The focus on the supply chain increased manifold in the post-pandemic period. A supply chain typically means a network between suppliers and a company to produce, distribute and transport a specific product or deliver a service. In its broad sense, it encompasses all the steps taken from the inception of the product or service and ends in providing the end product to the intended customer.
Companies depend heavily on the supply chains as it reduces cost and streamlines the production process. Supply chains include producers, vendors, warehouses, shipping, transportation companies, distribution partners, and retailers. It broadly performs the function of developing the products, marketing, product distribution, finance and operations, and other varied activities.
In a survey conducted in 2020, it was seen that about 75% of the companies encountered disruptions in supply chains due to the lockdowns imposed by different governments across the globe.
This was due to the reason that the supply chains were not taken seriously in the pre-pandemic period. Therefore, in the pandemic period, it suffered heavily, which led to the businesses paying a considerable price in the form of loss of revenue and loyal customers.
But the silver lining is that the lessons learned from the pandemic have led to a more robust supply chain that can sustain even adverse conditions like lockdowns. It has taken under its wing factors like geodiversity, visibility, and surplus capacity of the finished product to raw material, leading to a sturdy supply chain network.
In supply chain management, the role of technology is of enormous importance. Without a booming IT structure that can support the ever-changing scenario of the supply chains, it is impossible to build a resilient network in every aspect.
To build a network of the supply chain that can proactively help an organization unlock its potential, optimum utilization of technology is essential. How supply chains can perform better with the help of technology is given below:
Technology helps to predict the market behavior leading to better management
With the increase in trade and all the associated tasks related to trading, accurate market predictions must be made. A robust technological structure will provide precise knowledge about the manufacturers, their services, and all the necessary information for delivering the end product to the consumers.
Data can help in accessing market behavior. Real-time data helps analyze the whole supply chain, access the demand and supply gap, and effectively assess the risks of the market.
It also provides the data necessary for the organizations to identify their vulnerable areas and secure their supply chains from minor and major disruptions.
Technology makes managing complex networks easier.
All businesses depend on multiple vendors and people for different aspects of the supply chain. Managing such a diverse workforce and keeping track of each vendor manually is an uphill task.
But with the help of technology, management becomes more straightforward. Technology helps keep track of different vendors and provides services like verification of the products, automatic invoicing, and payments. It helps in reducing delays and improves efficiency.
It also helps mitigate the risks and provides a holistic strategy for all the parties concerned to work effectively and at a faster pace.
Technology helps in the faster delivery of products and services, which builds goodwill with customers.
Faster and hassle-free delivery of services and products to the customers is the primary motto of every business. With more immediate delivery, the customer’s satisfaction increases, which helps to repeat the business and retain the same customer in the long run.
With the help of technology, the customers can be kept in the loop in the whole process, starting from order placement to order delivery. It helps the customer keep track of their product, which also acts as customer service, thus saving the time and money of the manufacturers.
Technology also helps the customers to return if they are not satisfied with the order. This is also an essential aspect of supply chains as a cumbersome returning process can dent the business’s reputation, which is a big no for any business. Canceling and returning the product should be a smooth process, and without technological intervention, it is impossible.
In the post-pandemic period, the emphasis is on supply chains that are robust and resilient. A service provider who understands the industry and can provide effective, flexible, and scalable services is needed worldwide.