Effects of Recent Technologies on Supply Chain Operations.

Ram Varun Lakkaraju*1

*

Department of Management Studies,

Bhavans Vivekananda College, Secundrabad- 500094

*lakkarajuvarun@gmail.com

Abstract--A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Supply Chain Management (SCM) has gained significance as one of the 21st centurys manufacturing technology and innovative paradigms for improving organizational competitiveness. SCM has been considered as a competitive strategy for integrating suppliers and customers with the objective of improving response time and flexibility. Within each organization, such as manufacturer, the supply chain includes all functions involved in receiving and filling a customer request. As companies increasingly use their supply chain to compete and gain market share, activities and expenditure made in this field are increasing at an exponential rate. Technology and process upgrades at all the big companies clearly show that increasing value to customers is not just managements, but everyones. Introducing technology into the supply chain to a maximum extent is highly important as it helps to create a better and an efficient supply chain design. But whats missing in this context is, particularly regarding how the adoption of these technologies can create improvements in enterprise and supply chain operations. This paper identifies these trends, explains how they apply to supply chain operations, and presents results from companies who have adapted the technologies to improve their businesses. It also gives a brief view about how well a company can get benefitted from these trends. Key words-- Supply chain technology, supply chain design, supply chain operations.

right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements. Fierce competition in todays global markets, the introduction of products with shorter life cycles, and the heightened expectations of customers have forced business enterprises to invest in, and focus attention on, their supply chains. This, together with continuing advances in communications and transportation technologies (e.g., mobile, communication, Internet, and overnight delivery), has motivated the continuous evolution of the supply chain and of the techniques to manage it effectively. In a typical supply chain, raw materials are procured and items are produced at one or more factories, shipped to warehouses for intermediate storage, and then shipped to retailers or customers. Consequently, to reduce cost and improve service levels, effective supply chain strategies must take into account the interactions at the various levels in the supply chain. The supply chain, which is also referred to as the logistics network, consists of suppliers, manufacturing centres, warehouses, distribution centres, and retail outlets, as well as raw materials, work-in-process inventory, and finished products that flow between the facilities. Throughout this process, flow of information from one stage to another plays a crucial role as it ensures effective decisionmaking at the planning and execution stages. When it comes to the flow of information, no other tool or resource can do it as quickly and accurately as technology. This is true when it comes to supply chain as well. Today, technology in supply chain is much more than just computers. It includes varied aspects, right from factory automation, enhanced communication devices, data recognition equipments to other types of automated hardware and services.

I.

INTRODUCTION

Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the

II.

ROLE OF TECHNOLOGY CHAIN

INFORMATION IN SUPPLY

III.

RECENT TRENDS IN SUPPLY CHAIN MANAGEMENT THAT AFFECT SUPPLY CHAIN OPERATIONS

Information technology is revolutionizing the way, in which we live and work. It is changing all aspects of our life style. The digital revolution has given mankind the ability to treat information with mathematical precision, to transmit it with high accuracy and to manipulate it. These capabilities are bringing into being, a whole world within and around the physical world. The amount of calculation power that is available to mankind is increasing at an exceptional rate. Increasing competitive pressures are forcing companies to increase their rates of innovation. Companies are attempting to find ways to improve their flexibility and responsiveness and in turn competitiveness by changing their operations strategy, methods and technologies that include the implementation of Supply Chain Management (SCM) paradigm. Hence, Information Technology (IT) can enhance the ability of SCM. Organisations use technology in three broad areas namely transaction processing, supply chain planning and collaboration, and order tracking and delivery coordination. In transaction processing, companies employ technology to increase efficiency of information exchanged regularly between various supply chain partners. Typically, in this area, technology enables easy order processing, sending dispatch advice, tracking delivery status, billing, generating order quotes, etc. Technology also helps in supply chain planning and collaboration, thereby improving the overall effectiveness of the process. Here, technology is used to share planningrelated information like customer feedback, demand forecasting, inventory level, production capacity and other data. This helps in managing waste and inconsistency arising out of unpredictable and logistically demanding markets. Lastly, technology is also useful for order tracking and delivery coordination, as it monitors and coordinates individual shipments, ensuring delivery of the product to the consumer without errors. Employing technology at all these levels no doubt comes at a cost. However, apart from reducing physical work, technology improves the quality of information, expedites information transfer, and increases and smoothly manages the volume of transactions. While most companies have employed technology to manage their supply chain today, they have realised that conventional methods have to be pushed beyond their peripheries to sustain in highly competitive environments and fields. If applied correctly, technology holds the potential to turn supply chain into a major differentiating factor for any company. In this paper we are going to discuss about the recent trends that are part of Information Technology which affect the Supply Chain operations at a larger extent. Also, we are going to give the case studies with respect each trend that has adopted these practices and how it benefitted them.

