First published: 27 July 2021 @ 6:00 pm
In today’s digital era, it is almost impossible to find a supply chain without some sort of information technology (IT) involvement. If you think about it, the value of a supply chain can be determined by how much money and time is saved from having IT integration into the supply chain.
There are many reasons why this is true, but here are six that come to mind:
1. Standardization
The most basic reason why IT is so important in today’s supply chains is because it allows for standardization.
The more that companies can work together and operate similarly, the easier it will be for them to work together on more complex problems and help improve overall efficiency. This leads to increased productivity, which is one of the main goals of supply chains.
2. Automation
Another reason why IT is important in today’s supply chains is because it allows for automation. In a sense, all companies are looking for ways to increase their efficiency and decrease their cost structures.
By implementing IT systems into their operations, they can make sure that every aspect of their business runs smoothly without having to waste time on mundane tasks that don’t need to be done at all.
3. Cost Reduction
A third reason why IT has become an integral part of today’s supply chains is because it allows for cost reduction.
When companies implement systems like ERP and SCM software, they can improve their efficiencies and make sure that they are able to save a great deal of money in the long run.
This will allow them to pay for their technology systems in a much shorter amount of time than if they were trying to fund them from other sources.
Click on the next page to read more reasons why IT has became an integral part of the modern supply chain!