Impact of Technology in Supply Chain Management

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Operations Manangement
Impact of Technology
Discuss your thoughts concerning the impact of technology on an organization, specifically as it relates to the supply chain and how if facilitates sophisticated materials management systems such as JIT and MRP.

The Impact of Technology in Supply Chain Management
The supply chain is the core of any business. All the participants in the supply chain such as the suppliers, production, purchasing, and distribution need to cooperate and collaborate with each other to better serve their customers. However, a supply chain can only be strong if the link is also strong. An effectively managed supply chain will give a positive impact on its customers while an inefficient one will give a negative impact which can damage customer relationships.
Technology has greatly transformed the way supply chain systems work. Twenty years ago, it was easier to manage the processes because generally, the customers and processes moved at a slower pace and everybody was used to it. Today, the advancement of technology has made everything instant. Everybody needs to cope up with the new way of doing things. Everyone needs to be fast, efficient, and reliable. Customers are becoming more demanding knowing that it is possible for them to get what they want at a shorter period of time.
Through technology, the supply chain has become more transparent. It is now easier to track the products and there are more tools that help improve performance and increase productivity. Customers are digitally connected and always want fast answers to their inquiries. They expect to know the whereabouts of their shipment all the time. They want companies to have a portal or website so that it is easier to track their shipment and know when it is arriving.
New technological tools have transformed the daily business processes in the supply chain. Managers are always finding strategies to reduce cost, improve service, and to increase profits. Effective supply chains are flexible, efficient and reliable. Technology is valuable in achieving the company's goals.
With technology, supply chain is managed to reflect greater efficiency and transparency with focus on putting employees in charge of their own devices to reduce damage and improve care for these devices. These devices have helped improve communication and collaboration between employees and customers. They have helped the company comply with government mandates and they have helped improve smaller companies.
Although the advancement of technology in the supply chain has given various benefits, it is not without its complications. Some organizations will take time to "figure things out" as they don't update their technology often. As businesses start embracing technology in their systems and processes, they have to evaluate the acceptable downtime and its disruption to the supply chain. It is also necessary to measure performance through effective reporting. Technology can help improve performance and productivity in various ways.

Just-In-Time (JIT)
The concept of JIT revolves around the idea of cutting costs by reducing the amount of products in stock. It involves the production and delivery of the finished goods 'just-in-time' that they are sold. Products come 'just-in-time' for assembly into finished goods, as well as parts and materials are available 'just-in-time' to be made into parts or finished products.
In the JIT approach, production is 'pulled through' instead of 'pushed through'. A product is manufactured only when the order is placed. Stocks are delivered only at the time they are needed. There is a need for considerable planning to develop an effective JIT approach.
JIT is the key element in lean production -- the concept of eliminating any form of waste (e.g., effort, materials, time). Many leading companies contract out their supply chain management to companies specializing in this area. They can design efficient warehousing systems, cut wasteful processes, develop advanced tracking methods and other freight forwarding ...