Link Magazine 19 - SCLG

Special Report 45Supply chains go hi-tech-By Chiranti SenguptaAs a growing number of organizationsworldwide find that they must rely oneffective supply chain logistics tosuccessfully compete in the global marketand networked economy, emergingtechnologies and applications have cometo play a critical role in helping themachieve their goal. As management guruPeter Drucker predicted in 1998, a newconcept of business relationship hasevolved, extending beyond traditionalenterprise boundaries and seeking to reorganizeentire business processesthroughout a value chain.One of the most critical differentiatorsbetween companies which are thriving inthis new economic paradigm and thosethat are struggling to cope is the way theyhave embraced and optimizedinformation technology (IT) in theirsupply chain logistics. IT applicationshave indeed revolutionized the logisticsindustry, changing the way all logisticsoperations are handled and enabling moreefficiency, reliability and speedthroughout the whole transportationprocess. Traditional companies have beenspurred on to embrace IT in their supplychain work flow in a big way thanks togrowing performance expectations,increasing competition and constantdemand for value-added services.Cost-effective solutionsThe adoption of IT in this changingbusiness landscape has not only ledcompanies to benefit from cost-effectivesolutions hitherto consideredunworkable, but has also resulted in winwincollaborations among allies – andbusiness rivals! Coupled with rapidglobalization of services, IT has enabledmany organizations such as Dell andHewlett Packard to successfully operatesolid collaborative supply networks inwhich each business partner focuses ononly a few key strategic activities.“IT and logistics have become inseparablein today’s world. The logistics industryhas undergone tremendous growth andthe enormity of the modern businesssimply means that its globalised,voluminous, data-driven and technologyorientedplatform cannot simply copewithout highly sophisticated ITinfrastructure to back it. Speed, accuracy,precision and security have become thekey success factors of today’s logisticsindustry,” explains Leonard D’souza,General Manager, G-Hanz.A close scrutiny of global supplynetworks reveals that most companieshave embraced IT in a wide variety ofareas in the sector – in work flowinnovations, physical infrastructure andstorage systems, inventory and assetcontrol, transport management, businessprocess integration and security.RFID and other technologiesManufacturers have to bear with a neverendingflow of incoming raw materialsand components. They constantly need tokeep track of incoming goods to updateinventory database and accountingThe Supply Chain & Logistics Group | www.sclgme.org