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SCM TECHNOLOGIESAND THEIR APPLICABILITYIN SC
OPERATIONS
Sibitha K. S.
School of Management Studies,
CUSAT, Kochi – 22
E-mail: sivansibitha@gmail.com
Abstract: Modern supply chain management is entering the third wave of a multi-decade
progression towards greater levels ofsophistication in addressing increasing levels of product
variety, fulfilment options, and customer engagement, at the lowest possible cost. A nexus of
business process and technologyforces is ushering in unprecedented change for supply chain
and retail operations within all companies across the globe. This paper investigates these
forces and the associated implications for the future of supply chain management. Today’s
global markets and fierce competition among the enterprises force them to adapt and
implementnew strategies and solutions for the revealed continuous challenges. The purpose
of this paper is to examine the SCM technologies and their applicability in SC operations.
Keywords: Supply chain management, RFID, Artificial intelligence, IOT
1.0 INTRODUCTION
1.1 General Information
Supply chain management (SCM) is the management of a network of interconnected
businesses involved in the ultimate provision of product and service packages required
by end customers (Harland,1996).Supplychain management spans all movement and
storage of raw materials, work-in-process inventory, and finished goods from point of
origin to point of consumption (supply chain).
Another definition is provided by the APICS Dictionary when it defines SCM as the
"design, planning, execution, control, and monitoring of supply chain activities with the
objective of creating net value, building a competitive infrastructure, leveraging
worldwide logistics, synchronizing supply with demand and measuring performance
globally."
2.0 SCM TECHNOLOGIES
2.1 Computerized Shipping and Tracking
With the aid of modern technologies and Internet-based software, you can simplify the
supply process and dramatically reduce shipping errors. Eg: Software like FlashView
enables savvy business owners to consolidate all aspects of their supply chain in one
place.The software will allow you to digitallyorganize inventory data, monitor and manage
shipping and tracking information, and create electronic invoices with ease. Through the
use of supply chain management technologies, you can greatly reduce the tim e spent
shipping,receiving,tracking,and compiling order data,which will save your company both
time and money.
Not only will FlashView improve the operational efficiency of your supply chain, it will also
greatly enhance the customer experience by providing consumers with the ability to
continuously track the status of their orders. Through digitalized tracking, you can
significantlyreduce shipping errors and more rapidlyrespond to the errors that do occur. In
this day and age, having technology like FlashView is essential to running a thriving
corporation that is both business and consumer-friendly.
2.2 Radio Frequency Identification (RFID)
Radio Frequency Identification (RFID) is a vital piece of technology that can provide
innumerable benefits to the business owner. RFID chips are placed on every product and
provide a way for business owners to easily track their inventory. Due to the increased
visibility RFID chips provide, they will substantially improve your supply chain efficiency by
detecting any order anomalies as they occur, enabling employees to immediately correct
mistakes.In addition,it allows for easier and more consistent tracking, enabling business
owners to have maximum control and visibility over their products at all times. Since RFID
chips provide computerized product management, they can eliminate the potential for
errors, simplify the supply chain, and reduce operating costs.
2.3 Use Social Media to Streamline Supply Chain
Social media is a popular technology that has swept the world. With over 288 million
Twitter users and 1.23 billion Facebook users,it’s no wonder manybusinesses are turning
to social media to gain visibility for their company. In fact, over 70 percent of all Fortune
500 companies rely on social media as part of their marketing strategy and supply chain
management.Through the use of social media,you can create more open communication
with customers, increase the visibility of your company, improve the demand on your
products, utilize cost-effective and time-efficient marketing strategies, lower your
operational costs, and enhance your company’s overall productivity. Social media can be
used to interact with customers, respond to questions, report accidents or weather
conditions thatmay impede deliveryschedules,and create automated updates about your
inventory.
One of the mostimportantbusiness areas in any industrial facility is, of course, the supply
chain.This is the point of operations thatnot only determine distribution efficiency but also
the quality of the product a customer buys.Supply chain managementis a key component
of productivity and this has necessitated a paradigm shift in the way it is done. One of the
mostsignificant changes is the adoption of modern technology to enhance efficiency and
accountability in the entire supply chain.
