Over the years, technological advancements have revolutionized the way we live and do business. The supply chain domain, which is an integral aspect of the business process, has not been spared. These changes affect physical processes such as the transportation of products to the market, as well as intangible aspects such as communication and management functions. Technology has revolutionized the supply chain functions in several ways.
Overview of Supply Chain Management
Supply chain management is at the center of successful commerce. It describes the movement of products from their point of origin to the end consumer. Businesses profit if they can efficiently offer products to their customers cost-effectively. Supply chain management enables entrepreneurs to add value to raw materials and convert them into useful products and services. Aside from movement, another essential domain of supply chain management is storage. The raw materials and other things necessary in the production process, as well as the finished products, require storage to ensure accessibility and smooth business flow.
Supply chain management is a vital factor in the achievement of a competitive edge for business. For example, if the supply chain sector fails, the company cannot avail its products to the market. Efficient supply chain management entails effective communication and coordination of processes and activities. The integration of relevant technological solutions has dramatically impacted the supply chain management functions.
How Technology Has Changed SCM
Technological improvements have resulted in the automation of most supply chain functions. For example, there are computer programs that collect and analyze data in real-time. The applications are used in logistics, warehousing, and other supply chain domains to ensure availability of business intelligence that enhances the smooth flow of supply chain processes.
Technological solutions such as logistics and inventory management systems support efficient, real-time communication. The availability of information results in improved operations.
• Increased business efficiency
With the emerging technologies such as human resource management, artificial intelligence, and data analytics, businesses can save time and money they spend on transporting and storing raw materials and finished products. Firms also use technology to manage fleets, inventory, and labor functions. In the process, there is increased transparency and efficiency, resulting in improved productivity for the business.
The supply chain management sector has significantly benefitted from the technological advancements that continue to occur. Technology has changed all the aspects of the supply chain domain significantly. There is improved communication, and a wide range of applications to support logistics, inventory management, fleet management, operations management, and human resource management. The SCM sector will continue to experience changes as advanced technologies continue to emerge. These changes help businesses to cut supply chain costs and save time, resulting in improvements in the overall business efficiency.
Information provided by The Sheffield Group, the leader in MLM Consulting.