Supply chain management has witnessed changes in its operation; that’s why you’d hear of such things as integrated supply chain. These changes are, however, inevitable since they facilitate better results of the supply chain.
Supply chain management involves all the processes in business, such as sourcing, planning, warehousing, delivering of goods, and feedback from the customers. There have been changes in supply chain management to make it more efficient and successful. These changes have also led to more satisfaction of customer’s expectations. Growth and changes are inevitable since the demand of supply controls them. Technology has been applied in various processes within the supply chain to enhance performance of those processes. These include purchasing of goods online, advertisement of goods and services and the delivery of good to the customers. This article will discuss changes in supply chain management and the effects of those changes on supply chain management.
Delivery of goods and services.
Due to the high demands of goods worldwide, there have been changes in the delivery of goods. Some goods are transported directly from the primary source to the customers. In contrast, others are transported from warehouses where they have been stored partially before being taken to the customers. Regardless of where the goods are sourced, customers expect to receive their goods on time and in the right quantity and quality. Some customers expect to receive their goods immediately after order. To facilitate faster delivery of goods, they have incorporated different ways of transporting their goods. These ways include the use of air, shipping them, and also establishing different warehouses in different areas to minimize the distance from where they are sourced to the end-users. Drones have been used too to enhance faster delivery of goods and to cut down on delivery costs. There has also been the establishment of different centers catering for different products. The separation is done depending on what goods are on-demand in which area. All these strategies have facilitated the process of quick delivery.
Creation of sub-supply chain model.
Supply chain management sometimes may involve transactions of businesses across the world. Different continents are in different time zones and experience different geographical conditions in a given time. Coordinating business across continents sometimes may be rugged by different factors such as language. To make the flow of activities easy, creation of a small supply chain within some countries or a continent has been established. These small supply chains assist in conducting business activities within the designated areas. However, these small chains are supposed to work in harmony to guarantee efficiency. Separation of these supply chain assists in the reduction of distance covered in the transportation of goods.
Digital verification has been achieved through blockchain technology. This technology is widely used by companies to ensure the proper handling of information within the company. All the information regarding different happenings within the company are put together in a way that cannot be changed or being interfered with in whatever manner. There is some sensitive information within a company, especially those dealing with the financial transaction. Other information involves delivery and ordering of goods. Recording of this information also ensures goods quality is maintained as it details the state in which they have been shipped and the state in which it reaches the customers. Such details include: the quantity, the quality, the temperature, and all other physical details of the good.
Involvement of technology.
Technology plays a major role in the development of supply chain management. All processes in the supply chain apply technology. Keeping information on each good is vital to ensure little or no waste. Different methods of transportation of goods use technology such as the use of drones and airplanes. Technology is used in the advertisement of goods to attract more customers. Ordering of goods might also be done using technological knowledge.
Changes in geographical areas.
Evolution has occurred in the area covered by different businesses within supply chain management. Initially, businesses were conducted within a small geographical area. Currently, we have global supply chain management involving more than one country or more than one continent. These changes have led to the growth of trade worldwide.
Advantages of Evolution in supply chain management.
Increased financial benefits.
The use of technology has been a major contributor to increased financial benefit in supply chain management. Advertisement of goods through different channels such as television and social media platforms have increased customers in various businesses hence more profit. More profit has also been realized through the application of a faster movement of goods.
Better customer services.
Customer care services have been made better through better feedback communication between suppliers and customers. Through the use of technology, faster movement of goods have increased customer satisfaction.
Reduction of waste.
The use of blockchain technology has ensured safer storage of information within companies. Safe storage of information reduces waste that occurs in the financial sector. Detailed information on the state of goods reduces waste by providing information on the state’s goods reach their destination.
The creation of sub-chain management within different countries has reduced work bulkiness. Managers manage little work within their sub chain. Reduced work increases the quality of work.
Evolution in supply chain management has brought growth. These changes across all departments in the supply chain management have led to a better realization of goals. Growth in one department affects the growth in the next department as the population grow worldwide, demands for goods increase. An increase in demands for goods led to more production of goods in the industries. The world today has witnessed better living conditions due to the changes in the business world. There has been improvement in acquiring of goods which have been made easier and faster by growth in technology. Quality of goods has improved as customers give feedback on the state of goods received from their suppliers. In case of any challenge occurring across the supply chain, effective communication is made to the relevant department. Corrections are made in line with any complaints received from the customers.
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