Introduction
Every area and every sector of society has been affected by technology. Technological innovations in business, especially in supply chain management created significant changes in this field of endeavor. It is now possible for businessmen, corporate leaders, and employees to work faster, at a more efficient rate than ever before. It is also the reason why competition is at an all-time high but overall it helps in creating a more productive business environment. The root cause for all of these innovations can be categorized into two: computer systems and the Internet. This paper will take a closer look at the impact of technology on supply chain management.
Computerized Systems
With the computer revolution alone, much has been transformed in the area of supply chain management. One only has to consider the impact of efficient and high-speed computer hardware to understand what computers can do in business processes. If one will add innovative computer software – the applications that can be loaded into computers so that it can be used for specific functions – then the possibilities are endless. Computers can be used in designing a much leaner and more efficient production system (Bell, 2006).
It is perhaps in the area of automation that computerized systems were fully utilized in enhancing efficiency in the manufacturing sector. This is far beyond what early pioneers in factory design were able to accomplish. In the past the production of goods is laid out in sequential order, each person focused on one component and one specific aspect of the product. This is also seen in earlier models of assembly lines where the partially completed product moves from one section of the factory to the next until it is fully built. But when it comes to automation there is no need for an army of workers, computers do most of the work. It is this ability to significantly reduce human error that makes this system attractive to business people.
Computers are not only helpful when it comes to the production process it is also an important tool when it comes to increasing the efficiency of managers and corporate leaders in making decisions and the elimination of waste in the overall production flow (Shim & Siegel, 2008). Computer systems can provide feedback to management and provide data helping him to make forecasts, alerting the procurement department for instance to purchase certain items that will be needed in order not to disrupt the business operations of the company.
Computer systems are also helpful in monitoring every aspect of the production flow allowing managers to determine if there are areas that are creating “bottlenecks” that delay the delivery of goods to customers. Computer systems are also excellent tools when it comes to storing data and rapid analysis of the same. In a not-so-distant past, businessmen had to make do with paper and pen recording of sales and various accounting procedures. This time around sensitive data can be stored in a secure place and yet easily accessible by corporate leaders and therefore creating more transparent business operations.
Supply Chain and Technology
Innovators working with business leaders did not stop working on how to improve supply chain management. They utilized the power of the Internet and applied it to supply chain management (Dominick, 2006). While computer systems that are maintained in isolation can be helpful tools in business management, their power can be multiplied if they can communicate with other computer systems. The pathway that enables businessmen to communicate with their suppliers and customers over great distances is the Internet. It is now possible to send a message to suppliers regarding a particular raw material without having to use the help of a human messenger and spending money on transportation just so one can deliver a single piece of document.
It has to be pointed out that even without the Internet businessmen are already able to communicate over long distances through fax machines but there is a limitation to this kind of information delivery. With computers and the Internet, a company can send detailed specifications of their product. In just a few clicks of a mouse, headquarters can send a blueprint of a factory design to an architectural firm or the details of the delivery schedule for one whole year.
This is simply the beginning; innovators are now at work to increase the capacity of the Internet. The buzzword in computing in the 21st century is “On Demand” which is, “…the delivery of software functionality over the Internet from a single application instance that’s shared across all clients” (Dominick, 2006). In the past businessmen had to purchase software and then install it into their computers to be able to use cutting-edge applications. Today, the same capability is available by simply using a web browser. Computing power has reached a certain level where complicated functions can be accomplished within a browser.
Conclusion
Gone are the days when corporate leaders have to endure the hassles of ledgers and having to call upon an accountant to sort out accounting information. Today computer systems are allowing businessmen to consolidate their information in a secure location and yet accessible almost anywhere in the globe. This ease of use allows not only freedom but the ability to make decisions quickly and therefore reducing constraints that can easily bog down a business operation. When innovators added the power of the Internet into supply chain management it is now easier to communicate, send feedbacks and therefore increase efficiency and the elimination of potential constraints that can hinder production flow.
References
- Bell, S. (2006). Lean Enterprise Systems. New Jersey: John Wiley & Sons, Inc.
- Dominick, C. (2006). Supply Chain Technology: What’s Next? Web.
- Shim, J., J. Siegel. (2008). Financial Management. New York: Barron’s Educational