Global supply chain disruptions are becoming increasingly common due to various uncontrollable factors. Organisations dependent on supply chains find optimising this process and minimising uncertainties more challenging.

As an industry-recognised SAP software for supply chain management, SAP Business One (or SAP B1), an ERP tool, can streamline supply chains for small-to-medium businesses (SMBs).

Let’s understand more about the supply chain management (SCM) functionality of SAP B1–along with its features and benefits. So, let’s start.

SAP Business One Supply Chain Management

Understanding SCM in SAP Business One

This supply chain software integrates various aspects of a supply chain process – from procurement and inventory management to customer order fulfilment.

In the face of rising supply chain uncertainties, SAP B1 provides a supply chain management (SCM) module that can:

  • Connect business processes and eliminate process silos to improve supply chain performance and build sustainable operations.
  • Leverage AI technology to contextualise business decisions and avoid mistakes.
  • Provide end-to-end business visibility into the supply chain ecosystem, thus improving operational efficiency.

Next, look at some of the SAP Business One SCM features for SMBs.

Features of SAP Business One SCM

Here are some of the key features of SCM in SAP Business One:

1. Collaboration

With SAP B1 SCM’s collaboration feature, organisations can connect seamlessly with suppliers, manufacturers, and customers. This helps align the company’s supply and demand, optimising inventory and improving customer relations.

2. Planning

SAP Business One’s SCM module’s planning feature enables organisations to generate their operational plans based on current data. This allows them to optimise resource utilisation, improve the flow of materials, and improve business decisions.

3. Coordination

SAP B1 SCM can use the coordination feature to synchronise information from various business units in the company. This helps in real-time data exchange, thus presenting the latest information without delays.

4. Execution

The execution feature of SAP Business One SCM enables organisations to execute their supply chain operations with optimum efficiency. This component is essential for meeting changing customer needs and reducing production-related issues.

Next, look at some SAP B1 SCM software benefits for small enterprises.

Benefits of SAP Business One SCM

Here are some of the key benefits of SCM in SAP Business One:

1. Improves Supply Chain Visibility

With the integrated SCM module of SAP Business One, organisations have end-to-end visibility into their supply chain operations. Through SAP B1 SCM integration, they can collect and share real-time supply chain data from across business functions.

2. Better Operational Efficiency

With the SAP B1 SCM module, organisations can automate their entire supply chain operations, reducing manual effort and improving operational efficiency. This can help companies reduce their production issues and the cost of sold goods.

3. Improved Information Sharing

By integrating supply chain data into a single centralised system, SAP Business One enables departments to generate relevant reports – and share the data between multiple locations. Companies can now communicate their shipment status to customers and suppliers of the raw materials.

4. Flexible Supply Chains

The SAP B1 SCM module is easily customisable for different industries and types of enterprises. This helps build flexible supply chains resilient to business disruptions or changing customer demands.

5. Cost Efficiency

A cost-efficient supply chain is essential for any SMB enterprise. Through automation, SAP B1 can save business costs caused by delays, human errors, and manual processes. It also reduces the costs of overstocking items in warehouse facilities.


SAP Business One is among the best supply chain management solutions for small and growing companies. As an ERP tool, it easily integrates various business functions under a centralised platform, enhancing efficiency and information sharing.

Praxis Info Solutions is among India’s most experienced SAP B1 partners based in Pune. With our expertise as an SAP implementation partner, we have customised and delivered SAP solutions for the benefit of our global customers.

Are you looking for an experienced SAP B1 partner for your next project? We can help. Contact us today to learn more.