Emerging technologies to support supply chain management

Abstract

New technologies that turn raw data into information and knowledge are changing the way the firms operate. In this context, various forms of supply chain management (SCM) applications are among the enabling technologies transforming how business markets operate. IT research agencies expect SCM applications sales to triple by 2004 [9], in part owing to developments in related technologies that support SCM applications. Prominent vendors in SCM applications market include i 2 Technologies, SAP AG, Oracle, and Invensys, which produce a range of hardware and software components that span communication, optimization, and modeling systems. The hardware and software components that support SCM applications can be collectively referred to as the supply chain infrastructure. In this article, we outline important developments in SCM and supply chain infrastructure, including technologies in optimization and modeling systems, which have had a remarkable imprint on supply chain decision-making. Our observations are indicative in nature and shed light on the trajectory these developments are taking, but are not meant to be comprehensive and do not encompass all the facets of supply chain management and SCM applications. Data Capture and Transmission In the area of communication, automatic data capture (ADC) technology is fast becoming an important tool to support business transactional information and supply chain processes. ADC systems, which are predicted to grow by almost 16% per year [9], include bar code scanning, voice recognition, and radio frequency data capture (RFDC) systems. The devices supporting ADC systems range from scanners, keyboards, PCs, laptops, servers, PDA devices, cell phones, pagers, and vehiclemounted instruments. One cannot hope to know the status of items flowing through the system without collecting data in a usable form as ADC systems do. Bar code scanning systems are currently integral to the supply chain infrastructure of many firms, and radio frequency identification (RFID) is gaining increasing acceptance too. While RFID systems are more expensive than bar codes, they can be read at very high speeds, and can collect 40 times the data collectible through traditional bar codes,