Micro transportation
  • Stock management

Tips to implement supply chain management software smoothly

  • Define the requirements and dynamics of your business
  • Perform an internal IT audit
  • Use the appropriate technologies and tools
  • Communication between the teams is key
  • Train the employees
  • Create a reliable roadmap or plan
  • Identify possible risks or challenges and respective solutions
  • Start testing early enough as you gather feedback to improve the system’s functionality.
  • Monitor the system’s effectiveness regularly
  • Have a set budget

Supply chain management software development trends

  • 5G wireless network — as IoT-enabled devices keep flooding the market, the need for a network to hold many devices on the go arises. Therefore, as the supply chain management industry keeps growing, there is a need for a reliable network system that will enhance communication between users, machines, and processes.
  • Cloud systems — How will you ensure your business stays ahead of the competitive market? Using SaaS — software as a service is the ideal strategy to save and access data anytime in the cloud systems.
  • AI and Automation — The supply chain includes complex processes. Therefore, as a way of maximizing productivity while cutting down on costs, experts integrate AI technology to perform some tasks, allowing business owners to focus on human-exclusive tasks.
  • Internet of Things — IoT enhances the creation of smart warehouse & transport, monitoring fleet, and controlling logistics & shipping processes. What’s more, combining IoT devices with other systems enables you to gather valuable results for your business.
  • Circular supply chain — this is a trend that will enable business owners to get extra resources to produce more products and recycle existing materials and defective products where necessary. This helps save more money while putting all the resources into maximum use.


A supply chain management software will simplify your business operations and scale your business to the next level.

Building such a system requires more effort and a deeper understanding of the best model, tech stack, and strategies. This guide has explored useful insights that can guide you when creating a reliable and smart SCM software solution.

Want to develop a SCM software? Get in touch with our software development company — Aalpha information systems!

Originally published at on April 16, 2024.



Aalpha Information Systems India Pvt. Ltd.

Aalpha is specialist India based Software Solutions company providing solutions for Web and Mobile development,