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12 historical changes in Supply chain management that improve the total process of supply chain dramatically. In this article, I will discuss how these 22 Changes impact on supply chain process.
The 12 Changes are:
- Container and Cranes
- Pallets and Forklifts
- Racking System and VAN
- Barcoding and RFID
- Production line and LEAN
- Computer and Web Technology
- Mobile and Communication
- DRP and ERP
- DTS and TMS
- Inventory and Demand Planning
- Inventory Optimization
- Supply Chain Design and Network Modeling
I will discuss these 12 changes. How they impact on the supply chain, what is the benefits of these tools.
Container and Cranes
A container is one kind of box that is large, sealed, and standard in size that is used to transport goods. primarily for international shipping. A standard container can be handled by shipping, rail, and road transit operators to transfer goods in bulk quality.
A crane is one kind of machine that helps to move a container or a large volume of goods packages.
How they impact Supply Chain?
-It is easy to move the bulk goods by using containers and by using a crane the container easily place in the right position.
-Packaging the goods in standard size boxes helps to move the product easily.
-By using containers, it is easy to understand the capacity of the ship, it means according to the ship capacity the product can be loaded through the container.
–It is easy to move goods easily through road transportation by using containers.
-Every container has measurements. Therefore, it is easier to measure the warehouse capacity according to the container size.
Pallets and Forklifts
Using Pallet in goods give cost benefits solution to warehousing and storage operations. The initial cost is cheaper and less ongoing maintenance. It saves time and money over a significant period. Besides, it increases the employee’s efficiency and less time in the loading and unloading process.
forklifts are small machines designed to work in tight and narrow areas. It helps to manage the warehouse easily and with labor highest safety.
Racking System and VAN
The racking system helps to store the goods in the warehouse easily. Besides, it makes the warehouse in the systemic arrangement. It also helps to track the goods easily. One important benefit is you can separate the goods based on the slow-moving items and fast-moving items that make it easy to move goods from the warehouse.
Very narrow-aisle (VNA) are designed to work in areas narrower space. It can work even in than 12 feet (144 inches).
Barcoding and RFID
barcode system is a network of hardware and software that is consisting primarily of mobile computers, printers, handheld scanners, infrastructure, and supporting software. These systems are used to automate data collection that helps to get real-time data.
Radio-frequency identification (RFID) uses to automatically identify and track tags attached to goods. An RFID tag consists of a tiny radio transponder; a radio receiver and a transmitter.
Production line and LEAN
The production line is the sequence of production operations that is related to a single operation. For example, to produce a shirt the production process starts from cutting the fabric. So, when the first machine cut the fabric according to the measurement it goes to the next person for the next steps. This types of the line make a shart within 1 to 2 minutes.
This kind of process reduces production time.
Computer and Web Technology
This helps the supply chain process to get real-time data, helps to analyze data easily and effectively. Besides, it improved communication in the supply chain process.
Mobile and Communication
To capture real-time data mobile technology and communication helps. Because of technological improvement, the overall paperwork in the supply chain reduced. Therefore, the whole process takes less time.
DRP and ERP
DRP stands for Distribution Resources Planning. It is used for planning orders within a supply chain. It enables the user to set certain inventory control parameters and calculate the time-phased inventory requirements.
ERP stands for Enterprise Resources Planning. ERP is the business management software that is a suite for integrated applications. An organization uses ERP to collect, store, manage, and interpret data from many business activities.
Both help the organization to improve the process and also customer satisfaction.
DTS and TMS
The Defense Transportation System (DTS) is consists of two major elements that are military (organic) and commercial (nonorganic) resources. DTS infrastructure, including seaports, aerial ports, railways, highways, pipeline pumping and terminal stations, automated information etc.
TMS (Transport management system) is involved with your whole supply chai process. It has huge impact on SC. It creates value on the supply chain. Customer service improvement, inventory reduction, warehouse Managing with efficiently are impact on your supply chain that can gain through TMS.
Inventory and demand planning makes the supply chain more smooth because it reduce the risk. Forecasting of demand and keeping inventory according to forecast reduce inventory cost and reduce threat of overstock or understock.
In simple words, inventory optimization means the balancing between demand and supply. Inventory Optimisation means maintaining a certain level of inventory that would eliminate the stock out situation and at the same time the cost of carrying inventory reduce.
Supply Chain Design and Network Modeling
Supply Chain Network Design is a systematic approach to better understand the cost, time and best location. It is also need to ensure an optimal flow of products using advanced mathematical modelling.
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