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TECHNOLOGY
IN SUPPLY
CHAIN
OPERATIONS
CHAPTER 5
LEARNING
OBJECTIVESS
1.asses the technology that is available to support and
enable effective supply chain operations

2. identify new technology trends and the business

capabilities; and

3. apply and discuss the different supply chain

systems in hospitality industry operations.
 INTRODUCTION
New technology is crucial for logistics and transportation practitioners in maintaining connectivity and
tracking supply chains remotely. The hotel and hospitality industries heavily rely on efficient supply
chain management for service operations. Sustaining vendor partnerships and implementing a robust
demand mechanism are vital for enhancing service quality. A key focus in the hospitality supply chain is
delivering products or services promptly and cost-effectively to the right location. Smartphones and apps
are rapidly becoming indispensable tools for professionals in manufacturing, supply chain, and shipping
within this industry.
 TECHNOLOGY IN
SUPPLY CHAIN
A successful supply chain management involves all supply
chain members, including all transfers of products, resources,
knowledge, and cash flows. According to Galii and Pilepi (2007),
as knowledge has become a product in high demand, its quick and
efficient delivery has become a core field of concern for many
people, not just supply chain management participants. Companies
who excelled in the application of SCM methods analytical
techniques, and technology reaped various rewards, including:
• Increased control and quality standards of suppliers due to close partnerships, improved communication and cooperation
between supply chain members;

• Greater operation streamlining, faster lead times and refurbishment, and Improved preparation for and use of facilities;

• Improved coordination and collaboration among supply chain participants, contributing to enhanced designs of products and
processes;

• Quicker consumer reaction and better delivery;

• Increased precision of forecasts, preparation, and arranging;

• Improved production and response to changes in demand; and

• Significant decrease in inventory across the whole chain.

MOBILE TECHNOLOGY
IN SUPPLY CHAIN
MANAGEMENT
Most people's regular business lives have been influenced by
mobile technology, which is now involved in virtually every
field of modern business. With the rise in the number of
smartphones in the world and internet connectivity, it is now
possible to conduct a wide variety of tasks independent of their
position or the location of the user. Traditional business
operations are gradually being substituted by the e-
environment. And as mobile technology progresses, a growing
amount of business practices are moving to mobile devices,
especially smartphones.
TYPES OF
TYPICAL OPERATIONS PERCEIVED BENEFITS
APPLICATION

• time details on existing inventory levels

RFID (radio-frequency identification) readers are
• WAREHOUSE • Lower labor rates
located at the warehouse's entrances and exits to
MANAGEMENT • Proof of delivery automation
remotely check cases, pallets, or individual items
SYSTEM • stock verification is no longer needed
entering and leaving the warehouse.
• Brand monitoring in real time.

RFID readers and global positioning system (GPS) are

• Provision of real-time details regarding
mounted in the vehicle, allowing for constant tracking
the state of the goods
2. RETAIL of the goods' current state. The RFID infrastructure
DISTRIBUTION wirelessly interacts with a terminal computer near the
• Asset tracking in real time
driver.

3. SHOP FLOOR • Detection and eradication of off-the-shelf

Shop floor system is used to track, schedule, and report
SYSTEM conditions
on the progress, of work in a manufacturing plant.
TYPES OF
TYPICAL OPERATIONS PERCEIVED BENEFITS
APPLICATION

RFID readers are embedded in the shelf, constantly

4. SHELF tracking the amount of items on the shelf. • The fraud warnings are triggered.
MANAGEMENT • Waste reduction management that is effective.

Order tracking systems establish transparency and

improve customer satisfaction. Not only can consumers
5. CONSUMER SERVICE • Providing a more customized experience
track their orders, but consumers can also customized
SYSTEM
delivery options.

