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How To Pick A Supplier Management Solution Tailored To Your Company

8 August 2018 by Brandon Stewart

To maximize profitability, one of your main objectives is to reduce procurement costs. Another one of your biggest objectives is to ensure that there is a steady flow of goods and services to the customer.

The Danger of Too Many Features 

When looking for business supplier management solutions, you may be tempted to seek out the software solution that comes with the most features. That way, you do not have to worry about whether the software solution will be flexible enough to accomplish all of your goals. However, you may want to instead focus on a narrow set of features that will help your business accomplish it's core objectives.

Training Considerations

Software that is too complex can take too long to train employees on how to use. Employee training is one of the highest employment-related costs for your business. Even when employees are trained on how to use software, having too many options can increase the risk that employees will forget how to perform a certain task. Also, the more features, the more likely that employees will have to spend time looking for a function that they need while searching through menus.

Determining the Features You Need

Each supply chain function is important, but they are all not equally important. Choose software that allows you to focus on the areas that are the most important for your company. When communicating with software vendors and viewing demonstrations, make sure that you are not dazzled by unnecessary features. 

Choosing Custom Software for Your Industry

To make sure that the software will not have irrelevant features, try to find a solution that is customized for your industry. Some products have unique supply chain needs that not every program addresses. For example, the software might need to take into consideration the time frames that exist in your industry. 

Are you purchasing and selling products that have already been manufactured? Or, are you taking raw goods and transforming them into end-user products. You must choose a software program that is designed to take into consideration the unique needs of your business.

Features Can Be Expensive

While you shouldn't purchase software entirely based on its price, software programs that are more tailored toward your industry and that have fewer unnecessary features tend to be less expensive. This makes it easier to justify the purchase of a software solution when you do not have the final say in the purchase.

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