Technology role in supply chain management
The role of technology in supply chain management is crucial for companies to provide quality products at the right time and cost.
Fleet management software like telematics helps in increasing efficiency, fulfilling consumer expectations, increasing collaboration, reducing costs, better inventory management, and better decision-making. Proper maintenance and real-time data ensure that the supply chain cycle works successfully.
The road to success lies in technology, and companies must realize the importance of technology in supply chain management.
Today, the market is consumer-driven.
Consumers are empowered, and they have choices. They are quick in changing brands if they don’t get what they want when they want it.
It is driving companies to provide quality products at the right price at the right time.
Supply chain management plays a crucial role in ensuring that the company receives the raw materials and finished goods are dispatched in time.
Technology is playing an important role here. The role of IT in supply chain management is ever-increasing, and it is high time companies realize its importance.
What Is Supply Chain Management (SCM)?
Supply chain management is a part of logistics management. It refers to the entire process of making available the right products to the right person at the right time.
It is a process that involves suppliers, manufacturers, distributors, retailers, and consumers.
Fleet companies assist in effective supply chain management. The use of software like telematics ensures that the company reaches its consumers in time and serves them quality products.
How Is Technology Important In Supply Chain Management?
In the past few decades, infrastructure development has made it possible for companies to reach consumers in less time. The processes have been digitized.
Today, consumers can check where their desired product is, if it is in the company or on the road, whether perishable goods are being transported at an optimum temperature, etc.
Companies can also keep an eye on the vehicles while they are on move. They can track vehicle idling, fuel monitoring, truck maintenance, etc., so their products reach consumers quickly, without any downtime.
Different Roles Of Technology In SCM
The technology aids supply chain management in the following ways.
Proper fleet management makes it possible for companies to promptly ensure that the product reaches the consumers. Fleet management software like telematics allows keeping an eye on vehicle idling.
It is an effective way to find out where you are losing time. Since managers, drivers, and workers are aware that they can be traced at all times, it increases their efficiency. Plus, it eliminates the manual tasks of creating useful information about fleet schedules, allowing managers to focus on other important tasks.
2.Fulfilling Consumer Expectations
Consumers are more demanding presently. They are aware that they can obtain the desired goods from multiple vendors. They expect 1-day, 2-day, and even same-day delivery.
Customers can now check the progress of their order from its placement to order fulfillment. It increases transparency between the company and the customers, resulting in customer retention and loyalty.
It is crucial for the success of every business. Companies cannot bear any breakdown, causing unwanted delays; else, they lose customers.
Maintenance reminders by software allow the managers to keep the vehicles up-to-date, so no truck auto part betrays a driver on the move.
In the supply chain, reaching consumers on time is the ultimate goal, which can be fulfilled by proper fleet management.
Supply chain management includes the company, its partners, distributors and retailers. Information sharing with key partners is essential to execute the supply chain strategies effectively.
The manufacturers can share real-time data regarding the procurement needs, and the supplier can fulfill it on time by tracking the activities.
It creates an environment where informed decisions are made based on the real time information.
With the availability of real-time data, companies can assess the customer’s demand in specific regions and make products available according to it. It saves the suppliers from understocking or overstocking the retailers.
Also, fleet management software allows checking vehicle idling, fuel monitoring, driving skills, sending maintenance reminders etc., which are crucial for reducing unnecessary expenses.
By fuel monitoring, companies can see any significant changes in mileage, whether the vehicle is consuming more fuel than others, etc. It also allows keeping an eye on driver behavior through video dashcams. Vehicle idling also consumes excess fuel.
All these minor issues create significant expenses for the companies.
Companies cannot raise prices in today’s competitive market, but they need to reduce costs to stay competitive. The fleet management technology contributes significantly to it.
5.Better Inventory Management
Supply chain management ensures that the right quantity of material is available for the right processes at the right time. An excess quantity can get obsolete, resulting in waste, while less inventory can stop the production.
It leads to stockouts, delays in providing goods to the customers, and ultimately losing them if it happens often.
Supply chain technology works on real-time data, which reminds the supplier when raw materials reach reorder quantity.
To fulfill the flexible demands, a flexible transport system is important. By scheduled truck maintenance, companies have resources at their disposal, which can be deployed to fulfill the demands in emergencies.
6.Better Decision Making
Supply chain technology cannot work in isolation. A logistics system in place is crucial for supply chain strategies.
Management is presented with data from the supply chain processes and how the demands can be fulfilled by proper fleet management.
Fleet management has a greater role in the success of supply chain management.
By reducing vehicle idling, ensuring timely truck maintenance through automated maintenance reminders, ensuring drivers understand their responsibility and what is expected of them, companies can ensure that a supply chain cycle works successfully.
The road to success is made up of technology for companies who want to stay competitive in today’s marketplace.
Technology lies at the heart of all the processes today, and the supply chain is no exception. But it is also true that its success lies on the shoulders of a well-maintained fleet.
Increased consumer demands are pressuring companies to rely on privately-maintained fleets. It can change everything for a company. By installing telematics software for fleet management, companies can benefit greatly.
Trust technology and expand your business. It holds the key to your success today.