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Maximizing productivity in supply chain management with technology

Archana Dasa

Supply chain management, a vital component of any company, may have a big influence on general profitability and productivity. In the very competitive and fast-paced business world of today, businesses are always seeking methods to enhance their supply chain processes and gain a competitive advantage.


Using technology to this end is one of the best approaches. There are plenty of technologies and solutions accessible to help companies optimize their supply chain operations, save expenses, and increase productivity, ranging from automation and artificial intelligence to machine learning and data analytics.


In this post, we'll examine the function of technology in supply chain management and provide advice and best practices to companies trying to increase their output in this area.


Supply chain management: what is it?


Supply chain management is the organization and control of the processes that go into creating and delivering a product or service. Everything from obtaining raw materials and producing commodities to delivering completed products to clients is covered.


Activities in supply chain management include, for instance:


  • Supply and raw material procurement is the process of obtaining them from vendors. To build its cars, a carmaker may, for instance, buy glass, rubber, and steel from different vendors.
  • The process of manufacturing involves turning raw resources into finished goods. To make apparel, a manufacturer could, for instance, cut and stitch fabric.
  • Finished items are stored in warehousing until they are prepared to be sent to clients. Until it's required in shops, a merchant can, for instance, keep inventory at a distribution center.
  • Moving things around is known as transportation. A transportation firm might, for instance, move products from a producer to a store.
  • Managing the quantity of inventory a business maintains is known as inventory management. An inventory management software user may, for instance, monitor the stock levels at its distribution facilities and retailers.


Supply chain management done well is essential to guarantee that goods and services reach clients on schedule and at a fair price. Through technology use and supply chain process optimization, businesses may raise their general productivity and resilience.


The role technology plays in supply chain management


Supply chain management has always used technology. But new technologies and solutions have proliferated recently, completely changing the way companies handle their supply chains.


One of the biggest domains of invention has been automation. Businesses may enable their staff to concentrate on more valuable activities by automating repetitive and regular chores like inventory management and data input. This increases output and lowers mistakes, therefore raising general efficiency.


Additionally, becoming more and more significant in supply chain management are artificial intelligence (AI) and machine learning (ML). These tools may be used to forecast future demand and find patterns and trends in vast volumes of data analysis. This may enable companies to increase their general profitability, cut waste, and optimize their inventory levels.


The use of data analytics and visualization tools has been another area of innovation. Through these solutions, companies may better comprehend their supply chain activities and pinpoint areas that need work. Through the provision of real-time information and supply chain visibility into important KPIs such as lead times, delivery timeframes, and quality levels, companies can react to changes in the market more swiftly and with more knowledge.


Ultimately, mobile applications and cloud-based solutions are also revolutionizing the way companies handle their supply chains. Businesses may enhance cooperation and communication within their own company as well as with their suppliers and clients by offering anytime, anywhere access to essential information and tools. Delays may be cut down on, and general responsiveness may be raised.


The following are some instances of practical use of these technologies to enhance demand forecasts, optimize shipping routes, and simplify inventory management:


Inventory management streamlining


  • Automated Warehouse Management Systems (WMS): Are systems that monitor product movements, control inventory levels, and streamline warehouse operations through automation. In its fulfillment centers, Amazon, for instance, manages millions of goods and guarantees precise and quick delivery using a highly automated WMS.
  • AI-driven inventory forecasting: By using AI and machine learning algorithms to analyze historical sales data, businesses can forecast future demand more accurately. For instance, the fashion retailer Zara uses AI-powered inventory forecasting to make sure that the right goods are always in the right places at the right time.


Shipping route optimization


  • AI-powered route optimization: Companies may improve transportation routes and shorten delivery times by analyzing traffic patterns, weather, and other variables using AI and machine learning algorithms. Using AI-powered route optimization, for instance, UPS saves millions of dollars annually on fuel expenses.
  • Autonomous delivery vehicles: Self-driving cars, drones, and other autonomous vehicles are ways that companies may shorten delivery times and increase productivity. Kroger, for instance, delivers groceries to customers' houses using autonomous delivery cars.