Here are the top four trends and technologies impacting supply chain operations spanning production, distribution, retail and remote service.

A. Advanced Wireless: Voice & GPS Now leading cellular carriers have certified rugged handheld computers for voice communication, enabling data collection, data communication and cell phone functionality that converge into one device. Users dont need to worry about keeping separate cell phones and computers charged and maintained, nor do they need to switch back and forth between devices to complete routine tasks. Converging data and voice onto an integrated piece of equipment can cut the number of devices system administrators need to support in half, which provides sustainable operating cost savings. Bluetooth is also frequently integrated with these devices to interface peripherals and further reduce total cost of ownership by eliminating the costs of repairing and replacing cables. Connectivity convergence continues with the integration of GPS communication into mobile computers. For example, Intermecs CN3 includes wide-area wireless voice and data, 802.11, Bluetooth and GPS connectivity in a handheld computer small enough to fit in a shirt pocket. Together with the falling costs of wide area wireless coverage (including GPRS, GSM, CDMA and other technologies) and more generous data plans, computing innovations like these make it affordable and practical for many companies to implement real-time data access systems for their delivery drivers, sales and service staff, inspectors and other personnel. i. Case Study-Stanley Steemer, a carpet cleaning franchise, automated route operations at two branches with mobile computers with integrated wide-area wireless connectivity, GPS and a magnetic stripe reader to process credit card payments in real time when service was completed. Dynamic dispatch enabled by the GPS and real-time two-way communication enabled Stanley Steemer to improve efficiency enough to eliminate a full-time dispatcher position at each branch. One location is saving between $300 and $700 weekly in overtime, and both branches have greatly reduced time required to complete and process paperwork. B. Speech Recognition Speech recognition for hands-free data entry is also undergoing a new wave of innovation and adoption. Speech recognition helps productivity by reducing the need for users to look at a computer display. Following the larger IT trends of open systems and interoperability, speech synthesis/recognition capability can now be easily embedded into numerous legacy software packages, including warehouse management, picking and put away, inventory, inspection, quality control and other applications. This simplified integration has been made possible by the recent development

of terminal emulation (TE)-based speech recognition technology, which eliminates the need for a separate speech server and a proprietary interface between the speech system and the application software. TE enables speech synthesis to reduce the need to look at the display, and speech recognition to function as a true input technology, not as a separate application that has to be managed and integrated. By using terminal emulation to format and process speech input/output, data flows from and into existing software applications as if it had been entered by bar code scanning, key entry, or whatever method was previously used. TE-based speech recognition systems can work with warehouse management systems in real-time, which is another important innovation from traditional speech recognition technology. Traditional speech recognition was often implemented for high throughput operations where system planners valued speed and productivity over accuracy, especially for picking. Bar code data entry is considered more accurate, and speech input is generally acknowledged as enabling superior productivity because workers keep their hands and eyes on the picking operations and arent interrupted by using the computer screen and keyboard or scanner to initiate and complete operations. One analysis for a high volume distribution centre concluded bar code data entry was four percent more accurate than traditional speech (99 percent compared to 95 percent), but bar coding would require 26 more full-time equivalent (FTE) workers to handle the same transaction volume. When a hybrid system featuring TEbased speech recognition was analyzed, it was found to match bar code data entry accuracy while requiring 22 fewer FTEs, making it the overall most efficient method when the consequences of correcting picking errors were considered. ii. Case Study- Lighthouse for the Blind, a non-profit organization in St. Louis that trains and employs non-sighted workers, improved its warehouse picking accuracy by 25 percent with a new speech recognition system. The innovative system includes audible confirmation of picked items, enabling blind workers to accurately pick orders. C. Digital Imaging Like cellular voice, digital imaging is another technology consumers are familiar with that has now found a place in enterprise mobile computing equipment and applications. Transportation and distribution companies are using digital cameras integrated into the mobile computers so their drivers can capture proof of delivery, store stamped invoices, and detail conditions that prevent delivery. Technicians use the technology for proof of service. Other applications include capturing shelf displays and monitoring trade promotion compliance, collecting competitive information, documentation by inspectors, collecting evidence for accident reports, and recording damage and usage conditions for warranty claims. iii. Case Study- Mission Foods is one of the worlds largest producers of tortillas. Its products are sold throughout the U.S. by independent agents operating in a direct-store-delivery environment with supermarkets and retailers. Mission Foods converted from manual invoicing to creating invoices on a

