The supply chain is an important pillar in any industrial facility or business. It determines the efficiency of the distribution process and the quality of the product when it finally reaches the consumer. Supply chain management is a fundamental element of productivity, and improving it is a certain necessity. One way business have attempted to improve their supply chain management is through the adoption of technology. Below are five ways through which technology has revolutionized the supply chain management:
Enhanced tracking and visibility
Technology has revolutionized supply chain management by making room for improved visibility and monitoring. Modern technology uses GPS systems to track and monitor the entire supply chain through wireless technology. Thanks to modern technology, supply managers can instigate necessary changes on the fly to avert imminent disruptions in the supply chain. It is possible through the use of such technology as Radio Technology. Radio Technology works by attaching RFID chips to products to make it possible to track using modern devices such as computers and tablets. The result is a hugely satisfied customer base, and hence, increased profitability for the company.
Modern technology is helping most companies to improve their productivity. One such company is John Deer which is using logistics management software in its supply chain to boost productivity. Nike, working together with DHL, is leveraging the logistics management software to monitor warehousing and distribution processes. The integration of modern technology in supply chains not only reduces operation costs but also increases efficiency through reduction of errors. When customers receive their orders on time, chances are they will come back for more or recommend the business to their family and friends.
Increased efficiency in weighing
Modern technology has caused a revolution in the weighing of merchandise along the supply chain. The weighing process has been one of the greatest challenges facing big business as it would take too much time to weigh several trucks and ensure accurate results. Use of traditional scales is not only tedious but also not entirely accurate. However, modern technology has brought about digitalized onboard truck scales, eliminating the need for trucks to queue for extended periods of time as they wait their turn at the weighing machines. The onboard truck scales are also being used as a safety guarantee to ensure that vehicles do not overload. Conveyor systems have also been automated to make the loading process easier.
Keeping in touch with customers in real-time
Businesses are also harnessing social media explosion to enhance their supply chains and drive profitability. With more than 1 billion active Facebook users every month, companies are finding it hard to resist tapping into social media to enhance their supply chain activities. Social media platforms are providing companies with avenues of collecting real-time information from both prospective and existing customers. Businesses are now using social media to communicate changes in prices, timeframe and to improve the visibility of their companies through social media advertising.
Increased scope of data collection
Forbes reports several factors that are driving businesses to adopt modern technology in their supply chains. Forbes points out customers’ demand for faster response times (57%), rising customer expectations (52%) and the volatility of market (44%) as some of the areas companies have to look into by improving the efficiency of their supply chains. One way to improve on such areas is to increase the scope of data collection along the supply chain. Companies are, therefore, adopting the use of Data Analytics to analyze the large volumes of data streaming in from customer surveys, RFID, call center logs and CRM transactions.
The benefits of integrating modern technology in the supply chain are immense. Business will gain substantially from increased scope of data collection, current weighing methods, and improved productivity which will ultimately result in increased profitability. The revolution in the supply, therefore, portends better times ahead for businesses that are adopting it.