Although supply chain technology is something many organizations are trying to adopt, there needs to be an emphasis on making sure tools, such as warehouse tracking software, are crafted and implemented with security in mind. As the global market has grown more expansive, executives have become more cognizant of the security issues that may come with increasing their reliance on technology.
A recent report from Deloitte spoke with 600 manufacturing and retail executives and found their biggest concern was sudden demand change, product flow disruption and quality failure. When operations that take the time to investigate new technology before adopting it, these issues should be easily avoided, as good technology coupled with a high-quality implementation process should bring great results for organizations. However, the report said many companies are failing to adopt advanced technologies that will help avoid these risks.
"Although many of the surveyed executives report using a wide range of tools to manage risk, only 36 percent use predictive modeling and less than one-third (29 percent) use risk sensing data, worst case scenario modeling, or business simulation – tools that can help drive more proactive management of supply chain risk," according to the report.
Getting ahead of these risks and avoiding them by adopting the right technology is essential. Forbes spoke with logistics professional Steve Banker who works with Dow Chemical. With more than 7,000 shipments a day, there is a lot of risk involved in this operation. To avoid any problems, he said they use "great software" to manage warehouse. This ensures no one becomes overwhelmed with the vast amount of data out there. Real-time technology should be something enterprises look into, Forbes said, as this will allow any necessary changes or shifts to be completed quickly and easily.
Keeping the industry safe
There have been some great measures taken to make sure global supply chains aren't at risk, including The Open Group releasing the Open Trusted Technology Provider Standard, which aims to benefit those who adopt IT software and products in manufacturing by telling them what is safe and which type of software they should look for.
"With the increasing sophistication of cyberattacks worldwide, technology buyers at large enterprises and government agencies need guarantees the products they source come from trusted suppliers and that they meet set criteria for securing their supply chains," David Lounsbury, CTO of the Open Group said.
Tools, such as an inventory management system, can be essential parts of a supply chain, but organizations must make sure safety is never forgotten.
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