Supply chains for modern companies crisscross the globe and encompass a number of partner companies. Firms with strong technology investments can make these elements efficient and improve overall business efficiency, according to a recent report by the Pioneer. The source gathered information at an Indian national conference on modern supply chain issues, with a special focus on countering volatility.
IT boosts management
According to the Pioneer, supply chain management in the current climate is highly dependent on information technology. Delegates at the supply chain conference repeatedly stated the importance of an up-to-date IT strategy, stressing that companies can carry logistics benefits into overall agility and efficiency.
"The global economic problems can be addressed [to] a large extent if supply chain can be used to reshape the business," expert Janat Shah said in a keynote address, according to the source. "Further integrating IT in the supply chain management will help [smooth] the process and make business successful."
Shah cited Marico and Toyota as examples of companies making great supply chain strides through intelligent technology procurement decisions, the Pioneer noted. He praised Marico's decision to add mobile technology and speed its link to farmers. He also voiced support for Toyota's cost-cutting in the way it tracks its vehicles.
According to the news provider, another of the conference's featured speakers, GL Sharma, explained that the supply chain management policies currently in place were developed in the 1990s but have come under increasing pressure as the global financial situation has tightened. He advised companies to cut any steps in logistics chains that cannot provide value.
Supply chain management technology can take many forms, as there are many individual processes to move goods over long distances. Systems with a wide variety of uses and benefits that are easy to quantify could be a sound decision. According to the Swazi Observer, electronic data interchange (EDI) is a powerful way to shave time from transactions that require movement across borders.
The news provider stated that companies with EDI can considerably reduce the time needed to accomplish customs transactions. By sending an electronic declaration of goods to inspectors, supply chain leaders remove a time-consuming step. According to the source, many countries accept EDI transmissions at the border, with developing nations rapidly adding the capability. The source stated that 19 nations have recently added EDI support.