Supply Chain Management: New Technologies in Logistics (Essay Sample)

Student Name
Supply Chain Management: New technologies in logistics
Institution
30/04/2015
New Technologies in Logistics.
Supply chain management encompasses all activities geared towards the creation of utility. There are different forms of services, which include form, place, time and possession utilities. SCM entails achievement of all this. Form utility involves the creation of goods through production; place service deals with the distribution of the goods. Time efficiency achieved when products reach the client in time of need. Possession involves the change in ownership through selling. SCM encompasses achievement of these significant purposes of a firm.
Companies faced with a dynamic customer base and market environment. Associated with the development of technology that has led to the growth of very sophisticated shoppers with adequate knowledge of the market situation. Technology has also created globalization of the market. Globalization led to increased markets as well as the competition.
To increase competitivity in the modern marketplace ,firms need to embrace well-structured Supply chain management. It will increase efficiency in serving its client’s ,therefore increase customer satisfaction. Customer satisfaction is an ultimate goal of any reputable firm. It edges out competition and increases a firm’s market share. The significance of SCM in the achievement of a firm’s mission cannot underestimated.
The ability to harness this success horse lies in the identification of key trends that emerge on SCM. The patterns includes; supply chain security ,rein sourcing of operations and technological developments in logistics. The most critical of the trends named above is logistics technology. Technology deals with harnessing of new methods to create efficiency.
New technologies in logistics ensure speed and safety of products. It is important in that it increases business competencies such as; increase in economies of scale.It also guarantees speedy and safe delivery. Speed is a critical part of achieving satisfaction in a modern shopper. Most of the client’s desire instant satisfaction as they are busy. Thus, rendering logistics technology an integral part in SCM.
The need to adopt new technology to SCM operations and particularly logistics emphasized and sufficiently noted by (Paterson n pg.) who quoted a supply chain manager.The manager emphassissed the need of a business organization to adopt new technology.He also noted the changes made by technology on transactions.
Technological advancement includes; use of computers, conveyor belts, sophisticated methods of production and the invention of specialized carriers. The computer offers different forums whose power when harnessed revolutionizes the logistical approach of the firm. It offers the internet. This is a milestone technological development that is instrumental in globalisation of logistical approach. It offers e-commerce, a form of online trading.
Ecommerce has enlarged the market scope available to a firm. Shoppers can view a wide range of products availed by a company’s department. They order the goods online and the transaction is carried out in the internet. This calls for the integration of the marketing department to the logistical department. It is essential for ensuring that products purchased through the Internet are delivered on time.
This raises the need for logistical officers to improve their operation by developing a real Traffic management system. This is a critical technological development enabled by the internet. It helps reduce time wastage and identify milestone challenges facing the logistic team. A firm with an advanced TMS is able to retain consumers and win new users. In order to synchronize this development, Ceresia companies invented a super Freight management system.
The Ceresia is a firm website provider. Its invention aims at providing flexible freight management to producing companies. Freight management allows companies to investigate and utilize available courier vehicles. This is the most effective technological advancement available to a logistical department, as evidenced by the vast number of firms that were able to transact and deliver products at a cost effective price in 2012.
In addition, it offers numerous solutions for day to day challenges faced by a shipping company. For instances timely scan on the availability of freights, adequate Freight data analysis among others. All this aims at increasing efficiency of the firm. An added advantage is the ability of Ceresia to sell within social networks therefore endearing it to many users globally. Thus, a good investment for logistics manager.
Logistics managers are required to be innovative. They have the onus of maximizing profits by effective utilization of transport methods at their disposal (Riggs 2005). In performing their task, the managers are challenged by lack of appropriate communication method. In understanding of logistical dealings, most payments are done after delivery of the products. Due to the different modes of transport involved there may arise miss-communication.This may lead to loss of goods or late delivery of goods hence delayed payments.
Luckily, technology has solved this problem. A logistic firm may set a website where updates on the status of products are done in real time.This minimizes the loss that would occur due to late or total lack of communication. Thus, website setting is a feasible technological advancement to logistic firms.
In addition, technology has solved the problem of handling goods that require special attention. Achieved through manufacturing of specialized transport means. For example when carrying highly perishable goods invention of refrigerated vans has changed achievements of the logistical team. Unique carriers are essential tools as they help the firms diverse their operations. Eventually allowing logistic managers maximize utilization of the available tools. It also allows serving of a wide range of customers with different requirements.
This achievement can only come reality through careful organization and implementation. This requires a manager to investigate and formulate a workable plan when trying to choose technology that would work for his firm. Collection Ltd demonstrated a super model to follow when implementing new technology.The company collection.Etc successful upgraded it technology providing super model that can be used when trying to technological upgrade.
Steps to follow when upgrading logistics technology.
One significant thing to consider before incorporating any technology is the staff responses to the new method. A method that generates negative response from the staff members is not viable. It would just cause a shrink in the level of output the personel offers due to their uneasens with the method of producing the results. It is important to access the staff’s competency levels. This will help determine to what levels the logistic personnel exploit technology at their disposal. It also raises the question of the amount of training. Training is a critical tool in promoting human resource competencies. Therefore, by determining how much of this is required helps align the new technology with the company’s strategic goals.
Strategic goals require cost effectiveness. There...