How Can Technology Improve Supply Chain Management

how technology improve supply chain management

Sophisticated supply chain management has changed the course of business today. The competitive market of this era means there is less room for inefficiency. The good news here is that supply chain methodologies have simplified and optimized business processes. Companies have further incorporated technologies in their supply chain management systems for businesses to remain operative in the global competition.

The consumer has become increasingly demanding in recent times and has set high expectations for quality and service. At the same time, supply chain managers have realized that incorporating technology gives better accountability and transparency.

Such technological implementation has allowed managers to maintain a solid grip on control measures and stay ahead in the market. The computerized supply chain management systems have revolutionized businesses by allowing better tracking features.

“From shipping to invoicing, technology has given real-time monitoring for the entire process. GPS, mobile devices, tablets, etc. have offered a dynamic rise in the use of portable supply chain technologies” 

The critical aspect of using technology is the flexibility that businesses receive. Managers can now make adjustments whenever needed without disrupting the supply chain processes and receiving customer satisfaction.  Technology has indeed influenced every area of supply chain management processes.

Prominent areas that received the benefit out of technological implementation. 

Inventory Management

Supply chain managers have to make decisions based on inventory and make better decisions based on insightful analysis. Technology-driven inventory management allows managers to have useful collection and analysis of data in real-time.

Insights of the inventory guide managers to make efficient sales decisions and fulfil supply and demand criteria. However, there is not a single strategy to effectively manage inventories.

All the technical aspects have the same purpose: to sort, control, and give valuable information. Automated inventory management technologies such as barcodes and RFID trackers have provided supply chain managers with significant information collection and goods flow. Inventory management smart technology apps also contribute to various advancements in inventory management procedures. These technological aspects provide a versatile and worthwhile choice for businesses. 


Logistics is an essential aspect of supply chain management. Logistics depends on a high level of control within the supply chain. Logistic managers take charge of purchasing goods and make sure that the right purchasers receive them.

The advanced technological implementation provides managers with tracking facilities to monitor the material purchased, shipped, and accepted. From acquiring raw materials to finished product and availability in retail stores, technology gives supervision and effective tracking at all phases. With sophisticated tracking software and applications, all managers get real-time information regarding traffic along the logistics route. 

Purchasing and Manufacturing

Supply chain managers need effective purchasing of raw materials for the commencement of the manufacturing process. The significant aspect of both these phases is the maintenance of quality and strengthening a business’s competitive position. Purchasing and manufacturing are the core aspects on which the company initiates supply chain processes.

The technological implementation helps managers to purchase the best quality material and use sophisticated machineries for manufacturing. Technical implementations give a lead-time advantage in procuring and manufacturing to provide businesses with an edge over their competition.


Warehousing and storage is a necessary element of supply chain procedure. Automated and technologically infused warehousing provides a better outcome for warehouse personnel. Earlier, manual data entry created a loss of inventory and time due to missed or wrong entries.

The use of automated systems has helped warehouse operations to evolve. Warehouse Management Systems (WMS), robotics, and blockchain technology have provided warehouses with sophisticated data management and inventory control. 

How Technology Changing Supply Chain Management

Technology Driven Transparency

Most issues of supply chain arise due to a lack of transparency. Improvement in clarity can give lasting benefits to businesses. Customers want to know if the company they approach follows environmental, social, and moral values.

Businesses provide a clear view of their ingredients and raw material using tracking technologies like RFID and barcode readers. The data collected gives information to anyone who wants to know the source and processes involved. Implementation of various technologies provide lasting transparency to everyone and keeps business away from controversies.

Highly Efficient Automation

The technological implementation provides a highly automated procedure in all phases of supply chain management. Automation was a part of the supply chain for a long time, but now the augmentation has provided unprecedented improvements.

Artificial intelligence powers systems to keep them running at optimal levels and improves efficiency for increased output. Machine learning and effective data procedures can give an additional benefit to automation as it helps in adjusting. 

Better Control and Monitoring

Supply chain procedures require a great deal of information for better supervision and performance in real-time events. Professionals involved in supply chain consider data-driven decision making as a vital part of their operations and activities.

Modern technology provides a more robust and error-free stream of data from various sources. Information like cargo weight, storage, traffic delays, and climatic conditions offer better estimations for practical outputs and statistics. 

Final Word

Like any other industry and sector, supply chain management has also significantly benefitted from technological advancements. These technologies help businesses shape a better supply chain management route and even better results. 

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