Every business always strives to improve efficiency at multiple levels within its operations and organization. One area that often becomes emerges as a challenge in the field of supply chain management. Coordinating with everyone from raw material suppliers to distributors, wholesalers, and retailers is what constitutes the supply chain.
Improving efficiency in supply chain operations is one of the fundamental KPIs of any business. This has become more complicated given the opening up of newer sales points like Ecommerce platforms, Social Media shopping integrations, and various other listing sites.
In this article, we speak to leading B2B experts and ask them how technology can be an empowering solution to overcome supply chain issues.
How Technology can aid in Improving Supply Chain Logistics and Management?
Technology is evolving by leaps and bounds every year, and its applications are making its presence felt in different industries all over the world.
- The first and most important advantage of using technology in supply chain management is to help in improving the tracking of products.
- Technology can also help in creating estimates and timelines of various processes that are involved in the creation of a final product.
- It can also shed light on areas that need focus or attention that can help the higher management to take adequate steps in this
- Wastages and redundancy can be dramatically reduced by using technology and can help contribute to creating a far efficient organization.
- Employee functions and workforce productivity can be streamlined as everyone will know about their roles and time-frames by using technologies.
In the words of Verusen, a leading inventory management software company, the end goal of technological applications in the supply chain helps businesses maximize chances of generating profits.
List of 5 Ways Technology is Impacting the Supply Chain Industry in 2021
- Greater Control over the Production Cycle-
A single finished good that a consumer buys has to travel at least a hundred steps before it reaches the final stage. Ensuring control over all the steps can help a manufacturer optimize costs, the time factor, reduce wastages at each and every step of the way. This can improve turnaround times and lead to products reaching markets in finished form faster.
- Improved Inventory Management-
If there is one area of consensus in terms of a common challenge faced by manufacturers, it is inventory management. At both ends of the spectrum- excess or too low (inventory), can cause massive hardships to business organizations. Using AI-enabled software can help make accurate predictions, and show exactly the levels that need to be maintained.
- Better Coordination with Stakeholders and Vendors-
Someone produces the raw material, while someone else produces the packaging. In addition, the transportation vendor is different. All this means that a single manufacturer has to deal with multiple stakeholders to create a successful process of production. Using technology through the likes of a workflow task assignment software can help build coordination.
- Productive and Efficient Workforce-
Studies have shown that using software that helps allocate work, allows for follow-ups, and includes timelines improves the final productivity of employees. It also makes employees understand what they are exactly responsible for. This helps them perform their roles and goals much better and they end up contributing to the overall performance of a business.
- Improved Final Delivery to the Consumers-
At the end of the day, it is about ensuring that customers are happy with the final delivery timings and the quality of the products. Last-mile delivery seems to be quite of a challenge for many manufacturers. Tech applications that allow for tracking using GPS positioning can allow manufacturers to see the status of deliveries and make necessary inputs to accelerate the same.
The Bottom Line
It is important that businesses understand that technology and digital fields can help them make the transition to the next stage of human society. Much in the same way as computers and the internet did the same ten to twenty years back. Tech applications are no longer a luxury, but a necessity to improve productivity and generate higher revenues and profits.