Technology has changed (and vastly improved) virtually every facet of everyday life and business, and this trend doesn’t appear to be slowing down any time soon. This is especially true in business areas with many moving parts, including logistics and supply chain management. Supply chain management (commonly referred to as SCM), which includes both hardware and software applications, has become increasingly more sophisticated. In contrast, shipping standards and demand for more timely and accurate service in the shipping logistics business have become the new normal.
The Benefits
The benefits of integrating this technology into your company are numerous.
- Cost Savings
The ability to reduce costs in any business speaks for itself. Having the appropriate technology to handle the information and processes of your supply chain management can lead to better business decisions. More-informed data on inventory, tracking, and future trends when it comes to ordering or shipping products is just one way that this technology can lead to cost savings. Knowing when and where your product has to be at any given time can result in less inventory on hand, which lowers overall costs.
- Faster (and More-Accurate) Reporting
Computerized SCM technology has increased efficiency in the 3party logistics (3pl) warehouse industry — with more-timely reporting, there are fewer errors. Such errors don’t only cost your organization time and money to repair; they can also damage your reputation, which is a far more significant problem to have. More-accurate inventory tracking can help you anticipate and adapt to any issues that arise along the way more quickly (and efficiently).
- Faster Delivery Times
The timely delivery of a product is one of the essential goals in any organization involved in shipping. Conforming with delivery promises pays off in multiple ways, primarily, goodwill between you and your customers. In addition, having a better grip on inventory and processes at the warehouse end of your supply chain will lead to faster turnaround times and, ultimately, speedier delivery dates, which gives you the same result.
- Ability to Track (and Change Things) on the Fly
Computerized SCM technology has resulted in more excellent monitoring of the entire supply chain process, from warehousing to the final mile. Innovations such as GPS tracking, product “track and trace” technologies, and digital audit trails can help you manage your supply chain. By providing the ability to get real-time reports on shipments, technology can allow you to make changes in routing, deliver alerts on possible delays, and track inventory in transit. Fewer logistical issues also mean less staffing time for “digging into” issues that arise along the way because technology can now handle issues that, only a few years ago, required human intervention.
Closely Monitoring Your Supply Chain
Embracing today’s supply chain management technology, partnering with a reputable third-party logistics firm, and staying current on trends that will particularly improve things tomorrow (and beyond) are mandatory for companies across all industries to remain competitive and relevant. Your supply chain technology should be viewed as a vital tool for your business, not an expense or burden.
The Final Word
Whether it’s robotics and automation, GPS and tracking technology, or blockchain solutions, the goal of these technical innovations is to streamline processes, which in turn will reduce costs; minimize errors; provide accurate, real-time reporting; and achieve excellent customer satisfaction. All of that is delivering increased value and revenue, which is also an important goal at the end of the day.
Chris Capelle is a technology expert, writer, and instructor who has worked in the publishing, advertising, and consumer products industries for more than 25 years.
References
https://www.supplychaindive.com/news/4-trends-order-fulfillment-spotlight/539472/
Using Third Party Logistics (3PL) to optimize your supply chain management