Emerging SCM Technologies

Overview of SCM Evolution

The concept of SCM has only recently stepped into the marketing world. It rooted three decades back and has passed through three phases (Evans and Danks 1998):

Physical distribution management Phase: This phase is better characterized as ‘inventory push phase when manufacturing was handled in isolation and output was pushed down to the finished goods warehouses.

Integrated logistics Management Phase: This phase recognized the importance of integrating operations within the organization like sales, procurement, manufacturing, warehousing, distribution and transportation to achieve an efficient and effective goods distribution system.

Supply Chain Management Phase: The graduation of logistics management to its modern day avatar is better known as ‘SCM’. SCM extends the scope to link external partners like suppliers, vendors, distributors and customers with a view to deliver enhanced customer and economic value through synchronized management of the flow of physical goods and associated information from source to consumption. (Source: http://www.iimm.org/knowledge_bank/1_from-logistics-to- scm.htm). However, the evolution of the supply chain management has moved to focus on integration, visibility, cycle time reduction and streamlined channels. The new integration has a variety of activities that include:

• Integrated Purchasing Strategy
• Supplier Integration
• Supply Base Management
• Supply Chain Management

Emerging Technologies and SCM: The Future

Supply chains around the world are being transformed as rapid information and product flow must be accompanied with low cost and efficient supply chains. From robotics in warehouses and autonomous ships and trucks, to computerized shipping and tracking, technology has changed the industry for the better and has provided new levels of visibility. With the aid of technology, supply chains of the future may be a bit more complex, but will certainly be more efficient and less expensive. A few of the technological advancements that have changed the game for the logistics and supply chain management industry are:

1. Robotics
2. Internet of Things
3. Artificial Intelligence

4. Big Data Analytics
5. RFID for Data Capture and Identification
6. Blockchain
7. Drones for Logistics and Monitoring

Assessment:

You are supposed to choose any THREE technologies of your choice and answer the following Questions pertaining to EACH technology:

Q1: Explain the functioning of Technology in context to its technical and functional parameters. [LO’s Covered: CLO1, Max Marks=05]

Q2: Explain how the technology has changed the Supply Chain processes, leading to better performance, lower Costs, and reduced Cycle Time. [LO’s Covered: CLO1, Max Marks=05]

Q3: Critically Analyze the implementation of the Technology in context to changes in Organization structure, with use case examples. [LO’s Covered: CLO1, Max Marks=10]