---
title: The Top 10 Supply Chain Management (SCM) Features &amp; Requirements
---

#  The Top 10 Supply Chain Management (SCM) Features & Requirements 

 Last Reviewed: March 4, 2026  11 min read [7 comments](https://www.selecthub.com/supply-chain-management/supply-chain-management-software-features-requirements/?noamp=mobile#comments) 

[ ![Urnesha Bhattacharjee](https://www.selecthub.com/wp-content/uploads/2023/11/cropped-cropped-Urnesha-Headshot-2_Meet-the-Team-96x96.jpg) ](https://www.selecthub.com/author/urnesha-bhattacharjee/) [Written by Urnesha Bhattacharjee](https://www.selecthub.com/author/urnesha-bhattacharjee/) 

Technical Content Writer 

[ ![Hunter Lowe](https://www.selecthub.com/wp-content/uploads/2023/11/cropped-Hunter-Headshot-96x96.jpg) ](https://www.selecthub.com/author/hunter-lowe/) [Edited by Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) 

Content Editor 

[ ![Draven McConville](https://www.selecthub.com/wp-content/uploads/2023/12/Draven-96x96.jpg) ](https://www.selecthub.com/author/draven-mcconville/) [Contributions by Draven McConville](https://www.selecthub.com/author/draven-mcconville/) 

Expert Contributor 

 <!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd"> <?xml encoding="utf-8" ?>

Table of Contents

Explore the SCM Hub

What's your top priority today?

* [Learn](#)  
   * [What Is Supply Chain Management?](https://www.selecthub.com/category/supply-chain-management/)  
   * [Supply Chain Management Modules](https://www.selecthub.com/supply-chain-management/scm-modules/)
* [Plan](#)  
   * SCM Features & Requirements  
         * [Top SCM Features & Requirements](#Top%5FSCM%5FFeatures%5FRequirements "Top SCM Features & Requirements")  
                  * [1\. Supply Chain Planning](#1%5FSupply%5FChain%5FPlanning "1. Supply Chain Planning")  
                  * [2\. Inventory Management](#2%5FInventory%5FManagement "2. Inventory Management")  
                  * [3\. Warehouse Management](#3%5FWarehouse%5FManagement "3. Warehouse Management")  
                  * [4\. Logistics and Transportation Management](#4%5FLogistics%5Fand%5FTransportation%5FManagement "4. Logistics and Transportation Management")  
                  * [5\. Mobile Capabilities](#5%5FMobile%5FCapabilities "5. Mobile Capabilities")  
                  * [6\. Procurement and Supplier Management](#6%5FProcurement%5Fand%5FSupplier%5FManagement "6. Procurement and Supplier Management")  
                  * [7\. Analytics and Forecasting](#7%5FAnalytics%5Fand%5FForecasting "7. Analytics and Forecasting")  
                  * [8\. Purchase Order Management](#8%5FPurchase%5FOrder%5FManagement "8. Purchase Order Management")  
         * [Other Features To Consider](#Other%5FFeatures%5FTo%5FConsider "Other Features To Consider")  
                  * [9\. Cloud Access](#9%5FCloud%5FAccess "9. Cloud Access")  
                  * [10\. Collaboration](#10%5FCollaboration "10. Collaboration")  
         * [What Is Supply Chain Management?](#What%5FIs%5FSupply%5FChain%5FManagement "What Is Supply Chain Management?")  
         * [System Selection Tips](#System%5FSelection%5FTips "System Selection Tips")  
         * [Next Steps](#Next%5FSteps "Next Steps")
* [Compare](#)  
   * [Best SCM Tools](https://www.selecthub.com/supply-chain-management/13-essential-supply-chain-management-tools/)  
   * [Best Logistics Software](https://www.selecthub.com/supply-chain-management/use-choose-logistics-management-software/)  
   * [Best Vendor Management Systems](https://www.selecthub.com/supply-chain-management/vendor-management-software/)  
   * [Best Demand Planning Software](https://www.selecthub.com/supply-chain-management/demand-planning-tools/)  
   * [Best Order Fulfillment Software](https://www.selecthub.com/supply-chain-management/top-5-order-fulfillment-software-solutions/)  
   * [Best Supply Chain Visibility Software](https://www.selecthub.com/supply-chain-management/gaining-supply-chain-visibility-software-tools/)  
   * [Best Supply Chain Collaboration Software](https://www.selecthub.com/supply-chain-management/supply-chain-collaboration-software/)

  
<?xml encoding="utf-8" ?>

Global supply chains are battling anxious economies, increased trade wars, environmental sustainability issues and an ongoing [shortage of truck drivers](https://www.ajot.com/news/the-truck-driver-shortage-in-the-us-continues). You need the right [supply chain management system](https://www.selecthub.com/c/supply-chain-management-software/) to tackle these complexities and stay agile. However, picking the best fit for your business can be tricky.

