What Are the Impacts of Technology on Supply Chain Management?

What Are the Impacts of Technology on Supply Chain Management?

What Are the Impacts of Technology on Supply Chain Management

That is a question that is often asked by CFOs, CIOs, and business owners. The answer is not all that clear-cut because many different technologies impact supply chain management. However, certain technologies are expected. 

Examples include automation, robotics, and automation systems.

Technology has not only impacted supply chain management. It has affected our lives in different ways. 

Take the invention of the mobile phone or the laptop computer. 

For example, this invention changed the way we communicate, and it has affected every aspect of our lives, from education to transportation. The impact of technology on our daily lives is profound.

  • The effect of technology on supply chain management can be both good and bad, depending on how an organization views it. 
  • If an organization views technology as a threat, it will necessarily try to eliminate or limit its impact to protect itself from being destroyed.
  • Organizations should therefore look to eliminate or limit the impact of new technology if they adopt new technologies. 

For example, the effect of technology on supply chain management can be positive if the organization views the technology as a tool that can improve efficiency. 

If the organization views the technology as a threat, then the impact of technology can be harmful. 

Organizations should therefore consider all the possible implications of new technologies in terms of efficiency and threat. They must also take into consideration any impact that technology may have on their business model.

The impact of technology on supply chain management can also be positive.

 Suppose the organization adopts the technology into its operations. This technology might enable the organization to streamline processes and improve its overall productivity. 

If the organization’s competitive position is threatened, then the technology can allow the organization to remain competitive. On the other hand, adopting new technology can reduce costs and increase revenues if the organization’s revenue increases.

Organizations should conduct a supply chain management technology assessment before using new technology. 

The evaluation should first identify the intended use of the technology and then assess the risks involved in adopting that technology. 

  • The evaluation should also identify the organization’s current spending and operational needs and compare these against the potential benefits of the technology. 
  • Technology assessments are essential in making the best decision about technology adoption, especially when there is an economic or financial perspective.

Another type of question can be asked as part of the What Are the Impacts of Technology on Supply Chain Management? 

The process is what impact the technology will have on existing procedures or structures. It is often difficult to know whether current systems will adapt to new technologies. 

However, once the organization identifies the existing structures and determines how it will adapt to the adoption of the technology, it can determine whether the adoption is justified.

The question that arises to mind is: 

“What are the impacts of technology on supply chain management?”

 And how does technology help organizations to understand the relationship between technology adoption and risk? 

  • It helps them make informed decisions about technology implementation. 

This article was based on a presentation given at a Supply Chain Management Association conference.

  • There are many ways that technology can impact your business. The most obvious way is to change the way you do things. Some changes may be welcome given the circumstances.

 For example, the growth of web-based email, automated software, and social media has created a positive shift from the point of data silos to one of collaboration.

  •  While some business processes will remain the same, there may be opportunities to improve efficiency and productivity by moving some operations to data-driven approaches.
  • Another impact technology has on business is the impact it has on the operating systems. Modern business systems are built to handle the rapid change associated with technology adoption. 
  • New system requirements are often a mixture of legacy systems and new technologies. Traditional business processes continue to evolve to deal with these changes successfully. 
  • Organizations must adapt their business practices to be flexible to the latest technologies while maintaining business relevance and functionality.

Technology has a tremendous impact on your business.

  •  It would help if you considered how you would use it to serve your customers best. You must carefully consider whether adopting new technology is suitable for your company. 
  • When considering the impacts of technology on supply chain management, think about your operational processes, structure, business objectives, and long-term strategy. 

Only then can you make an informed decision on technology’s impact on your business.

What Are the Impacts of Technology on Logistics?

Today, many changes have taken place in the field of logistics. 

  • Some of these changes include using information technology to facilitate the movement and storage of goods and advanced computer programs for such purposes. 
  • In addition, specific changes have occurred due to the globalization of the business sector. Modern-day logistics has become a lot more complex and sophisticated. 

Combining these factors have led to a greater demand for new software and technology to facilitate logistics operations.

According to experts in the industry, 

One such impact is the impact on the IT logistics field. 

  • As was previously mentioned, specific changes have occurred in the IT logistics field, resulting in a demand for new software to manage and support the operations of an increasing number of clients. 
  • The impact of technology on logistics may impact the client as well as the logistics organization. The changes in IT logistics management affect how clients are supplied with the goods they need at a time that is economically and logistically convenient for them.
Another impact of technology on logistics is seen in the advancements in computer technology.

 Computers are being used to make an organization’s operations more efficient and make the process of its clients easier. 

  • Several software applications are currently being used for client scheduling, inventory control, customer order management, and other computerized processes. 
  • When considering the impacts of technology on logistics, it is evident that computers have had a profound effect on the industry.

Computer technology can harm the field, however, if it is used correctly. 

  • One example of the potential impact of technology in the area is its effect on the information management systems used by trucking companies. 
  • Trucking companies have been forced to update their information management systems to comply with the recent changes in federal regulations. 
  • It can be challenging for trucking companies to be unfamiliar with the information management systems, and many companies have opted out of using them.

An important question that must be asked when thinking about the impacts of technology on logistics is how technology has affected supply chain management.

  •  Supply chains are broken down into at least five elements: transportation, material management, sales, accounting, and the ordering process. 
  • Some parts are often combined in a single chain, such as inventory. As technology continues to advance, problems with supply chains are likely to become more pronounced. 
  • Improving the coordination and flow of information between these different chain elements will be essential if supply chain management improves.

The other question that needs to be asked when asking, “what are the impacts of technology on logistics?” is what could make improvements. 

The advancement of technology may impact the efficiency with which truckers route through various regions of the country. 

It may also affect the cost of transportation and reduce the risk of damaging bridges and railroads while transporting products. 

Some companies have opted out of using computer software to track their trucks. It helps to retain manual control over the movement of their trucks. 

However, increased efficiency may also result in adopting new warehousing methods, such as container tracking, or the use of electronic systems, such as PLCs and computer-aided manufacturing.

How have Technological improvements created new opportunities for companies to control their costs?

Technological improvements have also created new opportunities for companies to control their costs. Improved safety features mean that truck drivers can now drive more strategically, avoiding areas where accidents are likely. 

  • Computer systems have made identifying and recording hazards much more accessible, resulting in lessening vehicle-related accidents. It means that a company may no longer need to spend its money on accident insurance. 
  • Other benefits include the ability to track the shipment of goods from the point of origin to shipping destinations, reducing delivery time by up to 40%, and lowering insurance premiums.

In Crux:

Technological advances may impact the way that companies do business. They make logistics more efficient and lower the cost of transportation. But the long-term effects of these changes may be limited. Unless there is a drastic change in the economy, the trends that have resulted in technological advancements may only be beneficial to some extent.