How Technology Can Improve Your Supply Chain Management

The operational efficiency of the entire supply chain is one of the key goals of supply chain innovation.

Companies could generate a flow that is much more impactful and functional by optimizing these processes, which helps them avoid wasting inputs and, as a result, time and money.

Technology has developed into a potent and crucial ally in this. There are many tools available, including supplier validation, raw material receipt tracking, inventory management for finished goods, and much more.

In this article, we’ll break down a few options that can work well together to streamline your company’s management.

7 Supply Chain Technology Innovation Solutions

The idea of supply chain innovation satisfies a key business necessity for enterprises: to match operational flow with production demands.

This management, commonly referred to as the supply chain or logistics chain, is crucial for preventing input shortages and accumulation.

Under this situation, utilizing technology resources is one of the best strategies to achieve successful outcomes.

To encourage innovation in your company’s supply chain, various techniques can be employed both individually and together. Examine your possibilities right now.

1. IoT — Internet of Things

The IoT, or Internet of Things, is now more prevalent and significant in business automation operations, particularly in the supply chain.

Forbes, who conducted a poll of 700 executives and came to the following conclusions:

• 27% of users hope to enhance their production processes with this feature, 
• 22% want to increase supply chain transparency, 
• 16% want to enhance logistics and storage procedures, and 
• 38% want to increase operational capacity.

The goal of using IoT is to make it possible to trace each step of the logistics chain more precisely and clearly.

In order to enhance performance, boost productivity, and cut costs, managers have the chance to swiftly identify process points that need attention and/or modifications.

2. RFID — Radio Frequency Identification

The supply chain breakthrough known as RFID, or radio frequency identification, accomplishes the identification of every item that enters and exits a factory.

This identifying system aids in the traceability of each item and enhances the process of managing both completed goods, inputs and raw materials.

3. SRM — Supplier Relationship Management

Supplier Relationship Management, or SRM for short, is a term that can be rendered. Nevertheless, “Supplier Relationship Management Software” is another name for this system.

The primary distinction between Supplier Relationship Management and a CRM is that while both share similar core capabilities, SRM is more focused on the connection between the organization and its suppliers.

This supply chain innovation allows for the centralization of all supplier-related data and information in a single location.

The following are some of the tasks that are typically included in a supplier relationship management:

• certification and homologation of suppliers;
• integration with other systems, for example, those used for automated consultation of certificates;
• management panel that allows the manager a clear view of all its suppliers, even indicating those that have some legal pending.

These features make the SRM a tool that enables the manager to keep a closer eye on the performance of the suppliers to his business.

It also improves this relationship by streamlining the supplier qualification procedure.

Using a technology partner is yet another excellent way to handle all of your business’s technological requirements.

4. SaaS — Software as a Service

Software as a Service, or SaaS, is a business model that makes software available through subscriptions. The business hiring the service can use many systems without having to acquire, install, or upgrade them.

In terms of supply chain innovation especially, the SaaS model may be utilized for ERPs (Integrated Business Management Systems), SRMs, and order flow management solutions, among other things.

The organization using Software as a Service benefits from cost savings, notably in the area of IT, as all data is stored in the cloud.

The SaaS solution also helps, among other things, to:

• advance the digitization of the supply chain;
• boost process security, as all information and data circulating through the system are encrypted;
• keep the software used always updated, without the need to worry about this issue, since everything is under the responsibility of the service provider company;
• have a centralized process management;
• increase business connection and mobility.

5. Inventory management software

To track already created goods, detect obsolete products, and enhance audit procedures, inventory management software that automates this task is crucial.

A tool for this kind of control also enables the business to better plan for periods of increasing sales.

This is so that costs and waste can be reduced by producing only what is required and more easily identifying what is “stuck” in stock.

6. Cargo tracking software

Solutions like cargo monitoring software play a significant role in estimating a company’s lead time.

The real-time monitoring of loads (whether inputs, raw materials, or the finished product), using technologies like GPS, radiofrequency, and telemetry, among others, is crucial for process optimization and for fostering better relationships with customers.

7. Supplier approval automation system

A good supplier is essential to the process of ordering and receiving the supplies required to produce a good or provide a service.

It is important to study and take into account numerous publicly available data that demonstrates the legitimacy of the chosen firm when choosing the ideal partner for your business. It is not enough to focus only on pricing when making this decision.

For instance, it’s essential that you consider any potential environmental, financial, labor, and reputational problems this partnership may bring about.

But, manually doing this takes time, and depending on the size of your business, you may need to assess multiple suppliers at once.

Using an external service provider for logistics and supply chain management thereby, simplifies the work involved in the supply chain innovation process and frees up your time and energy to concentrate on more crucial elements of your company.