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The Impact of Technology on Supply Chain Management

The Impact of Technology on Supply Chain Management
Technology has several effects on supply chain management that contribute to a company’s productivity. Inventory management and distribution may be simplified in this manner. Cost savings, better customer service, and enhanced operational efficiency are three of the greatest boons of technological advancement in supply chain management. The effects of technology on logistics are discussed.
In terms of technological advancement, the logistics industry has lagged behind many others until relatively recently. Nevertheless, in the last few years, there has been a continual stream of new technology products and offers for supply chain management and logistics operations. Efficiency and cost reductions may be greatly improved by integrating technology into logistical procedures.

Supply Chain Management and the Role of Technology

Some of the ways that modern supply chain and logistics technologies can make freight operations more efficient and effective are discussed below.

Status Updates on Shipments

The widespread availability of inexpensive GPS devices has greatly facilitated shipment tracking by allowing shippers to simply and quickly ascertain the position of their cargo and monitor delivery timeframes and any delays. Still common is the practice of shippers calling carriers or drivers directly to get tracking information to reschedule their expectations for arrival timeframes. Now that tracking apps and automatic email alerts are available, shippers should definitely think about making carriers provide a web-based interface for tracking packages.

Transportation Management System (TMS)

Shipping companies may benefit greatly from TMS systems since they allow for more streamlined inventory management. Many transportation management systems (TMSs) provide document management for shipment documentation and shipment management capabilities, making the administration of freight shipments easier than before. Only about a third of companies that ship goods use transportation management systems (TMS) to keep track of their stock and shipments. The rest use spreadsheets, scattered databases, and a constant flow of emails and phone calls.

Statistical Analysis of Data

Shipping data has been collected to the point that even smaller shippers may reap the same benefits of data-driven decision making as bigger shippers thanks to the widespread use of technology in the logistics business. Gathering and analyzing data on each lane and mode choice throughout the year might shed light on which services are the most cost-effective and dependable. By combining shipping data with the levels of inventory needed based on how often items are sold, you can save a lot of money and time in the supply chain.

Capacity Access through the Internet

When scheduling shipments within their carrier network, many shippers still depend on email and phone conversations. This usually leads to a disconnected and time-consuming method of carrying out the cargo strategy. The game has been transformed by new digitally enabled logistics companies that provide a completely digital platform to schedule loads and give detailed shipment analytics and tracking information. So, the shipper may spend less time on boring tasks and more time using data that is easy to get to improve the supply chain.

In-App Purchases and Other Forms of Digital Currency

If you choose a TMS or digital supplier that also handles accounting, you’ll be able to readily monitor supply chain expenditures as they pertain to individual shipping channels and do indepth analyses of your costs, even down to the SKU level (SKU). In addition to streamlining the accounts payable process, digital logistics companies streamline payment processing using cloud-based invoice management tools and a streamlined payment interface. Having the option to pay transformation bills online is very helpful for smaller firms.


The use of IT in logistics and supply chain management has the potential to completely alter the corporate landscape. It’s a powerful resource that could make our lives better and make our operations run more smoothly.


The value of information technology in the logistics and supply chain management fields is, in a word, crucial.It has given businesses that invest in cutting-edge technology a leg up on the competition. Moreover, it has served as a foundation upon which new goods and services have been built. Information technology can help with logistics and supply chain management in more ways than just cutting costs and making things run more smoothly.
More and more businesses in the logistics and supply chain industries will embrace and use technological solutions. All of the above technologies are now on the market, which means they could help your supply chain right away.
Vineyard Brokerage uses cutting-edge technology to provide the best service possible; therefore, you can rely on us because we are with you every step of the way!