Technology BeneFit In Supply Chain Processes

TECHNOLOGY BENEFIT IN SUPPLY CHAIN PROCESSES

Technology has been developed over the years and has improved the way we function and carry out our activities all over our lives.

In the operations and supply chain, there has also been a lot of influence by the advancements in technology, the aim being to improve the operations and supply chain function. In considering the internal supply chain, Slack and Lewis (2011) say that the following must be considered in deciding what technology to apply;

* How does it improve from older technologies?

* How does it do it?

* What are the technology's constraints?

* What skills are needed to implement it?

* How long can it endure?

* How does it integrate in the supply chain process?

When these are answered, then the right technologies can be applied in the right processes, which even though vary from industry to industry, can be discussed generally.

The internal Supply Chain function consists of processes that can be affected by technology and are as follows;

* Buying raw materials: Technology can aid this by online purchase; VMI monitored by ERP and firmed agreements that send automated requests/PO to suppliers.

* Producing finished products: Technologically advanced machines ensure quick, reliable and consistent products, including checks and control.

* Distributing finished products: Technology has allowed customers to buy, ship, monitor orders online. While needs can be derived by technologically advanced demand forecasting, etc.

* Selling products to customers: Payment online, ordering, advertising and choosing of specs are ways technology has assisted in selling products, making it easier for buyers to buy.

The main areas where these decisions are made and where the effect of technology can be seen are;

* Materials management

* Supply Management

* Supply and warehousing

* Production planning

* Customer service

* Inventory

The effect of technology in these processes can be discussed as follows;

Material management:

With automated material flow and an automated monitoring system to monitor need across the supply function, materials are always available when needed. This reduces waste, controls cost and improves supply and production time.

Supply Management:

With technology, proper forecasting can be done, while demand can be monitored and met with, even across the world. Technology is used to place order, monitor shipments, exchange payment and get finished products to customers. It makes the process quick, tidy and easy, even between distances.

Supply and warehousing;

In this process technology is used to monitor warehouse information and internal supply to the warehouse. You can monitor the quantity and assist production with