Computerized chain management has revolutionized modern business by allowing for
better visibility and tracking. The technology allows for real-time monitoring of the entire
chain including shipping and invoicing. The dynamism in technology products including
smartphones, GPS devices, and tablets among others has also seen a steady rise in
portable supplychain technologywhich is invaluable in monitoring the supply chain using
wireless technology.
The key take away from this revolutionary technology is, of course, the flexibility it offers
logistical managers in tracking and monitoring the entire chain.Supply managers can now
make adjustments on the fly which averts disruptions in the supplychain.This in enhances
customer satisfaction.
Global brands such as The John Deere Company are leveraging logistic management
software to improve productivity in the supply chain. Others like Nike, in collaboration with
DHL Supply Chain, are leveraging this technology to enable real-time monitoring of the
warehousing and distribution process. In simple speak, integrating technology in supply
chain management ensures:
 Reduction in operational costs
 Improved efficiency through reduction of errors
 Greater customer satisfaction on the other end.
3.0 INNOVATIONS THAT HAVE BEEN ADOPTED BY INDUSTRY LEADERS
To appreciate the need for supply chain management (SCM) technologies, consider
some practical innovations that have been adopted by industry leaders:
3.1 Radio Technology
One of the greatest headaches for any supply chain manager is the increase in
anomalies when an order is in transit. This not only leads to losses but eventually also
has a negative impact on a brand. If a product is lost during transit, the supplier bears
all the costs and moreover, they have to bear with the ensuing cost of disruption. By
adoption of Radio Frequency Identification (RFID) technology, a company can
effectively monitor every productboth at the production line and in the supply line. RFID
chips are placed on all items which helps employees to quickly detect any anomalies in
an order.It is an innovative way of correcting a problem before it ruins the entire supply
chain.
3.2 Advanced Weighing Technology
One of the greatest encumbrances in the supply chain is in the weighing process.
Outdated truck scales are still used in most industrial facilities which greatly
compromise efficiency. Luckily, modern technology includes the ingenious onboard
truck scales.These allow for seamless operations when access to platform scales is not
available. The scales measure payload weight and the truck’s gross weight. They
enhance productivity by ensuring a truck carries the maximum weight right from the
pointof loading while also saving time and money. The onboard truck scales have also
been adopted as a safety guarantee to ensure operators within a warehouse for
instance only carry the allowed weight on their lifts.
3.3 Social Media Revolution
There are over 1.3 billion Facebook monthlyactive users (MAUs) and about 320 million
MAUs. With such numbers,itmakes more sense for modern businesses to leverage the
power of social media to optimize their supply chain operations. It is an ingenious way
to open more channels and remain in touch in real-time with all stakeholders in the
supplychain.It is easy to respond to questions, report in real-time about incidences in
the supply chain, report price changes, and also enhance visibility of the company.
3.4 Transport Management Software
Computerized supplies management is the future of the business. The use of
computerized shipping and tracking systems helps to integrate all operations from one
panel.Moreover, it is now possible to have such a panel in your mobile device meaning
you can organize your inventory data, manage shipping,monitor distribution and create
an electronic bill of landing, all in the comfort of your office or while on the go. This
enhances customer experience and reduces errors in the entire process.
3.5 Data Analytics
The 21stcentury has aptly been labeled the information age and this is because of the
amountof data readily available. Every new tool is generating copious volumes of data
that is driving intelligence which the supply chain management can use effectively.
Think of all sources of data from RFID, customer surveys, CRM transactions and call
center logs and you appreciate that supplies management will soon be driven by big
data just like the modern stock exchange market.
4.0 TOP TRENDS
AI, IoT, advanced analytics and blockchain are some of the trends driving competitive
advantage for supply chains.
4.1 Artificial intelligence
AI carries greatpotential to revolutionize supplychain processes. The ability to apply AI
to enhance, and even automate, decision making, reinvent business models and
ecosystems, and remake the customer experience could make many other emerging
technology trends redundant. However, although current AI solutions can find patterns
and predict future scenarios,they still lack decision-making abilities. Combining pattern
capabilities with more advanced prescriptive capabilities will therefore be critical to
widespread supplychain uptake, enabling users to dedicate their skills to higher-order
use cases such as strategic network design or capacity planning.