The MPOS is made up of a portable mobile device that

6. Mobile point of sales links to the wireless local area network (LAN), a • Getting rid of checkout queues; improving
(MPOS) payment processing scanner, and a tiny mobile revenue
Bluetooth printer.
 The most apparent benefit of using modern wireless and mobile technology in supply chain
management is that they offer an extremely effective, fast, and reliable means of gathering and
exchanging information and data on the transportation of products and other critical events.
Smartphones with WiFi, barcode scanners, GPS, RFID chips, high- quality cameras, and other handheld
devices are ubiquitous, and it is no surprise that they are used in the logistics industry, i.e., the supply
chain management process. Because of the rapid growth and evolution of emerging technology and
smartphones, many businesses have been forced to adjust to modern solutions and include them in the
process of developing logistics goods for the hospitality industry. Supply chain members can achieve
new standards of exposure and efficiency by optimizing the following decisions:
• Using mobile sensors to capture the position of shopping, processing, and storage centers in real time can
help with location decisions;

• Point-of-sale terminals and location-aware smart devices that can easily locate the cheapest materials can
assist in buying decisions;

• The vast number of portable barcode readers that can interpret items on hand and update inventories in
real time through wireless connections has significant effect on inventory decisions; and

• Transportation operations may be tracked using detectors and barcode readers, which capture the motions
of items as they are shipped in phases.
 Additional to RFID, other technologies like mobile
devices and cloud computing benefit hospitality
supply chain management. Mobile and wireless tech's
ease of use enables customers to access creative
services. The advantage lies in reaching users
anytime, anywhere. Location-based services (LBS)
and GPS play vital roles in logistics, providing real-
time geographic information for navigating terrain
and monitoring vehicles and cargo.
 PRODUCTION, OPERATION
AND DELIVERY
TECHNONOLOGY IN SUPPLY
CHAIN
New technology and its capabilities have been an integral part of
businesses that conform to emerging supply chain management
patterns. The prerequisites for the development of mobile supply
chain management (mSCM) have been developed on this basis.
Mobile SCM (MSCM) relates to the usage of mobile apps and
computers to assist in the execution of supply chain operations,
effectively assisting businesses in achieving cost savings, supply
chain responsiveness, and comparative advantage. In addition to the
advantages mentioned above, it should be remembered that the
proliferation of mobile apps and their ease of usage provide for real-
time contact with information systems of organizations in the
hospitality industry.
 THE WAYS ON HOW TECHNOLOGY CAN BE INTEGRATED IN DIFFERENT SUPPLY CHAIN
OPERATIONS ARE ;

• Use smartphone apps in shipping and distribution organizations for vehicle monitoring and
tracking. These have traditionally focused on advanced equipment, which seems to be
• TRACKING OF GOODS IN changing.
TRANSPORT AND LOGISTICS • Use tools to enhance vehicle management, route preparation, dispatching, and monitoring
• Direct communication between drivers and scheduling teams through completely
connected vehicle terminals or personal devices in real time

• Improving coordination between field and office personnel, as well as growing consumer
availability, resulting in increased staff engagement and customer support.
2. MOBILE FIELD
• Detecting breakdowns and repair needs in real time and scheduling a response using
WORKERS/TECHNICIANS
automatic push warnings. Because of this, more and quicker choices may be made.
 • Take advantage of the internet of things, which is rendered feasible by wireless access, 3-
D cameras, and improved geolocation capabilities. The computers are being turned into
3. INTERNET OF MOBILE THINGS knowledgeable, human-assisted network nodes on the public web as a consequence of
this.
• Integrating the capability with social networking to establish an emerging model of large-
scale, contextually informed mobile networking.

• Mobilizing the supply chain to allow for faster knowledge exchange between different
partners, resulting in a seamless work cycle, real-time data access, and proper tracking.
4. MOBILE SUPPLY CHAIN Keeping track of the flow of products and orders in real time.
MANAGEMENT • Overseeing the shop floor in order to predict, deploy, track, and control the staff.
• Use barcode scanning to update product records, allowing typical warehouse and shop
floor sales, analytics, reports, and other documents.

