Do you understand the supply chain management framework?

How much do you know about the supply chain management framework? This article will analyze the definition of the system and the key functions of the system, and understand the supply chain management framework as a whole.

There is a strong relationship between OMS, TMS, WMS, B2B, SCM, and IoT, which together build the framework of modern supply chain management through integration and collaboration, forming a complete ecosystem from order processing to product fulfillment to inventory management and supply chain optimization. Today, we will analyze the definition of the system and the key functions of the system to understand the supply chain management framework as a whole.

1. OMS

OMS is an abbreviation for Order Management System, which is a software solution for managing and executing customer orders. OMS typically integrates multiple aspects such as order processing, inventory management, customer service, order tracking, shipping management, etc., to provide an automated and centralized order processing platform.

Here are some of the key features of OMS:

• Order Processing: Automatically receive, process, and fulfill customer orders.
• Inventory management: Real-time update of inventory information to ensure the accuracy and timeliness of orders.
• Customer Management: Manage customer information, including address, order history, preferences, and more.
• Order Tracking: Monitor the status of order fulfillment, from order placement to shipment.
• Transportation management: arranging the transportation of goods, including choosing the mode of transportation, calculating the shipping cost, printing the waybill, etc.
• Reports and analytics: Generate sales reports, inventory reports, customer reports, and more to help businesses make data-driven decisions.
• Multi-channel support: Support multiple sales channels, such as online malls, offline stores, mobile devices, etc.
• Integration: Integrate with other enterprise systems such as ERP, CRM, WMS to achieve seamless flow of data.
• Personalized settings: Provide customized settings and configurations according to the business needs of different enterprises.
• Customer service: provide order inquiry, return and exchange processing, customer consultation and other services.

II. TMS

TMS is an abbreviation for Transportation Management System, which is a software system specifically designed to optimize and manage transportation operations. A TMS provides an automated platform for planning, executing, and optimizing transportation operations, including mode selection, routing, cargo tracking, cost control, shipment auditing, and payment processing.

Here are some of the key features of a TMS:

• Transportation Planning: Helping businesses determine the best modes and routes of transportation to reduce costs and increase efficiency.
• Order Fulfillment: Automate the shipping tasks for customer orders, including order import, carrier assignment, and shipping instruction generation.
• Cargo Tracking: Real-time tracking of the location and status of goods, providing customers with transparent cargo information.
• Inventory management: Integrate with a warehouse management system (WMS) to ensure the accuracy and real-time performance of inventory data.
• Cost control: Monitor and manage transportation costs, including fuel, tolls, carrier fees, and more.
• Carrier Management: Manage carrier information, evaluate carrier performance, and optimize carrier selection.
• Reports and Analytics: Generate transportation-related reports such as cost analysis, performance reports, KPIs, and more.
• Compliance and document management: Ensure that transportation activities comply with relevant laws and regulations, and manage shipping documentation.
• International Freight Management: For transportation involving international trade, manage duties, taxes, import and export documents, etc.
• Customer service: Provide customer service functions, such as online ordering, order inquiry, exception handling, etc.

III. WMS

WMS is an abbreviation for Warehouse Management System, which is a software system used to manage all activities within a warehouse or distribution center. The core function of a WMS is to control and monitor the flow of items within a warehouse, including the processes of receiving, storing, picking, packing, and shipping.

Here are some of the key features of WMS:

• Inventory management: Track inventory levels in real-time and automatically update inventory quantities to avoid overselling or stockouts.
• Receiving: Manage the receiving process of goods, including checking, confirming, and documenting the goods received.
• Putaway: Instruct employees to place goods in the best locations in the warehouse to optimize storage space and improve picking efficiency.
• Picking: Generate picking instructions to guide employees to quickly and accurately locate and remove the goods they need.
• Packing and shipping: Manage the packing and shipping process to ensure orders are sent out accurately and on time.
• Returns Processing: Manage the returns process, including return inspections, restocking, and refund processing.
• Movement of goods: Record the movement of goods within the warehouse, including shelves, shelves, and warehouse movements.
• Reports and analytics: Generate inventory reports, performance reports, KPIs, and more to help businesses make data-driven decisions.
• System integration: Integrate with other enterprise systems such as ERP, SAP, TMS etc., to achieve seamless flow of data.
• Automation and intelligence: Support automation equipment (such as automated picking systems, robots, conveyor belts, etc.) and intelligent algorithms (such as optimal path algorithms, predictive analysis, etc.).

