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Articles : Supply Chain : Supply
Chain Technology
SUPPLY CHAIN TECHNOLOY
+ith to%ay,s emphasi-e on cutting costs an% streamlining e.penses/ many
companies are loo0ing to improve their bottom lines with more effective
supply chains. 1nfortunately/ many people involve% with companies %on,t
have a clear un%erstan%ing of what a supply chain is or how it fits into the
companies overall strategy.
Supply chains inclu%e a company2s entire manufacturing an% %istribution
process. They involve every step of the pro%uction from planning to
manufacturing to han%ling %efective goo%s. The overall goal of these
chains is to 0eep the process running smoothly at all times an% to 0eep all
of the components (i . e. ven%ors/ warehouses/ etc.) connecte%.
Even for business in%ivi%uals who %o un%erstan% the essence of the supply
chain/ they may not un%erstan% how it fits in or how it is %ifferent from
another popular technology3 E4" (Enterprise 4esource "rogram). #n fact/
supply chains often wor0 best in con5unction with an E4" system but they
are not meant to replace or to use instea% of such a system because E4"
systems involve a multitu%e of business activities/ inclu%ing customer
service an% pro%uction planning that are not a part of supply chains.
Supply chains are generally concerne% with the flow of raw materials/
manufacturing/ pro%uction/ an% %istribution. 6owever/ the E4" system
%oes organi-e a lot of the information supply chains use to run efficiently
an% without that system most companies run into problems effectively
setting up their supply chains.
Technology also plays an important role in the success of supply chain
management. Even though the supply chain concept pre!%ates the #nternet/
only through the use of web!base% software an% communication can it
truly reach its full potential. 7efore the #nternet/ companies were limite%
4equest 8emo
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because they were not able to receive or to sen% up%ates/ fee%bac0/ or
other important information in a timely fashion. >%%itionally/ companies
were limite% in their ability to wor0 with global partners because of
language barriers an% time %ifferences. 1sing the #nternet to han%le most
of the elements involve% in supply change management/ inclu%ing
procurement an% communication/ ma0es the e.change of %ata an% the
running of the supply chain faster.
9ne of the biggest benefits technology has given to the supply chain
concept is the ability for companies to collaborate. These collaborations
are %esigne% for the mutual benefit of all parties. :or e.ample/ a supplier
of consumer goo%s may be lin0e% up via the #nternet to one of its
%istributors so that when the supply gets too low an or%er for more of
those goo%s can be place% automatically. #n this way/ the %istributor never
has to worry about running out of a pro%uct an% %isappointing customers
an% the supplier %oesn,t have to worry about maintaining a large inventory
in e.pectation of %eman%. Similar systems have also been constructe% to
sen% out multiple requests to ven%ors when an or%er is place%.
*ollaborating this way ma0es better use of e.isting resources an% paves
the way for a larger profit margin on all si%es of the equation.
+hile the benefits of supply chain management are many/ using
technology to achieve those benefits %oes have two main %rawbac0s3 one
is resistance from ven%ors an% the other is resistance from employees.
Suppliers of goo%s are often hesitant to 5ump onboar% because of the
initial costs involve% in setting up their own en% of supply chain
management system an% because most ven%ors %o not have a trusting
relationship with their buyers. To overcome this obstacle/ the strong
relationship must be present an% the seller nee%s to be able to see the
profit potential on their en% of the arrangement. ?i0ewise/ many
employees have learne% to %evelop a hate!hate relationship with new
technology. >fter all/ it costs them their 5obs an% often ma0es them feel
that their wor0 is more te%ious or more complicate%. "lus/ software
mista0es/ which are inevitable at the beginning/ may cause other
employees to lose faith in the system altogether. Employees nee% to trust
the system/ the company/ an% their ability to use the program if they are
going to a%opt the supply chain management software.
LEA"N #O"E A$OUT EPI% SOU"CIN
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