4.2 Advanced analytics
Advanced analytics enable companies to proactively take advantage of future
opportunities and mitigate future adverse events. Prescriptive analytics can improve
decision making in functional areas like supply chain planning, sourcing, and logistics
and transportation, and can be deployed to improve end-to-end supply chain
performance.Processes thatpreviouslyrelied on human judgmentcan be powered with
predictive and prescriptive analytics that could have a significant impact on future
demands for supply chain talent.
4.3 Internet of Things (IoT)
Adoption of the IoT is growing in select supply chain domains, but rarely as part of a
complete end-to-end supply chain process. One exception is the air and defense
industry, where airplanes have thousands of sensors and data is leveraged in the
extended supply chain. Other potentially impactful supply chain use cases are in
preventative maintenance, sourcing, manufacturing, logistics, demand management
and services. These include improved asset utilization, higher uptime through remote
monitoring and maintenance, improved customer service by better understanding
customer behavior and needs, and proactively responding to and shaping customer
demand.
4.4 Intelligent things
Current supply chain use cases for intelligent things — such as autonomous mobile
robots and autonomous vehicles — are mainly targeted at defined scenarios and
controlled environments,such as in warehouses.Intelligentthings will make their initial
business impactacross a wide spectrum of asset-centric, product-centric and service-
centric industries.As a result, the ability for organizations to assist, replace or redeploy
their human workers in more value-adding activities will potentially create high, even
transformational, business benefits.
4.5 Conversational systems
Conversational systems — most recognizably implemented today in virtual personal
assistants (VPAs) and chatbots — are taking interaction to the next level with the
addition of conversational commerce.Notonly can they handle discovery questions and
offer solutions without any human agent involvement, conversational systems can
enable transactions, handle payments, ensure delivery and provide customer service.
4.6 Robotic process automation
Robotic process automation (RPA) allows supply chain leaders to cut costs, eliminate
keying errors,speed up processes and link applications. For example, an organization
may want to work with structured data to automate an existing manual task or process
with minimal process re-engineering or to avoid major system integration projects or
specific new major application deployments.
4.7 Immersive technologies
Immersive technologies such as virtual reality (VR) and augmented reality (AR) allow
supply chain businesses to enhance employee and customer digital experiences.
Gartner estimates VR will reach mainstream adoption in the next two to five years, with
AR going mainstream in the next five to 10 years, but these technologies are already in
use in a variety of industries. These include enhanced repair and maintenance
capabilities in manufacturing,logistics and warehousing and better purchasing choices
for customers leveraging product visualization or store layout and planning.
4.8 Blockchain
Certain highly decentralized supply chain management functions such as smart
contracts or traceability and authentication are prime candidates for blockchain.Multiple
business use cases are yet to be proven, but some early pilot projects have emerged
that are experimenting with the potential of blockchain for supply chain. For example,
blockchain is being used to track the movementof diamonds from mining to retail stores
by developing a digital record that includes the unique attributes, including color, carat
and certificate number that can be inscribed by laser into the stone.
5.0 CONCLUSION
The whole idea of adopting technologyin supplies managementis to simplifythe process, thus
eliminating redundancy.By allowing a seamless process,modern technology will not only help
reduce costs but also minimize the risks imminent in the supply chain. This is an innovative
way to stay ahead of the competition by enhancing customer satisfaction and improving
efficiency.
6.0 REFERENCES
1. Siepermann C, “Logistics Cost Accounting: Which System Is Best Suited?”
Nottingham University Business School, Nottingham, 2007, pp. 270-278.
2. Margaret Rouse, 2018, https://searcherp.techtarget.com/definition/supply-chain-management-
SCM
3. Somani J. P, Narasimhan B, Sharma R, “Customer DataManagement–a Key Pre-requisite in
Improving Supply Chain Efficiency”, 2007, pp. 209-214.