handheld computer and generating a copy for the customer with a mobile printer. Invoice records are sent to Mission headquarters in real-time over the Cingular wide area wireless network. The practice eliminated the need for Mission Foods to scan in and process thousands of paper invoices. The company also expects five-figure annual savings from converting from its legacy invoices to thermal printing and supplies. Drivers use compact wearable printers, saving the time and fatigue associated with climbing in and out of the cab to print. The application also illustrates the value of converged wireless connectivity: the handheld computers used communicate with the mobile printers via Bluetooth, transmit invoice data by GPRS, and use wireless LAN connectivity at distribution centres. D. Radio-frequency identification (RFID) RFID is the wireless non-contact use of radiofrequency electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects. The tags contain electronically stored information. Some tags are powered by and read at short ranges (a few meters) via magnetic fields (electromagnetic induction). Others use a local power source such as a battery, or else have no battery but collect energy from the interrogating EM field, and then act as a passive transponder to emit microwaves or UHF radio waves (i.e., electromagnetic at high frequencies). Battery powered tags may operate at hundreds of meters. Unlike a bar code, the tag does not necessarily need to be within line of sight of the reader, and may be embedded in the tracked object. RFID is also more practical than ever before, with clear business cases being demonstrated for asset management and supply chain operations alike. For example, the U.S. Navy used RFID data entry to reduce the time for one missioncritical inventory process by 98 percent. TNT Logistics reduced its truck load verification time 24 percent by using RFID to automatically record goods loaded onto its trailers. Hundreds of other companies around the world are also implementing RFID-based shipping, receiving and inventory visibility applications. A sub-trend behind RFID adoption for inventory, warehouse and distribution operations is the use of vehicle-mounted and other mobile RFID readers to enhance or replace stationary models. With a mobile infrastructure, companies dont need to purchase, install and maintain a separate RFID reader for each dock door. Forklift-mounted and handheld readers can cover multiple docks, and be used in warehouse aisles and elsewhere throughout the facility, further reducing the required RFID investment. Plus, they put information directly in the users hands, so they can prevent errors, rather than just record them after they occur. v. Case Study- 1. The U.S. Social Security Administration (SSA) implemented RFID systems in a warehouse to track inventory and facilitate more efficient shipping to branch offices. The SSA realized a 39 percent productivity improvement and $1 million in annual savings. An additional 70 percent labour savings is expected following completion of a system upgrade and expansion.

2. Wal Mart worlds largest retailer implemented RFID in 2003. Wal-Mart Stores Inc. could increase sales by US$287 million by fixing just a small portion of its inventory problems using RFID (radio frequency identification) technology. IV. CONCLUSION

The world in which we live is changing at a pace that many consider to be faster and more seismic than at any point in history. Business needs for security, real-time visibility, and up-to-date information dont stop at the office door. These needs extend throughout supply chain operations, so reliable information systems must extend just as far. Developments in mobile computing, wireless communication, RFID, bar code and other data collection and communications technologies are helping businesses extend visibility and control over more areas of their operations. The competitiveness of companies will depend heavily on the degree to which they are prepared to understand and use the potential of new technologies for the benefit of consumers. By 2016, quantum computers will be reality and chips will have a capacity of one terabyte (1 million megabytes). Software agents will manage auctions, work and personal diaries and take care of many other daily jobs. Information will be available everywhere and through one personal device. Virtual reality will exist for a variety of products and services, not just video games. Security of data and privacy will be critical and biometry will be a key to ensuring secure access and authorisation. New technologies have a huge impact on our lives. The competitiveness of the companies in the consumer goods industry will depend heavily on the degree to which they are prepared to understand and use the potential of new technologies for the benefit of consumers. The new consumer is and wants to continue to be more knowledgeable. Information about the product (and brand), including nutrition, sourcing, sustainability and social responsibility, all add up to the value delivered. Hence the usage of updated technology practices by many companies in their supply chain improves customer satisfaction thereby providing larger profits. REFERENCES
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