Supply chain and operations executives are reducing complexity, coping with volatility, and mitigating uncertainty by means of increased technology investments.
Today’s business environment offers many challenges in terms of complexity, volatility, and uncertainty. Without proper management of your company’s supply chain and operations, these risks become even more pronounced. Companies that fail to take advantage of advancements in technology risk falling behind their competitors, realizing smaller profit margins, and failing to bring products to market in a timely manner.
Why technology is essential to your supply chain and operations
Supply chain improvement can clearly be achieved with numerous technological advancements that your company can invest in to improve your supply chain’s efficiency. RFID chips on containers, video camera surveillance equipment, and GPS sensors are all designed to help you track goods, identify weak points in your supply chain, and monitor the flow of goods through each step in your supply chain. At the same time, computerizing your supply chain and linking it to an integrated IT network allows for easy data collection from all of these sensors, fast rerouting of goods, and a broad overview of all the moving parts to make your supply chain as productive as possible.
The right technology also helps you tailor your operations to your clients and customers, who expect a constant increase in value for the money they spend. Unfortunately, only 31 percent of companies emphasize technology and analytics to manage their supply chains, putting many companies at a tremendous disadvantage. Managing your supply chain puts you ahead of the 69 percent.
Forecasting done right
One of the biggest advantages of technology and supply chain analytics is that they help you make accurate forecasts regarding order fulfillment. Using predictive technology, you can calculate the right number of products to order within set time periods, ensuring you keep your inventory as lean as possible.
With cloud computing and cloud data storage, you can now process and store data on a massive scale. With this type of computing technology, you can track metrics (such as how many products you’ve sold), discover which vendors offer cheaper products, and predict how many products you’ll need over the long term.
Creating value for customers through order fulfillment
An efficient supply chain does much to create value for customers and clients, whether you’re a direct retailer or B2B provider. Technology and data analytics can provide you with real-time information quickly on factors that can disrupt your supply chain, such as natural disasters, factory closures, unrest, strikes, or missed shipments. Sourcing through the real-time data analytics becomes an integrated network process that helps you find the suppliers and products you need at the right time and place.
Building a long-term strategy through technology
Long-term supply chain strategy is also about building strategic warehousing, hiring the right amount of workers to handle shipping spikes and dips, and changing strategy based on currency exchange fluctuations. Without the right technology investments, proper strategy and supply chain planning for contingencies become exponentially more difficult, all of which underlines the importance of technology to keep pace with the growing demands of the global marketplace.
Ultimately, adding advanced technology in your supply chain is about connecting you to your products and customers faster than ever before. Fenerate Consulting helps companies implement this technology to improve their supply chains and operations in the most cost-effective ways possible. Fenerate Consulting is an experienced consulting company that specializes in supply chain improvement, supply planning, sourcing, and helping you build a collaborative supply chain you can depend on. Call us today to find out how we can improve your business operations.