4. Injazz J. Chen, 2003,
https://www.emeraldinsight.com/doi/full/10.1108/14637150310496758 Sundararajan M. K,
Venkataraman S, Narasimhan B, “Formulating Robust IT Strategies to Tackle Supply Chain
Dynamics”, 2007, pp. 11-16.
5. Tang C, Tomlin B, The Power of Flexibility for Mitigating Supply Chain Risks, Nottingham
University Business School, Nottingham, 2007, pp. 157-163.
6. Anonymous, 2013, https://www.logisticsbureau.com/crm-and-the-supply-chain
7. M.Jajima, “Stategic Value of RFID in Supply Chain Management”, Journal of Purchasing &
Supply Chain Management 13(2007) pp 261- 273
8. Anonumous, http://whatiserp.net/other- softwarebusiness/emerging-technologies-in-supply-
chainmanagement/
9. M. Martin (2010) Logistics/Supply Chain website http://logistics.about.com/b/2010/09/02/sup
ply-chain-issues-cost-india-65-billion-each-year.html
10. (2010) Money control/Business News website[online].
http://www.moneycontrol.com/news/business/walmart-india-growth-faces-supply-
chainhurdle_473232.html

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Scm technologies and their applicability in sc operations

  • 1. SCM TECHNOLOGIESAND THEIR APPLICABILITYIN SC OPERATIONS Sibitha K. S. School of Management Studies, CUSAT, Kochi – 22 E-mail: sivansibitha@gmail.com Abstract: Modern supply chain management is entering the third wave of a multi-decade progression towards greater levels ofsophistication in addressing increasing levels of product variety, fulfilment options, and customer engagement, at the lowest possible cost. A nexus of business process and technologyforces is ushering in unprecedented change for supply chain and retail operations within all companies across the globe. This paper investigates these forces and the associated implications for the future of supply chain management. Today’s global markets and fierce competition among the enterprises force them to adapt and implementnew strategies and solutions for the revealed continuous challenges. The purpose of this paper is to examine the SCM technologies and their applicability in SC operations. Keywords: Supply chain management, RFID, Artificial intelligence, IOT 1.0 INTRODUCTION 1.1 General Information Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland,1996).Supplychain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain). Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging
  • 2. worldwide logistics, synchronizing supply with demand and measuring performance globally." 2.0 SCM TECHNOLOGIES 2.1 Computerized Shipping and Tracking With the aid of modern technologies and Internet-based software, you can simplify the supply process and dramatically reduce shipping errors. Eg: Software like FlashView enables savvy business owners to consolidate all aspects of their supply chain in one place.The software will allow you to digitallyorganize inventory data, monitor and manage shipping and tracking information, and create electronic invoices with ease. Through the use of supply chain management technologies, you can greatly reduce the tim e spent shipping,receiving,tracking,and compiling order data,which will save your company both time and money. Not only will FlashView improve the operational efficiency of your supply chain, it will also greatly enhance the customer experience by providing consumers with the ability to continuously track the status of their orders. Through digitalized tracking, you can significantlyreduce shipping errors and more rapidlyrespond to the errors that do occur. In this day and age, having technology like FlashView is essential to running a thriving corporation that is both business and consumer-friendly. 2.2 Radio Frequency Identification (RFID) Radio Frequency Identification (RFID) is a vital piece of technology that can provide innumerable benefits to the business owner. RFID chips are placed on every product and provide a way for business owners to easily track their inventory. Due to the increased visibility RFID chips provide, they will substantially improve your supply chain efficiency by detecting any order anomalies as they occur, enabling employees to immediately correct mistakes.In addition,it allows for easier and more consistent tracking, enabling business owners to have maximum control and visibility over their products at all times. Since RFID chips provide computerized product management, they can eliminate the potential for errors, simplify the supply chain, and reduce operating costs. 2.3 Use Social Media to Streamline Supply Chain Social media is a popular technology that has swept the world. With over 288 million Twitter users and 1.23 billion Facebook users,it’s no wonder manybusinesses are turning to social media to gain visibility for their company. In fact, over 70 percent of all Fortune 500 companies rely on social media as part of their marketing strategy and supply chain management.Through the use of social media,you can create more open communication with customers, increase the visibility of your company, improve the demand on your products, utilize cost-effective and time-efficient marketing strategies, lower your operational costs, and enhance your company’s overall productivity. Social media can be used to interact with customers, respond to questions, report accidents or weather conditions thatmay impede deliveryschedules,and create automated updates about your inventory.
