How is Technology Improving Supply Chain Management?

Technology changes the business processes for the better. It allows better connectivity between employees and employers making more information available. It helps in streamlining file storage and increasing the power of data. One area that continues to develop is digital supply chain technology as it is one of the most promising technology expansions in the world of supply chain management.

The processes that offer a way for logistics to be tracked and analyzed in real-time with a digital supply chain model technology is stored and deployed in the cloud. This makes it easier for all parties attached to the chain to see the information.

The real-time traffic data would affect the shipping and receiving of parts for product manufacturing or end-users. This data is easily accessible with a digital supply chain model, IoT capabilities and tracking software which makes it easier to understand the transition and handling of products and materials. Smart road technology can build off traffic and weather data and plan new routes or automatically alert key personnel of delays.

Moreover, the driverless delivery and robotic warehouses are further possibilities with a digital supply chain model. With this model sharing and shipping information with customers has never been easier. The advancements in digital supply chain technology will likely drive global supply chain management.


Why is technology adoption in SCM important?


The technology adoption in the logistics industry has lagged behind many other fields until recently. Over the last few years, a constant stream of new tech-products and offerings for SCM along with logistics operations is incorporating technology into the logistics processes. This can create drastic efficiency gains and cost reductions.

In the coming years, industries must explore and exploit the technological possibilities in the supply chain to stay relevant to the world we live in. It can enhance your management processes The adoption of current technology offerings within the supply chain and logistics market will enable you to make the freight operations more efficient.


3 ways to benefit from technology adoption-


  1. Shipment Tracking – It has improved dramatically with the increased availability of low-cost GPS devices. It gives shippers the ability to quickly and easily verify the location of their Freight as well as check on delivery times and potential delays. Many shippers still rely on making phone calls to their carriers or drivers to receive tracking updates and adjust their expected delivery times. This is an immense waste of time for both the shipper and the carrier with the current offerings of tracking apps and automated email notifications. The shippers should strongly consider requiring the carrier’s they work with to have some sort of automated tracking alert system or an online web-based shipment tracking portal.


  1. Transportation management systems(TMS) are a great way for shippers to better organize and consolidate their inventory levels and freight movements. Many TMS systems provide document management for shipment documents and shipment management tools for pricing and availability. According to reports, less than 30% of shippers are using TMS systems within their businesses to coordinate inventory levels and shipments instead of relying on spreadsheets and decentralized documents and data. This includes the countless emails and phone calls generally associated with freight management.


  1. Data analytics as technology adoption has leapt forward within the logistics industry. The collection of shipment related data has also increased dramatically to the point that even small shippers can now take advantage of data-driven decision making. The large shippers have been able to collect data and analyse each lane and mode selection for the year. It can provide meaningful insights into the most cost-effective and most reliable service offerings that are currently available. Services such as combining shipment data with required inventory levels. Tracking your inventory turn closely can yield significant supply chain cost improvements. Digital access to any shipper that still relies on email or phone calls to book loads within their carrier network often results in a disjointed and time-intensive approach.


Stay in the game


To execute your shipment plans – The newer digitally-enabled logistics providers have changed the game by offering a fully digital platform to not only book loads but also provide comprehensive shipment analytics as well as effective tracking information. This enables the shipper to spend less time on basic tasks that can be easily automated and focused more on optimizing their supply chain. The optimisation is easily accessible with supply chain cost recording into your TMS system or digital provider.

This will let you track supply chain spending across shipment lanes and analyze cost levels down to the SKU digital logistics providers. It also makes payment processing easy with cloud-based invoice management tools and an easy-to-use payment portal reducing the time spent on accounts payable for small businesses in particular. The ability to pay transportation invoices online is a major time saver.




The world changes every day. If you’re not moving forward, not adapting to the technological advances, there’s a good chance that you’re not even in the game any longer.

Technology is designed to complement human efforts. It has already started showing traces of its usefulness in many industries including SCM.

The technology will continue to be more widely adopted and deployed within the supply chain and logistics areas. These technologies are already in use in various industries. The supply chain itself would benefit immensely from such adaptations. It would make the entire process more feasible, more transparent, less hectic with automatic doing the mundane task, leaving the main work to a human. It would truly revolutionize the supply chains across the globe.

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