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Benefits of Technology in Supply Chain Management

Benefits of Technology in Supply Chain Management

As technology transcends every aspect of our personal and professional lives, it has an impact on the supply chain.. The supply chain has been restructured by using advanced technology such as big data analytics, the internet of things, artificial intelligence, radio frequency identification and many more. These technologies have transformed the model of supply chain management from a linear one in which instructions are used to flow from supplier to producer to distributor to consumer and back to a more integrated model in which information flows in multiple directions to the supply chain.

The Benefits of Technology in Supply Chain Management

Following are some of the benefits of implementing different technologies in supply chain management:

1. Big Data

Big data platforms use historical sales and inventory figures as inputs to study past trends. By integrating these trends with seasonal fluctuations and other factors, the company forecasts demand for each product warehouse in locations in real-time.

2. Artificial Intelligence(AI)

This technology can be used in a couple of different ways from the kind of pre-season demand planning through to merchandising and buying decisions through planning and allocation and then in-season forecasting in terms of inventory availability and assortment and what to actually make available across the supply chain through to then was to fulfil that inventory from across distribution centers and also stores. Also then all the way through to route optimization and even in the last mile connectivity

3. Internet of Things(IoT)

Prominent IoT devices allow the organization to build its digital visibility capabilities. The entry-level shipment tracker can be used by companies for IoT drive track and trace to connect shipment and assets throughout the supply chain. All shipment and product moments can be tracked in real-time. Data from sensors and other IoT devices can be augmented with other supply chain data such as warehouse and transactional information to provide more granular visibility.

4. Radio frequency identification(RFID)

It is a means of identifying through radiofrequency products. From the inventory management perspective, the implementation of RFID allows the user to bridge that inaccurate level from the typical 65 to 70 percent over to the 98 plus percent which means the user will know the exact and accurate information of its inventory which allows them to make the appropriate decision.

5. Cloud Computing

Cloud computing technology offers a lot of benefits, it’s flexible, it allows easy integration of partners, this information of technologies and it gives the user visibility and control. In addition to this, the implementation of this technology also gives cost benefits in terms of inventing the systems and the applications in a globally consistent way.


To sum up, the above-mentioned technologies and their benefits are just the tips of the iceberg. There are a lot more benefits and a lot more technologies from which the supply chain and logistics industry will gain a ton of benefits. The era we are living in is one of modernization, and businesses are shifting their traditional business practices into automation in order to maximize results.

Are you looking to implement technology into your supply chain business? If yes so please feel free to contact us at support@aeologic.com