Technology has become a core component of virtually every supply chain innovation. The Internet brings immediacy to almost any supply chain event by capturing real-time customer demand, and by maximizing visibility into asset status, including location of goods-in-transit, inventory positions, and supplier capacity. Use of technology, even as simple as using e-mail, can sometimes prove very effective. For instance, U.K. based photography firm Double Red, sends its photos by e-mail rather than by post. Its customer base has increased by 40 per cent because they can now meet tighter deadlines. Music retailers can now make it easy for customers to download music over the Internet rather than post out CDs. It is also cost-effective for software sellers to offer customers the facility of logging on, paying for their software and downloading - all via the company's web site.

E-powered business is estimated to skyrocket to $1.3 trillion in 2004 with the promises of convenience and cost reduction, as predicted by Forrester Research group. In parallel, the Internet and other emerging e-business models have produced expectations that many supply chain problems will be resolved by virtue of these new technology and business models. E-business strategies are supposed to reduce cost, increase service level, increase flexibility, and of course profits, albeit sometime in the future. Various electronic technologies inserted into supply chain give the supreme confidence to entrepreneur. Peter Nygrd echoed the same buoyancy, when he said "the company guarantees 100 per cent correct orders delivered within 24 hours or the merchandise is free".

About the Author:

The author is a senior supply chain professional with experience in companies like Arvind, Morarjee Brembana, and Raymond. He is currently with KDS Group as Chief Operating Officer. He has several articles to his credit.

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