Before choosing a solution, you must determine features of supply chain management your business needs most. That’s why we’ve created this SCM requirements checklist to help you make an informed decision.

[Get our Supply Chain Management Software Requirements Template](https://pmo.selecthub.com/scm-requirements-site-vers/)

![Opening SCM Requirements]()

## Top SCM Features & Requirements

Though not exhaustive, the following list is a good starting point when deciding what core SCM features to look for.

![Opening SCM Requirements]()

[Get our Supply Chain Management Software Requirements Template](https://pmo.selecthub.com/scm-requirements-site-vers/)

### 1\. [Supply Chain Planning](https://www.selecthub.com/c/supply-chain-planning-software/)

This SCM feature has AI built-in. It gathers data from various sources to identify and analyze potential disruptions and suggests suitable mitigation measures for smooth operations. Supply chain planning estimates future product demands based on past sales data and [market trends](https://www.selecthub.com/supply-chain-management/supply-chain-management-future-trends/) while demand-sensing fine-tunes forecasts in real time.

The software generates forecasts through data analysis, providing a clear picture of future supply chain activities.

SCP includes [supply chain network design](https://www.gep.com/blog/strategy/supply-chain-network-design-explained), which optimizes network structure by integrating data from suppliers, manufacturing, warehousing and customers.

Production scheduling adjusts to demand, supply and capacity changes, ensuring timely production and delivery while considering resource constraints.

![SCM Monitoring]()

Monitor and adjust your inventory based on predicted demand data.

### 2\. Inventory Management

Advanced SCM features focus beyond just material flow evaluation. They should provide comprehensive insights into the entire process chain, shedding light on supplier interactions and inventory locations.

Your company must have a reliable and efficient way of inputting inventory data, which is where RFID tags or barcodes come in.

Rapid inventory identification improves visibility and enables strategic business decisions. If you effectively evaluate inventory levels, you can take preventive measures to meet future demands and respond quickly to market changes.

State-of-the-art [inventory management platforms](https://www.selecthub.com/c/inventory-management-software/) use built-in intelligence to maintain optimal stock levels, preventing shortages and surpluses from affecting productivity.

Furthermore, they automate the reordering process to ensure a smooth workflow, saving time and reducing human error.

![SCM Requirements Fishbowl Inventory]()

Ensure inventory availability from a central control tower.

### 3\. [Warehouse Management](https://www.selecthub.com/c/warehouse-management-software/)

AI-powered slotting dynamically groups items for fulfillment based on sales trends, product variations and consumer demands. This innovative method updates placement and picking locations in real time and provides configurable run strategies aligned with [warehouse picking patterns](https://www.logimaxwms.com/blog/guide-to-warehouse-picking-strategies/).

Billing management provides a sophisticated billing engine and activity-based costing solution. This module accommodates complex billing rules, rate structures and logistics service cost elements, ensuring that financial processes are in sync with the dynamic nature of supply chain operations.

Furthermore, cross-docking streamlines the movement of inbound inventory directly to the correct outbound dock or staging area, eliminating the need for storage and significantly reducing handling time.

![SCM Requirements Logiwa WMS]()

Simplify storage across multiple channels.

[Get our Supply Chain Management Software Requirements Template](https://pmo.selecthub.com/scm-requirements-site-vers/)

### 4\. Logistics and [Transportation Management](https://www.selecthub.com/c/tms-software/)

This critical SCM requirement connects you to a vast network of carriers like FedEx, UPS and USPS. It also enables the creation and approval of dock door appointments, provides visibility into scheduled and rescheduled dock appointments and supports drop-ship management.

It facilitates logistics planning by forecasting transportation and considering promotional and seasonal sales variables. What-if simulations add a layer of strategic foresight, allowing you to make informed and optimized decisions in complex [transportation management](https://www.selecthub.com/category/transportation-and-logistics-management/) scenarios.

Finally, yard management tools ensure operational efficiency by providing intuitive tools to shipping and receiving staff, gate guards, and yard personnel to manage trailer moves, inspections and security seal changes.

