A Detailed Report on Supply Chain Technologies and Their Impact

This report provides a theoretical review of supply chain technologies (SCIT), tracing their evolution from automating manual processes to facilitating information sharing and collaboration. It categorizes SCIT based on various criteria and highlights the role of information technology in modern s...Read More

Supply Chain Technologies 1
SUPPLY CHAIN TECHNOLOGIES
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Supply Chain Technologies 2
Supply Chain Technologies
Theoretical Review
Research on supply chain information systems (SCIT) started in the 1980s. In the beginning,
SCIT was intended to automate manual processes like ordering and settling of accounts so that it
would be a substitute to processes which are repetitive. Over the years, SCIT have initiated new
features, for example sharing of information, coordinating and collaborating, so that an
organisation is well connected to stakeholders in the supply chain. Such features enabled
organisations to benefit from reduction in operating costs, improved customer service and
sustained competitive advantages (Harnowo 2015). These features motivated the adoption of
SCIT among many companies. An example of such an organisation is Wal-Mart, which invested
a lot in SCIT and this significantly improved its coordination and collaboration with suppliers.
This led to the company saving on its costs and these savings were passed to customers.
Research however shows that not all companies benefited from SCIT (Prajogo & Olhager 2012).
Many authors have considered SCIT broadly. Categorization of SCIT is therefore important so
that there is a better understanding of which type of technology better fits with the objectives of
an organisation. Some authors have classified SCIT based on the purpose of the business,
relationship between an organisation and its suppliers and the function of information in the
supply chain system. Other researchers also classify SCIT based on level of interdependence
between the stakeholders in the supply chain and they have suggested three types of SCIT which
are collective information resource, value chain information system, and networked information
systems. Bensaou and Venkatraman (1995) also researched and suggested five types of SCIT

Supply Chain Technologies 3
which are remote relationships, electronic control, electronic interdependence, structural
relationships, and mutual adjustment.
Role of Technology in modern supply chain
Information technology is considered as a key driver in the supply chain because it enables
different elements to collaborate, with an aim of creating a supply chain which is integrated and
coordinated. This is important as it ensures that processes flow smoothly and that deliveries are
done on time. Technology is also important to the supply chain as it makes information visible to
all managers in the supply chain. Due to this visibility, managers are able to make decisions that
will enhance performance of the overall supply chain (Varma & Khan 2017).
Technology is also key in the supply chain as it reduces the function in transactions between the
partners in the supply chain. This is achieved through cost-effective flow of information.
Technology enables speedy remittance of information between the players in the supply chain
hence reducing the time and process that would be take in transactions (Carr 2016). It also
enhances collaboration and coordination, due to this sharing of information.
Information Technology has also led to saving of costs by organisations. Due to smooth and
efficient flow or information, processes happen quickly and this leads to saving of money by
organizations. Longer processes are eliminated and the company is able to use the money saved
to grow its business in other areas. Organizations are also able to spend more time focusing on
their core business, as they do not have to constantly think about things that may have gone
wrong during the supply chain processes (Stadtler 2015).

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Technologies in use in modern supply chain
Computerized supply chain management has led to revolutionizing of businesses by allowing for
better visibility and tracking. Organizations are able to implement real-time monitoring of the
entire supply chain. Various technologies have improved the supply chain process. One of these
technologies is radio technology through radio frequency identification, which enables effective
monitoring or products in the production chain and in the supply line (Ye & Wang 2013). Radio
frequency chips are placed on all the items, which assists employees to detect any anomalies
within orders. Problems can be corrected early before they ruin the whole supply chain.
Another technology is advanced weighing technology, which has enabled the use of onboard
truck sales. This has led to seamless operations when access to platform scales is not available.
They ensure that a truck carries maximum weight from loading point while saving money and
time (Butler 2016). They also ensure safety.
The revolution of social media has enabled different organizations to optimize supply chain
operations. It has enabled the opening up of more channels and remaining in touch with all
supply-chain stakeholders. It increases company visibility and makes it very easy to respond to
questions.
Transport management software has enabled shipping and tracking of orders, which can even be
done, from a mobile phone. Inventory data can be organized, shipping managed and distribution
monitored (Brindley 2017). This has led to enhancement of customer experience and reduction
of errors in the entire process.

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Data analytics has led to a lot of readily available information in the supply chain. New tools are
generating volumes of data hence driving intelligence that can be used by the supply chain
effectively.
How technology use has changed supply chain interactions
Technology use has changed supply change interactions for the better. Technology has allowed
all the stakeholders in the supply chain to make better decisions as it had enabled fast collection
of data from different sources and analysis if this data in an efficient manner (Sindi & Roe 2017).
This has led to better relationships in the supply chain.
Due to technology, interactions have become better as there is integration of multiple platforms.
These platforms work well together due standardized protocols. Digital boundaries, which
previously existed, have been brought down hence enabling faster communication between
supply chain stakeholders.
Due to supply chain technologies, there has been removal of physical and political boundaries
have occurred hence leading to greater interactions all over the globe. This has led to common
data access, storage and retrieval (Carr 2016). This interconnection has led to enhanced security
measures as security monitoring and implementation is possible across all digital planes while at
the same time maintaining communication flow and enhancing business flow.
As organisations become more dependent on technology, supply chain providers have been able
to recognize the role of technology in today’s supply chain. The embracing of technology has led
to reduction of problems that traditionally occurred in the supply chain management process (Ye
& Wang 2013). Organizations, which have not embraced technology in their supply chain
processes, have to do so if they aim to reduce costs and enhance smooth process flow.

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References
Bensaou, M. and Venkatraman, N., 1995. Configurations of interorganizational relationships: A
comparison between US and Japanese automakers. Management science, 41(9), pp.1471-1492.
Brindley, C. ed., 2017. Supply chain risk. Taylor & Francis.
Butler, J.L., 2016. 1. Enabling Rapid Capture of Information Technology Opportunities: A Study
of Opportunity Management in a Supply Chain (Doctoral dissertation).
Carr, A.S., 2016. Relationships among Information Technology, Organizational Cooperation and
Supply Chain Performance. Journal of Managerial Issues, 28.
Harnowo, A.S., 2015. Roles of Information Technology in Supply Chain Management.
Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of
long-term relationships, information technology and sharing, and logistics
integration. International Journal of Production Economics, 135(1), pp.514-522.
Sindi, S. and Roe, M., 2017. The Evolution of Supply Chains and Logistics. In Strategic Supply
Chain Management (pp. 7-25). Springer International Publishing.
Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and
advanced planning (pp. 3-28). Springer Berlin Heidelberg.
Varma, T.N. and Khan, D.A., 2017. Information technology in supply chain management.
Ye, F. and Wang, Z., 2013. Effects of information technology alignment and information sharing
on supply chain operational performance. Computers & Industrial Engineering, 65(3), pp.370-
377.