January 21, 2024
SCM software is a great tool to help your business better manage the supply chain. By sourcing compliant contractors and streamlining supplier performance management, you reduce supply chain risk and increase efficiency.
Maintaining control of the supply chain is no easy task—from ensuring compliance, to checking supplier financial health, it can be a minefield to say the least. So why is SCM software a viable solution? And what should you look for in a supply chain management software?
- Why invest in supply chain management software?
- How do you choose the right SCM software provider?
- What are the top 5 features you should look for in SCM software?
Why invest in supply chain management software?
Although there is an initial cost involved, SCM software is certainly worth the investment. SCM platforms that allow you total supply chain visibility are invaluable. With technology on your side, you can avoid supply chain disruptions and ensure that everything is running smoothly.
Not to mention, supply chain management software will help your business:
- Increase productivity.
- Streamline efficiencies.
- Mitigate risk.
- Improve health and safety.
- Enhance ability to achieve ISO45001.
- Ensure supplier compliance.
All these benefits will cut costs across your organisation and empower your business to choose contractors and suppliers who are reliable and qualified.
Without the support of tech, managing your supply chain can be very expensive. By using spreadsheets and inputting data manually, there are often more errors and less accuracy. This makes it challenging to quality check your suppliers and contractors.
SCM software may require you to pay an annual fee, but this is far more cost effective then employing a dedicated member of staff to manage large quantities of data. By investing in a supply chain management platform, you can protect your brand reputation, select trustworthy service providers, and save money in the long run. Not to mention you can ensure compliance and improve health and safety within your supply chain. Prosure360 provides SSIP assessments which allow you to easily evidence your health and safety credentials. Recently, we’ve extended these assessments to include Republic of Ireland Duty Holder Categories. There are very few SSIP approved providers who offer this, so Prosure360 is unique because it can deliver the SSIP, specific to the IE market.
How do you choose the right SCM software provider?
Once you’ve decided that your business needs supply chain management software, the next question you need to ask is: which provider should you choose?
Every company has different needs, goals, and values—so it’s important to find a provider who is a good fit for your business. Functionality, user-experience, and scalability are all factors you should consider when selecting a SCM software provider.
Ask yourself: Is the platform easy to use? Does the software have all the necessary features? Will the platform help you simplify supplier management? Once you have all the answers to your questions, you can narrow the search and find a provider best suited to your business.
What are the top 5 features you should look for in SCM software?
Every SCM platform will have different features, but here are the top 5 you should look out for when searching for a trustworthy SCM software provider:
1. Financial health checker
One SCM software feature which is often overlooked is a financial health checker. Knowing the financial health of your suppliers and contractors is essential when your business is deciding who to work with. Without checking the financial status of your service providers, you could end up working with a company like Carillion, which could cause you serious financial loss and threaten your professional reputation.
Supply chain management software with a financial health checker allows you to build a clearer picture about the state of your suppliers’ finances. Without this vital information, you risk working with contractors who are financially unstable. Ultimately, this could damage your reputation and ruin projects that you’re working on.
Prosure360 allows you to easily see the financial status of your service providers in an accessible, readable format. Our supplier management software means you don’t have to be a specialist to understand the complex financial situation of your service providers.
Although it’s possible to conduct your own financial checks using Companies House, it can be extremely time-consuming and tedious. It is also very labour intensive as you’ll have to check these documents regularly to ensure nothing has changed. Instead of spending hours doing all this research manually, you should choose a SCM software with a financial health checker.
2. Pre-qualified assessments set with PAS91
Another feature that is vital for a SCM software is pre-qualified assessments set around PAS 91. These questions represent a common minimum standard that is recommended by the British Standards Institute (BSI). This is an important aspect of SCM software because it ensures you can find suppliers and contractors who meet your business’ requirements.
The pre-qualified assessments that Prosure360 provides will allow your business to:
- Improve ESG performance by ensuring suppliers align with ESG values.
- Minimise supply chain disruptions by hiring qualified suppliers and contractors.
- Enhance supplier quality.
- Source compliant service providers, suppliers, and contractors.
By using these question sets in your chosen SCM platform, you’ll be able to build better relationships with your suppliers and boost supply chain resilience.
3. Bespoke questions
In tangent with pre-qualified assessments and SSIP, your SCM software provider should also provide bespoke question sets. Depending on what industry you work in, you may need further supplier information than what the assessments collate. That’s where bespoke questions come in. So, what are they and how do they work?
Bespoke questions are flexible which means you can hire suppliers and contractors who meet your specific requirements, no matter how niche or unusual. For example, if you have certain requirements around ESG, a good SCM software will allow you to build bespoke questions into the platform. This feature allows you to have full control of your supply chain and find suppliers and contractors who are well aligned to your business goals.
Working with your business to understand your needs, Prosure360 integrates your bespoke question sets into the SCMS platform. We then set this as a requirement that all contractors and suppliers must complete. These question sets will tell you everything you need to know about your suppliers and contractors, allowing you to make an informed choice about who you work with.
Instead of wasting your valuable time trying to find out whether a supplier has the right qualifications, bespoke questions do all the heavy lifting for you. This feature is an absolute must in any supplier management software, so make sure you choose your provider wisely.
4. Risk scoring tool
Managing your suppliers and contractors has a lot to do with mitigating supply chain risk. Businesses who choose dependable and qualified suppliers reduce the risk of legal complications and reputational.
So, SCM software should include tools or features that can help you analyse the risk of suppliers and contractors. By knowing whether a supplier is high-risk or low-risk, you can make an educated choice about whether to work with them or not.
Prosure360 is partnered with Red Flag Alert which gives service providers, suppliers and contractors a financial risk score of gold, silver, or bronze. When going through the supplier selection process, supply chain management software, like Prosure360, makes it easy to mitigate risk within your business.
SCM software enables you to identify any problems with suppliers before they occur. This means you can recognise potential risks and prevent supply chain disruptions. With a risk rating tool, choosing your suppliers and contractors is made easy.
5. Performance tracking
Supplier performance management plays a major role in SCM software. Suppliers and contractors are a reflection of your business’ core values, acting as the face of your brand. So, as you can imagine, it’s crucial that they maintain high standards and perform at their best every day.
Performance tracking modules within your SCM software are non-negotiable. Choosing a software with this feature allows to continually monitor and track your suppliers’ performance, ensuring that their certifications and financial information is always up to date.
Prosure360 requires service providers, suppliers, and contractors to upload accurate data, showing their:
- Professional memberships and certifications.
- Financial status.
Using this data, you can track supplier performance and ensure consistency, compliance, and quality. Prosure360 is also integrated with the Elogs CAFM system where you can also measure supplier performance, particularly by the quality of the jobs they carry out.
The SCM software you choose should be tailored to your business’ wants and needs with all these features and more. That’s why Prosure360 is a great option because it is an intuitive, flexible platform that makes supply chain management simple.
If your ready to get the most out of SCM software, book a Prosure360 demo today!