• Enabling cell device and sensor monitoring of raw materials, incomplete goods, and
completed items from the moment they reach the plant to the moment they are sent to the
5. INVENTORY MANAGEMENT
consumer.
• Transitioning from paper-based quality control solutions to mobile models.
SUPPLY CHAIN
MANAGEMENT IN THE
FOURT INDUSTRIAL
REVOLUTION.
Industry 4.0, the fourth industrial
revolution, introduces advanced technologies
like AI, IoT, robotics, and sensors to
transform production and delivery. In SCM,
smart technologies enable anticipating and
preventing failures, making the supply chain
smarter. This approach aligns preparation with
consumer demand, reducing costs and
preventing overstocks. Intelligent SCM not
only meets consumer requirements but also
frees up workers for more valuable
contributions by simplifying mundane
processes
Supply Chain
Management Is
All About
Customer
Supply Chain Management (SCM) historically
focused on productivity and cost reduction.
However, the shift towards customer-centric SCM
is evident, emphasizing the customer's role in
shaping objectives. Consumer satisfaction relies on
efficiently meeting their needs throughout the
supply chain. This involves organizing raw
materials, packaging, distribution, and order
management with a client-centric perspective. It's
not just about delivering orders on time but also
ensuring the correct timing before and after
shipment to meet customer expectations.
1. The Need
for Agility
Today's supply chain needs to be agile to
handle its complexity and changes. With
diverse consumer demands and dynamic
procurement affected by geopolitical shifts,
agility is crucial. An intelligent Supply
Chain Management (SCM) framework
ensures efficiency, cost-effectiveness, and
compliance with evolving legal
requirements.
2. Supply Chain
Management and the
Cloud System

Today's SCM thrives on cloud technology's

scalability and adaptability, ideal for the
dynamic business landscape. Unlike on-
premises solutions, cloud applications easily
handle unforeseen challenges, aligning
seamlessly with Business 4.0. Integrating the
cloud with SCM offers flexibility, allowing
businesses to adopt cloud-driven SCM based on
their needs without a full-scale migration,
maximizing value from current infrastructure
3. TRACEABILITY,
REPUDIATION, AND
TRUST WITH
BLOCKCHAIN.
Choose an SCM solution integrating blockchain for
clarity, traceability, and confidence in the supply
chain, particularly beneficial for the food sector.
Cutting-edge SCM solutions offer full visibility and
scalability through embedded cloud platforms,
addressing challenges like high consumer demands
and fluctuating demand. In the hospitality sector,
staying updated on global developments and creating
mobile apps for real-time communication, cost
reduction, and improved competitiveness is crucial.
Smartphone apps bring numerous benefits to logistics
and supply chain, with experts anticipating significant
impacts on the supply chain from social and web apps
in the future.
• Allow a network of people to handle a global supply chain;
• build a group of people based on transactional workflow;
• Provide centralized information sources for real-time feedback and decisions;
• Utilize versatility to reduce operating restrictions such as time of day or location, and
• Advance networking to facilitate knowledge exchange and enhance supply chain
efficiency
 CHAPTER
SUMMARY
Supply Chain Management (SCM) involves overseeing the flow of products,
documents, and finances from raw material purchase to final product distribution.
Logistics is just one aspect, with inventory handling and analytics also crucial in
digitally based SCM applications. Stakeholders, including vendors, distributors, and
retailers, use various systems like warehouse management, store delivery, and
mobile point of sales. Mobile technology enhances visibility and efficiency,
optimizing decisions like location tracking for buying, processing, and storage
facilities in real time. Point-of-sale terminals and location-aware smart devices play
key roles.

Utilizing portable barcode readers for real-time inventory updates aids buying
decisions by locating the cheapest materials. In Industry 4.0, companies now
proactively use smart technologies to anticipate and prevent failures in the supply
chain, a shift from reactive approaches in the past. Today's Supply Chain
Management focuses on making businesses smarter through technology integration.
• Utilizing portable barcode readers for real-time inventory updates aids buying
decisions by locating the cheapest materials. In Industry 4.0, companies now proactively
use smart technologies to anticipate and prevent failures in the supply chain, a shift from
reactive approaches in the past. Today's Supply Chain Management focuses on making
businesses smarter through technology integration.
REFERENCE

Baluyot, M. B. (2021). Supply Chain Management in the Hospitality Industry, pp. 37-45

Adopted from Doukidis and Vrechopoulos, 2005 (as cited in Pan et al., 2013)

European Commission (2013), Business opportunities: Mobility

 Erica H. Young

Jenalyn Villareal
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BSHM 2B
THAN
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