The Impact of Technology on Supply Chain Management

Zeeshan Mir Baz has collected the information from the website:http://duprelogistics.businesscatalyst.com/in-the-news/the-impact-of-technology-on-supply-chain-management in this article by Posted Tuesday, March 31, 2015said that:

Some technicians have a tendency to use the terms router, switch and hub interchangeably,  but have you ever wondered what the difference is?

Some technicians have a tendency to use the terms router, hub and switch interchangeably. One minute they're talking about a switch and discussing router settings the next. Throughout the conversation, however, they're still looking at only one box. Have you ever wondered what the difference is among these devices?
Router vs Switch vs Hub: The Devices Defined The functions of the three devices— the router, switch and hub — are all quite different from one another, even if at times they are all integrated into a single device. Which device do you use, and when do you use it?
What is a Router?
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For many in supply chain management, new technological tools are transforming daily business processes. As the supply chain becomes increasingly Lean in its operations, managers are constantly looking for ways to improve service, reduce costs, and increase return on their investments. Effective supply chains are defined by the efficiency of their processes, as well as their flexibility and reliability, and new technologies are proving valuable in achieving these goals.
Large deployments of mobile and wireless technology have already been implemented in the logistics and transportation sectors, and with good reason. The need for real time tracking and accurate delivery systems makes supply chain management ripe for technological innovation. However, keeping up with emerging technologies can be difficult for large companies who have deep investments in older technology. Although transitions may take time, leveraging new technologies is becoming of key importance in this competitive industry.

The following are a few of the ways in which technology is transforming supply chain management:

 1. Greater Efficiency and Transparency

Shippers are under pressure to reduce supply chain costs as part of greater company cost saving initiatives. Shippers want more services and better transparency from their supply chain managers, ideally without driving up costs. To meet these expectations, many third party logistics providers (3PL’s) and supply chain managers are turning to wireless technologies and cloud computing to automate systems and improve accuracy.

The industry is shifting away from traditional, manual, fax-based systems to more mobile and automated methodologies. Not only are automated systems faster and more efficient, they also provide better data-capture, which can be stored and analyzed to target areas for improvement. For example, hand held mobile devices can deliver wireless proof of delivery and real time transportation monitoring, which can help managers discover and address operational anomalies. 3PL’s are also turning to technology to streamline their client supply chain activity and improve client relations. The use of Customer Relationship Management (CRM) technology can provide executive-level visibility of supply chain operations, helping leaders to identify inefficiencies and bottlenecks in commercial operations.

Technology like radio-frequency identification (RFID) has also become a popular method of automatic identification and data-capture. Because RFID tags can be attached to clothing, inventory, or almost any item, the tracing possibilities are extensive and applicable to numerous aspects of the supply chain. The technology reduces labor costs by streamlining data-capture and reducing error-prone manual processes. Access to real-time, up-to-date information across the entire supply chain is having a significant impact on how companies are doing, and expect to do, business. Shippers want to be able to answer the question, “When exactly will my delivery arrive?” Integrating new technologies will make answering that question much easier.

 2. Focus on Individual Employees

Companies have long known that different jobs require different tools, but only recently have shippers and vendors began to actively pair workers with the smartphones, tablets, or ruggedized device most appropriate for their daily work. As mobile devices become more diverse and varied, companies are striving to match the job with the right device. Putting employees in charge of their own job specific devices can cut down on damage and encourage care of personal devices. While smartphones are gaining precedence in supply chain operations, smartphones are not always as robust as their ruggedized counterparts, meaning that even with protection, they are easily damaged in outdoor or high impact environments. Considering the daily actions and necessary operations of each employee can help companies create an efficient, technology stimulated workforce.

 3. Tighter Communication and Community

Smoother and more frequent communication undoubtedly makes business operations easier. Mobile technologies and real time communicating can create a greater sense of unity and development from those out in the field to those in corporate headquarters. Managers are often on the move, but improved communication and access to live information can make managers more intuned with daily happenings in the supply chain.
Strategic workforce management is especially critical for companies who are understaffed or having difficulty filling capacity. Flexible communication channels within all aspects of the supply chain can increase employee productivity and boost morale. Greater collaboration and communication ultimately boils down to better customer service. Communication aids in product tracking and delivery, which results in higher customer satisfaction with the supply chain process. When employees are connected through many stages of the supply chain, workers likely feel more fulfilled and operations often run more smoothly.

 4. Making Way for Small but Nimble Carriers

The benefits of technologies like cloud computing and RFID may be compelling, but for larger firms, technological transformations can be difficult. For large firms tied to complicated, enterprise wide, wired technology systems, change may come slowly. Often companies have already invested significant amounts into their wired technology, making changing to cloud computing both unappealing and complicated. Smaller firms with less of an investment in their current system may find it easier to successfully integrate new technologies. Smaller fleets don’t have to spend thousands on mobile resource management or automatic vehicle location systems anymore. Often, the job can be done with a relatively affordable mobile device, making the leap to wireless much easier. This flexibility could give smaller carriers an edge, making them more agile and flexible in a competitive environment.

 5. Government Mandates Encourage New Technology

Government mandates like the Department of Transportation’s (DOT) 2015 Electronic Log Mandate are pushing more shippers to opt for wireless solutions, whether they want to or not. This September, DOT is expected to mandate the use of Electronic Logging Devices (ELD’s) for drivers and fleets. Transportation sectors in the supply chain face stringent government regulations and meeting them relies more and more frequently on embracing wireless technology. For example, Hours of Service Regulations require companies to improve driver management while also moving freight as efficiently as possible. Fleets faced with stricter regulations are turning to better routing software and logistics management technology to save time and money. As the government looks towards technological solutions, supply chain managers will have no other choice but to do so as well.

Although technology is having a significant impact on supply chain management, technological change may be slow moving. Companies are attempting to understand the role that mobile or cloud technologies can play in their business, while striving to integrate new technologies into their current systems. Supply chain management is being transformed by technology, but exactly how and when depends largely on companies themselves.