![SCM Oracle TMS Order Management]()

Manage multiple transport orders from a single platform. [Source](https://www.oracle.com/webfolder/technetwork/tutorials/tutorial/cloud/otm/releases/23C/23C-otm-wn.htm)

### 5\. Mobile Capabilities

Mobile SCM features let you automatically count and establish dispatcher-driver communication to update route statuses and deliveries.  
View the status of on-hand inventory across facilities, track material reservations and unreserved on-hand inventory, support proof of delivery with signature and photo capture, and manage purchase orders via mobile devices.

[Mobile supply chain technology](https://www.selecthub.com/supply-chain-management/mobile-supply-chain/) also improves collaboration and communication among teams and third-party providers across warehouses, distribution centers and suppliers.

![SCM Requirements Mobile Inventory]()

Manage inventory on the go. [Source](https://www.zoho.com/ca/inventory/)

### 6\. [Procurement](https://www.selecthub.com/c/procurement-software/) and Supplier Management

As your products [go to market](https://www.cognism.com/blog/what-is-a-go-to-market-strategy), you’ll need relationships with suppliers and other businesses. That’s where the B2B communication platform of this module comes in. You can generate a detailed bill of materials for accurate [procurement](https://www.selecthub.com/category/eprocurement/) planning and encourage collaborative supplier scoring by cross-functional teams.

[Material Requirements Planning](https://www.selecthub.com/manufacturing/mrp/) (MRP) coordinates procurement with production schedules, ensuring materials are available on time. Finally, the non-conformance tracking feature identifies and resolves non-compliance incidents, improving product quality and supplier accountability.

![Supplier Management SCM]()

Track supplier contracts and compliance on a dedicated dashboard. [Source](https://www.ivalua.com/solutions/process/strategic-sourcing/supplier-management/)

### 7\. Analytics and Forecasting

Custom dashboards and reporting help you visualize and analyze [key performance indicators](https://www.fourkites.com/blogs/8-critical-supply-chain-kpis/) (KPIs).

They also support demand forecast simulations for various scenarios, end-to-end supply chain visualizations and analytics capabilities such as fuel consumption, inventory optimization, labor utilization, procure-to-pay, and replenishment planning.

Furthermore, this SCM feature includes visualization tools for monitoring warehouse operations and tracking metrics, throughput and inefficiencies.

![SCM Requirements Korber]()

Analyze shipping status with the analytics dashboard.

### 8\. Purchase Order Management

This module creates automatic or recurring purchase orders for routine purchases, which reduces manual work and ensures timely procurement of goods or services.

You can also create blanket purchase orders, which are long-term contracts between an organization and a supplier to supply products or services at a fixed price consistently for a set period.

The software streamlines the purchase requisition process, allowing users to create and submit purchase requisitions for approval quickly. SCM features for tracking purchase orders let organizations monitor the status of their orders, identify potential issues and ensure timely delivery

![SCM Requirements Purchase Add]()

Keep track of purchase quantities, costs and status. [Source](https://www.unleashedsoftware.com/product/purchase-order-software/purchase-order-management)

[Get our Supply Chain Management Software Requirements Template](https://pmo.selecthub.com/scm-requirements-site-vers/)

## Other Features To Consider

### 9\. Cloud Access

This SCM feature provides immediate and unrestricted access to the system from any location with a secure internet connection. You can seamlessly integrate all aspects of supply chain management and minimize discrepancies between various units.

[Cloud SCM tools](https://www.selecthub.com/supply-chain-management/10-ways-cloud-computing-revolutionizing-supply-chain-management/) make significant contributions to [scalability and security](https://www.stord.com/blog/the-cloud-supply-chain-what-it-is-and-how-to-connect-to-it). They provide a streamlined format for scalability, eliminating the need for large-scale hardware upgrades. Security is a top priority, and advanced measures such as data encryption, user authentication and regular backups protect sensitive data from potential cyber threats.

Pay-as-you-go models provide operational flexibility and let organizations manage expenses, aligning technology investment with business needs effectively.

![Cloud Based SCM]()

Manage customers with cloud-based tools. [Source](https://venturebeat.com/business/bizslate-offers-cloud-based-supply-chain-management-tool-for-small-companies/)

### 10\. Collaboration

All supply chain partners can share real-time data, gaining end-to-end visibility into the entire supply network. The module supports user-configurable workflows, allowing you to tailor the system to your needs.

Bidirectional communication and decision-making centralize data from various sources and integrate seamlessly with existing systems, such as [ERP](https://www.selecthub.com/c/erp-software/) and [CRM](https://www.selecthub.com/c/crm-software/), ensuring smooth data transfer.

Real-time data sharing and visibility aid in the early detection of potential problems, allowing for proactive problem-solving and lowering the risk of costly disruptions.

