What is supply chain management?
SCM coordinates the end-to-end flow of materials, information, and cash—from demand planning and procurement to manufacturing, logistics, and after-sales service. Modern supply chain management software connects these activities, providing shared visibility, workflow automation, and data to improve decisions. When teams, both internally and externally, align on the same data and processes, they can respond faster to demand shifts, supply disruptions, and cost pressures.
Supply chain management phases
Most businesses follow a repeatable set of supply chain steps. The specifics vary by industry, but the flow remains consistent:
- Plan
Translate strategy and market signals into a feasible plan. Typical capabilities include demand forecasting, inventory targets, S&OP/IBP, and capacity planning. Mature teams use supply chain planning software to plan (e.g., promotions, supplier delays) and set policies that balance service levels and cost. - Source
Secure materials and services from qualified suppliers. Activities include sourcing, contracting, onboarding, POs, and supplier performance. Digital sourcing accelerates RFx cycles, applies policy controls, and centralizes supplier data for better risk and ESG oversight. - Make
Convert inputs into finished goods. Planners and plant teams schedule labor, machines, and materials; quality and maintenance ensure throughput. Digital work instructions, MES integration, and IoT data reduce downtime and scrap while improving first-pass yield. - Move
Distribute products across warehouses and transportation networks. Capabilities include WMS/TMS, slotting, wave planning, yard management, and last-mile orchestration. Real-time events (ETA, exceptions, temperature, damage) trigger alerts to keep orders on time. - Deliver and serve
Fulfill to customers and manage returns, warranties, and service parts. Integrated returns and field service close the loop to protect margin and customer satisfaction.
Evolution of supply chain management
Supply chains have evolved through various stages over the years. In the early days of industrialization, the focus was on standardization and global production to enhance efficiency. Then came lean practices, like just-in-time inventory, which aimed to reduce stock levels. As we moved into the digital age, technologies like ERP systems and barcoding helped unify essential records, while EDI and APIs connected different partners, and robotics increased production speed on the factory floor.
Now we’re in the industry 4.0 supply chain era, where cloud platforms, IoT telemetry, advanced analytics, and AI provide real-time visibility, predictive insights, and flexible planning. In light of recent disruptions, leaders have started to prioritize resilience by adopting strategies like multi-sourcing, nearshoring, maintaining buffer inventory, and utilizing digital twins for quick adjustments.
Today’s focus has shifted from isolated tools to achieving comprehensive visibility, orchestration, and governance—allowing teams to sense, decide, and act in unison.
Supply chain management challenges
Persistent constraints, like outdated systems, isolated data, and manual processes, are colliding with the growing demand for quick responses, sustainability, and compliance. Here are four key areas that are shaping the future:
Integration of ERP in supply chain management
While ERPs serve as the backbone of record-keeping, many essential functions like planning, quality control, logistics, and supplier management often sit outside this core system. The real challenge is that processes span across various systems and partners. Teams need governed APIs, event streams, and low-code extensions to close gaps quickly (e.g., buyer workbenches, supplier portals, claims intake, dock scheduling) without destabilizing ERP.
AI-driven supply chain management
AI plays a critical role in predicting demand, spotting anomalies, optimizing routes, and suggesting the best next steps. The hurdle is rarely the model—it’s trustworthy data, human oversight, and effectively integrating AI into existing workflows. Organizations that embrace a digital supply chain strategy—complete with quality data products, evaluators, and clear explanations—can harness the value of AI in supply chain management on a large scale.
Cloud-based supply chain management
Cloud platforms provide the tools for global visibility in supply chains, facilitating collaboration and offering flexible computing for planning processes. However, moving to the cloud surfaces concerns with security, latency, and managing change. The best approach is to modernize in phases: start by wrapping critical legacy systems with APIs, prioritize high-impact workloads, and mitigate risks through pilot programs that demonstrate return on investment.
Ethics in supply chain management
Customers and regulators expect transparent, responsible supply chains. That means traceability, thorough supplier checks, emissions reporting, and policy enforcement (labor, conflict minerals, sanctions). By implementing digital workflows, making decisions that can be audited, and ensuring integrated data tracking, companies can minimize risks while providing trustworthy reports.
