Study on impact of information technology
in supply chain
Modern Supply Chain is completely based on information technology that makes it competitive and efficient. Its importance is reflected in the speed, reliability, easy access, low cost applications and time saving within the supply chain process.
Nowadays, it is not only limited to supply of goods but also in an effective and efficient way with a perfect blend of technology.History Of Supply Chain
In the early 1940s and 1950s, the main focus of supply chain was using mechanization in order to enhance the labor intensive processes of handling goods and space management using better designs and layouts.Later by the 1960s a reasonable pattern had created in moving additional time-depending cargo transportation to road inspite of rail. So it later resulted in physical distribution of goods.
Then in the 1980s, supply chain industry witnessed the beginning of logistics which was based of sea in the history of supply chain management. With the wide spread use of computers the planners had a fair idea in deciding the route with the help of interfaces based on maps which resulted in large scale acclimation in planning and execution part of technology.Introduction of Technology in Supply Chain
In the late 1990’s with the boom in logistics by the emergence of Enterprise Resource Planning (ERP) systems the industry successfully achieved material planning requirements with the help of these material planning systems. With some initial problems faced by the companies related to ERP, Later most of the large companies installed ERP by the year 2000. The result of this shift to the ERP systems leads to drastic improvement in data availability as well as accuracy.History: Globalization and Supply Chain
The focus on globalization emphasized the need for logistics strategies to tackle with complicated networks including various entities crossing multiple countries with diverse control. With this in the year 2005 Council of Logistics Management name was changed to Council Of Supply Chain Management by making a divergence that Logistics is that part of the supply chain process that is responsible for planning, implementing and controlling the flow of goods between two different point in an effective and efficient way.Current Scenario:
Another age of shopping alternatives through eCommerce and mCommerce has made supply chain network a crucial area of concern for every organization. It is especially basic for assembling organizations, which are vigorously reliant on the supply chain network to deliver their items.
Manufacturers, Suppliers, Retailers are the major stake holders in the supply chain of major manufacturing companies, which lastly delivers the products to the customers. The prominence in technological advancement as well as with the increase in the expectation of the customer, the need for integration of supply chain management has become very crucial.
Real time status is one of the key essentials of the supply chain management. Supply chain management softwares are designed in order to pass on the various kind of information like reduction in inventory, increase in manufacturing efficiency and to meet the needs of the customers on a timely basis. Often, these technology solutions enable the companies to attain some level of ondemand and bulk customization in the production cycle.Value of Information Technology in supply chain:
• Increased control over production:
With the use of IT in supply chain we get to see the improved visibility as well as accountability. In order to implement the total efficiency to the production process, it is important that a company must have a clear vision of current stage of production progress, forecast any probable potential problems or delays that the company might face and be able to revise it correctly. Use the technology which makes all the necessary processes transparent. Also with the help of Information Technology companies have better control over product and information flow across the supply chain.
• Enhanced Inventory Management:
Maintenance of exact levels of inventory is a major challenge which is faced by most of the companies. As excess of inventory leads to the wastage and increased working capital funds. Whereas, too low inventory leads to stoppages in the production cycle and losing its market share because of stock outs. But with the help of technology companies can easily create an adaptive business process that would provide adaptive business processes providing flexibility to tackle various demand situations.
• Increased Collaboration between Supply Chain Partners:
With the IT enabled, sharing real-time information, companies can intensify their connections with their key partners. Companies can track down the activities in the whole supply chain with the visibility at both the ends. Thus, with the help of these informations companies will now be able to make more informed decisions and will be able to forecast demand in a much better way. As a result this will help in controlling the manufacturing process and will lead to bring down the operating cost through more effective decision in procurement and contract management.
• Efficient tracking and delivery system:
On-time delivery of any product is the key factor which ensures customer satisfaction. Higher the level of satisfaction higher is the scope of customer retention and repeat business. Today, technological solutions can play a very vital role in increasing the speed of delivery and keep giving the customers the timely updates about it. Designing processes in now much more easier and it can be modified in such a way that the customer is being informed throughout the processes, from order confirmation uptill order fulfillment. Information Technology provides a platform for a customer to track their order and get real time updates about the shipment of both inventory and product delivery.
Product delivery is a very complicated process and any problem here can result in increased cost and increased product life cycle time. By implementing technology in order to gain better visibility across all the areas of a business makes data driven decisions based on the real time information, resulting in much more efficiency like never before. The end result in using the technology leads to the lower cost of the product, reducing working capital needs, and increased customer satisfaction. It’s definitely a win-win situation for all those adopting it.
We at LogiAngle provide a technology platform to manage & optimize last mile logistics & field workforce. We are equipped with a cloud based latest technology stack which brings us end to end visibility in any kind of logistics operations. The platform enables its stakeholders to Plan, Manage, Communicate & execute on real time information. Our solutions have helped companies to increase their field efficiency by 30%-40%.