4. B2B

B2B e-commerce (Business-to-Business Electronic Commerce) refers to the business transactions between businesses through the Internet, private networks, or other electronic means. This model usually involves characteristics such as large transactions, long-term partnerships, professional sourcing and credit transactions.

Key features of B2B e-commerce include, but are not limited to:

• Online transactions: Businesses can conduct online transactions of products or services through B2B platforms.
• Supply chain management: B2B e-commerce helps optimize supply chain management and improve efficiency.
• Multi-user account management: Multiple users under the same enterprise account can be operated, and each user can have different permissions and responsibilities.
• Personalized catalog management: Allows users to customize product catalogs and pricing according to special needs.
• Quick ordering: Offer quick ordering, especially for B2B customers who have clear known needs.
• Inventory management: Docking with ERP system to achieve real-time inventory update and avoid out-of-stock.
• Payment solutions: Integrate multiple payment methods, including digital payments and traditional B2B payment methods such as bank transfers.
• Logistics management: Provide logistics solutions, including order fulfillment, distribution, and tracking.
• Customer Relationship Management (CRM): Manage customer information and maintain long-term relationships with customers.
• Sales rep support: Allows sales reps to use the platform to place orders for customers, view inventory, and product specifications.
• Request for Quote: Streamline the quote process and allow customers to submit a request for a quote.
• Cloud computing and machine learning: Leverage these technologies to analyze market big data, optimize inventory, and forecast customer demand.
• Mobile responsive design: Ensure that B2B e-commerce platforms perform well on different devices and adapt to the trend of mobile office.
• Email marketing: Email marketing drives repeat purchases and retention.
• Cloud deployment: Improve the responsiveness and stability of the website and support global expansion.
• Third-party logistics platform: Partnering with third-party logistics service providers to optimize last-mile delivery.
• Vertical market integration: Through the vertical integration of B2B e-commerce, reduce intermediate links and improve efficiency and profits.

Together, these B2B e-commerce capabilities help businesses reduce costs, improve transaction efficiency, expand market opportunities, and ultimately achieve digital transformation.

5. SCM

A supply chain management (SCM) platform is an integrated software system designed to optimize and manage all aspects of the supply chain, including procurement, production, inventory management, order processing, logistics, distribution, and supplier relationship management. These platforms leverage information technology to improve the efficiency, transparency, and responsiveness of the supply chain.

Key features of a supply chain management platform typically include:

• Demand forecasting: Forecasting future demand by analyzing historical data and market trends.
• Supplier Management: Manage supplier information, evaluate supplier performance, and communicate and collaborate with suppliers.
• Procurement management: Automate procurement processes, including purchase order processing, procurement contract management, and procurement strategy optimization.
• Inventory management: Monitor inventory levels in real time, optimize inventory strategies, reduce inventory costs, and avoid surpluses or shortages.
• Order management: Processes customer orders, including order receiving, confirming, processing, and tracking.
• Logistics management: Plan and manage the transportation and distribution of products, including mode of transportation, costing, and cargo tracking.
• Supply chain planning: According to market demand and corporate strategy, formulate the overall planning of the supply chain, including process optimization and node selection.
• Risk management: Identify and assess potential risks in the supply chain and develop mitigation measures accordingly.
• Reporting and analytics: Generate supply chain-related reports and analytics to help companies make data-driven decisions.
• Customer Relationship Management: Maintain customer information to improve customer satisfaction and loyalty.
• System integration: Integrate with other systems within the enterprise (e.g., ERP, CRM) and external partners' systems for data sharing and process automation.
• Data sharing: Share key data with supply chain partners to improve collaboration efficiency across the supply chain.
• Process/IT servitization: Through service-oriented transformation, the subsystem integrates business elements, application elements, and data elements to realize the connection between business, data, and system functions.
• Intelligent: Leverage machine learning and artificial intelligence technologies to improve the intelligence of the supply chain, such as intelligent decision support and automated operations.

The implementation of a supply chain management platform can help companies reduce costs, improve customer service quality, respond faster to market changes, and ultimately improve overall competitiveness. There are multiple supply chain management platforms in the market, such as SAP, Oracle, Kingdee, etc., which offer different features and services to meet the needs of businesses of different sizes and needs.

六、IoT

An IoT Management System is a software platform for monitoring and managing IoT devices and networks. It provides multiple capabilities such as device connectivity, data collection, data processing, analytics, storage, and user interface, enabling enterprises to effectively manage their IoT ecosystem.

