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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