Impact of Technology on Supply Chain Management

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Supply Chain management and logistics faced a dramatic change globally since it has been Sherlocked by Information technology, it’s a long way when goods flow from manufacturer to wholesalers until it reaches to customers, technology has changed the business processes for better, it increased the power of information available to all at a time.

There are many components in a business operation; one of the things that continue to develop through technology is supply chain management, from handling the cumbersome work in robotic warehouses to cloud-based product and shipping information, from end to end transportation software to work automation, the supply chain has never been as easy as it is with technology intervention.

Technologies changed global supply chain management:

1.    RFID (Radio Frequency Identification) Tags:

The major problem faced by the supply chain today is the occurrence of disastrous errors; these errors can affect many ways like trucks leaving the goods behind, losing product, lack of sufficient stock, delivering to the wrong location, etc. RFID tags bring transparency in the system; these tags are placed with every product, contain microchip and antennae; one can scan the tag with the help of an RFID scanner to fetch out information like the order number, serial number, batch number, source location, and destination, etc.

RFID (Radio Frequency Identification) Tags

These pieces of information can be transferred to other RFID receivers. Many other helpful features are aligned with this technology to leverage the wide variety of tasks; RFID is the best technological aid to supply chain management.

2.    IoT Sensors:

In the food and pharmaceuticals industry, the product loss costs more than a trillion dollars a year; with the help of IoT (Internet of Things) technology, we can monitor the temperature and other affecting factors and share it with other partners in the supply chain, we can drastically reduce that amount of loss.

IoT Sensors

Temperature, humidity, light, and vibration can be tracked in IoT enabled packages when the package is shipped, it continuously gives the signal, if the temperature reaches a certain degree, it can be controlled, and the loss of products will be only minimal; this is one of the most trending technology in the supply chain management especially works for food and pharmaceutical industry.

3.    Transportation Softwares:

According to Piyush Jain, founder of Simpalm, an app development company, with the help of technology, we can create a responsive and end to end visible transportation network; there are different transportation networks if the product has to be shipped from one country to another it passes through different means of transportation from a truck to an airplane to a truck again or different mode in different cases, all can be tracked and monitored through a GPS enabled transportation software with a correct set of required features.

It’s not just about the transparency in the system for end-users, but using software for transportation can help in on-time delivery of goods, transparency in the shipment, goods contamination safety, safety from fraudulent acts, creation of new and easy routes and whatnot, it is one of the most helpful technology intervention in the global supply chain management, transportation all over the world is benefitted and became advanced with the help of GPS devices and transportation specific software.

4.    Automation:

Automation in supply chain management is called a game-changer; it affects supply chain management worldwide; technologies that automatize the operations are Augmented Reality, Improved Machine Learning, Robotization, and Automated Trucking.

Automation in supply chain management

Steps in the supply chain where automation works are picking and packing, selling on different channels, payments, and invoices, warehouse cumbersome placements, applying bulk actions, and many more.


It is essential to align the correct set of technologies with the nature of work your organization does. Sometimes, we believe in technologies that are way advanced and unnecessary for the organization; it never has to be the latest technology to use but what is required.

Impact of technology on Supply Chain Management

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