![SCM Requirements Oracle Collaboration]()

Collaborate across divisions and distribution channels with Oracle.

[Get our Supply Chain Management Software Requirements Template](https://pmo.selecthub.com/scm-requirements-site-vers/)

## What Is Supply Chain Management?

[Supply chain management](https://www.selecthub.com/category/supply-chain-management/) is the central administration of all workflows that help you turn raw materials into finished products and deliver them to customers.

SCM allows you to improve your operations while gaining a competitive advantage in the market. It delivers intricate visibility into your operations and identifies opportunities to reduce losses or make profits.

You can reduce excess costs and deliver services faster by managing supply-side activities, resulting in a better customer experience.

But which SCM features should you strategically include to ensure your business is a front-runner?

Draven McConville, CEO and founder at [Klipboard](https://klipboard.io/), the London-based business management tool for field service businesses, says:

![Draven McConville]()

Strategically adding features that focus on the customer is a key part of increasing sales. By putting the user experience first, businesses not only get more new customers but also make more money because they keep more of the ones they already have. In a competitive market, how easy it is for customers to find and interact with products or services can set you apart, affecting their decision to buy and spreading good word of mouth.

Draven McConville

CEO and Founder, Klipboard

McConville expanded on the importance of customer-focused strategies,

![Draven McConville]()

A second benefit of this customer-centered approach is that it leads to less customer turnover. When companies emphasize making customers feel valued and understood, customers are less likely to look for alternatives. It’s not enough to just solve problems as they come up; you need to build a connection that goes beyond transactions.

Draven McConville

CEO and Founder, Klipboard

[Compare Supply Chain Management Software Leaders](https://pmo.selecthub.com/top-scm-software-site-vers/)

## System Selection Tips

Take the complexity out of system selection with our [Lean Selection methodology](https://www.selecthub.com/managed-selection-services/),

which helps you narrow your options and choose the ideal platform that fulfills your SCM requirements.

Here’s a quick breakdown of our nine simple steps:

![Lean Selection SCM Requirements]()

* **Establish:** Determine why you need a new platform and define the contributions you want it to make.
* **Collaborate:** Create a selection committee of your stakeholders, department leaders and power users.
* **Define:** Design a structured requirements checklist that addresses everyone’s needs.
* **Distribute:** Contact vendors and send them your checklist. We advise devising a fair scoring system to compare how each vendor meets your requirements.
* **Justify:** Collect scores from the previous round and determine whether you want a new system, additional features for an existing platform or to end your search here.
* **Prove:** Contact vendors and request demos, trial periods, proofs-of-concept (POC) and customer stories. It helps to have a scoring system for each vendor’s demos.
* **Rank:** Rank vendors based on the requirements and demo scores. By now, you should have two-three potential vendors suitable for your business.
* **Negotiate:** Review the top vendor’s contract and contact a lawyer or law firm for a second opinion. If you like the terms, sign and implement the solution. Otherwise, repeat this step with your other choices until you agree.
* **Sign:** Sign the papers and set up a detailed implementation strategy with your vendor.

[Get our Supply Chain Management Software Requirements Template](https://pmo.selecthub.com/scm-requirements-site-vers/?category=SCM%20Software)

## Next Steps

We’ve just given you a holistic approach to the top features of supply chain management that can secure, automate and optimize your processes.  
But if your business struggles with specific concerns, like a labor shortage or multi-level complexities, zero in on the relevant modules in our free [requirements template](https://pmo.selecthub.com/scm-requirements-site-vers/?category=SCM%20Software) to resolve them.

Did we miss any popular SCM requirements you’d like to see covered? Comment below!

[ Previous Supply Chain Management Modules ](https://www.selecthub.com/supply-chain-management/scm-modules/) 

[ Next Best SCM Tools ](https://www.selecthub.com/supply-chain-management/13-essential-supply-chain-management-tools/) 

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#### [EDI](https://www.selecthub.com/category/electronic-data-interchange/)

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[Making sure a complex system such as supply chain management runs smoothly is a difficult… ](https://www.selecthub.com/supply-chain-management/5-kpis-supply-chain-analytics-tools/)

[ ![SelectHub](https://www.selecthub.com/wp-content/uploads/2023/10/cropped-selecthub_logo-96x96.jpg) SelectHub ](https://www.selecthub.com/author/selecthub/) Aug 28, 2024 

 Originally published in August 2018 and last updated in March 2026\. Contributions from Urnesha Bhattacharjee, Hunter Lowe, and Draven McConville.

