New Tools and Technology in Supply Chain Operations
Advancements in technology, popularly embraced for the positive effects it has on almost all aspects of business operations and management is rapidly growing. Technology has improved business communication and transportation, allowing organizations to compete more rigorously in the global marketplace. An area in the global marketplace positively affected by new tools and technologies to advance managerial control and increase organizational performance is the supply chain. Communication through cellphones and computers, and advancements in transportation is resulting in mass-producing with minimal effort and minimal time.
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The Widespread use of machines Intelligence is used for planning shipments, recommending products, and market trading. Automations are an intelligent software program that automatically generates various tasks for various areas of supply chain operations, while managing the movement of goods through the company’s network. It allows businesses to view the entire supply chain, optimizing the flow of information, goods, and revenue, while lowering cost and losses. Smaller companies may even use this technology for keeping and recording inventory.
The internet and cellphones are powerful tools that have made information sharing and networking easier for companies, both locally and abroad. The use of email, cell phone, and video teleconferencing systems makes for fast and effective two-way communication. New technology allows business to have a more robust way to thrive and expand product and services. In example, the Hersey chocolate factory uses cellphones technology to connect with and transmit information to African farmer with cocoa crops (Ryan, 2011). Another example is, global marketing companies outsourcing their call center and businesses to place like India and the Philippines. By using translation devices and application to translate and understand each other, having to learn a different language, as they would have years ago.
SWOT as a management tool
Outsourcing the supply chain can be beneficial but can also be risky. Organizations can use tools such as SWOT (strength, weaknesses, opportunities, and threats), a structural planning analysis technique to plan objectives and take steps towards gaining a competitive advantage in their business ventures or projects, both internally and externally. In example a company is considering outsourcing crop to Thailand, by using SWOT to ask question and generate meaningful information, they may realizing the risk of flooding in certain areas of Thailand that may destroy the crop and put the supply chain at risk.