I’m sick of people telling me that technology is not the answer to supply chain problems, or that supply chain management (SCM) technology has, in general, been a disappointment to those companies that have made major investments in them. What’s more disturbing to me is that I feel like I too have been brainwashed to repeat the same mantra. I’ve noticed that, in recent years, I’ve become somewhat tentative in describing what I do for a living. I preface everything I say with caveats about the limited efficacy of supply chain technologies.
When I think of SCM technology, I typically classify it into three categories: foundational, operational, and planning.
The foundational category spans any tools that help build visibility and connectivity among trading partners. These technologies create data that can be later used either in operations or planning. B2B connectivity, EDI, RFID, and voice recognition are all examples of foundational SCM technologies. I would probably put supply chain performance management in this category as well, since it builds the foundation for measuring the health of the supply chain.
I can comfortably say that SCM technology has generated billions of dollars in return on investment across hundreds of projects.
The operational category spans technologies that help manage an organization’s day-to-day needs in supply chain. This includes…
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