  • 3. One of the mostimportantbusiness areas in any industrial facility is, of course, the supply chain.This is the point of operations thatnot only determine distribution efficiency but also the quality of the product a customer buys.Supply chain managementis a key component of productivity and this has necessitated a paradigm shift in the way it is done. One of the mostsignificant changes is the adoption of modern technology to enhance efficiency and accountability in the entire supply chain. Computerized chain management has revolutionized modern business by allowing for better visibility and tracking. The technology allows for real-time monitoring of the entire chain including shipping and invoicing. The dynamism in technology products including smartphones, GPS devices, and tablets among others has also seen a steady rise in portable supplychain technologywhich is invaluable in monitoring the supply chain using wireless technology. The key take away from this revolutionary technology is, of course, the flexibility it offers logistical managers in tracking and monitoring the entire chain.Supply managers can now make adjustments on the fly which averts disruptions in the supplychain.This in enhances customer satisfaction. Global brands such as The John Deere Company are leveraging logistic management software to improve productivity in the supply chain. Others like Nike, in collaboration with DHL Supply Chain, are leveraging this technology to enable real-time monitoring of the warehousing and distribution process. In simple speak, integrating technology in supply chain management ensures:  Reduction in operational costs  Improved efficiency through reduction of errors  Greater customer satisfaction on the other end. 3.0 INNOVATIONS THAT HAVE BEEN ADOPTED BY INDUSTRY LEADERS To appreciate the need for supply chain management (SCM) technologies, consider some practical innovations that have been adopted by industry leaders: 3.1 Radio Technology One of the greatest headaches for any supply chain manager is the increase in anomalies when an order is in transit. This not only leads to losses but eventually also has a negative impact on a brand. If a product is lost during transit, the supplier bears all the costs and moreover, they have to bear with the ensuing cost of disruption. By adoption of Radio Frequency Identification (RFID) technology, a company can effectively monitor every productboth at the production line and in the supply line. RFID chips are placed on all items which helps employees to quickly detect any anomalies in an order.It is an innovative way of correcting a problem before it ruins the entire supply chain. 3.2 Advanced Weighing Technology
  • 4. One of the greatest encumbrances in the supply chain is in the weighing process. Outdated truck scales are still used in most industrial facilities which greatly compromise efficiency. Luckily, modern technology includes the ingenious onboard truck scales.These allow for seamless operations when access to platform scales is not available. The scales measure payload weight and the truck’s gross weight. They enhance productivity by ensuring a truck carries the maximum weight right from the pointof loading while also saving time and money. The onboard truck scales have also been adopted as a safety guarantee to ensure operators within a warehouse for instance only carry the allowed weight on their lifts. 3.3 Social Media Revolution There are over 1.3 billion Facebook monthlyactive users (MAUs) and about 320 million MAUs. With such numbers,itmakes more sense for modern businesses to leverage the power of social media to optimize their supply chain operations. It is an ingenious way to open more channels and remain in touch in real-time with all stakeholders in the supplychain.It is easy to respond to questions, report in real-time about incidences in the supply chain, report price changes, and also enhance visibility of the company. 3.4 Transport Management Software Computerized supplies management is the future of the business. The use of computerized shipping and tracking systems helps to integrate all operations from one panel.Moreover, it is now possible to have such a panel in your mobile device meaning you can organize your inventory data, manage shipping,monitor distribution and create an electronic bill of landing, all in the comfort of your office or while on the go. This enhances customer experience and reduces errors in the entire process. 3.5 Data Analytics The 21stcentury has aptly been labeled the information age and this is because of the amountof data readily available. Every new tool is generating copious volumes of data that is driving intelligence which the supply chain management can use effectively. Think of all sources of data from RFID, customer surveys, CRM transactions and call center logs and you appreciate that supplies management will soon be driven by big data just like the modern stock exchange market. 4.0 TOP TRENDS AI, IoT, advanced analytics and blockchain are some of the trends driving competitive advantage for supply chains. 4.1 Artificial intelligence AI carries greatpotential to revolutionize supplychain processes. The ability to apply AI to enhance, and even automate, decision making, reinvent business models and ecosystems, and remake the customer experience could make many other emerging technology trends redundant. However, although current AI solutions can find patterns and predict future scenarios,they still lack decision-making abilities. Combining pattern capabilities with more advanced prescriptive capabilities will therefore be critical to