Enhancing demand forecasting


  • AI-powered demand sensing: Companies may foresee changes in demand by analyzing real-time data from social media, weather predictions, and other sources using AI and machine learning algorithms. For instance, demand sensing driven AI is used by the beverage giant Coca-Cola to modify production levels and guarantee that the corporation always has the correct items on hand.
  • Predictive analytics: Companies may more precisely forecast future demand by analyzing past sales data using statistical models and machine learning algorithms. Predictive analytics is used, for instance, by Walmart, the retailer, to estimate demand for seasonal goods and guarantee that it always has the appropriate inventory


Supply chain reconfiguration benefits


Supply chain reconfiguration is the process of reorganizing and streamlining the supply chain network of an organization in order to raise output, save expenses, and strengthen resilience. Part of this might include adjustments to the company's production and distribution footprints, as well as supplier and customer connections.


Reconfiguring a supply chain has several advantages. Among the most important are these:


  • Cuts in costs: A business may cut its labor, inventory, and transportation expenses by streamlining its supply chain network. To save expenses on inventory and transportation, for instance, a business that produces goods at many sites might combine production at one site.
  • Enhancement of efficiency: A business may raise its general responsiveness and efficiency by optimizing its supply chain procedures. For instance, a company that currently enters orders manually may use an automated system to speed up order processing and lower errors.
  • Greater agility: A business can react to changes in the market more quickly if its supply chain network is made more flexible and adaptable. For instance, to lower the possibility of supply chain interruptions, a business that obtains goods from a single supplier might establish contacts with other vendors.


Reconfigured supply chains that have worked include:


  • Nike: The sportswear manufacturer reorganized its supply chain with an emphasis on agility and quickness. Nike can swiftly react to changes in demand and shorten lead times by employing a network of manufacturing and distribution hubs situated near its clients.
  • Procter & Gamble: The consumer products giant changed its supply chain to emphasize cost and efficiency. P&G cut expenses and raised output levels all over by combining its production and distribution activities.
  • Unilever: The consumer products giant changed the way its supply chain was set up to emphasize social responsibility and sustainability. Using a network of regional suppliers and distribution hubs, Unilever can lessen its carbon footprint and help out local communities.


Best practices for supply chain management and technology implementation


Supply chain management system implementation may be a difficult and intricate procedure. Still, businesses may optimize the advantages of technology and raise their general productivity and resilience by adopting best practices and adopting a strategic strategy.


Using technology in supply chain management may be done as follows:


  • Choose the correct technology: Choosing the correct technology for the particular requirements of the company is the first stage in integrating technology into supply chain management. This entails thoroughly evaluating the supply chain procedures of the business, pinpointing areas that need work, and looking at alternative technological options.
  • Create a thorough implementation strategy: Having chosen the appropriate technology, the next step is to create a thorough implementation strategy. Along with a budget and a list of important players and resources, this plan should include a thorough schedule. Contingency planning for possible hazards and difficulties has to be part of the strategy.
  • Give employees the correct instructions and assistance: Giving staff members the correct instructions and assistance is crucial to a successful implementation. This means creating training courses according to the particular requirements of the company and the technology being used. It also entails offering continuous assistance and materials to guarantee that staff members can utilize the technology efficiently.
  • Track and assess performance: Tracking and assessing the technology's performance is crucial to making sure it is providing the anticipated advantages. This entails monitoring important indicators and KPIs like lead times, delivery timeframes, and inventory levels. To find areas for development and modify the implementation plan as necessary, it also entails regular evaluations and assessments.
  • Innovate and improve: Lastly, it is critical to keep innovating and enhancing the technological solutions and supply chain procedures of the business. This entails keeping current with the newest advancements in technology and supply chain management, as well as routinely evaluating the company's supply chain network and procedures to pinpoint areas that need improvements.




Success in the competitive and fast-paced corporate world of today depends on supply chain management and productivity maximization. Companies may save expenses, simplify supply chain procedures, and strengthen their general resilience by using technology and putting best practices into place.


As a means of increasing their general productivity and resilience, we advise companies to think about supply chain reconfiguration. Companies may more quickly adapt to changes in the market and lower the possibility of supply chain interruptions by rethinking and improving their supply chain network.


In summary, businesses may gain a competitive edge and set themselves up for long-term success by using technology to optimize efficiency in supply chain management.

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