Incorporating new technologies into supply chains offers the business a range of benefits that leads to much-needed and wanted growth. Whether a business is in need of cost optimisation or to grow its revenue, adding new technology can contribute enormously to these goals.
Adding new technology is also necessary for a business to thrive within today’s digital business sphere. Technologies like artificial intelligence, process automation, and deep analytics have become a must have in order to compete. Here are a few of the ways that new technologies incorporated into supply chains can add value to a business.
What is a supply chain?
The network between a company, its suppliers, and buyers is known as a supply chain. Supply chains consist of a range of different participants, like activities, people, entities, information, and resources. Supply chains are used by businesses to increase the speed of production and reduce production costs to be able to compete and excel within their field.
Increased access to information in supply chains
Adding new technology to supply chain functions to locate and connect data that has been isolated within the supply chain. Data within the supply chain allows you to improve the supply chain’s performance, and if data has become isolated the supply chain will suffer. A range of issues and problems may arise, like inaccurate forecasts, inaccurate executions, and reaction times that are unnecessarily long. All of these will inevitably impact the level of customer service and in turn the business profit.
As supply chain technology gathers and connects information within the supply chain, visibility is increased. Visibility within a supply chain is crucial to have a clear picture of supply chain activities, demands, and disruptions. Today’s technology allows supply chain participants to view inventory status, warehouse activity, and product movement to easily satisfy the needs and wants of their partners and customers.
Increased insight into supply chains
Insight within a supply chain is necessary to make well-informed decisions. New technology incorporated into supply chains allows participants to view data, gain insights, and make informed decisions that affect all processes and people involved in the supply chain.
Increased agility in supply chains
Technology in the supply chain offers participants access to information which results in increased agility. Access to information allows participants to locate issues faster and find solutions quicker, which increases the supply chain’s agility. New technology used in supply chains is likely to recommend “best” activities that can be used if necessary.
Increased collaboration in supply chains
Collaboration within a supply chain is crucial. When two or more participants within the supply chain team up to achieve the desired goal, collaboration takes place. Well-designed supply chains have systems put in place, as well as technologies, to enable, monitor, and evaluate collaboration between participants. This allows a smooth transfer of information, analysis, and decisions.
Successful supply chains require synchronisation across an extended network. Once this has been achieved, businesses are sure to excel and achieve greater inventory turns, cost savings, and service levels.
Increased customer loyalty
One of the main goals of any business is to keep their customers, and potential customers, happy. If this is achieved the business is likely to have higher rates of customer loyalty. New technology incorporated into supply chains offer information when needed, visibility, and agility which is used to increase customer loyalty.
Clients and retailers can use this technology to know when their complete shipments will arrive so that they can inform and offer their customers the desired product. If this is done on time, the customer will be happy and will be likely to build a connection with the business.
The bottom line
Incorporating new technology into supply chains is the key to a business’s success. New technology will lead to saving of money, more access to information, and increased visibility for everyone involved in the supply chain.
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