## About the Contributors

 The following SelectHub team members and subject matter experts helped research, create, and review this content.

[ ](https://www.selecthub.com/author/urnesha-bhattacharjee/) 

 Written by  
[Urnesha Bhattacharjee](https://www.selecthub.com/author/urnesha-bhattacharjee/) 

Technical Content Writer

Urnesha is a former Technical Content Writer at SelectHub, covering supply chain management, TMS, and compensation management. She has worked in content writing, editorship, and translation for the last 7 years. Her dream is to be a lifelong learner and venture out of her comfort zone as she does so. She's passionate about access to quality education, animal rights, and sustainability, among other things. She holds a Master's degree in English literature from the University of Hyderabad. Outside of work, you can find her listening to The Beatles, making memes, or volunteering at an animal NGO.

[See Full Bio](https://www.selecthub.com/author/urnesha-bhattacharjee/)

[ ](https://www.selecthub.com/author/hunter-lowe/) 

 Edited by  
[Hunter Lowe](https://www.selecthub.com/author/hunter-lowe/) 

Content Editor

Hunter Lowe is a Content Editor, Writer and Market Analyst at SelectHub. His team covers categories that range from ERP and business intelligence to transportation and supply chain management. Hunter is an avid reader and Dungeons and Dragons addict who studied English and Creative Writing through college. In his free time, you'll likely find him devising new dungeons for his players to explore, checking out the latest video games, writing his next horror story or running around with his daughter.

[See Full Bio](https://www.selecthub.com/author/hunter-lowe/)

[ ](https://www.selecthub.com/author/draven-mcconville/) 

 Contributions by  
[Draven McConville](https://www.selecthub.com/author/draven-mcconville/) 

Expert Contributor

Draven McConville, founder of job management software Klipboard, began his entrepreneurial journey with just £200 and an education. His achievements include winning the Chamber of Commerce’s Young Person in Business award, receiving the Freedom of The City of London, and securing more than $3 million in investment to expand his business globally.

[See Full Bio](https://www.selecthub.com/author/draven-mcconville/)

SelectHub5 KPIs for Supply Chain Analytics and the Tools to Find Them

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####   **bharath**  \- May 30, 2022  
I have 4 years experience in scm at well reputed organization till now i don’t know most of topics covered in your article ,i couldn’t believe i have to learn more about scm thanks for your great work  
**[Reply](#comment-134224)**
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####   **kimmy kervel**  \- February 8, 2022  
this is mind blowing, thanks for sharing  
**[Reply](#comment-113530)**
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####   **Lil B.**  \- February 3, 2022  
That was really informative mr Riddhiman Roy  
**[Reply](#comment-112893)**
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####   **Broderick Bowes**  \- November 15, 2021  
A very informative article providing a good panaromic view of the key components of SCM.  
**[Reply](#comment-98359)**
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####   **ormekur til kat**  \- February 16, 2020  
Hi there to every body, it’s my first go to see of this website; this web site contains amazing and in fact excellent stuff designed for visitors.  
**[Reply](#comment-30871)**  
[![Avatar photo](https://www.selecthub.com/wp-content/uploads/2023/11/cropped-Hunter-Headshot-48x48.jpg)](https://www.selecthub.com/author/hunter-lowe/)  
####   **Hunter Lowe**  \- February 17, 2020  
Thank you for the comment! Happy to see our website has been informative for you!  
**[Reply](#comment-30905)**
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####   **jyoti sharma**  \- August 29, 2018  
The most common features of supply chain management software include Inventory management – for tracking and managing the availability of raw materials, the number of stocked goods or spare parts. Order management – for automating purchase order processes. I totally agree with the point mentioned. Thanks for sharing.  
**[Reply](#comment-12042)**

[ Go to mobile version ](https://www.selecthub.com/supply-chain-management/supply-chain-management-software-features-requirements/?amp=1) 

**Tier 1:**  
 Fully/moderately supported out-of-the-box allowing for quick and easy deployment.  
 Fully or moderately supported out-of-the-box with industry-leading capabilities and is immediately available after installation without needing any add-ons, integrations, or custom development. 

**Tier 2:**  
 Supported with workarounds or add-ons that may require additional costs.  
 Not directly available in the software, but can be accomplished using other built-in features, workarounds, or add-ons/products from the vendor with or without any additional cost. 

**Tier 3:**  
 Requires partner integrations or custom development that is often at an additional cost.  
 Requires additional integrations, plugins, marketplace applications from a third-party vendor, or custom development using the APIs, libraries, extensions, and development framework supported by the software, with or without any additional cost. 

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```json
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