Key features of an IoT management system typically include:

• Device connection and management: Allows devices to securely connect to the platform through various communication protocols (such as MQTT, CoAP, HTTP, etc.), and perform device registration, authentication, and authorization.
• Data collection: Collect data from IoT devices and transmit it to a cloud platform or on-premise server.
• Data Processing & Analysis: Processing, analyzing, and visualizing collected data to extract useful information and insights.
• Message Queuing & Notifications: Support for message queuing and event-driven architectures to send notifications when a specific event occurs.
• Data storage: Provides data storage solutions, including time series databases and NoSQL databases, for storing device data.
• Remote control: Allows users to remotely control and manage IoT devices, such as updating firmware, configuring parameters, and more.
• Security: Provides end-to-end security, including data encryption, secure communication, and access control.
• APIs and integrations: API interfaces are provided to facilitate integration with other systems and applications for data sharing and business process automation.
• User Interface: Provides a user interface that enables users to monitor device status, view data, and perform administrative tasks.
• Automation and scenario linkage: Supports automated workflow and scenario linkage, enabling devices to automatically execute tasks based on predefined rules or events.
• Over-the-Air (OTA) updates: Over-the-air updates are supported for over-the-air device software updates.
• Alerting and incident response: Ability to set alarm conditions and trigger incident response when those conditions are met.

IoT management systems can be applied in a variety of industries, such as smart homes, smart cities, industrial automation, healthcare, agriculture, environmental monitoring, and more. With these systems, businesses can improve operational efficiency, reduce costs, enhance the user experience, and create new revenue streams.

There are a variety of IoT management platforms in the market, including but not limited to Alibaba Cloud IoT Platform, Huawei Cloud IoT Platform, etc., which provide different features and services to meet the needs of enterprises of different sizes and needs.

summary

OMS (Order Management System), TMS (Transportation Management System), WMS (Warehouse Management System), B2B e-commerce platform, SCM (Supply Chain Management System), and IoT (Internet of Things) are all key components in modern business operations, and there is a close relationship and interaction between them.

OMS (Order Management System)

• Responsible for managing the entire lifecycle of customer orders, including order receiving, processing, tracking, and delivery.
• Tight integration with WMS and TMS ensures that inventory and logistics information is synchronized during the order fulfillment process.

TMS (Transportation Management System)

• Focus on the management of transportation activities, including order scheduling, vehicle management, route planning, and transportation cost control.
• Integrate with OMS to optimize the transportation process of goods, improve delivery efficiency and customer satisfaction.

WMS (Warehouse Management System)

• Manage the day-to-day operations of the warehouse, such as inventory control, material flow, and storage optimization.
• Integrate with OMS to ensure consistency in order processing and inventory management, while supporting TMS for goods picking and distribution.

B2B e-commerce platform

• A platform that provides online transactions and product displays, and is a gateway for business-to-business transactions.
• Rely on OMS, TMS, and WMS to handle orders, logistics, and inventory to provide a seamless shopping experience and efficient supply chain management.

SCM (Supply Chain Management System)

• Integrate and manage the entire supply chain process from a macro perspective, including procurement, production, inventory, transportation, and sales.
• Leverage data and capabilities from systems such as OMS, TMS, and WMS to optimize the overall performance of your supply chain and respond to market changes.

IoT (Internet of Things)

• Real-time data collection and remote monitoring are achieved by connecting sensors and smart devices to the internet.
• Enhance the capabilities of OMS, TMS, and WMS to provide supply chain transparency and traceability, optimize inventory management, cargo tracking, and transportation monitoring.

In the modern enterprise, these systems often do not operate independently, but rather form an ecosystem that works together through integration and data sharing. For example, an OMS can trigger a WMS to do an inventory update and arrange for the shipment of goods through the TMS. At the same time, SCM serves as a holistic framework to coordinate systems such as OMS, TMS, and WMS to achieve supply chain optimization. IoT technology provides real-time data support for these systems, enhancing their decision-making and execution capabilities. Through this integration, businesses are able to improve operational efficiency, reduce costs, improve customer service, and ultimately achieve digital transformation.

Author: Ma Yugang, public account: Ma Yugang

This article was originally published by @马玉刚 on Everyone is a Product Manager. Reproduction without permission is prohibited

The title image is from Pixabay and is based on the CC0 license

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