Evolution of Supply Chains and Logistics †MyAssignmenthelp.com

Question: Discuss about the Evolution of Supply Chains and Logistics. Answer: Introduction: Research on supply chain information systems (SCIT) started in the 1980s. In the beginning, SCIT was intended to automate manual processes like ordering and settling of accounts so that it would be a substitute to processes which are repetitive. Over the years, SCIT have initiated new features, for example sharing of information, coordinating and collaborating, so that an organisation is well connected to stakeholders in the supply chain. Such features enabled organisations to benefit from reduction in operating costs, improved customer service and sustained competitive advantages (Harnowo 2015). These features motivated the adoption of SCIT among many companies. An example of such an organisation is Wal-Mart, which invested a lot in SCIT and this significantly improved its coordination and collaboration with suppliers. This led to the company saving on its costs and these savings were passed to customers. Research however shows that not all companies benefited from SCIT (Prajogo Ol hager 2012). Many authors have considered SCIT broadly. Categorization of SCIT is therefore important so that there is a better understanding of which type of technology better fits with the objectives of an organisation. Some authors have classified SCIT based on the purpose of the business, relationship between an organisation and its suppliers and the function of information in the supply chain system. Other researchers also classify SCIT based on level of interdependence between the stakeholders in the supply chain and they have suggested three types of SCIT which are collective information resource, value chain information system, and networked information systems. Bensaou and Venkatraman (1995) also researched and suggested five types of SCIT which are remote relationships, electronic control, electronic interdependence, structural relationships, and mutual adjustment. Role of Technology in modern supply chain Information technology is considered as a key driver in the supply chain because it enables different elements to collaborate, with an aim of creating a supply chain which is integrated and coordinated. This is important as it ensures that processes flow smoothly and that deliveries are done on time. Technology is also important to the supply chain as it makes information visible to all managers in the supply chain. Due to this visibility, managers are able to make decisions that will enhance performance of the overall supply chain (Varma Khan 2017). Technology is also key in the supply chain as it reduces the function in transactions between the partners in the supply chain. This is achieved through cost-effective flow of information. Technology enables speedy remittance of information between the players in the supply chain hence reducing the time and process that would be take in transactions (Carr 2016). It also enhances collaboration and coordination, due to this sharing of information. Information Technology has also led to saving of costs by organisations. Due to smooth and efficient flow or information, processes happen quickly and this leads to saving of money by organizations. Longer processes are eliminated and the company is able to use the money saved to grow its business in other areas. Organizations are also able to spend more time focusing on their core business, as they do not have to constantly think about things that may have gone wrong during the supply chain processes (Stadtler 2015). Technologies in use in modern supply chain Computerized supply chain management has led to revolutionizing of businesses by allowing for better visibility and tracking. Organizations are able to implement real-time monitoring of the entire supply chain. Various technologies have improved the supply chain process. One of these technologies is radio technology through radio frequency identification, which enables effective monitoring or products in the production chain and in the supply line (Ye Wang 2013). Radio frequency chips are placed on all the items, which assists employees to detect any anomalies within orders. Problems can be corrected early before they ruin the whole supply chain. Another technology is advanced weighing technology, which has enabled the use of onboard truck sales. This has led to seamless operations when access to platform scales is not available. They ensure that a truck carries maximum weight from loading point while saving money and time (Butler 2016). They also ensure safety. The revolution of social media has enabled different organizations to optimize supply chain operations. It has enabled the opening up of more channels and remaining in touch with all supply-chain stakeholders. It increases company visibility and makes it very easy to respond to questions. Transport management software has enabled shipping and tracking of orders, which can even be done, from a mobile phone. Inventory data can be organized, shipping managed and distribution monitored (Brindley 2017). This has led to enhancement of customer experience and reduction of errors in the entire process. Data analytics has led to a lot of readily available information in the supply chain. New tools are generating volumes of data hence driving intelligence that can be used by the supply chain effectively. How technology use has changed supply chain interactions Technology use has changed supply change interactions for the better. Technology has allowed all the stakeholders in the supply chain to make better decisions as it had enabled fast collection of data from different sources and analysis if this data in an efficient manner (Sindi Roe 2017). This has led to better relationships in the supply chain. Due to technology, interactions have become better as there is integration of multiple platforms. These platforms work well together due standardized protocols. Digital boundaries, which previously existed, have been brought down hence enabling faster communication between supply chain stakeholders. Due to supply chain technologies, there has been removal of physical and political boundaries have occurred hence leading to greater interactions all over the globe. This has led to common data access, storage and retrieval (Carr 2016). This interconnection has led to enhanced security measures as security monitoring and implementation is possible across all digital planes while at the same time maintaining communication flow and enhancing business flow. As organisations become more dependent on technology, supply chain providers have been able to recognize the role of technology in todays supply chain. The embracing of technology has led to reduction of problems that traditionally occurred in the supply chain management process (Ye Wang 2013). Organizations, which have not embraced technology in their supply chain processes, have to do so if they aim to reduce costs and enhance smooth process flow. References Bensaou, M. and Venkatraman, N., 1995. Configurations of interorganizational relationships: A comparison between US and Japanese automakers. Management science,41(9), pp.1471-1492. Brindley, C. ed., 2017.Supply chain risk. Taylor Francis. Butler, J.L., 2016.1. Enabling Rapid Capture of Information Technology Opportunities: A Study of Opportunity Management in a Supply Chain (Doctoral dissertation). Carr, A.S., 2016. Relationships among Information Technology, Organizational Cooperation and Supply Chain Performance.Journal of Managerial Issues,28. Harnowo, A.S., 2015. Roles of Information Technology in Supply Chain Management. Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration.International Journal of Production Economics,135(1), pp.514-522. Sindi, S. and Roe, M., 2017. The Evolution of Supply Chains and Logistics. InStrategic Supply Chain Management(pp. 7-25). Springer International Publishing. Stadtler, H., 2015. Supply chain management: An overview. InSupply chain management and advanced planning(pp. 3-28). Springer Berlin Heidelberg. Varma, T.N. and Khan, D.A., 2017. Information technology in supply chain management. Ye, F. and Wang, Z., 2013. Effects of information technology alignment and information sharing on supply chain operational performance.Computers Industrial Engineering,65(3), pp.370-377.