Increasing Effectiveness of Supply Chains Using SCM Applications

Abstract

We are currently witnessing a sharp rise in prices, not only in Slovakia but throughout Europe. This price increase is caused by rising prices for many basic commodities on world markets, such as wheat, oil and natural gas. Energy prices, transport costs, as well as the prices of basic raw materials are rising, which must naturally be reflected in the increase in the prices of products intended for the final consumer. However, the prices of many products can also be affected by the efficiency of the supply chain that ensures their production. By clarifying all flows and relationships in the supply chain and optimizing its operation, we can reduce the price of the product. An SCM (supply chain management) application can be a useful tool to plan, record, evaluate and optimize the operation of a supply chain and facilitate mutual cooperation among the subjects that make it up. According to a survey, which we have done, there is not a single company using an SCM application in Slovakia today. The aim of this article is to point out the benefits and possibilities of such applications as one of the possible ways to mitigate the effects of inflation on the population.