Supply chain management examples
Organizations are modernizing core processes using OutSystems to improve supply chain efficiency—from scanning and visibility to customer self-service and omnichannel logistics. Learn how customers are optimizing their supply chains with digitization and AI:
Container Centralen: RFID scanning and depot operations
Container Centralen replaced end-of-life scanners with a custom mobile RFID app used across 70 depots, improving scan speed, accuracy, and exception handling (damage, discrepancies, stocktaking). Built and deployed in six months, the solution supports 4 million RFID-tagged items and serves 20,000+ customers across Europe—giving CC a platform for continuous innovation.
As Product Owner Ben Brouwer said, “Thanks to the speed and flexibility of OutSystems, we managed to change our platform in just six months, and we now have a basis for fast and continuous innovation."
View the Container Centralen case study
Van Iperen: customer portal, mobile app, and TMS
The global fertilizer supplier rebuilt its MyIperen web and mobile experience and added services like automated repeat orders, GPS/Google Maps field tagging, and IoT-enabled tank monitoring. Delivered in eight months, the project shifted customer behavior immediately: self-service orders quadrupled, with 2,000+ customers now using the portal.
“With OutSystems, we can deliver a completed product in months, rather than years—and release updates and new features in a matter of days,” said Sander Blok, Head of Innovation & Product Management.
View the Van Iperen case study
Burton: omnichannel logistics and inventory orchestration
To keep products available where demand spikes, Burton connected stores, dealers, warehouses, and e-commerce in a new logistics app—delivered in eight months with a two-person team. The system sustained 200+ shipments per day for two weeks and now averages 56 shipments per day, contributing to a 10× ROI in revenue.
“Creating this app has helped us ship things quicker, communicate better, and have more items available later in the year,” said Software Developer Matt Burns.
OutSystems: Your application platform for supply chain operationss
OutSystems helps you build and evolve the software that your supply chain actually runs on—from supplier portals and quality apps to planning extensions, control-tower dashboards, logistics orchestration, and AI assistants—without lengthy rewrites of your ERP or MES.
What that looks like in practice:
- Digitize bottlenecks fast: Replace spreadsheets and email with governed apps and workflows that enforce policy, reduce cycle time, and capture clean data.
- Integrate and orchestrate: Connect ERP, WMS/TMS, PLM, and partner systems with reusable APIs and event-driven automations—so processes flow end to end.
- Operationalize AI safely: Embed AI where it helps—forecast enrichment, anomaly detection, document extraction, and agentic triage—with human approval and auditability.
- Evolve without tech debt: Low-code speed with enterprise-grade security, performance, and lifecycle management lets you deliver quickly and keep shipping improvements.
Modernize your supply chain today
Learn more about automation and digitization in the supply chain
Explore additional ways organizations modernize supply chains with low-code, automation, and partner collaboration. These resources illustrate how teams replace manual handoffs, integrate legacy systems, and gain real-time visibility—without rewriting core platforms.
MoniMove: Next-generation platform
How MoniMove digitized supplier financing and oversight with end-to-end workflows, auditable controls, and faster approvals.
Automating supply chain operations using RPA and low-code
Real examples of combining RPA with low-code to eliminate re-keying, connect siloed systems, and harden exception handling.
Vinturas: Blockchain technology
A consortium approach to logistics visibility using shared, tamper-evident data to improve trust and cycle times across partners.
Frequently asked questions
A coordinated operating model (process, roles, policies), connected systems of record (ERP, WMS/TMS, PLM/MES), supply chain software for planning and visibility, accurate shared data, and governance to keep decisions auditable and compliant.
Plan → source → make → move → deliver/serve. Many organizations add returns/reverse logistics as part of deliver/serve.
“Best” depends on your goals and existing landscape. Most enterprises pair ERP with specialized planning, logistics, and visibility tools, then use a supply chain management system or low-code platform like OutSystems to integrate and extend processes—filling gaps quickly without replacing core systems.