  • 5. widespread supplychain uptake, enabling users to dedicate their skills to higher-order use cases such as strategic network design or capacity planning. 4.2 Advanced analytics Advanced analytics enable companies to proactively take advantage of future opportunities and mitigate future adverse events. Prescriptive analytics can improve decision making in functional areas like supply chain planning, sourcing, and logistics and transportation, and can be deployed to improve end-to-end supply chain performance.Processes thatpreviouslyrelied on human judgmentcan be powered with predictive and prescriptive analytics that could have a significant impact on future demands for supply chain talent. 4.3 Internet of Things (IoT) Adoption of the IoT is growing in select supply chain domains, but rarely as part of a complete end-to-end supply chain process. One exception is the air and defense industry, where airplanes have thousands of sensors and data is leveraged in the extended supply chain. Other potentially impactful supply chain use cases are in preventative maintenance, sourcing, manufacturing, logistics, demand management and services. These include improved asset utilization, higher uptime through remote monitoring and maintenance, improved customer service by better understanding customer behavior and needs, and proactively responding to and shaping customer demand. 4.4 Intelligent things Current supply chain use cases for intelligent things — such as autonomous mobile robots and autonomous vehicles — are mainly targeted at defined scenarios and controlled environments,such as in warehouses.Intelligentthings will make their initial business impactacross a wide spectrum of asset-centric, product-centric and service- centric industries.As a result, the ability for organizations to assist, replace or redeploy their human workers in more value-adding activities will potentially create high, even transformational, business benefits. 4.5 Conversational systems Conversational systems — most recognizably implemented today in virtual personal assistants (VPAs) and chatbots — are taking interaction to the next level with the addition of conversational commerce.Notonly can they handle discovery questions and offer solutions without any human agent involvement, conversational systems can enable transactions, handle payments, ensure delivery and provide customer service. 4.6 Robotic process automation Robotic process automation (RPA) allows supply chain leaders to cut costs, eliminate keying errors,speed up processes and link applications. For example, an organization may want to work with structured data to automate an existing manual task or process with minimal process re-engineering or to avoid major system integration projects or specific new major application deployments.
  • 6. 4.7 Immersive technologies Immersive technologies such as virtual reality (VR) and augmented reality (AR) allow supply chain businesses to enhance employee and customer digital experiences. Gartner estimates VR will reach mainstream adoption in the next two to five years, with AR going mainstream in the next five to 10 years, but these technologies are already in use in a variety of industries. These include enhanced repair and maintenance capabilities in manufacturing,logistics and warehousing and better purchasing choices for customers leveraging product visualization or store layout and planning. 4.8 Blockchain Certain highly decentralized supply chain management functions such as smart contracts or traceability and authentication are prime candidates for blockchain.Multiple business use cases are yet to be proven, but some early pilot projects have emerged that are experimenting with the potential of blockchain for supply chain. For example, blockchain is being used to track the movementof diamonds from mining to retail stores by developing a digital record that includes the unique attributes, including color, carat and certificate number that can be inscribed by laser into the stone. 5.0 CONCLUSION The whole idea of adopting technologyin supplies managementis to simplifythe process, thus eliminating redundancy.By allowing a seamless process,modern technology will not only help reduce costs but also minimize the risks imminent in the supply chain. This is an innovative way to stay ahead of the competition by enhancing customer satisfaction and improving efficiency.
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