customers and logistics partners.  However to move information smoothly, you need an underlying robust communication network. Otherwise, ineffectiveness and interruptions in the flow of information will be quickly manifested upstream and downstream in the form of delays and added costs.

 KEEPING A WATCH  -  Communication Inefficiencies

             Since the competitive nature of the manufacturing industries allows no room for error, it is necessary that the communication network be fully integrated, highly automated and extremely reliable. Network monitoring tool now have evolved to the point where information flows and handover can be mapped with total precision.  Documents files and instruction can be tracked and timed as they make their way across the complex network of services, scanners, readers, printers and countless other devices involved in the today’s supply chain operations.

 USING TECHNOLOGY TO IMPROVE SUPPLY CHAINS

   Investments need to be made in a wide variety of technologies and solutions by both shippers and service providers to enable smooth management of Supply Chains.  With the industry facing a global slowdown, financial crisis, high flue costs, and ‘go green’ environmental efforts , efficient management of supply chains has become critical to the growth, profitability – and even survival – of business. As a part of the strategy to streamline business operations, companies are increasingly investing in IT infrastructure and applications across their supply chain operations.

             Some of the Key issues faced by the shipper community include obtaining total supply chain visibility, reducing the time to market, responding to changes in demand through mass communication, and creating a supply chain of chains with enough flexibility to enable an agile enterprise rapidly respond to change. To address these needs, the logistics service provider community needs to provide the seamless access to global networks, deliver ‘real-time’ accurate information, integrate into shipper systems, manage more than transportation, and achieve a balance between managing client expectations, maximizing asset utilization and human resources.

 TECHNOLOGY AS ENABLER IN SCM

             In India, the supply chain market has numerous small and big players, coupled with complex processes, a multitude of incompatible systems, and a plethora of manual operations. This makes the SCM a challenging activity.  Most supply chain participants do not have compatible IT systems, platforms and application infrastructure in place to share informations and data that is crucial to execute collaboration objectives. Some technologies that can help today’s supply chain managers in overcoming these hurdles are:

ü      Forecasting & Planning Management

Collaborative planning and forecasting allows business to create, modify and track their financial and promotional plans for each channel – and communicate changes across the entire supply chain

 ü      Electronic Data Interchange

Electronic Data Interchange (EDI) is the inter-organizational exchange of business documents in structures, machine processable form. EDI can be used to electronically transmit documents such as purchase order, invoices, shipping bills, receiving advices and other standard business correspondence between trading partners.

 ü      Web Based Solutions

Integrated, new generations web-based systems can be designed to provide end-to-end automation of all functions, providing the necessary business visibility and increased accessibility.

 ü      Mobility Solutions

Integrating mobile technology with business applications will be a key trend in the future.  Mobility management is about eliminating the barrier between field resources and the corporate information they need to perform their work.

 ü      E-Commerce Platforms

Airports and ports need to have a common platform where all its stakeholders can exchange information and interact seamlessly. Such an e-commerce platform will reduce paper work.

 ü      Radio Frequency Identification (RFID)

Technology providers are working hard to keep pace with end user expectations by focusing on easier management and distribution of RFID data.

 SEARCHING FOR A ROI

             Enterprises typically struggle to justify the ROI for investing in supply chain visibility.  However, smart investments in visibility can be leveraged to improve supply chain productivity through increased data accuracy and elimination of ‘bad data’ issues plaguing existing EDI and ERP systems.  Some of the significant benefits of visibility that contribute to rapid ROI include:

 v     Lower total cost of supply chain through reduced inventories and perfect-order-delivery.

v     A better understanding of the supply chain to enable re-design of the network

v     Elimination of non value-add  activities and costs

v     Reduction in lead times, and shorter time to market

v     Better management through improved information technology (IT)

v     Access to intelligence that mitigates supply chain risks, like automated detection of security exceptions and environmental exceptions helps mitigate losses and save costs.

 SECURING SUPPLY CHAIN

             Maintaining a safe and secure supply chain, is just as vital in an economic downturn, as it is during an upturn. Business managers have recently become sensitized to the vulnerability of their SC’s and are now leveraging a variety of technologies to enhance and the security of their SC’s.

              

                 

Article by

S. Shiny

Karpagam University

s.shiny04@gmail.com