Types of Supply Chain Management Systems

1. Public B2B Exchanges

In this type of supply chain Management system, companies get more options to select the suppliers that fit in their business needs, and they also have more power in negotiating the prices and terms of services. The cost of participation in a public exchange is significantly lower than implementing our own SCM systems.

2. Private Supply Chain Management systems

It is developed for specific industry and particular company.SCM systems are often tightly integrated a limited few suppliers and trading partners. The purpose of SCM is more of collaboration than price negotiation. The disadvantage of private supply chain software, compared with public B2B exchanges is the cost of implementation.

The main objectives of supply chain management are,

To reduce inventory costs To increase sales
To improve the co‐ordination and the collaboration with suppliers, manufacturers and distributors.


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