How does technology impact supply chain management?

Technology significantly impacts supply chain management by improving efficiency and accuracy. The integration of advanced technologies such as automation, artificial intelligence, and data analytics allows organizations to streamline operations, reduce lead times, and enhance decision-making processes. For example, automated inventory management systems can track stock levels in real-time, reducing the likelihood of human error, while data analytics can provide insights into demand forecasting and supply chain performance.

Enhanced accuracy is also achieved through technologies like barcoding and RFID (Radio-Frequency Identification), which support precise tracking of products throughout the entire supply chain. Such technological advancements lead to minimized waste, lower costs, and improved customer satisfaction due to better product availability and delivery times. Therefore, the positive influence of technology on efficiency and accuracy is a fundamental reason why it is integral to modern supply chain management.