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Suppy Chain Technology

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SUPPLY CHAIN TECHNOLOGY

With today's emphasize on cutting costs and streamlining expenses, many companies are looking to improve their bottom lines with more effective supply chains. Unfortunately, many people involved with companies don't have a clear understanding of what a supply chain is or how it fits into the companies overall strategy.

Supply chains include a company’s entire manufacturing and distribution process. They involve every step of the production from planning to manufacturing to handling defective goods. The overall goal of these chains is to keep the process running smoothly at all times and to keep all of the components (i . e. vendors, warehouses, etc.) connected.

Even for business individuals who do understand the essence of the supply chain, they may not understand how it fits in or how it is different from another popular technology: ERP (Enterprise Resource Program). In fact, supply chains often work best in conjunction with an ERP system but they are not meant to replace or to use instead of such a system because ERP systems involve a multitude of business activities, including customer service and production planning that are not a part of supply chains. Supply chains are generally concerned with the flow of raw materials, manufacturing, production, and distribution. However, the ERP system does organize a lot of the information supply chains use to run efficiently and without that system most companies run into problems effectively setting up their supply chains.

Technology also plays an important role in the success of supply chain management. Even though the supply chain concept pre-dates the Internet, only through the use of web-based software and communication can it truly reach its full potential. Before the Internet, companies were limited because they were not able to receive or to send updates, feedback, or other

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