Technology and logistics integration in modern supply chains

Technology and Logistics Development-A

Technology and logistics

The development of technology is affecting the global economy making the market structures in terms of consumer needs hence forcing the productions to start operating at the global scale while adopting the new management forms based on a collaborative links within the present highly competitive environment. The excellence of the global logistics through good management has provoked a revolution in both manufacturing as well as, shipping enabling most companies to focus on the managing logistics from the perspective of supply chain. The firms are still trying hard to seek for the competitive advantage based on complex strategies such as acquiring new emerging technologies for information processing to continue helping in the management of the global logistics. The aim of this paper is to analyze various ways how technology can improve the management of global logistics.

Development of technology can improve the management of global logistics through implementation of automated software such as the "total cost software" that can be used by firms to calculate the total delivered cost management. Today, most companies have shifted to the new technology by acquiring the introduced software for automating the global logistics processes as compared to other firms which still do calculations manually, however the logistics personnel are trying very hard to find ways of improving those firms for competitive advantage. The software is able to analyze as well as predict the cost of the total supply chain from the supply source to the final distribution point and that makes work easier. It can also make an optimal logistics decisions which ensure that, the execution is in line with the upstream decisions of sourcing (McCarthy, Jack, 2002).

As indicated by Albright Brian, (2002) the transport system and the industry as a whole has moved to the less contact era, where good don't have to by manually verified for identity or to be entered in the various systems that they go through while on transit. There is the hidden bar codes technology that assists in identifying goods at each step of the transit. Of late there is the use of Magnetic Resonance Imaging (MRI) technology that has been employed widely in the logistics sections and helps in ensuring accurate identification and tracking of goods from the source to the delivery point, such should be embraced and expanded in all firms.

Development of technology has also improved the management of global logistics by encouraging firms to implement the ERP systems. The global logistics planning as well as execution processes are still behind mostly when it comes to logistic management and supply chain. Therefore, creating a web-based system (ERP) will create interactions with people around the world when purchasing goods and services online. The system created will also help the firms in managing the global transportation carriers, rates and execution in an environment.

Technology has improved the management of global logistics by impacting on the supply chain processes. The customers are now digitally connected by allowing the firms to have their personal portals updated again and again with the tracking numbers put in place.

Technology has also contributed to transparency in a supply chain, improving the links in the firms' chain, a trend that should be replicated among al big logistics companies or companies that have big logistical arrangements. There are various systems implemented, for example, the advertising management systems that shows the quantity of the products to be put in the customers ads based on trends.